Course Name (short): Accounting 2
School: All Sheridan Schools
Program(s): Business, Business Admin Accounting
Program Coordinator(s): Multiple Coordinators
Course Leader or Contact: Maurizio Di Maio
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version: 24.0
Status: Approved - Under Rev (AREV)

Calendar Description
Students examine in depth, accounts and notes receivable, inventories, capital assets, intangible assets, current liabilities and notes payables. Students learn about the structure and operations of partnerships and corporations and how to account for business transactions within those entities. Using interactive lectures, demonstrations and in-class problem solving activities students learn how to account for and report business transactions for partnerships and corporations.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: A minimum grade of "B" in this course together with a minimum grade of "B" in ACCG16971 qualifies the student for exemption toward the Certified General Accountant Association course FA1. Allowable calculator: four function calculator or Texas BAII Plus.

Detailed Description
Students examine in depth, accounts and notes receivable, inventories, capital assets, intangible assets, current liabilities and notes payables. Students learn about the structure and operations of partnerships and corporations and how to account for business transactions within those entities. Using interactive lectures, demonstrations and in-class problem solving activities students learn how to account for and report business transactions for partnerships and corporations.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the 
ability to report a variety of business transactions to users of 
financial statements.
   
Learning Outcomes
To achieve the critical performance, students will have demonstrated 
the ability to: 
 
1.  Record accounts receivable and apply the direct method and 
    allowance method for recording uncollectible amounts.
2.  Compute the cost of inventory and cost of goods sold using a 
    variety of costing methods and determine the appropriate 
    measurement and reporting of inventory.
3.  Describe capital assets and apply the cost principle to calculate 
    their costs.
4.  Calculate and record amortization using straight-line, units-of-
    production and declining balance methods.
5.  Prepare journal entries for the disposition of assets.
6.  Describe the characteristics of current and long-term liabilities.
7.  Calculate interest with respect to notes payable.
8. Record the journal entries associated with initial investment by 
    partners, admission/withdrawal of a partner and liquidation of 
    partnerships.
9. Allocate and record income and losses among partners.
10. Prepare the shareholders' equity section of a corporate balance 
    sheet.
11. Record the issuance of common and preferred shares and describe 
    their presentation in the shareholders' equity on the balance 
    sheet.
12. Describe and account for cash dividends distributed between 
    common and preferred shares, share dividends and share splits.
13. Record closing entries for a corporation.
14. Account for retirement of shares.
15. Calculate earnings per share and describe its uses.
16. Record issuance of bonds at par.
17. Prepare a simple cash flow statement.

Online tutorials                      7.5%
Quizzes (pre-chapter, best 11 of 12)   10%
Homework Assignments (post-class)     7.5%
Mid Term Test                          35%
Final Exam Comprehensive               40%
Total                                 100%

Key Accounting Principles Volume 2, 3rd Canadian edition, Neville 
Joffe, AME Publishing.

Module 1:  Accounting Information Systems
- Using sub-ledger accounts

Text Reference: Joffe Chapter 1

On line Chapter 1 tutorials 
Quiz #1

Module 2: Cash and Short-Term Investments 
- Classification of investments
- Accounting for short-term investments

Text Reference: Joffe Chapter 2

On line Chapter 2 tutorials 
Quiz #2

Module 3: Accounts and Notes Receivable 
- Credit customers and bad debts
- Promissory notes
- Converting receivables into cash before maturity
- Accounts Receivable turnover
- Days' sales outstanding analysis 

Text Reference: Joffe Chapter 3

On line Chapter 3 tutorials 
Quiz #3

Module 4: Inventory 
- Assigning costs to inventory items
- Lower of cost and net realizable value
- Inventory errors
- Estimating inventory
- Inventory costing methods- periodic inventory system
- Merchandise turnover ratio
- Days' sales in inventory analysis

Text Reference: Joffe Chapter 4 

On line Chapter 4 tutorials  
Quiz #4

Module 5: Prepaid Expenses and Other Current Assets 
- Text Reference: Joffe Chapter 5 

On line Chapter 5 tutorials  
Quiz #5

Module 6: Non-Current Assets 
- Property, plant and equipment
- Costs subsequent to acquisition of property, plant & 
  equipment
- Depreciation
- Impairment of Property, plant & equipment
- Disposals of Property, plant & equipment
- Intangible assets
- Asset turnover ratio 
- Return on Total Assets ratio

Text Reference: Joffe Chapter 6 

On line Chapter 6 tutorials 
Quiz #6

Midterm Exam - 35%  Modules 1 - 6

Module 7: Current Liabilities & Non-current Liabilities
- Determinable liabilities
- Short-term notes payable
- Estimated and contingent liabilities
- Bonds payable and other long-term liabilities
- Issuing bonds at par
- Time value of money
- Issuing bonds at discount and premium
- Retiring bonds

Text Reference: Joffe Chapter 7 & 8

On line tutorials Chapter 7 & 8 due
Quiz #7 & #8

Module 8: Partnerships
- Characteristics of partnerships
- Division of partnership earnings

Text Reference: Joffe Chapter 9

On line Chapter 9 tutorials due
Quiz #9

Module 9: Corporations: Share Capital, Dividends & Financial 
Statements
Internal control over cash
- Corporate organization
- Issuance of shares
- Classes of shares
- Cash dividends
- Closing entries for a corporation
- Book value per share
- Earnings per share
- Reporting income
- Retained earnings
- Corporate Financial Statements

Text Reference: Joffe Chapter 10 & 11

On line Chapter 10 & 11 tutorials 
Quiz #10 & 11

Module 10: The Cash Flow Statement 
- Classify operating, investing and financing activities
- Create a simple cash flow statement

Text Reference: Joffe Chapter 12

On line Chapter 12 tutorials 
Quiz #12

Final Exam - Cumulative - 40%