PRINCIPALS OF FINANCIAL ACCOUNTING II

ACG 2011  --  Spring, 2008

 

 

Kevin Fitzgerald, Ph.D., CPA                                                   Office Hours:               

Office:  LLC 2265                                                        MWF        8:00A -- 9:00A      

            Phone:  669-2830                                                        MW         12:00P -- 12:30P    

            Fax:      297-1034                                                        TR             3:30P -- 6:30P         

            E-mail:  kfitzgerald@polk.edu                                       and/or by appointment  

 

                                                                                   

Sections:  #10116  MWF 10:00 A   LAC 1256

      10119  MWF 11:00 A   LAC 1256

 

 

COURSE DESCRIPTION

 

The study of accounting principles and concepts related to generally accepted accounting principles, partnerships, corporations, consolidated statements, cash flows and financial statement interpretation.

 

 

 

COURSE GOALS & LEARNING OBJECTIVES

 

A continuation of the study of accounting, upon completion of the course the student should: (1) have an understanding of the various components of financial statements, (2) be able to analyze and interpret the financial statements of an organization, (3) be able evaluate the financial status of a firm vis-à-vis other firms in the same industry, and (4) be able to communicate financial information comfortably with both financial and non-financial colleagues. 

 

 

The above course goals should be achieved by satisfying the following learning objectives.

 

Long-Term Assets

  Explain capitalization rules for equipment, depletable and intangible assets.

  Explain concepts of depreciation, amortization and salvage value.

 Compute depreciation/amortization under straight-line, production and declining balance methods, revised rates & groups of similar items.

 

Current Liabilities & Time Value of Money

  Account for current liabilities such as payroll, payroll taxes, short-term payables, product warranties, vacation pay and other accruals.

  Apply concepts of present value, future value, annuities to accounting problems.

Long-term Liabilities

  Account for sale and retirement of bonds, mortgages, and installment notes.

  Account for periodic interest payments and their accrual.

  Amortize premium and discounts using both the straight-line and effective interest rate methods.

Retained Earnings & Contributed Capital

  Prepare a Statement of Retained Earnings.

  Calculate book value and explain difference with market value.

  List advantages and disadvantages of the corporate form of business.

  Identify components and prepare a statement of stockholder’s equity.

  Account for  organization costs, cash and stock dividends, Treasury stock, stock splits, stock options, and preferred stock.

Income Statement & Balance Sheet

  Prepare an income statement and balance sheet.

  Explain earnings per share (EPS) under basic and diluted computations.

  Describe disclosure of discontinued operations, extraordinary items, accounting changes, prior period adjustments, and notes to financial statements.

  Interpret and analyze financial statements.

Statement of Cash Flows

  Describe and state principal uses of the statement of cash flows.

  Classify cash flows as to operating, financing or investing activities.

  Using both the direct and indirect methods, prepare a statement of cash flows.

 

 

TEXT:  Financial Accounting: An Integrated Statement Approach, 2e, Duchac, Reeve, Warren 

 

COURSE REQUIREMENTS & GRADES:

 

Attendance:  PCC Catalog 2007 - 2008 pg. 39

“Class attendance is a critical part of the teaching-learning process.  Students are expected to arrange their schedules in a manner enabling regular and prompt class attendance.”  

 

It is the students responsibility to ensure that:

-- examinations are taken at the assigned time, (i.e. – no make-up exams) 

-- if necessary, (which we hope it won’t be) complete appropriate paperwork with Student Services to drop course no later than March 20.  

 

Cheating and Plagiarism:  PCC Catalog 2007 – 2008  pg. 40

 

Grading Summary  --  (Examination dates are shown in the

                                                DATES &  ASSIGNMENTS section following.)

                                   

            Examination # 1            (2 highest                                              Grade Summary                                  

            Examination # 2          @ 30 %                                                     >90 = A             

Final Examination             each)                         60%                 > 80 < 90 = B

                                                                                                            > 70 < 80 = C

            Financial Statement Analysis                             30                    > 60 < 70 = D 

                                                                                                                    < 60 = F 

Oral Presentation  - Instructor Eval.                  5                                                                                                                                        

                               Peer Evaluation                 5        

                                                                                 100%                The examinations will be problem oriented.         

                                                           

 Financial Statement Analysis & Presentation:  Each student will selected a publicly traded company that is of interest to them, will obtain the most recently available financial statements (Annual Stockholders Report, SEC 10K Report, Proxy Statement) and will prepare an analysis of the company, it’s results and operational trends.

 

            The financial analysis will be graded based on the thoroughness of the analysis, effectiveness and clarity of the written presentation as well as grammar and appearance.  The analysis will represent 30% of the final grade.

All reports are due on April 7.  There will be a one grade penalty for each day the report is late.

 

            Oral presentations (USING POWERPOINT) of the financial analysis will begin on April 9.  The presentation and your recommendations will be in the form of a presentation to the executive committee of a company that is considering investing in the company you analyzed.  The presentation should last approximately 10 - 15 minutes, including time for questions from the executive committee.  The presentation will represent 10% of your final grade.  Of the 10%, 5% will be based on the instructor’s evaluation, and 5% will be based on the evaluation of your classmates, i.e., the executive committee.  The presentation will be evaluated based on it’s effectiveness, clarity, logical flow and cogency of support for your recommendation.

 

           

NOTE: ATTENDANCE IS MANDATORY FOR ALL STUDENT PRESENTATIONS.  EACH DATE OF PRESENTATIONS MISSED WILL RESULT IN A 1 % DEDUCTION FROM THE FINAL GRADE POINT AVERAGE FOR THE SEMESTER.  

 

DATES &  ASSIGNMENTS:

 

We will work through the Review Problem at the end of each chapter in detail.

 

 

Computing Skills:  The PCC Purpose Statement (Pg. 8 - 2007 - 2008 Catalog) indicates that the acquisition of computing skills, along with other skills inherent in the learning process, are integral to all degree and certificate programs.  In partial fulfillment of the computer skills portion of the mission the homework problems (P) must be completed using the Excel Templates CD. 

 

Additionally, the student will make extensive use of the research capabilities of the Internet in connection with the Financial Statement Analysis & Interpretation portion of the course.  We will analyze selected companies financial statements securing information from among other sources, the Securities and Exchange Commission web site (www.sec.gov), the individual company web sites, and general financial information web sites such as Bloomberg L. P.’s (www.bloomberg.com.)

 

 

 ASSIGNMENTS: 

Week Beginning:   (Subject to change.)

 

Jan

7

Introduction & Beg. Chap. 9

 

14

Chap. 9     Hmwk.  P1-A, P2A (a) (b), C-2, 6

 

21

Chap. 10

 

28

Chap. 10 Hmwk.  E 3, 16, 17, 21       P 1-A, P 2-A, P 3-A, C - 1

 

 

 

Feb.

4

Chap. 14 Hmwk.  P 2-A, P 4-A              

 

11

EXAM I

 

18

Project Information                      Earnings Management

 

25

Chap. 11

 

 

 

Mar

3

Chap. 11  Hmwk. E – 15, P 1-A, P 3-A*, P 4-A*            * w/b/d/w  Dr. Fitz format

 

10

Chap. 12  Hmwk. P 3-A, P 4-A           

 

17

Chap. 13  Hmwk. P 1-A, P 3-A           

 

24

EXAM  II

 

31

Spring Break  --  No Class

 

 

 

Apr

7

Student Presentations      (All projects due April 7)

 

14

Student Presentations

 

21

Student Presentations

 

28

Review    Final     Classes end Monday 4/28

 

 

FINAL EXAMINATION (Comprehensive)

  # 10116  MWF 10:00 A (Wed. 4/30  10:15 – 12:15)   

     10119  MWF 11:00 A (Fri.   5/2     10:15 – 12:15)   

 


POLK COMMUNITY COLLEGE

DIVISION OF WORKFORCE DEVELOPMENT

 

DIVISION PHONE: (863) 297-1010 x. 6245                                        DEAN:  Dr. Marvin Pippert

 

DIVISION OFFICE: LLC 2278

 

 

PCC MISSION AND OUTCOMES : Polk Community College is a quality-driven educational institution providing degree, career, and lifelong learning programs within an environment of excellence and commitment to student success.  As such, PCC’s A.S. Degree Program Outcomes address competence in career areas.  A primary focus of this

course is competence related to the following Program Outcome(s):  Explain all areas of internal bank operations, in addition to the competitive and regulatory environment in which banks operate. 

 

 

METHODS OF INSTRUCTION:

 

Include, but not limited to, lecture, in class group assignments, case analysis, out of class research, term reports and student oral presentations.

 

 

THE GORDON RULE: This is not a Gordon Rule course.

 

 

WRITING REQUIREMENT: There is no writing requirement for this course.

 

 

STUDENT HELP: The instructor is available for help during posted office hours and by appointment during other non-class hours.   Students are encouraged to seek assistance from the instructor.  Tutorial help is available for some courses in the TLCCs on both campuses.  The schedule for tutors is posted in the TLCCs and available on the PCC website (www.polk.edu).   Students are encouraged to make use of the services of the tutors.

 

 

WITHDRAWAL: Students may officially withdraw from a course(s) during any given term provided the appropriate policy and procedure is followed.  Following the conclusion of the Drop/Add period, the student may officially withdraw without penalty from any credit course provided the appropriate forms are submitted to Student Services no later than the deadline published in the term schedule booklet.  (The published deadline reflects the midpoint in the course based upon the course’s scheduled duration.)  It is the student’s responsibility to submit these withdrawal forms.  Failure to do so may result in an “F” in the course.

 

 

REPEATING A COURSE: Under the Forgiveness Policy, a student is allowed three attempts in any one college credit course: one initial enrollment and two repeats.  A course cannot be repeated unless the previously earned grade is a “D”, “F”, or “W”. (See college catalog for details).

 

 

PCC STANDARDS: Students are responsible for their own work. It is assumed that each student is honest and will abide by that standard.   However, in the event there is an indication or suspicion that there has been a case of cheating/plagiarism, the situation will be dealt with in accordance with published College policy.  Copies of this policy are available in Student Services offices.

 

 

INFORMATION TECHNOLOGY ACCESS/USE POLICY: All individuals who employ information technology resources provided by Polk Community College (this includes, but is not limited to telephones, computers, the PCC local area and wide area networks, and the Internet) must use these resources for academic purposes only.  Use of these resources is a privilege, not a right.  Inappropriate use can result in revocation or suspension of this privilege.

 

 


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