Principles of Accounting 1A

Quarter:

Winter 2015

Instructor:

Gregory Arnsdorf, CPA

Meeting Times:

Wednesday 6:30 pm - 9:30 pm

Location:

106 Figueroa Courtyard

261 S. Figueroa Street, Downtown Los Angeles

Office Hours:

Email anytime
garnsdorfcpa@gmail.com

Course Description
This course is the first in a 2-course Principles of Accounting sequence and provides an introduction to
accounting theory, principles and practice. Instruction covers the uses, communication and processing of
accounting information, as well as the recording, analyzing and summarizing procedures used in preparing
balance sheets and income statements. Additional topics include accounting for purchases and sales,
receivables and payables, cash and inventories, plant and equipment, depreciation and natural resources,
intangible assets and payrolls. Sole proprietorships and partnerships also are examined.

Goals & Objectives

Introduction to the principles of accounting, covering chapters 1 through 12 of Wegandt, Kimmel and Kieso's
Accounting Principles (11th Edition), as described in greater detail in the course outline below. Students are
required to read each chapter prior to lecture to maximize participation and productivity.

Required Reading
Accounting Principles, 11th Edition
Wegandt, Kimmel and Kieso
Copyright John Wiley & Sons
ISBN 978-1-118-13003-2 or 978-1-118-77407-6
http://www.wiley.com/WileyCDA/WileyTitle/productCd-EHEP002545.html

Recommended Reading (for discussion)

businessweek.com, forbes.com, finance.yahoo.com

(for lecture slides)

Principles of Accounting 1A

Grading
Course grades will be based on participation and completion of assignments as follows:

Participation - attendance & discussion

Participation - unannounced pop quiz (2)
Weekly exercises - collected in class
Exam 1 - chapters 1 through 4
Exam 2 - chapters 5 through 12
Total points

Points
100
100
200
200
400
1,000

A
B
C
D
F

Grades*
90%
80%
70%
60%
50%

Please note that ALL COURSE GRADES ARE FINAL.

Student Behavior involving cheating, copying others work and plagiarism are not tolerated and will result in
disciplinary action. Students are responsible for being familiar with the information on Student Conduct in
the General Information Section of the UCLA Extension Catalog or on the website at www.uclaextension.edu.

* Certificate Students: All courses to be applied toward a certificate program must be taken for a letter grade and a grade
of C or better is required. If you receive a grade of C- or lower, you must either repeat the course or confer with your
Certificate Advisor to find a suitable substitute.
Incompletes: The interim grade Incomplete may be assigned when a student's work is of passing quality, but a small
portion of the course requirements is incomplete for good cause (e.g. illness or other serious problem). It is the students
responsibility to discuss with the instructor the possibility of receiving an I grade as opposed to a non-passing grade.
The student is entitled to replace this grade by a passing grade and to receive unit credit provided they complete the
remaining coursework satisfactorily, under the supervision of and in a time frame determined by the instructor in charge,
but in no case later than the end of the next academic quarter. At that time, the Registrar will cause all remaining
Incompletes to lapse to the grade "F". Note: Receiving an I does not entitle a student to retake all or any part of the
course at a later date.

Course Outline
Week 1
Chapter 1 - Accounting in Action
[1] Explain what accounting is.
[2] Identify the users and uses of accounting.
[3] Understand why ethics is a fundamental business concept.
[4] Explain generally accepted accounting principles.
[5] Explain the monetary unit assumption and the economic entity assumption.
[6] State the accounting equation, and define its components.
[7] Analyze the effects of business transactions on the accounting equation.
[8] Understand the four financial statements and how they are prepared.

Assignment
E1-5, E1-6, E1-8, E1-9
P1-2A
(due week 2)

Principles of Accounting 1A

Course Outline (continued)

Week 2
Chapter 2 - The Recording Process
[1] Explain what an account is and how it helps in the recording process.
[2] Define debits and credits and explain their use in recording business transactions.
[3] Identify the basic steps in the recording process.
[4] Explain what a journal is and how it helps in the recording process.
[5] Explain what a ledger is and how it helps in the recording process.
[6] Explain what posting is and how it helps in the recording process.
[7] Prepare a trial balance and explain its purposes.
Week 3
Chapter 3 - Adjusting the Accounts
[1] Explain the time period assumption.
[2] Explain the accrual basis of accounting.
[3] Explain the reasons for adjusting entries and Identify the major types.
[4] Prepare adjusting entries for deferrals.
[5] Prepare adjusting entries for accruals.
[6] Describe the nature and purpose of an adjusted trial balance.
Week 4
Chapter 4 - Completing the Accounting Cycle
[1] Prepare a worksheet.
[2] Explain the process of closing the books.
[3] Describe the content and purpose of a post-closing trial balance.
[4] State the required steps in the accounting cycle.
[5] Explain the approaches to preparing correcting entries.
[6] Identify the sections of a classified balance sheet.
Week 5
Chapter 5 - Accounting for Merchandising Operations
[1] Identify the differences between a service and merchandising companies.
[2] Explain the recording of purchases under a perpetual inventory system.
[3] Explain the recording of sales revenues under a perpetual inventory system.
[4] Explain the steps in the accounting cycle for a merchandising company.
[5] Distinguish between a multiple-step and a single-step income statement

Assignment
E2-2, E2-3, E2-11
P2-2A
(due week 3)

Assignment
E3-6, E3-8, E3-9, E3-17
P3-1A
(due week 4)

Assignment
E4-2, E4-8, E4-9
P4-1A
(due week 5)

Assignment
E5-2, E5-4, E5-6, E5-7
P5-1A
(due week 6)

Exam 1
- Chapters 1 through 4
Week 6
Chapter 6 - Inventories
[1] Determine how to classify inventory and inventory quantities.
[2] Explain the accounting for inventories and apply the inventory cost flow methods.
[3] Explain the financial effects of the inventory cost flow assumptions.
[4] Explain the lower-of-cost-or-market basis of accounting for inventories.
[5] Indicate the effects of inventory errors on the financial statements.
[6] Compute and interpret the inventory turnover

Assignment
E6-9, E6-12, E6-15
P6-2A
(due week 7)

Principles of Accounting 1A

Course Outline (continued)

Week 7
Chapter 7 - Accounting Information Systems
[1] Identify the basic concepts of an accounting information system.
[2] Describe the nature and purpose of a subsidiary ledger.
Week 8
Chapter 8 - Fraud, Internal Control and Cash
[1] Define fraud and internal control.
[2] Identify the principles of internal control activities.
[3] Explain the applications of internal control principles to cash receipts.
[4] Explain the applications of internal control principles to cash disbursements.
[5] Indicate the control features of a bank account.
[6] Prepare a bank reconciliation.
[7] Explain the reporting of cash.

Assignment
E7-3
P7-1A, P7-2A, P7-4A
(due week 8)
Assignment
E8-12
P8-1A, P8-2A
(due week 9)

Week 9
Chapter 9 - Accounting for Receivables
[1] Identify the different types of receivables.
[2] Explain how companies recognize accounts receivable.
[3] Distinguish between the methods and bases companies use to value accounts receivable.
[4] Describe the entries to record the disposition of accounts receivable.
[5] Compute the maturity date of and interest on notes receivable.
[6] Explain how companies recognize notes receivable.
[7] Explain the statement presentation and analysis of receivables

Assignment
E9-9
P9-3A, P9-4A, P9-6A
(due week 10)

Week 10
Chapter 10 - Plant Assets, Natural Resources and Intangible Assets
[1] Describe how the historical cost principle applies to plant assets.
[2] Explain the concept of depreciation and how to compute it.
[3] Distinguish between revenue and capital expenditures, and explain the entries for each.
[4] Explain how to account for the disposal of a plant asset.
[5] Explain the basic issues related to accounting for intangible assets.

Assignment
E10-6, E10-8, E10-9, E10-16
(due week 11)

Chapter 11 - Current Liabilities and Payroll Accounting

[1] Explain a current liability, and identify the major types of current liabilities.
[2] Describe the accounting for notes payable and other current liabilities.
[3] Explain the financial statement presentation and analysis of current liabilities.
[4] Describe the accounting and disclosure requirements for contingent liabilities.
[5] Compute and record the payroll for a pay period.
Week 11
Chapter 12 - Accounting for Partnerships
[1] Identify the characteristics of the partnership form of business organization.
[2] Explain the accounting entries for the formation of a partnership.
[3] Identify the bases for dividing net income or net loss.
[4] Describe the form and content of partnership financial statements.
[5] Explain the effects of the entries to record the liquidation of a partnership
Week 12
Exam 2
- Chapters 5 through 12

BE11-1 thru BE11-10

(due week 11)

Assignment
None