Class Description

Accounting I is offered as an elective for juniors and seniors. It is a full-year course. The first semester consists of learning and understanding the basic principles connected to the accounting equation. Double entry accounting is presented through the use of a multicolumn journal and a general ledger system. We will first learn how to keep the books of a service business owned by one person. Then we will cover how to keep track of a merchandising business organized as a corporation. We will be using five special journals in this unit. At the end of each of these units, we will do a simulation of an actual business, keeping track of its daily transactions.

Second semester we will continue to study how a corporation is organized and how to keep the records for it. We will also have a special personal income tax unit. This unit uses the Internet sites of the IRS. Depending on student make-up, the last nine weeks may be set up as independent study. If time allows, we will also look at partnership accounting, international sales, and internet sales.

Logical thinking skills and management skills are developed in this course, making it beneficial to all high school students. This course will give the skills a student will need to run a small business and to keep track of his or her personal accounting records. Although most of the work is done manually, the computer is used in reviewing of chapter concepts and special application problems at the end of each unit.

Class Expectations

Testing Information:

1. There will be a test after each chapter.
2. Tests are always handed back. Students are expected to keep tests. Great source of review for final exam.
3. First test will come at end of Chapter 1. (Four days into the school year)

Daily Work:

1. Daily work will vary depending on chapter material. Reading of chapter material is a must! A minimum of 1/2 to 1 hour out-of-class work is expected. (Some students will require more time)
2. Selected daily work is corrected and scored for grading.

Major Projects:

1. 1st major project comes after Chapter 8. The students will run the acct. records for a service business for a month. The project takes 4-5 days to complete. Its value is a major test grade.
2. 2nd major project comes after Chapter 16. The students run the complete accounting records for a merchandising business. Takes 3-4 weeks to complete. Counts for a major portion of a nine weeks grade.

Miscellaneous:

1. Success comes from a thorough reading of the chapter, completing the study guide, and doing the end of chapter problems.
2. Good work habits are needed. Don't get behind in daily assignments.
3. Points will be deducted for late work. Assignments never turned in results in zero points earned.
4. Missing a key instruction period on a chapter can really hurt. A student cannot afford to miss class often. Student should seek my help to get caught up!

Final Grade:

1. All work is assigned a certain number of points. Total points earned divided by total points possible will be your percentage and that will be converted to your grade.
2. I follow a percentage scale for grading. The scale is posted as part of the Accounting web page (see link at top). I do not curve grades.
3. A student's semester grade is based on a final exam worth up to 20% and the two nine week grades at 80%.

Additional Information:

Feel free to contact me at Unity or at my home. My voice mail is extension 126. Leave a message and I will get back to you. My email address is dpals@unity.pvt.k12.ia.us

Class Outline

I. Accounting in Today's Society

A. Why study?
B. Careers in Accounting (Ongoing throughout the textbook).

II. Service Business--Sole Proprietorship

A. Starting an Accounting System for a Sole Proprietorship.

1. The Accounting Equation.
2. Business transactions that affect the accounting equation.

3. Transactions that affect Owner's Equity.

B. Analyzing Transactions into Debit and Credit Parts.

1. Analyzing account balances.
2. What is a debit or credit?
3. Analzing the affect on accounts.

C. Journalizing Transactions.

1. Using a multicolumn journal.

2. Proving and ruling a journal.

D. Posting to a General Ledger.

1. 5 basic steps, individual and column totals.

2. Correcting entries.

E. Cash Control.

1. Checking accounts and bank reconciliations.

2. Electronic banking.
3. Petty Cash.

F. Preparing a Work Sheet.

1. Trial Balance.
2. Adjusting entries.

3. Extensions on a worksheet.
3. Finding and correcting accounting errors.

G. Financial Statements.

1. Income Statement.
2. Balance Sheet.

H. Finishing the Accounting Cycle.

1. Recording and posting adjusting entries and closing entries.
2. Post Closing Trial Balance.

I. Simulation of a Service Business.

1. Eddie Ortega, Disc Jockey.

III. Accounting for a Merchandising Business Organized as a Corporation.

A. Journalizing purchases and cash payments transactions using the five special journals.

B. Journalizing sales and cash receipts transactions using the five special journals.
C. Posting from the 5 special journals to 3 ledger.
D. Payroll Accounting.

1. Time cards, Payroll tax withholding.
2. Preparing payroll register.
3. Preparing employees earnings record.
4. Payroll checks.

E. Payroll transactions, taxes, and reports.
1. Journalizing payroll transactions.
2. Reporting payroll taxes to IRS.

F. Worksheet for a Merchandising Business organized as a corporation.

1. 8-column worksheet with adjustments.
2. Net profit or loss.

G. Preparing Financial Statements for a Merchandising Business.

1. Income Statement, component percentages, and financial ratios.
2. Stockholder's Equity Statement.
3. Balance Sheet.

H. Fiscal Period Ending Activities for a corporation.

1. Adjusting and closing entries.
2. Post-Closing Trial Balance.

I. Simulation for a Merchandising Business.

1. Zenith Global Imports.

IV. Personal Income Tax Reporting

A. Taxpayer Responsibility.
B. Filling out 1040 EZ Form.

V. Accounting for a Merchandising Business Organized as a Corporation--Adjustments and Evaluations.

A. Accounting for Uncollectable Accounts Receivable.

1. Allowance method for uncollectable accounts.

2. Writing off and collecting uncollectable accounts.

B. Accounting for Plant Assets and Depreciation.

1. Keeping track of plant assets.
2. Calculating depreciation and recording.

3. Disposing of plant assets.
4. Methods--straight line and declining balance.

C. Accounting for Inventories.

1. Methods and recording data.
2. FIFI, LIFO, weighted average, and gross profit.

D. Accounting for Notes and Interest.

1. Notes Payable.
2. Notes Receivable.

E. Accounting for Accrued Revenue and Expenses.

1. Calculating year end interest.
2. Concept of reversing entries.

F. Fiscal Year End Activities for a Corporation.
1. Using a worksheet and planning adjustments.

2. Income Statement.
3. Stockholder's Equity.
4. Balance Sheet.
5. Recording adjusting, closing, and reversing entries.

VI. Additional Accounting Procedures.

A. Accounting for Partnerships.

1. Forming a partnership.

2. Distribution of net income and owners equity statement.

3. Dissolving a partnership.

B. International and Internet Sales.

1. Journalizing international sales.

2. Journalizing internet sales.