BUS 330A Syllabus Fall 2018

Intermediate accounting

Subject to revision

Contact information

  • Instructor: Elizabeth Stanny, PhD
  • Email: stanny@sonoma.edu
  • Office: Wine Center 1016
  • Office phone: 707-664-4287
  • Office hours:
    • Mondays 11 to 11:50 AM
    • by appointment

Prerequisites

  • BUS 230A
  • Proficiency in spreadsheet software

Course format

  • This is a hybrid course. We will meet on Mondays in Salazar 2014. Attendance is required.
  • Course site: stanny.moodle.school. If you are enrolled in the course, I will send you login information.
    • I am solely responsible for this site.
    • If you have any questions about the site, please ask me.
    • Videos, notes, quizzes and other materials are posted on the site.
    • As you watch the videos you should work along and replicate the spreadsheets. You will use the spreadsheets in your quizzes.

Course materials

  • Required
  • ASC (Accounting Standards Codification) (required).
    • Logon credentials will be posted on the course site.
  • Textbook (recommended)
    • Spiceland, J. David. Intermediate Accounting, 9th Edition. McGraw-Hill Higher Education, ISBN 9781259722660. You do not need a code.
  • Spreadsheet Software (required)
    • I recommend LibreOffice, but you can use any spreadsheet program. LibreOffice is open source (free) and is compatible with Microsoft Excel. Any skills you learn in LibreOffice Calc will be transferable to Microsoft Office (Excel). I don’t recommend Numbers or Google sheets because these skills are less transferrable to MS Excel, which is still used by most businesses.

Learning objectives

  • Environment and conceptual framework
    • Describe the function and primary focus of financial accounting
    • Explain the difference between cash and accrual accounting
    • Discuss the FASB’s conceptual framework
  • Accounting cycle
    • Record transactions using journal entries
    • Post the effects of journal entries to general ledger accounts
    • Prepare an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and closing journal entries
    • Prepare basic financial statements
  • Balance sheet and financial disclosures
    • Describe the purpose of the balance sheet and its usefulness and limitations
    • Distinguish among current and non-current assets and liabilities
    • Explain the purpose of financial statement disclosures, the management discussion and analysis disclosure and of an audit
    • Calculate liquidity and financing ratios
  • Income statement and statement of cash flows
    • Discuss income from continuing operations and its components
    • Define discontinued operations and its income statement presentations
    • Explain the accounting treatments of changes in estimates and accounting principles and correction of errors
    • Define earnings per share (EPS) and explain required disclosures of EPS
    • Explain the difference between net income and comprehensive income
    • Describe the purpose and classifications of the statement of cash flows
  • Income Measurement and Profitability Analysis
    • Discuss the revenue recognition criteria
    • Discuss the implications for revenue recognition of allowing customers the right of return
    • Calculate the common ratios used to assess profitability
  • Cash and receivables
    • Distinguish between the gross and net methods of accounting for cash discounts
    • Account for merchandise returns and anticipated uncollectible accounts receivable
    • Describe the two approaches to estimating bad debts
    • Differentiate between the use of receivables in financing arrangements accounted for as a secured borrowing and those accounted for as a sale
  • Inventories
    • Explain the difference between perpetual and periodic inventory systems
    • Explain which physical quantities of goods should be included in inventory
    • Determine the expenditures that should be included in the cost of inventory
    • Determine the cost of ending inventory and cost of goods sold using the specific identification, FIFO, LIFO, dollar-value LIFO, retail inventory, gross profit and average cost methods
    • Describe supplemental LIFO disclosures and the effect of LIFO liquidations on net income
    • Apply the lower of cost or net realizable value rule
  • Property, plant and equipment and intangibles
    • Identify costs included in the initial cost of property, plant, and equipment, natural resources, and intangible assets
    • Determine the initial cost of individual property, plant, and equipment and intangible assets acquired as a group for a lump-sum purchase price, in exchange for a deferred payment contract, in exchange for equity securities or through donation
    • Explain how to account for dispositions
    • Identify the items included in the cost of a self-constructed asset and determine the amount of capitalized interest
    • Calculate depreciation and amortization expenses
    • Account for changes in estimated service lives and residual value of property, plant, and equipment and intangible assets
    • Discuss when long-lived assets must be tested for impairment
  • For each topic discuss the primary differences between U.S. GAAP and IFRS
  • Analyze public companies annual reports (10-Ks)
  • Relate course topics to current events

Schedule

Date Topic Quiz due Closes at Attendance Textbook
Aug 20 1: Environment and conceptual framework / ASC 1 Ch 1
Aug 27 2: Accounting cycle 1 12 PM (noon) 2 Ch 2
Sep 10 3: Balance sheet and financial disclosures 2 12 PM (noon) 3 Ch 3
Sep 17 4: Income statement and statement of cash flows 3 12 PM (noon) 4 Ch 4
Sep 24 5: Income measurement and profitability analysis 4 12 PM (noon) 5 Ch 5
Oct 1 Review 5 12 PM (noon) 6
Oct 8 Exam (Topics 1-5)
Oct 15 6: Cash and receivables 7 Ch 7
Oct 22 7: Inventories I 6 12 PM (noon) 8 Ch 8
Oct 29 8: Inventories II 7 12 PM (noon) 9 Ch 9
Nov 5 9: Property, plant and equipment and intangibles I 8 12 PM (noon) 10 Ch 10
Nov 19 10: Property, plant and equipment and intangibles II 9 12 PM (noon) 11 Ch 11
Nov 26 Review 10 12 PM (noon) 12
Dec 3 Exam (Topics 6-10)
Dec 10 Bonus (optional) 12 PM

Grading

There are 1000 possible points in the course (excluding possible makeup points). Your grade will be determined by your total points:

Grade Points
A 950
A- 900
B+ 870
B 830
B- 800
C+ 770
C 730
C- 700
D+ 670
D 600

In-class participation 200 points

  • Part 1: 100 points (max)
    • 10 points each attendace day that you
      • arrive on time
      • are mentally and physically present for the entire class
      • respond to question(s) on moodle during class
  • Part 2: 100 points (max)
    • 30 points each time you present a 2-3 minute summary of your group’s in-class discussion
    • 30 points each time you present a 2-3 minute summary of material we covered in the previous week
    • 30 points each time you present a 2-3 minute summary of article that relates to the course material
    • other options will be announced on moodle

Quizzes 400 points

  • Questions will be short-answer, numerical and multiple-choice.
  • You can attempt each quiz twice and you will receive the highest grade scored.
  • Late quizzes will not be accepted. Please do not ask.
  • There will be multiple versions of quizzes. You can work with others on the quizzes, but you must enter and understand the answers yourself. When you submit your answers you are acknowledging that you can explain your answers.

Exams 400 points

  • The exams will be in assigned computer labs during the scheduled class time.
  • The exams are open-book and open-note.
  • You should use the spreadsheets that you have created for the quizzes.

Make-up 100 points

  • 10 minute recorded conversation on Zoom with me on the course topics. Sign up on Dec 5 for time slots during Exam week.

Policies

  • You must adhere to SSU’s Cheating and Plagiarism policy. Academic dishonesty (e.g., cheating, plagiarism, etc.) will not be tolerated and will result in a zero grade (i.e., no points) on the quiz or exam and, possibly, a failing grade in the course.
  • Please be advised that the on-line software allows me to track every click you make on the course site. I know whether, when and where you attempt quizzes, access notes, etc.
  • There are no opportunities for points not listed above. Please do not ask.
  • Disability Services for Students (DSS)
    • Academic Accommodation: If you are a student with a disability, and think you may need academic accommodations, please contact Disability Services for Students (DSS), located in Salazar Hall, Room 1049, Voice: (707) 664-2677, TTY/TDD: (707) 664-2958, as early as possible in order to avoid a delay in receiving accommodation services. Use of DSS services, including testing accommodations, requires prior authorization by DSS in compliance with university policies and procedures.
  • Students may not record (audio or video) in this class except in accordance with ADA accommodations. Any recordings made in connection with a disability accommodation are for the student’s personal academic use only and may not be distributed in any manner to any other individual.

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