Unit 1: Accounting Cycle: Service Firm

Rationale This unit will introduce students to the very basics of accounting -- accounting concepts, accepted accounting guidelines (GAAPs), and the common types of business ownership. Five categories of accounts will also be introduced: Assets, Liabilities, Capital, Revenues and Expenses. Simple transactions and financial statements will then be covered -- the Balance Sheet and the Income Statement. As well, accounting career options will be explored. Foundational Objectives To examine the concepts of the Generally Accepted Accounting Principles (GAAPs) and utilize these concepts within accounting activities. To organize and process basic financial data using the accounting equation and ledger accounts. To recognize technology as a tool to aid in the accounting process.

Unit Objectives: By the end of this unit SWBAT; Recognize and use the basic vocabulary of accounting in classroom discussions and assignments. Distinguish between accounting and bookkeeping. Develop and propose why the study of accounting is important. Identify and explain the basic differences between financial accounting, cost accounting and management accounting. Distinguish and explain the advantages of each form of business ownership. Identify different types of business enterprises: resources, merchandising, manufacturing and service, and suggest where they are most appropriate.

Develop and state the role of the manufacturer, producer, wholesaler, retailer, consumer, and citizens in the business world. Develop and explain the concept and acceptance of the Generally Accepted Accounting Principles (GAAPs). Prepare a balance sheet using the proper format; show its derivation from the accounting equation, and to identify it as the statement of financial position at a certain date.

Organize and arrange transactions into revenue and expenses identifying the fact that there are primary and secondary sources of revenue. Analyze revenue and expense transactions showing the effect on owner's equity in each case and showing how the accounting equation stays in balance at all times.

Perform transactions and explain the concept of drawings or withdrawals for a sole proprietorship displaying the accounting equation in balance at all times

Understand the concept of an account using the T-account form and the balance account form of a ledger account and to associate the left side of any account as the debit side and the right side of any account as the credit side.

Associate and relate the debit and credit of each type of account (assets, liabilities, owner's equity, drawings, revenue and expenses) as being an increase or decrease to that account.

Analyze all types of transactions placing them in T-accounts and to finally balance ledger accounts recording opening balances and final balances after transactions.

Prepare an elementary income statement for a service firm. Differentiate between fiscal period and accounting period and to explain and discuss the Time Period Concept. Relate the income statement to the balance sheet on a date at the end of the fiscal period. Discuss who would use financial statements and why. Analyze a source document and determine its relationship to a Balance Sheet or an Income Statement.

Understand the accounting cycle steps and explain how each activity to follow will relate to this cycle. o Originate Data: identify and examine the information contained on source documents. o Journalize: organize and record accounting data into a journal or journals. o Post to the Ledger: classify and transfer transactions into accounts in the general ledger. o Using a Worksheet: organize and plan accounting information for financial statements by employing a worksheet. o Preparing Financial Statements: prepare and interpret financial statements for an accounting period. o Prepare Adjusting and Closing Journal Entries: generate and relate adjusting and closing entries to the appropriate accounting period in preparing general ledger accounts for the next accounting period. o Complete a Post-Closing Trial Balance: prepare a post-closing trial balance to prove the general ledger is in balance after all work is completed for the accounting period.

Interpret and analyze financial information. Explain and discuss relevant GAAPs for nominal accounts; namely, Revenue Recognition, Explain and correct discrepancies when preparing a series of accounting proofs before financial statement preparation. demonstrate the ability to process information through the accounting cycle by completing a practice set/major assignment.

Common Essential Learnings Foundational Objectives To promote both intuitive, imaginative thought and the ability to evaluate ideas and processes in accounting. (CCT) To use a wide range of language experiences for developing students knowledge of accounting. (COM) To support students in planning and managing projects and assignments, both individually and in groups. (IL)

Content Outline:
1. INTRODUCTION TO ACCOUNTING I. Introduction to Accounting a. What is Accounting PowerPoint b. Accounting WITT Youtube Video Accounting vs. Bookkeeping a. Notes b. Handout- Accounting vs. Bookkeeping Accounting as A Professional Career a. Notes CA, CMA, CGA b. Activity- Graphic Organizer Duties of Each The Different Types of Accounting a. Notes- The different types of accounting b. Assignment- Compare and contrast the Three Different Types of Accounting Generally Accepted Accounting Principles a. Notes Generally Accepted Accounting Principles b. Assignment GAAP Quiz Business Ownership, Enterprise and Common Accounting Terms a. Research Assignment b. Reference Page Notes

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2. Introduction to the Balance Sheet and The Accounting Equation I. Determining Worth (Financial Position) a. Notes- What is Worth b. Assignment: Syme Page 17 #5 Assets, Liabilities and Capital (Owners Equity) a. Definitions and Examples b. Activity: What am I? c. Assignment: Classify Each as an Asset, Liability or Capital The Accounting Equation a. Activity: Find the Equation

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b. Notes: The Accounting Equation c. Assignment: C21 Page 48 3-C d. Assignment: Use the Accounting Equation to Determine Capital e. Assignment: Syme page 17/39 IV. The Balance Sheet a. Notes: The Balance Sheet Power Point b. Assignment: C21 Page 33 2-1 c. Assignment: C21 Page 34 2-4 d. Assignment: C21 Page 35 2-M e. Vertical Format f. Assignment: Syme Page 24 #1 g. Assignment: Syme Page 25 #2 Review a. C21 Page 35 2-C b. Syme, Page 40 #6 c. Syme, Page 38 d. Listomania e. Word Search Test #1

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