University of Massachusetts Lowell s1

University of Massachusetts Lowell College of Management Department of Accounting

Accounting/Financial Dr. C. P. (Monty) Carter 60.201, Fall 2010 Office: PA 204 Classes: TR 9:30-10:45, 12:30-1:45 Office Hours: TR 2:00-3:30 Phone: 978-934-2826 E-mail: [email protected]

Catalog Description: Financial Accounting presents a comprehensive exposure to basic financial accounting systems. Students are introduced to the accounting cycle, financial statements, assets, liabilities, stockholders’ equity, and financial statement analysis. 3 credits.

Place in BSBA Curriculum: Financial Accounting is required of all second-year students in the College of Management. There are no prerequisites for the course.

Requirement for Graduation: The minimum grade point average required for graduation is 2.20 for all College of Management courses (6x.xxx) and an overall grade point average of 2.00 for all UMass Lowell courses.

Course Overview: Financial Accounting is an introduction to accounting systems and the financial reports resulting from them. This course examines (1) the process of accounting, (2) financial statements, (3) specific resources used by companies, including cash, accounts receivable, merchandise inventory, property, plant, and equipment, and (4) specific sources of resources classified as current liabilities or long-term liabilities. Throughout the course, emphasis is placed on business operations as opposed to the mechanical accounting for business transactions.

Course Objectives: The primary objective of this course is to help you become a better-educated business person. Specifically, the course

presents a framework for understanding financial effects of business events. examines numerous business events common to service and merchandising companies. explores modern accounting systems, including computer-based systems. examines the content and meaning of business financial reports. discusses the structure and operation of corporations. examines management’s role in the operation of companies. explores decision making through problem solving. examines financial information available through company web sites and public web sites, such as the Securities and Exchange Commission’s EDGAR data base. 2

Teaching Method: You will be provided with detailed outlines of material to be covered in this course's classes. You are to complete specific parts of the outlines before each class by reviewing the text. In class we will review the outlined materials relatively quickly and examine new material. Many homework assignments will be reviewed in class.

Evaluations: You are responsible for completing three comprehensive examinations, ten homework problems, seven computer-accounting assignments, and 24 online class preparation assignments. The grade you earn will be based strictly on your performance. For example, to earn a C grade in this course you must average 73% on the examinations, homework problems, computer-accounting assignments, and online class preparation assignments.

Extra credit assignments are not available in this course. You must earn points based on the same assignments available to all students.

Item Possible Points Examination 1 Chapters 1 – 3: March 4 100 Examination 2 Chapters 1 – 6: April 6 150 Final Exam Chapters 1 –11 150 Homework Problems 50 Computer-accounting Project 50 Online Class Preparation Assignments 96 Total possible points 596

Course Grade Points Needed A 552 A- 534 B+ 516 B 492 B- 474 C+ 456 C 433 C- 415 D+ 397 D 355

Examinations: Examinations are scheduled during regular class times on the dates shown above. No make-up examinations will be offered. An unexcused absence from an examination will result in you earning 0 points for the exam. 3

Homework Problems: During the semester, you should submit all ten homework problems by the due dates listed below. Each problem is worth a maximum of five points. Practice is an effective way to learn accounting. The homework problems must be submitted online by the indicated dates. Problems submitted in any form other than online will not be accepted. Detailed solutions to each problem will be provided as part of the online system. The homework problems are available at the Blackboard Vista web site: http://continuinged.uml.edu/online.

Problem Submission Date 1 September 16 2 September 23 3 October 5 4 October 19 5 October 26 6 November 2 7 November 10 8 November 23 9 December 2 10 December 9

Computer-accounting Project: The JP Racing Corporation computer-accounting project is designed to help you understand the accounting cycle from transactions to financial statements. The web site for the project is: http://www.jpracingcorp.com. All computer-accounting assignments must be successfully completed online by the due dates shown below. Any assignment not successfully completed on time will not earn any points. Your total cost for the computer-accounting project (approximately $1.00) is one Hot Wheels toy (car, truck, etc.). The toy must still be in its original packaging. Attach a post-it to the toy, print your name on the post-it, and submit it to your instructor. The toys will be distributed free to children, most likely my grandchildren!

Assignment Due Date Points 1 September 28 2 2 September 30 8 3 October 14 8 4 October 28 8 5 November 9 8 6 December 7 8 7 December 9 8 4

Class Preparation Assignments: During the semester, there will be a relatively easy assignment for you to submit, online, before 8 AM of each class day. The assignments are designed to help you review the material covered in the previous class. Each assignment is worth a maximum of four points. I suggest you submit all 24 assignments. The class preparation assignments are available at the Blackboard Vista web site: http://continuinged.uml.edu/online.

Attendance: Although attendance is not required, you are responsible for all material covered in each scheduled class. When you attend class, please respect your fellow students by remaining relatively quiet. Also, even though each class is 75 minutes long, please attempt to remain seated until the class is completed.

Internet Resources: Additional course resources, including practice exams and solutions to all text exercises are available at the Blackboard Vista web site: http://continuinged.uml.edu/online. Feel free to access the web site at any time. In fact, you should make it a habit to use the web site to check your answers to the assigned exercises before you come to class and to practice for each in-class exam. Your comments about the web site will be appreciated.

Required Materials:

Essentials of Financial Accounting, 2010, Carter. All chapters are available for free downloading at the Blackboard Vista web site: http://continuinged.uml.edu/online.

Accounting/Financial Lecture Notes, Carter: free, distributed in class.

Accounting/Financial Homework Problems, Carter: free, online.

JP Racing Computer-accounting Project, Bliss, Carter, Grindley: one Hot Wheels car, online.

Online Class Preparation Assignments, Carter: free, online. 5

Schedule of Topics and Assignments:

Chapter Topic Assignment 1 Introduction Ex. 1.2,3,5,6,7; Pr. 1 2 T-accounts, debits, credits Ex. 1,4,6,7,8; Pr. 2 3 Journal entries, posting, ledger, trial balance Ex. 1,2,3,4,5,6; Pr. 3 Exam #1: Chapters 1 – 3: October 7 (100 points) ---- 4 Adjusting entries Ex. 1,2,5,6,7,8,11; Pr. 4 5 Closing process Ex. 1,2,5; Pr. 5 6 Cash and cash equivalents Ex. 1,2,6,7,9; Pr. 6 Exam #2: Chapters 1 – 6: November 4 (150 points) ---- 7 Accounts receivable Ex. 1,3,5; Pr. 7 8 Merchandise inventory Ex. 1,4,6,9; Pr. 8 9 Property, plant, and equipment Ex. 3,4,5,6; Pr. 9 10 Current liabilities Ex. 3,7,10,13,15; Pr. 10 11 Long-term liabilities Ex. 2,3,4,5; Pr. 11 Final Exam: Chapters 1 – 11 (150 points) ----

Ex. = exercise at the end of textbook chapter. Pr. = problem accessible online. 6

Class Date Student Assignment “Due” 1 September 2 LN 1-4 2 September 7 CP 2; LN 5-10; Ex. 1.2 3 September 9 CP 3; LN 11-16; Ex. 1.3 4 September 14 CP 4; LN 17-21; Ex. 1.5, 1.6, 1.7, Ex. 2.1 5 September 16 CP 5; LN 22-25; Pr. 1 6 September 21 CP 6; LN 26-31; Ex. 2.4, 2.6, 2.7, 2.8 7 September 23 CP 7; LN 32-36; Ex. 3.1, Pr. 2 8 September 28 CP 8; LN 37-42; Ex. 3.2, 3.3, 3.4; JPR 1 9 September 30 CP 9; LN 43-45; Ex. 3.5, 3.6; JPR 2 10 October 5 CP 10; LN 46-48: Ex. 4.1, 4.2; Pr. 3 11 October 7 Exam #1 100 points: in class 12 October 14 CP 12; LN 49-50; Ex. 4.5, 4.6; JPR 3 13 October 19 CP 13; LN 51-62; Ex. 4.7, 4.8, 4.11; Pr. 4 14 October 21 CP 14; LN 63-65; Ex. 5.1, 5.2, 5.5 15 October 26 CP 15; LN 66-77; Ex. 6.1, 6.2; Pr. 5 16 October 28 CP 16; LN 78-80; Ex. 6.6, 6.7; JPR 4 17 November 2 CP 17; LN 81-87; Ex. 6.9; Pr. 6 18 November 4 Exam #2 150 points: in class 19 November 9 CP 19; LN 88-91; Ex 7.1; JPR 5 20 November 10 CP 20; LN 92-99; Ex. 7.3, 7.5; Pr. 7 21 November 16 CP 21; LN 100-101; Ex. 8.1, 8.4, 8.6 22 November 18 CP 22; LN 102-112; Ex. 8.9 23 November 23 CP 23; LN 113-114; Ex. 9.3, 9.4; Pr. 8 24 November 30 CP 24; LN 115-121; Ex. 9.5 25 December 2 CP 25; LN 122-131; Ex. 9.6; Pr. 9 26 December 7 CP 26; LN 132-140; Ex. 10.3, 10.7, 10.10; JPR 6 27 December 9 CP 27; LN 141-147; Ex. 10.13, 10.15; Pr. 10; JPR 7

CP = Class preparation accessible online. LN = Class lecture notes. Ex. = exercise at the end of textbook chapter. Pr. = problem accessible online. JPR = JP Racing computer-accounting project

General Comments: I intend to treat you like an adult throughout this course. To complete this course successfully, you should plan to spend at least 6 hours per week outside of class in preparation for the course. Keep current with your assignments. The work is cumulative. What you learn one week you will need to apply in the following weeks. If you fall behind in your studies, it may be very difficult to catch up. I am available in my office every week. I am there primarily to help you. Please come to see me if you are having any difficulty, or just to say "Hello!"