Course Description

This course introduces the basic principles of accounting theory and practice, emphasizing the sole-proprietorship form of business. Primary areas of study include the theory of debit and credit, accounts, special journals, the accounting cycle, notes and interest, accruals and deferrals, receivables, inventory, plant assets, and the preparation of financial statements.

Course Objectives

The purpose of this course is to give the student a basic understanding of the theories, principles, and applications of accounting. Students may refer to the individual "Chapter Objectives" at the beginning of each chapter for specific goals. A list of "Course Objectives" is also furnished below.

By the end of this course, students should be able to:

• List and use the basic accounting equation and the rules of debits and credits;
• Utilize the seven basic steps of the accounting cycle for a sole proprietorship and a merchandising business using subsidiary ledgers and special journals;
• Describe and summarize internal control procedures for cash including bank reconciliations and petty cash;
• Journalize entries for uncollectible receivables including the direct write-off method and the allowance method;
• Describe and compute the cost of inventory using three methods for both the perpetual and the periodic methods and compute valuation of inventory at other than cost;
• Compute depreciation, using three different methods and journalize entries for the disposal of fixed assets, depletion; and intangible assets; and
• Journalize entries for notes receivable, notes payable, and product warranties and determine employer liabilities for payroll.

Key Readings

→ Carl S. Warren and James M. Reeves. Accounting 22nd Edition.