Principles of accounting 2021

Fundamental Accounting Principles, 22nd edn.. COURSE LEARNING OUTCOMES On successful completion of this unit, students should be able to: • Explain the role of accounting in business •

Principles of Accounting – K19CA UEL

201AC9104

truongthihanhdung@uel.edu.vn

096.672.4386

1.Course’s name: Principles of Accounting

• Course Code : ACC1084

• Teaching hours: 60

• Prerequisite course : N/A

3 TEXTBOOK AND ADDITIONAL

LEARNING MATERIALS

3.1 Textbook

[1] Weygandt, Kimmel and Kieso (2015) Financial Accounting, 3rd

edn Wiley

3.2 Additional learning materials

[1] Wild, Larson and Chiappetta (2015) Fundamental Accounting

Principles, 22nd edn McGraw-Hill Irwin

[2] Weygandt, Kieso and Kimmel (2008) Financial Accounting, 8th edn John Wiley & Sons Australia Ltd

[3] Henderson and Peirson (2009) Issues in Financial Accounting Longman

[4] Jubb, Haswell and Langfield-Smith (2010) Company Accounting,

5th edn Nelson

4 COURSE LEARNING OUTCOMES

On successful completion of this unit, students should be able to:

• Explain the role of accounting in business

• Understand the meanings of key accounting terms

• Identify and understand the use of different accounting records

• Outline key accounting principles and standards

• Complete analysis charts and record transaction details from

journal to ledge

• Interpret and make simple corrections to a trial balance

• Explain the difference between cash and accrual accounting

methods

• Construct basic financial statements

• Analyse and interpret financial statements

5 ASSESSMENT METHODS

1 Individual coursework and

Mini-tests

Case study, Quick Quizzes, Writing

LO 1.1, LO 2.1

LO 3.1, LO 4.1

7 STUDENT COMPANION SITE

•

http://bcs.wiley.com/he-bcs/Books?action=index&bcsId=9784&itemId

=1118978080

8 TEXTBOOK AND LECTURE NOTES

• Textbook review

• Use lecture notes so as to grasp “core”

knowledge in class

9 Instructor’s POV in assessment

• Then, respect is the culture in my class I respect your choices, you respect my rules in class Your marks present what you show during the semester for this field That’s all, no more deep inference

• So feel relax with learning and enjoy it Let’s your brain

a best wisdom with this life

Following is a typical chart of accounts, which is used in several assignments Each company has its own unique set of accounts and numbering system *An asterisk denotes a

107 Allowance for doubtful accounts*

108 Legal fees receivable

132 Raw materials inventory

133 Work in process inventory, _

134 Work in process inventory, _

135 Finished goods inventory

175 Building _

176 Accumulated depreciation—Building _*

179 Land improvements _

180 Accumulated depreciation—Land improvements _*

181 Land improvements _

182 Accumulated depreciation—Land improvements _*

204 Legal fees payable

207 Office salaries payable

208 Rent payable

209 Salaries payable

210 Wages payable

211 Accrued payroll payable

212 Factory payroll payable

214 Estimated warranty liability

215 Income taxes payable

216 Common dividend payable

217 Preferred dividend payable

218 State unemployment taxes payable

219 Employee federal income taxes payable

221 Employee medical insurance payable

222 Employee retirement program payable

223 Employee union dues payable

224 Federal unemployment taxes payable

225 FICA taxes payable

226 Estimated vacation pay liability

Unearned Revenues

230 Unearned consulting fees

231 Unearned legal fees

232 Unearned property management fees

240 Short-term notes payable

241 Discount on short-term notes payable*

245 Notes payable

251 Long-term notes payable

252 Discount on long-term notes payable*

Long-Term Liabilities

253 Long-term lease liability

255 Bonds payable

256 Discount on bonds payable*

257 Premium on bonds payable

258 Deferred income tax liability Equity

307 Common stock, $ _ par value

308 Common stock, no-par value

309 Common stock, $ _ stated value

310 Common stock dividend distributable

311 Paid-in capital in excess of par value, Common stock

312 Paid-in capital in excess of stated value, No-par common stock

Chart of Accounts

CA

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Chart of Accounts CA-1

313 Paid-in capital from retirement of

Other Equity Accounts

321 Treasury stock, Common*

406 Rent revenue (or Rent earned)

407 Dividends revenue (or Dividends earned)

408 Earnings from investment in _

409 Interest revenue (or Interest earned)

410 Sinking fund earnings

413 Sales

414 Sales returns and allowances*

415 Sales discounts*

Cost of Sales

Cost of Goods Sold

502 Cost of goods sold

520 Raw materials purchases

521 Freight-in on raw materials

547 Miscellaneous production costs

548 Property taxes on factory building

549 Property taxes on factory equipment

550 Rent on factory building

551 Repairs, factory equipment

552 Small tools written off

560 Depreciation of factory equipment

561 Depreciation of factory building

Standard Cost Variances

580 Direct material quantity variance

581 Direct material price variance

582 Direct labor quantity variance

583 Direct labor price variance

584 Factory overhead volume variance

585 Factory overhead controllable variance Expenses

Amortization, Depletion, and Depreciation

609 Depreciation expense—Land improvements _

610 Depreciation expense—Law library

620 Office salaries expense

621 Sales salaries expense

622 Salaries expense

623 _ wages expense

624 Employees’ benefits expense

625 Payroll taxes expense

635 Insurance expense   —   Delivery equipment

636 Insurance expense   —   Office equipment

637 Insurance expense   —   _

Rental Expenses

640 Rent expense

641 Rent expense   —   Office space

642 Rent expense   —   Selling space

643 Press rental expense

644 Truck rental expense

645 _ rental expense

Supplies Expenses

650 Office supplies expense

651 Store supplies expense

668 Food and drinks expense

671 Gas and oil expense

672 General and administrative expense

701 Gain on retirement of bonds

702 Gain on sale of machinery

703 Gain on sale of investments

704 Gain on sale of trucks

705 Gain on _

706 Foreign exchange gain or loss

801 Loss on disposal of machinery

802 Loss on exchange of equipment

803 Loss on exchange of _

804 Loss on sale of notes

805 Loss on retirement of bonds

806 Loss on sale of investments

807 Loss on sale of machinery

808 Loss on _

809 Unrealized gain   —   Income

810 Unrealized loss   —   Income

811 Impairment gain

812 Impairment loss Clearing Accounts

901 Income summary

902 Manufacturing summary

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VIETNAM NATIONAL UNIVERSITY

UNIVERSITY OF ECONOMICS AND LAW

FACULTY OF ACCOUNTING - AUDITING

SOCIAL REPUBLIC OF VIETNAM Independence - Freedom - Happiness

COURSE SYLLABUS Course’s name: Fundamentals of Accounting (CA)

1 GENERAL INFORMATION

Course Code : ACC1084

Credits :4

Periods :60

Prerequisite course : N/A

Program : Bachelor Degree program

Level : For Second-year students

3 COURSE OUTLINES:

This subject is an introduction to the basic concepts and standards underlying accounting Severalw important concepts will be studied in detail, including: analyzing and recording transaction, adjusting accounts, completing the accounting cycle, merchandising operations, inventory, accounts receivable, plant assets, natural resources, and intangibles The course emphasizes the construction of the basic financial accounting statements - the income statement, statement of retained earnings, statement of financial position - as well as their interpretation

4 TEXTBOOK AND ADDITIONAL LEARNING MATERIALS

4.1 Textbook

[1] Weygandt, Kimmel and Kieso (2015) Financial Accounting, 3rd edn Wiley

4.2 Additional learning materials

[1] Wild, Larson and Chiappetta (2015) Fundamental Accounting Principles, 22nd edn

McGraw-Hill Irwin

[2] Weygandt, Kieso and Kimmel (2008) Financial Accounting, 8th edn John Wiley & Sons

Australia Ltd

[3] Henderson and Peirson (2009) Issues in Financial Accounting Longman

[4] Jubb, Haswell and Langfield-Smith (2010) Company Accounting, 5th edn Nelson

5 COURSE LEARNING OUTCOMES:

On successful completion of this unit, students should be able to:

• Explain the role of accounting in business

• Understand the meanings of key accounting terms

• Identify and understand the use of different accounting records

• Outline key accounting principles and standards

• Complete analysis charts and record transaction details from journal to ledge

• Interpret and make simple corrections to a trial balance

• Explain the difference between cash and accrual accounting methods

• Construct basic financial statements

• Analyse and interpret financial statements

6 COURSE PLAN:

Section Contents Readings

1 Chapter 1: Accounting in action:

1 What Is Accounting?

2 The Building Blocks of Accounting

3 The Basic Accounting Equation

4 Using the Accounting Equation

5 Financial Statements: basic formats

WKK: Chapter 1

2 Chapter 2: The recording process

1 Accounts

WKK: Chapter 2

2 Steps in the double-entry accounting

4 Chapter 4: Completing the accounting Cycle

1 Using the worksheet

Class room tests 02 Individual 10

Mid Term Test 01 Individual 20

Group assignment

Final Exam (Closed

book – 90 minutes) 01 Individual 50

Total 100

To successfully complete this unit, students must:

• achieve a minimum of 50 marks overall,

• complete all assessment items (including making a satisfactory contribution to group work),

and

• attend 80 per cent of class time

A minimum threshold mark will be set which represents a reasonable level of performance in the final examination to convince UEL, that, in terms of independent work, as opposed to group and /or text assisted work, students have a reasonable grasp of the basic principles of the unit Unless you can demonstrate such knowledge you will not be eligible for a clear pass or better in the unit irrespective of the total mark attained

Late Assignment Policy

Coursework and assignments are expected to be completed within the stated time frame No late assignments will be accepted unless prior authorisation granted by the lecturer In case such an

authorization is granted, a 30% grade deduction will be applied The lecturer may decide not

to accept assignments that are not submitted within 3 days after the assignment due date

However, if there are extenuating or unforeseen circumstances, an exception may be granted at the discretion of the lecturer

Make-up Policy

All quizzes (if any) and the final exam must be taken on the assigned dates If there are extenuating or unforeseen circumstances, professor must be contacted prior to missing a quiz, or the final exam to authorise a makeup date No make-up quiz or exam will be accepted unless prior authorisation granted by the lecturer

8- CLASS POLICIES AND METHODOLOGY

Attendance

Lecturers are required to take attendance For this express term course, you are permitted no

more than 3 absences during the term Coming late by 15 minutes at the beginning of the class,

coming late by 5 minutes after the break, or leaving prior to the scheduled end time without the permission of the lecturer will equate to an absence Grade reductions for the course will be assessed when final grades are assigned if the 2-absence rule is violated during the term

Electronic Device Use

Cell phones will be turned off or switched to vibrate mode before class starts No phone calls or text messaging are allowed inside classroom during class time Portable listening and/or music devices may not be operated in the classroom Headphones and/or ear buds of any type may not

be worn while in the classroom whether operating or not Laptop PCs are not permitted unless specifically authorised by the lecturer exclusively for note taking If you are in violation of these policies you will be excused from class and an absence will be assessed

Email Policy

The lecturer may be contacted through the standard UEL email system or at private email Students must use their assigned UEL Email account The lecturer will not respond to private or personal email account messages In case students use their personal email accounts, they will be held accountable for privacy issues

Lecturer’s Expectations

Students are to be punctual at every class meeting Assignments (including reading assignments) must be completed before class Projects and papers are to be completed on time and turned in as scheduled Students must participate in classroom assignments and discussions A participation grade will be included in the student's assessment This course will follow formal academic rules

of correspondence so students are expected to observe college-level syntax, grammar, punctuation, capitalization, etc., in all written work

Methods of Instruction

Lecture slides with professor's in-class commentary, in-class discussions, written assignments, exercises, problems, team project, and exams will be employed

Classroom Etiquette and Student Behavior Guidelines

Students will demonstrate respect for lecturers and fellow students Behavior that is disruptive to

a positive learning environment reported by the lecturer will result in a warning on the first instance; the second instance might result in expulsion from the course or campus

Head of Department Dean

TYPICAL ENTRIES FOR STUDENTS TO FAMILIARIZE

DEBIT/CREDIT RULES

DEBIT (Dr) An account

CREDIT (Cr) An account

JOURNALIZE/JOURNAL ENTRY:

1 Invested €15,000 cash in exchange for €15,000 of ordinary shares

2 Purchases computer equipment for €7,000 cash

3 Purchases for €1,600 headsets and other accessories expected to last several months, this amount is on credit/ON ACCOUNT

4 Receives €1,200 cash from customers for app development services it has

performed

5 Receives a bill for €250 from the Programming News for advertising on its

website but postpones payment until a later date

6 Provides €3,500 of services The company receives cash of €1,500 from

customers, and it bills the balance of €2,000 on account

7 Pays the following expenses in cash for September: office rent €600, salaries and wages of employees €900, and utilities €200

8 Pays its €250 Programming News bill in cash The company previously (in

Transaction 5) recorded the bill as an increase in Accounts Payable

9 Receives €600 in cash from customers who had been billed for services (in

Transaction 6)

10 The corporation pays a dividend of €1,300 in cash to Ray and Barbara Neal - the shareholders

11 An amount of $36,000 was paid as advance rent for three months

12 Paid $60,000 cash on the purchase of equipment costing $80,000 The remaining amount was recognized as a one year note payable with interest rate of 9%

13 Miscellaneous expenses paid during the month totaled $3,470

14 Shareholders buy company’s stocks by $3,000 cash

15 Declared cash dividend payable by $300

ILLUSTRATIONS PREPARED FOR CHAPTER 4 Exercise 1:

UEL Co follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts The company’s annual accounting period ends on December 31, 2019 The following information concerns the adjusting entries to be recorded as of that date

a The Office Supplies account started the year with a $4,000 balance During 2019, the company purchased supplies for $13,400, which was added to the Office Supplies account The inventory of supplies available at December 31, 2019, totaled $2,554

b An analysis of the company’s insurance policies provided the following facts

Policy Date of purchase Months of coverage Cost

c The company has 15 employees, who earn a total of $1,960 in salaries each working day They are paid each Monday for their work in the five-day workweek ending on the previous Friday Assume that December 31,

2019, is a Tuesday, and all 15 employees worked the first two days of that week Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020

d The company purchased a building on January 1, 2019 It cost $960,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life Annual depreciation is $30,500

e Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at

$3,000 per month, starting on November 1, 2019 The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account However, the tenant has not paid the December rent The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15 The tenant has agreed not to fall behind again

f On November 1, the company rented space to another tenant for $2,800 per month The tenant paid five months’ rent in advance on that date The payment was recorded with a credit to the Unearned Rent account

Depreciation expense – Pro Lib

WTI initially records prepaid expenses and unearned revenues in balance sheet accounts Descriptions of items a through h that require adjusting entries on December 31, 2019, follow

Additional Information Items

a An analysis of WTI’s insurance policies shows that $2,400 of coverage has expired

b An inventory count shows that teaching supplies costing $2,800 are available at year-end 2019

c Annual depreciation on the equipment is $13,200

d Annual depreciation on the professional library is $7,200

e On November 1, WTI agreed to do a special six-month course (starting immediately) for a client The contract

calls for a monthly fee of $2,500, and the client paid the first five months’ fees in advance When the cash was received, the Unearned Training Fees account was credited The fee for the sixth month will be recorded when it

is collected in 2020

f On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000

tuition per month payable at the end of the class The class started on October 15, but no payment has yet been received (WTI’s accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

g WTI’s two employees are paid weekly As of the end of the year, two days’ salaries have accrued at the rate of

$100 per day for each employee

h The balance in the Prepaid Rent account represents rent for December

Prepare the adjusting entries, find the final balance of each account at December 31, 2019 and complete the first

3 columns of worksheet and bring to class your solution next Monday

4-1

Prepared by Coby Harmon University of California, Santa Barbara

Westmont College

W ILEY

IFRS EDITION

4-2

Agenda

 Financial statements – from theory to real practice

 Link to Vietnamese FS formats

 Extended Worksheet – using illustration given

by instructor

4-3

Excerpt from chapter 1

Financial statements and its

relationship

4-4

Learning Objective 8

Understand the five financial statements and how they are prepared

statements :

Statement

of Financial Position

LO 8

The Basic Accounting Equation

Retained Earnings Statement (Statement of changes in Equity)

Comprehensive

Income Statement

4-5 LO 8

Illustration 1-10 Financial statements and their interrelationships

Illustration 1-11

Financial statements and their interrelationships

4-6 Illustration 1-11 LO 8

4-8

Financial statements

 Airbus FSs as typical international sample

 Vinamilk FS as typical VNese sample

Merchandising Companies

Buy and Sell Goods

The primary source of revenues is referred to as

sales revenue or sales

Retailer

LO 1

Merchandising Operations

Income Measurement

cost of merchandise sold during

the period

Not used in a Service business

Net Income (Loss)

Less

Less Equals

Equals

Sales

Revenue

Cost of Goods Sold Gross Profit

Operating Expenses

Illustration 5-1 Income measurement process for a merchandising company

LO 1

Merchandising Operations

Illustration 5-3

LO 1

Companies use either a perpetual inventory system or a periodic

inventory system to account for inventory

Illustration 5-4 Flow of Costs

LO 1

6

Learning objectives

1 Documents used in sales cycle and

purchasing cycle

2 Accounting treatment for merchandising

operations under Perpetual inventory

system and Periodic inventory system