Basics of Accounting



Accounting Principles 30SCourse Outline 2014-2015Business & Technology DepartmentMission Statement:Students need consumer, communication, economic, financial and advanced technology skills for them to succeed in a constantly evolving society. Business and Technology Education will allow students to acquire academic and technological skills they will need to achieve their goals.Business and Technology Education incorporates advanced technology, ethical standards, recognition of our school’s position in an increasingly global economy, cooperative learning, teamwork, and a commitment to life long learning. Business and Technology Education emphasizes creative and critical thinking, and encourages acceptance of change.Skills Portfolio:Academic – Effective communication, critical thinking and engaged learning.Advanced Technology – Apply guidelines for ethical and responsible use of Information and Communication Technology (ICT) and analyze advantages and disadvantages of the use of technology in society. (Examples: lack of access, ease of manipulating data…etc.) Personal Management – Maintain a positive attitude; act responsibly and respectfully while displaying willingness for adaptability and creativity. Self Assessment – Reflect on learning tasks and set personal goals to go beyond established criteria ‘for’, ‘as’ and ‘of’ learning. Teamwork – Collaborate with peers and staff to become active participants and to excel in the learning mon Essential Outcomes:Organizational skills and categorize information by:-Accessing, storing and managing files on a variety of drives. (Examples: network, USB…etc.)-Accessing school resources online. (Examples: Website, wiki’s, blog’s…etc.)-Accessing, managing and creating file directories (Example: a structure of electronic file folders.)All students will be assessed on the non achievement factors listed on the report card.General Goal for ACC30S:Accounting is the language of business. Accounting education prepares individuals to meet personal needs, to provide them with an awareness of a wide variety of accounting and technology careers and to lay the foundation for continued study and lifelong learning. Specific Outcomes for ACC30S:Students will be introduced to manual accounting procedures to provide an understanding of the accounting concepts, principles and processes. These manual accounting procedures are used in a computerized accounting environment on an ongoing basis using Microsoft Excel. Simply Accounting may be introduced in a progressive way towards the end of the course. ModuleTITLEHours% of Course1Introduction to Accounting Principles182The Income Statement123Journals and Ledgers124The Worksheet135Cash Control156Merchandising Business67Payroll168Income Tax12Module 1—Introduction to Accounting PrinciplesOutcomeLesson 1--IntroductionLesson 2—The Accounting EquationUnderstand the need for and purpose of the accounting equationWhy study accountingCharacteristics of businessThe nature of accountingBecoming a professional accountantRole of accountingClassify assets, liabilities, and owner’s equity for businessCalculate total assets, total liabilities, and owner’s equityCalculate the third missing element of the equation when two elements are givenLesson 3—The Balance SheetDescribe the sections of the balance sheetList accounts in liquidity orderIdentify accounts on the left side of the balance sheetIdentify accounts on the right side of the balance sheetExplain the importance of the account accounting formLesson 4—Preparing the Balance SheetPrepare in good form the balance sheet for a firmList assets in the correct order on the balance sheetList liabilities in the correct order on the balance sheetFormat the balance sheet correctlyLesson 5—Analyzing Changes in the Accounting EquationIndicate the effect of accounting transactions on the balance sheetAnalyze transactions affecting assetsAnalyze transactions affecting assets and liabilitiesAnalyze transactions affecting assets and owner’s equityLesson 6—Recording Changes in Financial PositionExplain the need for a T-accountExplain the need for and purpose of ledger accountsExplain the relationship of each ledger account to the accounting equationApply principles of debit and credit to the balance sheet accountsLesson 7—Recording Transactions in T-AccountsUse T-account forms to record increases and decreases in assets, liability, and owner’s equity accounts resulting from business transactionsApply the rules for recording transactions using the double-entry systemLesson 8—Calculating New Balances in the LedgerCalculate the new balance for each account after transactions have been recordedRecord the account balance on the correct side of the accountLesson 9—Preparing a Trial BalancePrepare a formal trial balance of a given General ledgerIdentify the sections of the trial balance sheetLesson 10—Preparing An Update Balance Sheet After Changes In Financial PositionSummarize the results of changes to the fundamental elements of the accounting equation by preparing an updated balance sheetModule 2—The Income Statement—In the Red or Black?OutcomesLesson 1—Profit and LossUnderstand and explain the meaning of revenue and expenseCalculate net income or net lossLesson 2—Preparing an Income StatementExplain the need for and purpose of an income statementPrepare an income statementExplain the Matching Principle (GAAP)List the procedures used n the accrual basis of accountingLesson 3—Debit and Credit Rules for Income Statement AccountsIdentify increases and decreases in the accounting equationIdentify increases and decreases in income statement accountsApply debits and credits to income statement accountsLesson 4—Recording Revenue and Expense Changes in the AccountsUse T-accounts to show increases and decreases in revenue and expense accountsExplain the Revenue Recognition GAAPExplain Expense Recognition GAAPDefine DrawingsLesson 5—Preparing an Updated Trial Balance and Income StatementClassify the types of accounts in the trial balanceIdentify the normal side of each account in the trial balancePrepare trial balances and income statements to reflect changes caused by transactionsLesson 6—Preparing Balance Sheets in Report FormPrepare an updated balance sheet including the net income (or loss) and the withdrawals by the ownerPrepare balance sheets in both report and account formatsModule 3—Journals and Ledgers—Keeping Track of It AllOutcomesLesson 1—The General JournalExplain the need for and importance of a journalRecord journal entries resulting from business transactionsRecord the opening journal entry for the start-up of a businessLesson 2—The Ledger and Posting ProceduresExplain the need for and purpose of the ledgerPost journal entries into appropriate ledger accounts with a cross-reference for each entryPrepare a chart of accountsPost an opening entry to appropriate ledger accountsPrepare a forwarding entry to begin a new ledger pageLesson 3—Subsidiary LedgersExplain the need for and importance of source documentsAnalyze the debit and credit parts of business transactions from given source documentsIdentify the need for and the purpose of the three-ledger systemRecord transactions in an accounts receivable ledgerRecord transactions in an accounts payable ledgerCheck the accuracy of the final balance in any given accountIdentify the final balance in any General Ledger account as a debit, credit, or zero balancePrepare an updated trial balanceFind and correct errors in journal and/or ledgerDefine accounting cyclePrepare balance sheets in both report and account formatsModule 4—The Worksheet—Sharpen Your Pencil!OutcomesLesson 1—The Six-Column WorksheetExplain the need for and purposes of a worksheetPrepare a six-column worksheetLesson 2—Preparing Financial Statements from a WorksheetReview the need for and purpose of an income statement and a balance sheetReview the preparation of balance sheets in account and report formPrepare income statements and balance sheets from information in a six-column worksheetPrepare a classified balance sheetReview the GAAP—Cost PrincipleLesson 3—Analyzing Financial StatementsAnalyze the performance and financial position of a business from the income statement and the balance sheetLesson 4—Closing the LedgerExplain the need for and the purpose of closing the ledgerPrepare journal entries to close revenue and expense accountsPrepare journal entries to transfer net income or net loss to the capital accountPrepare a journal entry to transfer the drawings account to the capital accountLesson 5—Posting the Closing Entries to the LedgerPost closing entries to the ledgerLesson 6—Preparing a Post-Closing Trial BalancePrepare a post-closing trial balance from a given General LedgerModule 5—Cash Control—Who’s Got the Money?OutcomesLesson 1—Control of Cash ReceiptsExplain the different forms of cashDiscuss the principles of cash controlDifferentiate between ethical and unethical practices of cash controlDefine cash floatPrepare a daily cash proofDifferentiate between cash shortages and cash overagesExplain the need for a cash short/over accountAnalyze and record cash over and short transactions in a General JournalPrepare a bank depositApply the appropriate accounting principleLesson 2—Sales and Goods and Service TaxDefine Federal Goods and Services Tax (GST)Describe the purposes and concepts of GSTCalculate GSTDefine Provincial Sales Tax (PST)Calculate PSTDifferentiate between GST Payable and PST PayableAnalyze and record GST and PST collected on sales in a General JournalAnalyze and record GST RefundableAnalyze GST Payable and GST Refundable account balances to determine the refund/remittance amountRecord remittance of GST Payable to the federal governmentAnalyze PST Payable account balance to determine the amount to be remitted to the provincial government (without Sales Tax Commission)Calculate the Sales Tax Commission for ManitobaCalculate and record remittance of Provincial Sales Tax owing to the Manitoba governmentLesson 3—Multicolumn JournalDescribe the multicolumn journalDifferentiate between the advantages and disadvantages of using a multicolumn journalAnalyze and record transactions in the multicolumn journalProve and rule the multicolumn journalLesson 4—Petty CashExplain a petty cash systemExplain the need for a petty cash voucherEstablish a petty cash fundPrepare a petty cash summaryReplenish the petty cash fundApply the appropriate accounting principleLesson 5—Banking at Financial InstitutionsDistinguish between a NSF (not sufficient funds) cheque and a dishonoured chequeDistinguish between outstanding and cancelled chequesDifferentiate between a certified cheque and a line of creditDefine endorsementExplain the difference between current account and savings accountDistinguish between chequebook record and bank/credit union statementDistinguish between debit card and credit cardDifferentiate between debit memo (DM) and credit memo (CM)Define service chargesDiscuss the concept of virtualLesson 6—Bank ReconciliationExplain the need for a bank/credit union reconciliation statementPrepare a bank/credit union reconciliation statementAnalyze and record the journal entries to adjust the cash recordsWrite a chequePrepare a bank/credit union depositModule 6—Merchandising BusinessOutcomesLesson 1—Merchandising Business Income StatementDefine merchandising businessIdentify and explain how a merchandising business differs from a service businessDefine Cost of Goods SoldPrepare an Income Statement including the Cost of Goods Sold sectionLesson 2—Cost of Goods SoldIdentify the special accounts for a merchandising businessCalculate the cost of goods soldRecord transactions for a merchandising businessPrepare a Cost of Goods Sold statementModule 7—A Dollar EarnedOutcomesLesson 1—Introduction to PayrollDefine the Employment Standards ActExplain the importance of a social insurance number (SIN)Distinguish between employee’s and employer’s rolesDefine income taxCompare exemptions and net claim codesComplete the Personal Tax Credits return (TD1) formLesson 2—Paying EmployeesDefine pay periodCompare/contrast salaries, commissions, and wagesDifferentiate between hourly rate and piece rateDistinguish between regular hours and overtime hoursCompute gross earningsLesson 3—Payroll DeductionsCompare deductions required by law, deductions that may be required by collective agreement, and voluntary deductionsCompare/contrast Income Tax, Canada Pension Plan (CPP), and Employment Insurance (EI)Distinguish between company Registered Pension Plan (RPP) and Registered Retirement Savings Plan (RRSP)Differentiate between Manitoba Health Insurance and extended insuranceDetermine Canada Pension Plan deductionsDetermine Employment Insurance deductionsDefine taxable earningsComputer taxable earningsDetermine income tax deductionsDistinguish between gross pay and net payComputer net payLesson 4—Payroll RegisterExplain the purpose of an employee’s earnings record and statement of earningsDescribe the payroll registerPrepare a payroll registerProve the accuracy of the payroll registerComputer, balance, and print a payroll register using spreadsheet softwareLesson 5—Payroll Liabilities and ExpensesDifferentiate between Salaries Expense and Salaries PayableRecord the totals from the payroll register into the General JournalRecord the payment of salaries to the employees in the General JournalAnalyze and record the employer’s payroll expenses in the General JournalAnalyze and record the remittance of payroll liabilities in the General JournalDescribe the different methods of transferring pay to the employeesDiscuss the necessity of updating employees’ earnings records after each pay periodSpecify the importance of the basic payroll recordsApply the appropriate accounting principleModule 8—Income Tax—Your Fair ShareOutcomesLesson 1—Personal Income TaxHave had a brief overview of the history of income tax in CanadaBe aware of the document necessary to file an income tax returnHave been introduced to terminology associated with filing an income tax returnLesson 2—Federal and Provincial Territorial Tax RatesCompare provincial/territorial tax ratesCalculate federal and provincial/territorial taxes dueLesson 3—Preparing a Personal Income Tax Return—Profile 1Complete an Income Tax return for a high school studentLesson 4—Preparing a Personal Income Tax Return—Profile 2complete an Income Tax return for a high school studentAssessment Strategy:An important component of learning is the assessment and evaluation of student progress and achievement. Therefore a variety of strategies will be used to assess students and these will include some or all of the following:Practice assignments – These will be assessed as part of the “for” and “as” learning. Teacher observation checklists - These will be assessed as part of the “for” and “as” learning.Projects – These will be assessed as part of the “of” learning. A best of series is offered for students. Quizzes and tests - These will be assessed as part of the “of” learning.Students will be allowed to write make-up tests under the following circumstances: If you miss a test, you will receive a zero grade for that test unless you have emailed me to make me aware of your absence and your parent/guardian has called the attendance line to inform the school of your absence. Tests will include both written and computer components. Tests will not be cumulative except to the extent that the material in each chapter builds on the previous chapters. Grade Breakdown:Projects, quizzes and tests make up 80% of the final grade.A final exam is held prior to exam week and is worth 20% of the final grade. Important Sites: me: emelanson@pembinatrails.caSupplies for class:Binder with loose-leaf or notebookPen/PencilUSB (2GB or higher) to be left in the classroom PROFESSIONAL BEHAVIOUR (excerpt from) are expected to treat your classmates and your instructor professionally at all times, both inside the classroom and outside it. Your instructor is expected to do the same. A student who demonstrates a high level of professional in-class behaviour does the following: Arrives on time for class (does not leave during class for water/snacks, pack up and/or leave early) Listens – alert, eyes on the speaker, nonverbal signs of attention demonstrated (does not watch the clock, use cell phones and laptop computers, read non-class material, chat with neighbours, etc.) Volunteers – contributes to discussions without being asked Speaks to the issue being discussed Participates in classroom activities with energy and evident enthusiasm Extras:If you are finished all of your work, please remain seated and quietly keep yourself busy. (NO GAMING) Please remain seated until the bell goes ................
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