Standard

BUS 208 - Office Accounting

Course Description

Introduces fundamental concepts of accounting. Topics include: accounting equation, debits, credits, journalizing, posting and proving ledger, accounts receivable, accounts payable, and payroll. Both manual and computerized concepts are taught.

Competency Areas	Hours
Accounting Equation	Class	3
Debits	D. Lab	2
Credits	P. Lab/O.B.I.	0
Journalizing	Credit	4
Posting and Proving Ledger
Accounts Receivable
Accounts Payable
Payroll

Prerequisite:	MAT 111
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
ACCOUNTING EQUATION		5	3	0
Permanent accounts	Identify the three main types of permanent accounts.
	Define assets, liabilities, and owner's equity.
	Give an example of an asset, liability, and owner's equity account.
Accounting equation	Write the accounting equation
	Perform calculations using the accounting equation.
	Verify the equality of the equation after performing calculations.
	Indicate increase or decrease effect of given transactions on the fundamental accounting equation.
Owner's equity	List and define the temporary owner's equity accounts.
	Define net profit and net loss.
	Calculate net profit and net loss.
Income statement	Prepare an income statement.
Balance sheet	Prepare a balance sheet to verify the accounting equation.
DEBITS		2	1	0
Account form	Identify the debit side of an account form or T account.
	Debit an account by writing a number on the left side.
Debit to increase/decrease	Identify accounts that are debited to show an increase.
	Identify accounts that are credited to show a decrease.
	Debit accounts after analyzing transactions to decide the increase/decrease effect.
CREDITS		2	1	0
Account form	Identify the credit side of an account form or T account.
Credit to increase/decrease	Credit an account by writing a number on the right side.
	Identify accounts that are credited to show an increase.
	Identify accounts that are credited to show a decrease.
	Credit accounts after analyzing transactions to determine the increase/decrease effect.
JOURNALIZING		6	4	0
Double-entry framework	Explain the dual effect of a transaction upon the accounting elements.
Book of original entry	Define and describe a journal and journalizing.
Analyzing transactions	Analyze transactions to determine changes in accounting elements.
Recording transactions	Record daily transactions in journal form.
	Journalize adjusting and closing entries.
	Journalize correcting entries.
Proving journal	Total debit and credit columns to prove journal.
POSTING AND PROVING LEDGER		6	3	0
Posting to ledger	Describe and define a ledger account, the general ledger, and posting.
	List steps in the posting process.
	Post from a journal to a ledger.
Proving the ledger	Foot accounts and record balances in ledger accounts.
	Prove the equality of the debits and credits in the general ledger by preparing a trial balance.
	Complete a worksheet.
ACCOUNTS RECEIVABLE		2	2	0
Subsidiary ledger	Describe relationship between accounts receivable control in general ledger and accounts receivable subsidiary ledger.
	Identify transactions affecting accounts receivable.
	Describe relationship between accounts receivable and sales.
Posting	Post to accounts in accounts receivable subsidiary ledger.
Verifying	Prepare schedule of accounts receivable.
ACCOUNTS PAYABLE		2	2	0
Subsidiary ledger	Describe relationship between accounts payable control in the general ledger and accounts payable subsidiary ledger.
	Identify transactions affecting accounts payable.
	Describe relationship between accounts payable and purchases.
Posting	Post to accounts in accounts payable subsidiary ledger.
Verifying	Prepare a schedule of accounts payable.
PAYROLL		5	4	0
Employee's compensation	Calculate gross pay.
	Determine deductions: federal income tax, state and local income taxes, social security deductions, and voluntary deductions.
	Calculate net pay.
	Prepare payroll register.
	Prepare payroll checks.
	Record payroll in journal form.
Employer's payroll taxes	Calculate employer's payroll taxes.
	Record employer's payroll taxes in journal form.
Tax payments to government	Record tax payments to government in journal form.

Suggested Resources

Books

Carlson, A. E., & Heintz, J. A. (1986). College accounting. Cincinnati: South-Western.

Carlson, A. E., & Heintz, J. A. (Latest edition). Secretarial accounting. Cincinnati: South-Western.

Lee, N. (1983). Elementary accounting. Chicago: Dryden Press.

Santoro, R. M., et al. (1984). Office accounting. New York: John Wiley & Sons.