Standard

ACC 103 - Principles of Accounting III

Course Description

Emphasizes a fundamental understanding of corporate and cost accounting. Topics include: accounting for a corporation, departmental accounting, cost accounting, and budgeting. Laboratory work demonstrates theory presented in class.

Competency Areas		Hours
Accounting for a Corporation		Class	4
Departmental Accounting		D. Lab	4
Cost Accounting		P. Lab/O.B.I.	0
Budgeting		Credit	6
Prerequisite:	ACC 102
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
ACCOUNTING FOR A CORPORATION		10	10	0
Characteristics of a corporation	Define major terms associated with corporations.
Corporation capital	Identify the primary subdivisions of corporate capital.
	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.
Stock subscriptions	Explain the subscription process.
	Record journal entries for stock subscriptions and issuance.
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.
Appropriation of retained earnings	Name the major reasons for appropriating retained earnings.
	Record journal entries for appropriations of retained earnings.
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.
Statement of cash flow	Define the Direct and Indirect Method.
	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		10	10	0
	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.
Departmental accounting	Define and illustrate gross profit by department.
	Define and illustrate operating income by department.
COST ACCOUNTING		10	10	0
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.
BUDGETING		10	10	0
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.