Two

ACT350: Intermediate Accounting

Credit Hours:

3

Contact Hours:

This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 10-25 hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research.

Faculty Information

Name: Dr. Keya Simon

Phone:843-385-2878

CSU-GC Email: [email protected]

Virtual Office Hours: By appointment

Course Description and Outcomes

This course provides a thorough understanding of advanced accounting topics. Topics covered include the accounting cycle, financial statements, time value of money, revenue recognition and accounting for cash, receivables, inventory and long-term assets.

Course Learning Outcomes:

1. Identify the major financial statements and other means of financial reporting.

2. Identify the objectives of financial reporting.

3. Identify the major policy-setting bodies and their role in the standard-setting process.

4. Demonstrate the conceptual framework and its usefulness.

5. Describe the basic assumptions and principles of accounting.

6. Use basic accounting terminology.

7. Identify steps in the accounting cycle.

8. Record transactions in journals, post to ledger accounts, and prepare a trial balance.

9. Prepare adjusting entries and closing entries.

10. Prepare a variety of financial statements.

11. Explain the uses and limitations of the income statement, balanced sheet and statement of cash flows.

Participation & Attendance

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor.  

Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible.

Course Materials Required:

Kieso, D., Weygandt, J., & Warfield, T. (2014). Intermediate accounting (15th ed.). Hoboken, NJ : John Wiley & Sons. ISBN 13: 9781118147290

**All non-textbook required readings and materials necessary to complete assignments, discussions, and/or supplemental or required exercises will be provided within the course itself. Please read through each course module carefully.

Course Schedule

Due Dates

The Academic Week at CSU-Global begins on Monday and ends the following Sunday.

Discussion Boards:  The original post must be completed by Thursday at 12 midnight MT and Peer Responses posted by Sunday 12 midnight MT. Late posts may not be awarded points.

Mastery Exercises: Students may access and retake mastery exercises through the last day of class until they achieve the scores they desire.

Critical Thinking Activities:  Assignments are due Sunday at 12 midnight MT. 

Week #	Readings	Assignments
1	· Chapters 1 & 2 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
2	· Chapter 3 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
3	· Chapters 4 & 5 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
4	· Chapters 6 & 7 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (20) · Critical Thinking (50)
5	· Chapters 8 & 9 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
6	· Chapters 10 & 11 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
7	· Chapters 12 & 13 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (10) · Critical Thinking (50)
8	· Chapters 18 in Intermediate accounting	· Discussion Board (25) · Mastery Exercises (20) · Portfolio Assignment (350)

Assignment Details This course includes the following assignments/projects:

Week 1

Critical Thinking: Financial Statements (50 points)

The financial statements of Procter & Gamble Company available at http://www.pg.com/en_US/index.shtml .

Refer to P&G’s financial statements and the accompanying notes to answer the following questions:

a. Using the notes to the consolidated financial statements, determine P&G’s revenue recognition policies. Discuss the impact of trade promotions on P&G’s financial statements.

b. Give two examples of where historical cost information is reported in P&G’s financial statements and related notes. Give two examples of the use of fair value information reported in either the financial statements or related notes.

c. How can we determine that the accounting principles used by P&G are prepared on a basis consistent with those of last year?

d. What is P&G’s accounting policy related to advertising? What accounting principle does P&G follow regarding accounting for advertising? Where are advertising expenses reported in the financial statements?

Portfolio Milestone:

Portfolio Project Description. The Portfolio Project requires that you use the annual reports of large corporations to demonstrate how financial statements influence company decisions. This final project will be due at the end of course, to be submitted through the assignment link by Sunday midnight of Week 8.

Week 2

Critical Thinking: Trial Balance (50 points)

Listed below are the transactions for Hunter Marketing. Inc. for the month of July:

July 1     Hunter begins his marketing company and invests $50,000 cash. July 5     Purchases computers and office equipment on account from OfficeMax for $10,250. July 6     Pays rent for office space $800 for the month. July 6     Employs a secretary, Mary Jones. July 8     Purchases office supplies for cash $960. July 9     Receives $2,430 from customer for services performed. July 11   Pays miscellaneous office expenses $375. July 13   Bills customers $4,900 for serviced performed. July 15   Pays Office Max $3,500 on account. July 18   Withdraws $2,000 from business for personal use. July 20   Receives $1,900 from customers on account. July 23   Bills customers $6,320 for services performed. July 30   Pays the following expenses in cash: office salaries $2,300 and utilities $400.

a. Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Office Equipment, Accumulated Depreciation, Accounts Payable, Hunter-Capital, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Utilities Expense, Depreciation Expense and Income Summary.

b. Prepare an unadjusted trial balance.

c. Record depreciation using a 5-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for office supplies used in the amount of $510.

d. Prepare an adjusted trial balance.

e. Prepare an income statement, a statement of retained earnings, and an unclassified balance sheet.

f. Close the ledger.

g. Prepare a post-closing trial balance.

Week 3

Critical Thinking: Balance Sheet (50 points)

Lander Inc. had the following balance sheet at December 31, 2008:

LANDER, INC. Balance Sheet December 31, 2008
Cash	$45,300		Accounts payable	$33,800
Accounts receivable	$18,900		Bonds payable	$35,000
Investments	$25,000		Common stock	$190,000
Plant assets (net)	$78,000		Retained earnings	$18,400
Land	$110,000
Total Assets	$277,200		Total Liabilities & Equity	$277,200

During 2009 the following occurred.

1. Lander liquidated its available-for-sale investment portfolio at a loss of $6,500.

2. A tract of land was purchased for $31,000.

3. An additional $20,000 in common stock was issued at par.

4. Dividends totaling $5,000 were declared and paid to stockholders.

5. Net income for 2009 was $29,000, including $7,000 in depreciation expense.

6. Land was purchased through the issuance of $25,000 in additional bonds.

7. At December 31, 009, Cash was $72,650, Accounts Receivable was $35,250, and Accounts Payable was $32,500.

a. Prepare a statement of cash flows for the year 2009 for Lander.

b. Prepare the balance sheet as it would appear at December 31, 2009.

Week 4

Critical Thinking: Bad Debts (50 points)

Chatter Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Chatter’s Accounts Receivable account was $389,000 and the Allowance for Doubtful Accounts had a debit balance of $5,000. The year-end balance reported in the balance sheet for the Allowance for Doubtful Accounts will be based on the aging schedule shown below:

Days Account Outstanding	Amount	Probability of Collection
Less than 16 days	$293,000	.97
Between 16 and 30 days	$102,000	.89
Between 31 and 45 days	$  70,000	.83
Between 46 and 60 days	$  55,000	.76
Between 61 and 75 days	$  28,000	.60
Over 75 days	$    8,000	.30

1. What is the appropriate balance for the Allowance for Doubtful Accounts at year-end? 

2. Show how accounts receivable would be presented on the balance sheet.

3. What is the dollar effect of the year-end bad debt adjustment on the before-tax income?

Week 5

Critical Thinking: Cost of Goods Sold (50 points)

Redster Company is a manufacturing firm. Presented below is information concerning one of its products, Ander:

Date	Transaction	Quantity	Price/Cost
1/1	Beginning inventory	2,900	$10
2/12	Purchase	3,300	$15
3/2	Sale	2,400	$28
4/18	Purchase	4,500	$18
5/31	Sale	3,800	$30

Compute the cost of goods sold under the following situations:

a. Periodic system, FIFO cost flow

b. Perpetual system, FIFO cost flow

c. Periodic system, LIFO cost flow

d. Perpetual system, LIFO cost flow

e. Periodic system, weighted-average cost flow

f. Perpetual system, moving-average cost flow

Week 6

Critical Thinking: Depreciation Expense (50 points) Valley Corporation purchased a new piece of equipment on June 1, 2011. The cost of this machine was $325,000. The company estimated that the machine would have a salvage value of $25,000 at the end of its service life. Its life is estimated at four years and its working hours are estimated at 50,000 hours. Year end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.

1. Straight-line depreciation for 2011.

2. Units of production method for 2011, assuming that machine usage was 13,000 hours.

3. Sum-of-the-years’-digits for 2012.

4. Double-declining balance for 2012.

Week 7

Critical Thinking: Directing Change Based on Accounting Information (50 Points)

Taylor Lewis Company has provided information on intangible assets as follows.

A patent was purchased from Craig Company for $4,000,000 on June 1, 2010. Lewis estimated the remaining useful life of the patent to be eight years. The patent was carried in Craig’s accounting records at a net book value of $3,500,000 when Craig sold it to Lewis.

During 2011, a franchise was purchased from Faragher Company for $360,000. In addition, 8% of revenue from the franchise must be paid to Faragher. Revenue from the franchise for 2011 was $1,950,000. Lewis estimates the useful life of the franchise to be 12 years and takes a full year’s amortization in the year of purchase.

Lewis incurred research and development costs in 2010 as follows.

Materials and equipment	$286,500
Personnel	$153,700
Indirect costs	$  95,355
	$535,555

Lewis estimates that these costs will be recouped by December 31, 2014. The materials and equipment purchased have no alternative uses.

On January 1, 2011, because of recent events in the field, Lewis estimates that the remaining life of the patent purchased on June 1, 2010, is only five years from January 1, 2011.

a. Prepare a schedule showing the intangible section of Lewis’s balance sheet at December 31, 2011. Show supporting computations in good form.

b. Prepare a schedule showing the income statement effect for the year ended December 31, 2011, as a result of the facts above. Show supporting computations in good form.

Week 8

Portfolio Assignment (350 points)

Complete a thorough accounting analysis using these 2007 annual reports for The Coca-Cola Company and PepsiCo, Inc.

For project details, see the Portfolio Project Description, which can be accessed from the Week 8 Assignments page.

Course Policies

Course Grading 20% Discussion Participation 10% Mastery Exercises 35% Critical Thinking Activities 35% Final Portfolio Paper

Grading Scale and Policies A 95.0 – 100 A- 90.0 – 94.9 B+ 86.7 – 89.9 B 83.3 – 86.6 B- 80.0 – 83.2 C+ 75.0 – 79.9 C 70.0 – 74.9 D 60.0 – 69.9 F 59.9 or below

In-Classroom Policies

For information on late work and Incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.

Academic Integrity

Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources.

Citing Sources with APA Style

All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should also be provided within most assignment descriptions on your course’s Assignments page.

Netiquette

Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words? 

Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by email, or on discussion boards and other postings within or connected to the online classroom.

If you have concerns about something that has been said, please let your instructor know.