Accounting II

Accounting Processes and Operations

Collection and Recording

Finalization and Analysis of Data

Accounting Applications and Implications 

Accounting in a Business Startup and Expansion

Business Ethics

Demonstrate a thorough understanding of the accounting cycles of merchandising, manufacturing, and service businesses while performing actions necessary to plan, control, and evaluate business operations. Differentiate between inventory for both merchandising and manufacturing businesses and explain how the different types of businesses apply appropriate valuation methods when preparing financial statements.

Collect source documents used to track transactions in accounting processes, such as invoices, receipts, memorandums, check stubs, deposit slips, and electronic records. Describe the process used by a merchandising business to prepare, review, and analyze source documents as part of the accounting cycle, citing evidence from sample documents.

Maintain accurate and balanced records for all accounts analyzed throughout the duration of the course. Analyze source documents of increasing complexity within a variety of merchandising, manufacturing, and service operations. For a given transaction, determine debits and credits; journalize transactions in the general journal or special journals; post to the general ledger and subsidiary ledger accounts; and determine the ending balances of each account. 

Gather sample accounting worksheets from public records, textbooks, or other company templates to determine how merchandising businesses prepare financial records. Drawing on this information, prepare an original 10 column worksheet. Define and provide examples of key categories and terms, including accounts receivable, accounts payable, and various tax accounts.

Demonstrate accurate analysis of financial data by performing the following processes:

Compare and contrast the cost accounting records for a merchandising business with a manufacturing business.

Analyze an annual report for a service, merchandising, and manufacturing business, identifying the major sections and the implications of the financial data and statements included within the report. Illustrate through a formal financial presentation how the comparison of budgeted to actual revenue, expenses, and cash amounts affects management decision making on matters such as budgetary planning, fiscal control policies, product line expansion, asset acquisition, downsizing, and operational improvements.

Examine various advanced applications of accounting for a merchandising business and analyze the implications that each has for the business’s profitability. Advanced applications include, but are not limited to, the following:

Define depreciation in accounting contexts and determine the impact of depreciation on a variety of goods in different industries (i.e., manufacturing, agriculture, retail services, and more). For a selected firm in one of these industries, analyze and journalize acquisition, depreciation, and disposal of a plant asset, then calculate depreciation using the straight-line, declining balance, and sum-of-the-years digits methods. 

Research IRS.gov for multiple small business and self-employment forms/publications detailing important tax information related to the various stages of owning a business, from starting and filing for an Employer Identification Number (EIN), to operating and closing. Follow procedures to complete sample federal income tax employment/payroll forms (i.e., 940, 941, 944, W2) for small businesses, including social security and Medicare taxes, FUTA, and self-employment taxes. Prepare quarterly and end-of-tax-year examples for a real or fictitious small business. 

Examine the steps required to form and expand a partnership. Analyze the transactions necessary for forming a partnership, admitting new partners, and distributing net income among partners, including identification of federal income tax forms for partnerships.

Investigate the process for incorporating a business. Accurately analyze practices and business forms related to the start-up of a corporation, including but not limited to stock subscriptions, dividends declaration, dividend payment, capital acquisition, and treasury stock. Include in the examination income tax filing requirements for corporations and note SEC (U.S. Securities and Exchange Commission) requirements for expansion of existing stocks in the process. Prepare an argumentative text intended for a simulated business which affirms the advantages of incorporating versus remaining a sole proprietorship or partnership. 

Explore the business model used by franchised companies. Compare and contrast depictions of the process used by companies to expand into a franchising business and the process used by franchisees to buy into the franchise. Analyze the financial obligations associated with franchised businesses for both the franchisor and franchisee. 

Investigate codes of ethics from professional organizations in accounting, personal finance, and banking and GAAP (Generally Accepted Accounting Principles) and examine areas of commonality. Synthesize principles from the codes investigated including separation of duties to create a personal code of ethics.  

Examine real-world situations that involve ethical dilemmas and the application of correct professional conduct as highlighted in recent news articles. Craft an argumentative essay making a claim about the importance of ethics and professional standards for persons working in the accounting pathway, citing examples from case studies to argue for the relevance of professional codes of conduct. 

Record and post adjusting entries to affected supplies, inventory, notes receivable, insurance, accounts payable, and tax accounts

Prepare and analyze financial statements 

Record closing entries of temporary accounts, including revenue, expense, and withdrawals accounts

Prepare the post-closing trial balance

For a merchandising business, analyze the means of tracking and accounting for physical inventory and determining the actual cost of the merchandise resold to customers. Calculate the ending balance of the inventory account using the adjustment process 

In a manufacturing business, review the components of systems used to maintain records of manufacturing costs. Differentiate between job order and process cost accounting and demonstrate an understanding of the advantages of each system for different manufacturing processes. Track the flow of inventory in the product process, from raw materials to work-in-process to finished goods inventory 

For both businesses, account for direct labor, direct material, and factory overhead budgeting

Prepare adjustments for uncollectible accounts using both the direct write-off and the allowance method

Analyze methods related to assigning cost to inventory, including the specific identification method, first-in first-out (FIFO) method, last-in first-out (LIFO) method, and weighted average cost method