PRINCIPLES OF ACCOUNTING (BUSS 152)

Fall 2019

Instructor Professor Soo Young KWON, Ph.D., CPA (US)

Office LG-POSCO #613
Phone 3290-1261, 1937(O)
E-mail sykwon@korea.ac.kr

Classes Mon/ Wed 09:00~10:15 am

Office Hours Mon/ Wed 10:30~11:30 pm and/or by appointment

Purpose of Course
This course provides an introduction to the concepts and issues in financial accounting. We
will discuss the preparation and the interpretation of corporate financial statements. Upon
satisfactory completion of this course, each student should be able to prepare financial
statements from a set of events. The procedures of accounting will be described in detail,
but accounting theory, information uses in capital markets, and problem solving techniques
will be emphasized throughout the course. The student should understand the limitations
of financial statements and the interrelationship between financial accounting and capital
market.

The class will be conducted on a combination of lecture/ discussion basis. Classes will be
devoted on the material for the day. Some of the problems will be discussed in class as
desired by students. Each student is expected to read and study the chapter reading and
other assigned material before each class meeting.

Course Materials
• Text
Financial Accounting with IFRS, Weygandt, Kimmel, and Kieso, 4th Edition, Wiley
Publishing Co., 2019.
• Lecture notes and other in-class handouts are available on the blackboard.

Course Requirements
Students are expected to read the material before class, review the assigned in-class
problems, and complete the homework problems. Class time will consist of both lecture
over the reading material and workout of the in-class problems.

Grading
• Exam
Mid-term 100
Final 100 200 points
• Assignments

1
 2 homework problems (50 points, respectively) 100
• 1 Group Project 100
• Class participation 100
500 points

Exams
One mid-term and the final will be given as scheduled. Neither mid-term nor the final is
cumulative, but keep in mind that accounting knowledge is a building block. The exams
will consist of multiple choices and problems. The exam will be designed to measure your
knowledge and understanding of the material presented in the textbook, in the homework
problems, and in the class lectures. All exams are closed book. You may bring a non-
programmable calculator to the exams.

Homework
The required problem set is laid out in the class schedule below. Clearly mark the name
with the homework assignment number and due date, and staple your pages together.
Neither computer generated output nor late homework will be accepted.

Group Project
To be discussed below.

Class Participation
Class participation includes, but not limited to, attending class regularly and on time, taking
active part in class discussions, preparing well in advance for class, etc.

Group Project

You will be required to analyze the financial statements of two real companies in an
industry. You need to let me know the members of your group by October 14 (Mon),
and the names of companies by November 6 (Wed).

Each team is required to choose two companies in an industry and to analyze the prospects
of the companies’ future performance and condition and recommend whether investors
should purchase their stocks. Your analysis should be based on the 2018 annual reports of
the companies and other published sources. The write-up should:
• Calculate ratios from the following categories (refer to Chapter 14):
- Liquidity (current ratio, quick ratio)
- Asset management (A/R turnover, inventory turnover)
- Profitability (profit margin, return on assets, return on ordinary shareholders’ equity)
- Solvency (debt to total assets, times interest earned)
- Market value (price-earnings ratio).
• Evaluate the major strengths and major weaknesses of the firms based on the accounting
(financial) ratios above (consider competing firms or industry norms for analysis).
• Discuss the other strengths and weaknesses of the firm based on non-accounting
information.

2
Group project is intended to give you an appreciation of the accounting information
published by corporations. You need to submit the ppt file via email by December 11
(Wed) which includes tables, exhibits, analyses, and your own interpretation. The report
should be written in English. No Word file is required to submit. You should design the
report so that students in an introductory financial accounting course can understand it.

Class Schedule

Date Subject Homework & Note

9/2 Ch.1 Accounting in Action E1-6, E1-13, P1-1

Week
#1
9/4 No Class Make-up class on 9/21

9/9 Ch.2 The Recording Process

Week
E2-4, E2-8, E2-17
#2
9/11 Ch.2 The Recording Process

9/16 Ch.3 Adjusting the Accounts

E3-4, E3-5, E3-13
Week
9/18 Ch.3 Adjusting the Accounts
#3
9/21 Make-up class from 10:00~11:30
Ch.3 Adjusting the Accounts
(Sat) am for the missed one on 9/4
Ch.4 Completing the Accounting
9/23
Week Cycle
E4-5, E4-8, E4-9
#4 Ch.4 Completing the Accounting
9/25
Cycle
Ch.5 Accounting for Merchandising
9/30
Week Operations
E5-1, E5-2, E5-5, E5-7, P5-2
#5 Ch.5 Accounting for Merchandising
10/2
Operations
10/7 Ch.6 Inventories E6-1, E6-3, E6-4, E6-7, P6-2
Week
#6
10/9 No class Hangeul Day
Submit the names of group
10/14 Ch.6 Inventories
Week members
#7
10/16 Review Session HW#1 Due

10/21 Mid-term EXAM Ch. 1~6, 8:30~10:15 am

Week
#8 Ch.7 Fraud, Internal Control, and Mid-term period, but make-up
10/23
Cash class for the missed one on 11/4

3
 Date Subject Homework & Note
Ch.7 Fraud, Internal Control, and
10/28 E7-2, E7-6, E7-8, E7-10
Week Cash
#9 E15-1, E15-2, E15-7, E15-8, E15-
10/30 Ch.15 Financial Analysis
9, P15-2
11/4 No Class Make-up class on 10/23
Week
Submit the names of two
#10 11/6 Ch.15 Financial Analysis
companies for group project
11/11 Ch.8 Accounting for Receivables
Week
E8-3, E8-4, E8-6, E8-9, E8-12
#11
11/13 Ch.8 Accounting for Receivables
Ch. 9 Plant Assets, Natural
11/18
Week Resources, and Intangible Assets
E9-1, E9-6, E9-15, P9-3
#12 Ch. 9 Plant Assets, Natural
11/20
Resources, and Intangible Assets
11/25 Ch.10 Current Liabilities E10-1, E10-2, E10-3
Week
#13
11/27
Ch.11 Non-current Liabilities E11-1, E11-3, E11-8, P11-3
12/2
Week
Ch.12 Corporations: Organization,
#14
12/4 Share Transactions, Dividends, and
Retained Earnings E12-1, E12-3, E12-4, E12-8, P12-
Ch.12 Corporations: Organization, 2, P12-5
12/9 Share Transactions, Dividends, and
Week
Retained Earnings
#15
12/11 Review session HW#2 and Group Project Due
Week
12/16 Final Exam Ch. 7~12, 15, 08:30~10:15 am
#16