Description:

This course is a continuation of ACCT 121. Upon successful completion of this course, the student should be able to prepare and use financial statements with increased emphasis on interpretation and use of accounting data peculiar to partnerships, corporations and manufacturing firms. 3 hrs./wk.

Supplies: Refer to the instructor’s course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Process data and record entries for a partnership.
2. Prepare all balance sheet aspects regarding stockholder’s equity of a corporation.
3. Account for transactions arising from financing an organization through the issuance of bonds.
4. Prepare and use static and flexible budgets and variance analysis to effectively manage an organization.
5. Interpret financial statements employing the use of ratios, vertical and horizontal percentage analysis.
6. Prepare and analyze a statement of cash flow.
7. Account for the operations of a manufacturing operation.

Content Outline & Competencies:

I. Accounting for Partnerships
   A. Identify the characteristics unique to partnerships.
   B. Prepare the journal entries required to allocate net income/loss to
partners.

II. Corporations:  Stockholder’s Equity
   A. Compare characteristics of common and preferred stock; calculate
amounts of cash dividends due various types of stock; and journalize
entries necessary to allocate such dividends to stockholders.
   B. Calculate amounts involved in stock dividends and stock splits, and
to journalize the necessary transactions.
   C. Journalize the necessary entries for the issuance of stock with a
par value or with no par value, and analyze the effect on financial
reporting.
   D. Calculate the book value per share of common and/or preferred stock
in a variety of circumstances and describe the limited use of the
calculation.
   E. Determine the reason for the acquisition of treasury stock and the
effect of treasury stock upon stockholder equity.  Journalize entries
necessary for treasury stock transactions.
   F. Describe the purpose for appropriation and restriction of Retained
Earnings and the appropriate disclosure – accounts and/or notes.
   G. Prepare a Statement of Retained Earnings.

III. Bonds Payable
   A. Describe the use of bonds (debt securities) as a financing tool
emphasizing the effect of market rate on issue price.
   B. Calculate proceeds and journalize necessary entries for the sale,
redemption and conversion of bonds under prevailing market rates.
   C. Journalize entries for the payment of bond interest and the
amortization of a premium or a discount by both the straight line and the
effective interest method.
   D. Journalize entries involving bond sinking funds.

IV. Decision-Making:  Budget Preparation and Analyzing Financial
Statements
   A. Analyze product-pricing and volume-profit decisions through
consideration of contribution margin and break-even analysis.
   B. Prepare and use a master budget.
   C. Analyze and interpret financial statements through preparation of
comparative statements combined with vertical and horizontal percentage
analysis and through ratio analysis.

V. Statement of Cash Flow
   A. Describe the use of the Statement of Cash Flows.
   B. Identify operating, investing and financing activities.
   C. Prepare a Statement of Cash Flows using the direct method.
   D. Prepare a schedule of non-cash investing and financing activities.
   E. Reconcile net income to cash provided by operations using the
indirect method.

VI. Accounting for Manufacturing Firms
   A. Compare the differences in accounts used and statements prepared by
merchandising and manufacturing firms; and prepare a Manufacturing
Statement and an Income Statement for a manufacturing firm.
   B. Calculate the costs of individual jobs and prepare job cost sheets;
calculate, apply and analyze overhead applied; and journalize entries
necessary under job order cost accounting.
   C. Calculate equivalent units of production and equivalent unit costs;
prepare a process cost summary; and journalize the necessary transactions
under FIFO process cost accounting.
   D. Prepare fixed and flexible budgets; calculate materials, labor and
overhead variances under a standard cost system; and analyze the cost of
such variances.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

   • Minimum of four examinations
   • Evaluation of homework assignments
   • Evaluation of participation in classroom discussions
   • Optional projects

Grading Criteria:

      A = 90 - 100%
      B = 80 -  89%
      C = 70 -  79%
      D = 60 -  69%
      F = below 60%

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.