ACNT 1304 - Introduction to Accounting II

After studying all materials and resources presented in the course, the student will be able to:

1. Apply accounting principles for a service enterprise and expand on those principles for a merchandising business.
   1. Use accounting terms presented in previous instruction and learn and use additional accounting terms. (1a-v, 1b-v)
   2. Analyze financial activities of a merchandising business—including purchases and sales of merchandise, trade discounts, cash discounts, return of merchandise by customer or to supplier, and transportation charges on merchandise deliveries. (1a-i, 1b-ii, 1b-iv, 1c-i, 2c-i, 2c-ii, 2c-iii)
   3. Classify accounts, including new accounts presented for a merchandising business. (1b-ii)
2. Apply steps involved in the accounting cycle to a merchandising business.
   1. Analyze and record transactions in the appropriate journal—Sales, Purchases, Cash Receipts, Cash Payments, or General—or in a Voucher Register or Check Register if using a voucher system). (1a-i, 1a-ii, 1b-i, 1b-ii, 1b-vi, 1c-i, 2a-ii, 2c-i, 2c-ii, 2d-i, 2d-ii)
   2. Post from journal(s) to ledger(s), including both individual posting and summary posting to general ledger, accounts receivable ledger, and/or accounts payable ledger. (1a-ii, 1c-i, 2d-i, 2d-ii)
   3. Prepare a trial balance. (1a-ii, 1a-iii)
   4. Prepare schedules of accounts receivable and accounts payable. (1a-ii, 1a-iii)
   5. Determine adjustments needed and record on a work sheet (involving adjustments for merchandise inventory, unearned revenue, depreciation, expired insurance, supplies used, estimated losses from bad debts, and accrued wages or salaries).
   6. Prepare a work sheet. (1a-ii, 1b-ii, 1b-vi, 2a-ii, 2c-i, 2c-ii, 2c-iii, 2d-i, 2d-ii)
   7. Prepare financial statements (income statement, statement of owner's equity, and classified balance sheet). (1a-ii, 1a-iii)
   8. Analyze financial statements by computing working capital, current and quick ratios, return on owner’s equity, accounts receivable turnover average, and inventory turnover average. (1a-iii)
   9. Journalize and post adjusting entries. (1a-i, 1a-ii, 1c-i, 2d-i, 2d-ii)
   10. Journalize and post-closing entries. (1a-i, 1a-ii, 1c-i, 2d-i, 2d-ii)
   11. Prepare a post-closing trial balance. (1a-ii, 1a-iii)
   12. Determine which adjusting entries require reversal and journalize and post needed reversing entries. (1a-ii, 1b-ii, 1c-i, 2d-i, 2d-ii)
3. Analyze and record specific transactions involving valuating and maintaining records for receivables, inventories, and plant and equipment.
   1. Make the adjusting entry to record estimated bad-debt losses by using the allowance method of handling bad debts. (1a-ii, 1b-ii, 1c-i, 2c-i, 2c-ii, 2c-iii, 2d-i, 2d-ii)
   2. Determine the amount of the adjusting entry to record estimated bad-debt losses by aging Accounts Receivable or by using a percentage of Accounts Receivable. (1a-ii, 1b-ii, 1c-i, 2c-i, 2cii, 2c-iii, 2d-i, 2d-ii)
   3. Calculate the amount of the adjusting entry to record estimated bad-debt losses by using a percentage of Sales or Net Sales. (1a-iii)
   4. Journalize the entries to write off specific Accounts Receivable accounts as uncollectible using the allowance method of accounting for bad-debt. (1a-ii, 1b-ii, 2d-i, 2d-ii)
   5. Journalize entries to reinstate specific Accounts Receivable accounts previously written off. (1a-ii, 1b-ii, 2d-i, 2d-ii)
   6. Journalize the entries to write off specific Accounts Receivable accounts as uncollectible using the direct write-off method of accounting for bad-debt losses. (1a-ii, 1b-ii, 2d-i, 2d-ii)
   7. Determine unit cost, the value of ending inventory, and the cost of merchandise sold by the following methods: (a) specific identification, (b) weighted-average cost, (c) first-in, first-out (FIFO), (d) last-in, first-out (LIFO). (1a-iii)
   8. Journalize transactions relating to perpetual inventories. (1a-ii, 1b-ii, 2d-i, 2d-ii)
   9. Allocate costs to Land, Land Improvements, and Buildings accounts. (1b-i, 1b-ii)
   10. Calculate depreciation by the straight-line method, units-of-production method, double declining balance method, and sum-of-the-years’-digits methods. (1a-iii, 1b-ii, 1b-iii)
4. Use the computer in accounting for accounts receivable, accounts payable, and general ledger for a merchandising business.
   1. Process Accounts Receivable transactions by entering the transactions into the computer system. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)
   2. Edit and correct Accounts Receivable entries. (1b-ii, 2c-i, 2c-ii, 2c-iii. 2c-iv)
   3. Generate reports related to Accounts Receivable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)
   4. Process Accounts Payable transactions by entering the transactions into the computer system. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)
   5. Edit and correct Accounts Payable entries. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)
   6. Generate reports related to Accounts Payable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)
   7. Complete general ledger problems for a merchandising business. (1b-ii, 2a-i, 2a-iii, 2c-i, 2c-ii, 2c-iii, 2c-iv, 2e-i, 2e-ii)
   8. Generate journal and ledger reports. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)
   9. Generate schedules of accounts payable and accounts receivable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)
   10. Verify the accuracy of computer-generated reports. (1b-i, 1b-vi)