Course Name (short): Financial Accounting 2
School: Continuing Ed & Corp Training
Program(s): Accounting
Program Coordinator(s): Brent Koritko
Course Leader or Contact: Multiple Course Leaders
Originator: Ravneet Malhi
Designate: Ravneet Malhi
Version: 9.0
Status: Approved (APPR)

Calendar Description
N/A

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course is offered in a classroom version and an online version. In the classroom version, there are three hours per week of classroom instruction. The online version is a web-based course offered entirely online through Sheridan College. Students taking this course will need reliable access to the internet, and should have a basic level of comfort using computers as well as the self-discipline to study independently. Students can expect to spend an additional three hours per week for online activities such as postings, discussions, and homework. A minimum grade of "B" in this course together with a minimum grade of "B" in ACCG70016 is needed to apply for exemption for the Certified General Accountant of Ontario (CGA) FA1 course.

Detailed Description
Students expand their knowledge of accounting principles and concepts related to accounts and notes receivable, capital assets, intangible assets, current liabilities and notes payables. Emphasis in this course is placed on the structure and operations of partnerships and corporations, including how to account for business transactions within those entities. Using interactive lectures, demonstrations and problem solving activities students learn how to account for and report business transactions for partnerships and corporations. Note: a minimum grade of "B" in this course together with a minimum grade of "B" in ACCG70016 is needed to apply for exemption for the Certified General Accountant of Ontario (CGA) FA1 course. Prerequisite(s): ACCG70016 Financial Accounting 1

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. Account for tangible and intangible long-term assets, including 
   acquisition, disposition and various methods of calculating asset 
   depreciation.

3. Prepare journal entries to record and pay payroll liabilities for 
   the employees and for payroll costs levied on employers.

4. Describe the characteristics of current and long-term liabilities.

5. Calculate interest with respect to notes payable.

6. Account for Partnerships, including recognition of initial
   investment by partners, admission/withdrawal of a 
   partner, allocation of income/losses & liquidation of partnership.

7. Account for corporation organizations including, issuance of 
   common and preferred shares, declaration and distribution of
   various kinds of dividends to various classes of shares, 
   retirement of shares and presentation of the shareholders' equity
   section of the corporate balance sheet. 

8. Calculate earnings per share and describe its uses.

9. Record the issuance of bonds between interest dates.

10.Prepare and present a simple cash flow statement.

In class Evaluation 

Quizzes and/or homework      10%
Assignments                  15%
Mid Term Test                35%
Final Exam Comprehensive     40%
Total                       100%

Evaluation for on-line delivery.

On-line Quizzes              15%
On-line Assignments          25%
* Final Exam (Comprehensive) 60%
Total                        100%

*Students must achieve a minimum of 50% on the final exam in order to
earn credit for this course. The final exam is administered in a
class-room; students must appear in-person to write the final exam.

Fundamental Accounting Principles, Volume 2 (14th Canadian Edition
2013); bundled with on-line learning portal Connect. Authors: Larson &
Jensen. Publisher; McGraw-Hill Ryerson.
Chapter 9 is excluded from the textbook, a link to Chapter 9 is
available on SLATE.

Module 1 - (LO's #1,#2) Assets 

Accounts Receivable
  Value Accounts Receivable using the direct and indirect method
  Account for short-term Notes Receivable

  Text Reference - Chapter 9 (Chapter 9 is excluded from the 
  textbook, a link to Chapter 9 is available on SLATE.

Property, Plant and Equipment
  Explain the characteristics of property, plant and equipment
  Apply the cost principle to record costs at acquisition and
  subsequent to acquisition.
  Calculate and record depreciation using straight-line, units-of-
  production and declining balance methods.
  Prepare journal entries for the disposition of long-term assets.

Intangible Assets
  Explain the characteristics of intangible assets

  Text Reference - Chapter 10 
 
Module 2 - (LO's #3, #4, #5)Liabilities 

Liabilities
  Describe the characteristics of liabilities and explain the 
  difference  between current and long term
  Identify and describe known current  liabilities
  Prepare entries to account for payroll liabilities
  Calculate and record interest and related noted payable
  Account for estimated liabilities

  Text Reference: Chapter 11

Module 3 - (LO#6)Partnerships 
  Explain the Partnership Form of Organization
  Record the journal entries associated with initial investment by 
  partners, admission/withdrawal of a partner and liquidation of 
  partnerships.
  Allocate and record income and losses among partners.

  Text Reference - Chapter 12

Module 4 - (LO's #7, #8, #9)Organization and Operation of 
Corporations 
  Corporate Form of Organization
  Financing by Issuing Shares
    Record the issuance of common and preferred shares
    Account for retirement of shares.
  Dividends (Common & Preferred)
    Describe and account for cash dividends distributed between 
    common and preferred shares, share dividends and share splits.
  Record closing entries for a corporation.
  Prepare the shareholders' equity section of a corporate balance 
  sheet.
  Calculate and interpret Earnings per Share
  
   Text Reference - Chapter 13 and 14 
  
Bonds and Long-Term Notes Payable
  Financing by Issuing Bonds

  Text Reference: Chapter 15

Module 5 - (LO #10)Reporting and analyzing cash flows
  Categorize cash inflows and outflows
  Statement of Cash Flows

  Text Reference - Chapter 17

Retain this course outline during the course and for future use when 
applying for credit at other educational institutions.