Financial Accounting II
Course Description
This course introduces plant assets, liabilities, accounting for corporations, investments, statements of cash flows, financial statement analysis, time value of money, payroll accounting, and other significant liabilities.
Topics and Objectives
Principle Assets
- Prepare journal entries to account for transactions related to accounts receivable and bad debt using both the percentage of sales and the percentage of receivables methods.
- Identify the entries associated with the acquisition, disposal, and sales of plant assets.
- Calculate depreciation and amortization expense using various methods.
Liabilities
- Differentiate between accounts payable, notes payable, and accrued expenses.
- Calculate payroll.
- Prepare necessary journal entries to record the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts.
Equity and Investments
- Explain the characteristics of a corporation, and the different types of stocks issued by corporations.
- Prepare journal entries associated with the issuance of preferred and common stocks and the declaration and payment of dividends.
- Calculate stocks, dividends, and stock splits.
- Record treasury stock transactions.
Financial Statement Analysis
- Prepare a statement of cash flows using both the indirect and direct methods.
- Apply ratio, vertical, and horizontal analysis to financial statements.
Ethics
- Identify situations that might lead to unethical accounting practices.
- Examine the impact of unethical behavior and the Sarbanes-Oxley Act on financial statements.