Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

The University of the West Indies OPEN CAMPUS INTRODUCTION TO FINANCIAL ACCOUNTINGACCT 1002 COURSE GUIDE FOR STUDENTS
Semester 2: 2011/2012

Welcome to Semester 2 of teaching and learning in Introduction to Financial Accounting-ACCT 1002. I am Inshan Allaham your Course Coordinator.

As you know, open and constant communication is critical to success in the online learning environment. I therefore urge you to ensure that you play your part to develop and maintain a very interactive relationship with your e-tutor.

I can be reached via email at inshan.allaham@open.uwi.edu Thank you for your commitment as your tutors and I work together to make Introduction to Financial Accounting a meaningful learning experience.

Inshan Allaham January 2012

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

CONTENTS Page
Introduction Course Outline Course Topics Study Schedule Coursework Assignment and Guidelines 3 4 7 12 15

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 Course Code: Course Title: Course Discipline: Credits: Prerequisite/s: Co-requisite: Academic Year: ACCT 1002 Introduction to Financial Accounting Management Studies Three (3) None None 2011/2012 (Semester 2)

Course Coordinator:

inshan.allaham@open.uwi.edu

INTRODUCTION

General Information Some important information to keep in mind: Your picture uploaded on the Learning Exchange must conform to the following: a profile of just your face, it should be a close up image that allows you to be recognized. The Department in the Open Campus (OC) ultimately responsible for the delivery of this course is: The Undergraduate Programmes Department. View the OC Web Site for information on your programme at http://www.open.uwi.edu/ There are different avenues available to you as a student to receive support. The avenue you take is dependent on your particular need. View the QUICK LINK in your course for Frequently Asked Questions (FAQs ).

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

Purpose of this Guide This Course Guide provides you with useful information and guidelines about the course ACCT 1002-Introduction to Financial Accounting. The guide will assist you in the preparation of your course of study for the entire semester. Unit outlines for each area is provided to guide you with regard to the material that needs to be covered and the timeframe within which it must be done. Following each outline is a set of supplemental questions and problems that should be attempted to enhance your learning. A detailed delivery schedule is also provided so that you may keep abreast of all readings and tutorial problems supplemented by your reading list. Also, you are provided with a breakdown of the assessment components that will contribute towards your final grade.

Course Coordinators Expectation This is an introductory course designed to provide an understanding of the principles and concepts involved in the preparation of financial statements. It is a very intense course to be covered in a period of twelve weeks and you start preparing from day one. It is important that you keep abreast of the readings and tutorials and practise as many questions as possible throughout the semester.

It is important that you familiarise yourself with navigating the Internet and the Learning Exchange, be willing to participate in online activities such as discussion forums, have the motivation to work independently and express ideas clearly and convincingly.

Plagiarism: The University has a new policy on plagiarism. Please pay attention to the Quick Link in the left hand column of the course page for additional information.

Netiquette (see Quick Link in the left column of the course page for additional information)

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 COURSE OUTLINE Course Description & Aims This is an introductory course designed to cover both a practical and theoretical understanding of the principles and concepts involved in the preparation of financial statements. You are exposed to a conceptual analytical approach, with the aim of improving your critical thinking and communication skills, especially in the area of accounting.

Target Audience This course is designed for students in both the accounting major and other areas of study.

Course Objectives By the end of the course, you should be able to:

erstand basic accounting issues for the major types of business entities, namely the sole proprietorship, the partnership and the corporation

statements), namely the Balance Sheet, Income Statement and Statement of Owners Equity Interpret accounting information Use accounting information in decision-making Implement internal controls for cash and explain the various accounting concepts and conventions

Course materials: Print package: ACCT1002 (MS15A)-Introduction to Financial Accounting Online materials: Course units also available online Exercises and solutions available online only

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 Additional Resources Business Accounting I Frank Wood & Alan Sangster Pitman Publishing 11th Edition, 2008 Financial & Management Accounting The Basis for

Business Decisions (12th Edition) Jan Williams, Susan Haka, Mark S Betner, Robert F. Meigs, Sue Haker and Mark Betner. 2001 McGraw-Hill Irwin

Highly Recommended: Introduction to Financial Accounting (2nd Edition) 2002 Raghunandan, William, Bowrin & Raggay UWI, MPC, St. Augustine

Elluminate Sessions: Please consult your Elluminate schedule which you should be able to access from your course main page.

Preparation: This course is intensive and you must engage with it in a meaningful way. You are required to read assigned units and practice the exercises, both those in the course text and those online, before each teleconference and the relevant online session so as to enable meaningful and serious discussions. It is important that you understand this, as it will not be possible to go through each unit in detail. Please note that the course material cannot be digested two (2) to three (3) weeks before examination. Success in this course can ONLY be achieved by keeping abreast with the material and practicing what you learn by attempting as many questions as possible throughout the semester.

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

COURSE SCHEDULE TOPICS BY WEEK Readings* PRACTICE PROBLEMS Week 0 Orientation and Introduction Week 1, beginning January 23rd 2012 A. Introduction - Definition, Need and Use for Accounting - Duties of the Accountant - Types of Business Form - Accounting Concepts and Conventions - Financial Accounting Statements - The Accounting Equation

UNIT 1 All Sessions Exercise I Week 2, beginning January 30th 2012 B. The Accounting Cycle (Part I) - Types and Classification of Accounts - The Accounting Cycle - Source Documents used in Accounting Systems - Fundamental Principle of Debit and Credit - Recording Transactions in Journals

UNIT 2 Sessions 1 & 2 Exercise II

Weeks 3 & 4, beginning February 6th 2012 C. The Accounting Cycle (Part II) - Recording Transactions in Journals Page 7 of 18

Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 - Posting Transactions in Ledger Accounts - The Trial Balance UNIT 2 Session 3 & UNIT 3 Session 1 Exercise III Week 5, beginning February 20th 2012 D. Final Accounting Statements (Part I) - Simple Income Statement and Balance Sheet Identification and Correction of Error UNIT 3 Sessions 2 & 3 Exercise IV Week 6, February 27th 2012 E. Adjustments (Part I) UNIT 4 All Sessions Exercise V - Accruals and Prepayments - Bad Debts - Bad Debts Recovered Provisions for Bad Debts Weeks 7 & 8, beginning March 5th 2012 F. Final Accounting Statements (Part II) - Other Adjustments (Carriage, Commission, Concept of Markup & Margin) - Closing Entries - Income Statement and Balance Sheet of Sole Trader UNIT 6 Sessions 1 & 2 Exercise VI Week 9, beginning March 19th 2012 G. Adjustments (Part II) Page 8 of 18

Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 - Methods of Depreciation (Straight Line & Reducing Balance) - Accounting for Depreciation Disposal of Fixed Assets UNIT 5 All Sessions Exercise VII Week 10, beginning March 26th 2012 H. Partnership Accounts - Types of Partners - Partners Current Account - Partnerships Income Statement and Balance Sheet UNIT 7 All Sessions Exercise VIII Week 11, beginning April 2nd 2012 I. Company Accounts - Types of Companies - Share Capital and Debentures UNIT 8 Session 1 Exercise IX Week 12, beginning April 9th 2012 J. Cash Control - Bank Reconciliation Statements UNIT 9 Session 2 Exercise X Weeks 13, beginning April 16th 2012 Revision

*All references are from the course manual, unless otherwise stated. Page 9 of 18

Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

Course Delivery: This course will be delivered over 13 weeks using the following strategies: This course will be delivered through exchange forums, online content (units), printed package, tutorial questions, Elluminate sessions, and online interaction The main course material will be delivered in a course package comprising Units and Readings. Each week a set of tutorial problems are assigned which you must attempt and submit to you tutor. You must also be prepared to work through, independently, all your course material. You will be expected to participate in your online groups with your e-tutor or instructor. You should log in frequently and interact with their peers and tutor and participate in online activities such as discussion forums. You must attempt tutorial questions/problems and submit to tutors no later than one week after the discussion topic. Tutors will provide feedback through the relevant forum. During the Elluminate sessions scheduled for this course the Course Coordinator will review the content of the Units and address any queries on course assessment or any other issues pertaining to the course. Prior to the teleconference sessions, you will be given additional materials to study in preparation for the session. These materials will form the basis of the teleconference discussion and are encouraged to participate actively. ASSESSMENT There will be three (3) course assessments as follows: Assignment 1 A comprehensive problem covering the entire Accounting Cycle Page 10 of 18

Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 A web based quiz consisting of thirty (30) multiple choice questions (1 hour duration, based on units from weeks 1-8 i.e. Units 1, 2, 3, 4, & 6). The final examination will cover all of the material presented in the course. The weighting and due dates for the assessments in this course are as follows: Assessment Item Assignment 1: Comprehensive Problem Weighting and due dates 10% due Tuesday 27th March 2012 3.30 pm EC time Web based Multiple Choice Quiz 30% available from Sun. 1st Apr. 3.30pm EC to Tuesday 3rd April 2011 3.30 pm EC time Final Exam Total 60% TBA 100%

Important dates to keep in mind:

SEMESTER 2 January May 2012 Registration Semester Begins Teaching Begins Jan. 11nd to Jan. 22nd 2012 January 22nd 2012 January 23rd 2012

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 Comprehensive Problem due. March 27th 2012 at 3.30pm EC time From Sunday April 1st. 3:30 Web based Quiz pm to Tue. April 3rd . 2012, 3:30 pm (EC time) Teaching Ends Examinations Begin Examinations End Semester Ends April 19th, 2012 April 24th 2012 May 9th , 2012 May 9th , 2012

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

COURSE DELIVERY SCHEDULE W E MAIN TOPIC E K OBJECTIVES . Marks DATES Teaching DATES AND

Strategy/Technology ACTIVITIES

0/ 1

January 23rd

Orientation and introduction Establishing the type of Unit 1 (All sessions) Introduction. climate/environment for learning - Introduction to each other in the class. Plagiarism State the nature and purpose of accounting. Define the various types of business organizations. Define the various types of financial statements. List and state the purpose of the accounting equation.

Online unit 1 E-tutor presentation Discussion forum

Exercise I all questions and problems.

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2

January 30th Unit 2 (Sessions 1&2): The Accounting Cycle (Part 1)

Classify the various types of accounts. List the steps in the accounting cycle. Explain the fundamental principle of debit and credit.

Online unit 2 E-tutor presentation Discussion forum

Exercise II all questions and problems.

February 6th Unit 2 (Session 3)

Record transactions in the journal. and Unit 3 (Session Post transactions to ledger 1): The Accounting accounts. Cycle (Part 11) and the Trial Balance Prepare the trial balance

Online unit 2 and 3 E-tutor presentation Discussion forum

Exercise III all questions and problems.

February 13
th

Week 3 continued

Week 3 continued

Week 3 continued

Week 3 continued

February 20th

Unit 3 Sessions 2 and 3 Final Accounting Statements

Prepare simple income statements and Balance sheet. Identify errors and state various corrective measures.

Online unit 3 E-tutor presentation Discussion forum Exercise IV all questions and problems.

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 6 February 27

th

Unit 4 (All sessions) Adjustments

Distinguish between accruals and prepayments.

Online Unit 4 E-tutor presentation Exercise V all questions and problems.

Adjust accounts to reflect bad debts and recovery of bad debts. Make provision for bad debts.

Discussion forum

March 5th

Unit 6 Final Accounting statements

Use profit figure to determine mark up and margin. Calculate freight costs and transportation. Prepare financial statements.

Online Unit 6 E-tutor presentation Discussion forum Exercise VI all questions and problems.

March 12th

Week 7 continued

Week 7 continued

Online Unit 6 E-tutor presentation Discussion forum Exercise VI all questions and problems.

March 19th

Unit 5 All sessions Adjustments (II)

Define depreciation. List the methods of depreciation. Use the methods to calculate depreciation. Make adjustments for the acquisition and disposal

Online Unit 5 E-tutor presentation Discussion forum Exercise VII all questions and problems. Comprehensive problem due (10

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 of fixed assets. marks)

10

March 26th

Unit 7 (All sessions) Partnership Accounts

Identify the various types of partners and partnership. Prepare partners capital and current accounts Prepare balance sheet.

Online Unit 7 E-tutor presentation Discussion forum Refer to Chapter 9 of the Highly recommended Text by Raghunandan et al.

Exercise VIII all questions and problems.

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April 2nd

Unit 8 (All sessions) Company Accounts

Identify and distinguish the various types of companies. Describe the various sources of capital. Prepare journal entries to record the issue of shares Prepare the stockholders equity section of the balance sheet

Online Unit 8 E-tutor presentation Discussion forum Refer to Chapter 10 of the Highly recommended Text by Raghunandan et al.

Exercise IX all questions and problems.

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April 9th Unit 9 ( Sessions 2 and 3) Cash control

Prepare bank reconciliation statements. Prepare the petty cash book.

Online Unit 9 E-tutor presentation Discussion forum

Exercise X all questions and problems.

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 13 April 16

th

Revision

Discussion Forum

COURSEWORK ASSIGNMENTS

Assignment 1 You are required to submit Assignment 1 by Tuesday 27th March 2012 at 3:30 pm EC time. This coursework problem will account for 10% of your overall mark.

Assignment 2 A web based quiz and will consist of 30 Multiple Choice questions worth 30 marks of your overall mark. This quiz will be available from Sunday April 1st. 3:30 pm EC time to Tuesday April 3rd. 3:30 pm EC time.

The guideline developed to assist you in completing this assignment is indicated below. ________________________________________________________________________

This Comprehensive problem will be marked out of 10% as follows:

Marking Guidelines In Year 1 Introduction to Financial Accounting students are more exposed to calculation rather than analysis and interpretation which are done in years 2 and 3. As such marks will be awarded for: Numeracy-accuracy of calculations Presentation-knowledge of formats, and Completeness

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Introduction to Financial Accounting ACCT1002 - Academic Year 2011/2012, Semester 2 All students are required to attach their Coursework Accountability Statement to their papers on submission of an assignment. This form is can be downloaded from the Quick Link found in your course space.

PENALTY FOR LATE SUBMISSION Submission of late assignments will accrue a penalty Unless the student obtains prior approval. There will be a late assignment box which will allow submission with a penalty [i.e. An assignment may be submitted in the late box but a penalty of 10% for each day late will be subtracted from the students final mark on the assignment.

For example, 10% of 10 = 1

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