Edmonds Community College
Financial Accounting 2 - ACCT 202B Fall 2008
Online Course
Instructor: Andy Williams
Textbooks: Financial & Managerial Accounting, Eighth Edition, by Needles, Powers, and Crosson is required. The authors have made addtional materials at their web site at http://www.college.hmco.com/accounting/needles/fin_man_acc/8e/student_home.html
Equipment and software: Computer with reliable Internet access, web browser, word processor and spreadsheet software. You can find a list of the minimum computer system requirements necessary at the EdCC Distance Learning Office web pages. A calculator, paper and pencils will also prove to be handy. For that matter, your fine mind and your ability to communicate can also be considered to be equipment necessary for this course!
Availability: The best way to reach me is via email at <>. You can also reach me by phone at 425-640-1450. If you want to meet in person, you can find me in my office in SNO #235. My office hours are Monday - Thursday: 10:30 – 11:30 a.m. You can also find additional information on my web page at http://faculty.edcc.edu/andy.williams/
Prerequisites: A minimum grade of 2.0 in Financial Accounting 1 (ACCT 201) is a prerequisite for this course. Minimum placement inEAP (English for Academic Purposes) 121 or Bridge 93, roughly the equivalent of American High School English, is a prerequisite for this course. Mathematical ability equivalent to Math 60 or Business Math (BUS 130), again the equivalent of High School Algebra is also recommended. Proficiencies in computer spreadsheet and word processing applications will be helpful to those students who have acquired those skills.
This is a class that is delivered using the tools of the internet, as well as standard business software, such as email, spreadsheets and word processors. You should be familiar with these tools before taking this course. A good way to assess your computer skills and technical ability is to complete the Online Study Overview at the EdCC DLO website. Please review that assessment prior to beginning this course. If you have any questions about these prerequisites and recommendations, please discuss them with me as soon as possible.
We will be using the Blackboard software for our virtual classroom. Blackboard creates a complete online classroom on a Web site. Students need access to the WWW and a Web browser throughout the class. Successful completion of student responsibilities in this class requires access to Blackboard via an Internet browser. You are expected to login to the Blackboard classroom at least 3 times per week, at a minimum. Complete instructions for logging into Blackboard are located at the EdCC DLO website. Also at that site are links to various resources, plug ins, and tips and tricks that you may find useful.
If you have any questions regarding these prerequisites, let’s discuss them as soon as we can.
Accessibility: If you require an accommodation for a disability, please contact Services for Students with Disabilities at MLT 159, 425.640.1320. .
Course Objectives
Financial Accounting 2 (ACCT 202) represents a continuation of the development of Financial Accounting concepts, procedures and practices introduced in ACCT 201. The course is designed for students who have successfully completed an initial course in Financial Accounting. We will emphasize the development and interpretation of accounting information for decision-making purposes. As a comprehensive review of the course, students will use basic tools of financial analysis to evaluate the current condition and financial performance of a publicly traded corporation. The following college-wide abilities and specific learning outcomes are taught, applied and/or assessed in this course:
Critical Thinking Outcomes
· Observe, analyze, synthesize, apply and evaluate business information.
· Identify arguments, evaluate claims, and form conclusions based on standard business practices.
· Identify and analyze problems and options, then select and implement appropriate solutions, and evaluate outcomes appropriate to course content.
· Examine and evaluate personal thinking as well as the thought process and perspectives of others.
Communication Outcomes
· Prepare and present clear, concise, well-developed written communications in Standard English with correct punctuation and spelling, using business-appropriate word processing formats and styles.
· Plan and professionally deliver effective oral presentations appropriate to the audience.
· Write clear organized short informational reports using correct format and report writing principles.
· Use listening skills that positively enhance relationships in a business environment.
Quantitative Skills Outcomes
· Use mathematics to solve quantitative business issues and problems.
· Calculate and explain the costs and benefits of simple financial choices encountered in financial planning and strategic decision-making.
· Use personal computers and other tools most commonly used by business to obtain, store, organize and communicate quantitative business information.
Specific Course Outcomes for Accounting 202
Students will demonstrate their quantitative, communication and critical thinking abilities by mastering the following course objectives:
· Utilize present and future valuation techniques to value assets and liabilities.
· Allocate the cost of long term assets in accordance with generally accepted accounting principles.
· Account for the disposal, sale and exchange of long term assets.
· Journalize transactions involving definitely determinable and estimated liabilities. Identify contingent liabilities. Explain the effects of recording liabilities on financial statements.
· Journalize transactions for the issuance and repayment of bonds and installment obligations.
· Journalize transactions involving stockholders' equity accounts and prepare formal financial statements properly organizing that information.
· Prepare and analyze a formal statement of cash flows.
· Analyze the financial condition and performance of a corporation using several financial analysis techniques.
General Course Schedule
Week One: The Time Value of Money
9/22 – 9/28 - Learning Objectives
· Review accounting conventions, principles and practices. Describe the function of financial accounting in the investment process.
· Describe the time value of money, and apply the concepts of present value and future value of single payments and annuities to accounting situations.
Use compound interest tables to compute the present value and future value of single payments and annuities.
Weeks Two and Three: Long Term Assets
9/29 - 10/12 - Learning Objectives:
· Identify the management issues regarding long-term assets
· Account for the costs of long term assets.
· Define depreciation, journalize an adjusting entry to record depreciation on an annual, partial year and monthly basis, and compute depreciation expense. using the straight-line, declining balance, and production methods.
· Apply the matching rule to the allocation of costs for capital and revenue expenditures.
· Account for the disposal, sale and exchange of property, plant and equipment.
· Account for the costs and allocation of costs for natural resources.
· Account for the costs and allocation of costs for intangible assets.
Quiz #1
Weeks Four and Five: Long-Term Liabilities
10/13 - 10/26 - Learning Objectives:
· Identify the management issues regarding long-term liabilities.
· Describe the major characteristics of bonds payable. Utilize various sources to identify types, prices and credit ratings of various types of bonds.
· Journalize the issuance of bonds at face value, at a discount, and at a premium.
· Determine the current price, or value, of bonds using present value concepts. Describe the effects of changes in market interest rates on the prices of bonds.
· Journalize the recording of bond interest expense using both the straight-line and effective interest methods.
· Journalize the retirement of bonds and the conversion of bonds into stock.
· Explain the basic features of mortgage notes payable and installment notes payable.
· Journalize the issuance and repayment of installment notes and mortgage notes
Midterm Exam
Week Six: Contributed Capital
10/27 - 11/2 - Learning Objectives:
· Define a corporation and describe the characteristics of corporations.
· Identify the components of stockholders' equity.
· Account for the issuance of common stock and preferred stock.
· Account for cash dividends paid to holders of common and preferred stock.
· Account for stock subscriptions and the exercise of stock options.
Evaluate the alternatives of acquiring assets with contributed capital or liabilities.
Week Seven: The Statement of Stockholders' Equity
11/3 - 11/9 - Learning Objectives:
· Identify the issues related to evaluating the quality of a company's earnings.
· Calculate earnings per share.
· Account for stock dividends and stock splits.
· Prepare a statement of stockholders' equity.
· Calculate book value per share and contrast with market value.
· Evaluate the effects of stock splits, stock and cash dividends, treasury stock transactions, and the acquisition of assets on a corporation.
· Quiz #2
Week Eight -The Statement of Cash Flows
11/10 - 11/16 - Learning Objectives:
· Describe the statement of cash flows, and define cash and cash equivalents.
· Determine cash flows from operations using the indirect method.
· Determine cash flows from investing and from financing activities.
· Prepare a statement of cash flows.
· Interpret the statement of cash flows and use that information to analyze the financial decisions of management.
Week Nine and Ten: Financial Statement Analysis
11/17 – 12/1 - Learning Objectives:
· Describe and discuss the objectives and standards of financial statement analysis.
· Describe the sources of information for financial statement analysis.
· Apply horizontal, vertical and trend analysis to financial statements
· Evaluate the liquidity, leverage, solvency and profitability of a corporation.
· Describe and discuss the objectives and standards of financial statement analysis.
· Describe the sources of information for financial statement analysis.
· Apply horizontal, vertical and trend analysis to financial statements.
· Evaluate the liquidity, leverage, solvency and profitability of a corporation.
Final Exam
Assessment of Learning Outcomes: Grades, Exams, and Homework
Please Read My Policy on Academic Integrity!
Student achievement of the course objectives will be assessed by a variety of instruments, including objective testing, completion of written homework problems and discussion questions, participation in class discussions and written analysis of cases.
NO EXAM MAKEUPS WILL BE ALLOWED unless instructor receives sufficient notice and adequate reasons prior to scheduled exam.
Specific homework problems and other assignments will be assigned periodically throughout the course, usually at the beginning of each unit. The assigned homework is the minimum that you should prepare to successfully complete this course. NO LATE HOMEWORK ASSIGNMENTS WILL BE ACCEPTED for any reason without prior approval from the instructor. If you know that you will need more time on an assignment, please contact me BEFORE THE ASSIGNMENT IS DUE so we can discuss the situation. Homework assignments will be graded on the bases of quality of presentation, completeness, and accuracy.
Classroom discussions and your active participation in class activities and exercises are integral parts of the learning process. Your questions, and your responses to the questions of others, reveal the quality of your efforts and the depth of your understanding. Accordingly, grade points will be earned based on your consistent and quality participation in those discussions. At a minimum, you should be actively participating at least three times weekly, and should be checking in with the class on a daily basis.
Grades: Points will be earned as follows:
Midterm Exam / 100Assignments and Quizzes / 150
Final Exam / 150
Class Participation / 100
Total Points Possible / 500
Accounting Department Decimal Grading Table
95 - 100% / 4.0 / A
94 / 3.9 / A
93 / 3.8 / A
92 / 3.7 / A
91 / 3.6 / A-
90 / 3.5 / A-
89 / 3.4 / B+
88 / 3.3 / B+
87 / 3.2 / B
86 / 3.1 / B
85 / 3.0 / B
84 / 2.9 / B
83 / 2.8 / B
82 / 2.7 / B
81 / 2.6 / B-
80 / 2.5 / B-
79 / 2.4 / C+
78 / 2.3 / C+
77 / 2.2 / C
76 / 2.1 / C
75 / 2.0 / C
74 / 1.9 / C
73 / 1.8 / C
72 / 1.7 / C-
71 / 1.6 / C-
70 / 1.5 / C-
69 - 67 / 1.4 / D+
66 / 1.3 / D
65 / 1.2 / D
64 / 1.1 / D
63 / 1.0 / D-
62 / 0.9 / D-
61 / 0.8 / D-
60 / 0.7 / D-
Score < 60% / 0.0 / No Credit
“V” grades are not available. If you need to withdraw from the course, please do so by the date on the EdCC Academic Calendar.
“I” grades are only available with prior approval of the instructor based on extenuating circumstances and a specific agreement to complete the class in a timely manner.