Standard

ACC 102 - Principles of Accounting II

Course Description

Applies the basic principles of accounting to specific account classifications and subsidiary record accounting. Topics include: receivables, inventory, plant assets, payroll, payables, partnerships, and sales tax returns. Laboratory work demonstrates theory presented in class.

Competency Areas		Hours
Receivables		Class	4
Inventory		D. Lab	4
Plant Assets		P. Lab/O.B.I.	0
Payroll		Credit	6
Payables
Partnerships
Sales Tax Returns
Prerequisite:	ACC 101 (for Marketing Management program students only) Program admission (for Accounting program students only)
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
RECEIVABLES		6	6	0
Direct write-off method	Record losses from uncollectible accounts using the direct write-off method.
Allowance method	Record losses from uncollectible accounts using the allowance method based on sales and on accounts receivable.
	Record the write-off of an account under the direct write-off method.
	Record the recovery of an account previously written off when the direct allowance method was used.
Notes receivable	Describe and explain the nature and use of notes receivable and calculate related interest.
	Describe and record transactions involving notes receivable and prepare notes receivable register.
Year end accrual	Record accrued interest receivable at year's end.
Discounting notes receivable	Record transactions relating to the discounting of notes receivable.
Financial statement presentation	Describe the financial statement presentation of both the allowance for uncollectible accounts and the loss from uncollectible accounts.
INVENTORY		7	7	0
Inventory systems	Describe system of inventory use in accounting for a merchandising business.
	Identify the two principal inventory systems used in business today.
Inventory valuation	Compute the cost of inventory using the FIFO, LIFO, weighted average, specific identification, and lower cost of market methods of inventory valuation.
	Estimate ending inventory using the gross profit and simplified retail methods.
PLANT ASSETS		9	9	0
Recording plant assets	Determine the cost of plant assets.
	Record in the general journal the cost of plant assets.
Depreciation and depletion	Calculate and record in the general journal the depreciation of plant assets using straight line, double declining balance, sum of years digits, and units of output methods of depreciation.
	Calculate and record in the general journal depletion expense for depletable assets.
Amortization	Calculate and record the amortization of an intangible asset.
Disposition of a long term asset	Record in the general journal the disposition of a long term asset.
PAYROLL		12	12	0
Computing and recording payroll	Compute and record in the general journal an employee's gross earnings, including overtime earnings, deductions, and net pay.
	Record gross earnings, deductions, and net pay in the payroll register.
	Record in the general journal the distribution of the payroll for the employees.
	Record individual earnings in the individual's earnings record.
Employer payroll taxes	Compute and record in the general journal the employer's FICA tax and federal and state unemployment taxes.
Payment of payroll taxes	Record the payment of FICA tax and federal income tax.
	Record the payment of federal and state unemployment taxes.
PAYABLES		2	2	0
Promissory notes and interest	Describe and explain the nature and use of promissory notes and calculate related interest.
	Describe and record transactions involving notes payable and prepare a notes payable register.
Year end accrual	Record accrued interest payable at year's end.
PARTNERSHIPS		3	3	0
Partnership formation	Demonstrate an understanding of the characteristics of a partnership.
	Account for the formation of a partnership.
Division of profit or loss	Account for the division of net income or net loss between partners.
Addition or withdrawal of a partner	Account for the addition or withdrawal of a partner.
SALES TAX RETURNS		1	1	0
Sales tax return preparation	Prepare sales tax returns used in business for the reporting and remittance of sales taxes.

Suggested Resources

Books

Brock, H. R., et al. (1990). Accounting principles and applications. New York: McGraw-Hill.

Fess, P. E., et al. (1996). Accounting principles. Cincinnati: South-Western.

Heintz, J. A., et al. (1990). College accounting. Cincinnati: South-Western.