1.2  Classify transactions using the rules of debit and credit.

Read the instructor’s biography and post your own.

Thursday

Financial Statements

·         Identify the four basic financial statements.

·         Describe the purpose of each of the four financial statements.

·         Discuss how the financial statements would be useful to internal users such as managers and employees.

·         Discuss how the financial statements would be useful to external users such as investors and creditors.

Format the summary consistent with APA guidelines.

2.1  Journalize basic transactions.

2.2  Post transactions from journals to ledgers.

Exercise 1

Complete Exercises E3-4 & E3-9.

Complete Problems 3-5A & 3-6A.

Submit as either a Microsoft® Excel® or Microsoft® Word document.

3.1  Differentiate between accrual basis and cash basis accounting.

3.2  Create adjusting entries.

Thursday

Accrual and Cash Accounting

·         What is the difference between accrual and cash accounting?

·         When might an accountant use cash basis accounting without violating generally accepted accounting principles?

Format your paragraph consistent with APA guidelines.

4.1  Prepare an adjusted trial balance.

Exercise 2

Complete Exercise BE4-1.

Complete Problems 4-2A & 4-3A.

Answer the following:

·         Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis.

·         Describe both bases of accounting and explain the differences.

Submit as either a Microsoft® Excel® or Microsoft® Word document

5.1  Prepare closing entries, reversing entries, and a post-closing trial balance.

Thursday

Reversing Entries

·         What are the pros and cons of using reversing entries?

·         Why are reversing entries optional?

Format your paragraph consistent with APA guidelines.

6.1  Prepare a classified income statement, retained earnings statement, and balance sheet.

Practice Problems 1

Complete Problem 4-8A.

Submit as either a Microsoft® Excel® or Microsoft® Word document.

Financial Reporting Problem, Part 1

Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:

·         What are the company’s total assets at the end of its most recent annual reporting period? Why is this important?

·         What are the total assets at the end of the previous annual reporting period?

·         How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?

·         What amount of accounts payable did the company have at the end of its most recent annual reporting period?

·         What amount of accounts payable did the company have at the end of the previous annual reporting period?

·         What are the company’s net revenues for the last three annual reporting periods?

·         What is the change in dollars in the company’s net income from its most recent annual reporting period to the previous annual reporting period?

·         What are the company’s total current assets at the end of its most recent annual reporting period?

·         What are the total current assets at the end of the previous annual reporting period?

·         What in the information above would be important to a potential investor, employee, and so on?

Summarize the analysis in a 700- to 1,050-word paper in a Microsoft® Word document.

Include a copy of the company’s balance sheet and income statement.

Format your paper consistent with APA guidelines.

7.1  Analyze the elements in the cost of goods sold calculation.

7.2  Record the transactions that involve the purchase and sale of merchandise.

Thursday

Cost of Goods

·         How would you calculate cost of goods sold?

·         What items make up cost of goods sold?

Format your paragraph consistent with APA guidelines.

8.1  Calculate ending inventory value using the LIFO, FIFO, LCM, and average cost methods.

8.2  Analyze the impact of inventory methods on net income or loss.

8.3  Summarize strengths and weaknesses of an internal control system.

8.4  Recommend improvements to internal control systems.

Exercise 3

Complete Exercises BE5–1, BE5–2, BE6-5, BE6-7, BE7-4, BE7-5, & BE7-6.

Submit as either a Microsoft® Excel® or a Microsoft® Word document.

9.1  Explain the effects of the Sarbanes-Oxley Act of 2002 on internal controls.

·         In the wake of accounting scandals over the past several years, how has the Sarbanes-Oxley Act (SOX) of 2002 affected the practice of accounting? What is the role of internal controls in complying with SOX (2002)?

Financial Reporting Problem, Part 2

Analyze the information contained in the company’s balance sheet and income statement to answer the following questions:

·         Are the assets included under the company’s current assets listed in the proper order? Explain your answer.

·         How are the company’s assets classified?

·         What are cash equivalents?

·         What are the company’s total current liabilities at the end of its most recent annual reporting period?

·         What are the company’s total current liabilities at the end of the previous annual reporting period?

·         Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees?

Summarize the analysis in a 700- to 1,050-word paper in a Microsoft® Word document.

Include a copy of the company’s balance sheet and income statement.

Format your paper and presentation consistent with APA guidelines.