ACCOUNTING FOR A CORPORATION

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Characteristics of a corporation

Define major terms associated with corporations.

Corporation capital

Identify the primary subdivisions of corporate capital.

Organization Structures

Discuss business organization structures and different types of corporations such as P.C. and L.L.C.

Summarize the differences in the equity sections for sole proprietorships, partnerships, and corporations.

Characteristics of capital stock

Define capital stock, its classes, its characteristics, and all associated terms.

Issuing stock

Recognize the sale of stock at par, at a premium and at a discount, and record journal entries appropriate to each.

Illustrate stock premium and discounts on the balance sheet.

Treasury stock

Define treasury stock.

Record journal entries for treasury stock transactions.

Paid-in capital

Identify and define the primary sources of paid-in capital.

Earnings and income tax

Illustrate the application of income taxes to corporate earnings.

Extraordinary items in the financial statements

List and illustrate the major categories of unusual items relating to net income.

STATEMENT OF CASH FLOWS

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Discuss the various methods of preparing the Statement of Cash Flows

Assemble data and prepare the Statement of Cash Flow.

Financial statement analysis

Describe the basic analytical procedures used such as percentages, analyses, ratios, and turnovers.

Calculate percentages, ratios, and turnovers as applied to solvency and profitability measures.

Annual reports

Describe the contents of Corporate Annual Reports.

DEPARTMENTAL ACCOUNTING

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Distinguish between financial accounting and managerial accounting.

Define planning.

Define control.

Responsibility accounting

Define responsibility accounting.

Utilize responsibility accounting's principles for cost, profit, and investment centers.

Define budget.

Define budget performance report.

Define and illustrate gross profit by department.

Define and illustrate operating income by department.

COST ACCOUNTING

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General principles

Illustrate similarities between manufacturing and merchandising.

Distinguish between cost of merchandise sold and cost of goods sold.

Differentiate between job order and process accounting and give examples of items produced under each system.

Job order cost accounting

Summarize the process of accounting for materials, including appropriate documentation, determination of material cost, and the journal entry to record the flow of materials into production.

Define factory overhead, explain the use of the factory overhead ledger, and list the major sources of charges to this account.

Name and connect the controlling accounts and subsidiary ledgers normally used in job order cost accounting.

Record journal entries for the issuance of materials, factory labor, and factory overhead.

Prepare journal entries for goods completed and transferred to finished goods.

Prepare journal entries for the cost of goods sold.

Distinction between job order and process cost accounting

Cite major areas of similarities between job order and process cost accounting.

Service departments and cost allocation

Define service departments and explain the allocation of service department costs to departmental factory overhead accounts.

Processing costs

List the elements which comprise processing costs.

Explain the calculation of the unit processing cost.

Equivalent units of production

Define and explain the concept of equivalent units.

Demonstrate the computation of equivalent units of production for the month.

Apply the above results to the calculation of the cost of goods finished for an accounting period.

Show the computation of the cost of units in process at the end of the month.

Summarize the data on the cost of production report.

Journal entries

Record journal entries for the allocation of service department costs.

Record journal entries for the flow of factory costs between departments.

Record journal entries for the application of factory overhead and determine the amount and nature of the balances in departmental factory overhead accounts.

Record journal entries for routine business transactions related to manufacturing operations.

Standard costs

Explain standard costs.

Illustrate the process of determining standard costs.

Define standard cost variances for a variety of applications.

Prepare journal entries for standard cost application.

BUDGETING

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Nature and objectives of budgeting

Define budget, and list its major objectives.

Budget period and procedures

Illustrate budget periods.

Describe in general terms the budgeting process.

Make distinctions between the master budget and its components.

Cash budget and budget performance report

Summarize cash budget use and explain its preparation.

Prepare a cash budget.

Illustrate budget performance report use.

Flexible budgets

State the primary reasons for using flexible budgets.

Distinguish between fixed and variable overhead costs.

Prepare a flexible budget for several levels of productive activity.

LONG TERM LIABILITIES

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Identify and explain different types of long term liabilities.

Record the issuance of Bonds Payable.

Journalize the accrual and payment of bond interest.

Record the amortization of bond premiums and discounts.

Record the retirement of a bond issue.

Journalize transactions involving bond sinking funds.  Present long term liabilities on the Balance Sheet.

Dividends

Define cash dividend and stock dividend.

Calculate total dividends and dividends per share for preferred and common stock.

Record journal entries for cash and stock dividends.

Define stock split.

Stockholders' equity on the balance sheet

Prepare the stockholders equity section of the balance sheet.