Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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The University of the West Indies

OPEN CAMPUS

INTRODUCTION TO FINANCIAL ACCOUNTING-

ACCT 1002

COURSE GUIDE FOR STUDENTS

Semester 2: 2011/2012

Welcome to Semester 2 of teaching and learning in Introduction to Financial

Accounting-ACCT 1002. I am Inshan Allaham your Course Coordinator.

As you know, open and constant communication is critical to success in the online

learning environment. I therefore urge you to ensure that you play your part to develop

and maintain a very interactive relationship with your e-tutor.

I can be reached via email at inshan.allaham@open.uwi.edu

Thank you for your commitment as your tutors and I work together to make Introduction

to Financial Accounting a meaningful learning experience.

Inshan Allaham

January 2012

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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CONTENTS

Page

Introduction 3

Course Outline 4

Course Topics 7

Study Schedule 12

Coursework Assignment and Guidelines 15

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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Course Code: ACCT 1002

Course Title: Introduction to Financial Accounting

Course Discipline: Management Studies

Credits: Three (3)

Prerequisite/s: None

Co-requisite: None

Academic Year: 2011/2012 (Semester 2)

Course Coordinator: inshan.allaham@open.uwi.edu

INTRODUCTION

General Information

Some important information to keep in mind:

Your picture uploaded on the Learning Exchange must conform to the following: a

profile of just your face, it should be a close up image that allows you to be recognized.

The Department in the Open Campus (OC) ultimately responsible for the delivery of this

course is: The Undergraduate Programmes Department. View the OC Web Site for

information on your programme at http://www.open.uwi.edu/

There are different avenues available to you as a student to receive support. The avenue

you take is dependent on your particular need. View the QUICK LINK in your course for

Frequently Asked Questions (FAQs ).

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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Purpose of this Guide

This Course Guide provides you with useful information and guidelines about the course

ACCT 1002-Introduction to Financial Accounting. The guide will assist you in the

preparation of your course of study for the entire semester. Unit outlines for each area is

provided to guide you with regard to the material that needs to be covered and the

timeframe within which it must be done. Following each outline is a set of supplemental

questions and problems that should be attempted to enhance your learning. A detailed

delivery schedule is also provided so that you may keep abreast of all readings and

tutorial problems supplemented by your reading list. Also, you are provided with a

breakdown of the assessment components that will contribute towards your final grade.

Course Coordinator’s Expectation

This is an introductory course designed to provide an understanding of the principles and

concepts involved in the preparation of financial statements. It is a very intense course to

be covered in a period of twelve weeks and you start preparing from day one. It is

important that you keep abreast of the readings and tutorials and practise as many

questions as possible throughout the semester.

It is important that you familiarise yourself with navigating the Internet and the Learning

Exchange, be willing to participate in online activities such as discussion forums, have

the motivation to work independently and express ideas clearly and convincingly.

Plagiarism: The University has a new policy on plagiarism. Please pay attention to the

Quick Link in the left hand column of the course page for additional information.

Netiquette (see Quick Link in the left column of the course page for additional

information)

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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COURSE OUTLINE

Course Description & Aims

This is an introductory course designed to cover both a practical and theoretical

understanding of the principles and concepts involved in the preparation of financial

statements. You are exposed to a conceptual analytical approach, with the aim of

improving your critical thinking and communication skills, especially in the area of

accounting.

Target Audience

This course is designed for students in both the accounting major and other areas of

study.

Course Objectives

By the end of the course, you should be able to:

erstand basic accounting issues for the major types of business entities,

namely the sole proprietorship, the partnership and the corporation

statements), namely the Balance

Sheet, Income Statement and Statement of Owner’s Equity

Interpret accounting information

Use accounting information in decision-making

Implement internal controls for cash and explain the various accounting concepts and

conventions

Course materials:

Print package: ACCT1002 (MS15A)-Introduction to Financial Accounting

Online materials: Course units also available online

Exercises and solutions – available online only

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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Additional Resources Business Accounting I

Frank Wood & Alan Sangster

Pitman Publishing

11th

Edition, 2008

Financial & Management Accounting – The Basis for

Business Decisions (12th Edition)

Jan Williams, Susan Haka, Mark S Betner, Robert F. Meigs, Sue Haker and Mark Betner.

2001

McGraw-Hill Irwin

Highly Recommended: Introduction to Financial Accounting (2nd Edition) 2002

Raghunandan, William, Bowrin & Raggay

UWI, MPC, St. Augustine

Elluminate Sessions: Please consult your Elluminate schedule which you

should be able to access from your course main page.

Preparation: This course is intensive and you must engage with it in a meaningful way.

You are required to read assigned units and practice the exercises, both those in the

course text and those online, before each teleconference and the relevant online session

so as to enable meaningful and serious discussions. It is important that you understand

this, as it will not be possible to go through each unit in detail. Please note that the course

material cannot be digested two (2) to three (3) weeks before examination. Success in this

course can ONLY be achieved by keeping abreast with the material and practicing what

you learn by attempting as many questions as possible throughout the semester.

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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COURSE SCHEDULE TOPICS BY WEEK Readings* PRACTICE PROBLEMS

Week 0

Orientation and Introduction

Week 1, beginning January 23rd 2012

A. Introduction

- Definition, Need and Use for Accounting

- Duties of the Accountant

- Types of Business Form

- Accounting Concepts and Conventions

- Financial Accounting Statements

- The Accounting Equation

UNIT 1

All Sessions Exercise I

Week 2, beginning January 30th

2012

B. The Accounting Cycle (Part I)

- Types and Classification of Accounts

- The Accounting Cycle

- Source Documents used in Accounting

Systems

- Fundamental Principle of Debit and

Credit

- Recording Transactions in Journals

UNIT 2

Sessions 1 & 2 Exercise II

Weeks 3 & 4, beginning February 6th 2012

C. The Accounting Cycle (Part II)

- Recording Transactions in Journals

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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- Posting Transactions in Ledger Accounts

- The Trial Balance

UNIT 2 Session 3 & UNIT 3 Session 1

Exercise III

Week 5, beginning February 20th

2012

D. Final Accounting Statements (Part I)

- Simple Income Statement and Balance Sheet Identification and Correction of Error

UNIT 3

Sessions 2 & 3 Exercise IV

Week 6, February 27th

2012

E. Adjustments (Part I)

UNIT 4

All Sessions Exercise V

- Accruals and Prepayments

- Bad Debts

- Bad Debts Recovered

Provisions for Bad Debts

Weeks 7 & 8, beginning March 5th

2012

F. Final Accounting Statements (Part II)

- Other Adjustments

(Carriage, Commission, Concept of Markup & Margin)

- Closing Entries

- Income Statement and Balance Sheet of Sole Trader

UNIT 6

Sessions 1 & 2 Exercise VI

Week 9, beginning March 19th

2012

G. Adjustments (Part II)

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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- Methods of Depreciation (Straight Line & Reducing Balance)

- Accounting for Depreciation Disposal of Fixed Assets

UNIT 5

All Sessions Exercise VII

Week 10, beginning March 26th

2012

H. Partnership Accounts

- Types of Partners

- Partners’ Current Account

- Partnership’s Income Statement and

Balance Sheet

UNIT 7

All Sessions Exercise VIII

Week 11, beginning April 2nd

2012

I. Company Accounts

- Types of Companies

- Share Capital and Debentures

UNIT 8

Session 1 Exercise IX

Week 12, beginning April 9th

2012

J. Cash Control

- Bank Reconciliation Statements

UNIT 9

Session 2 Exercise X

Weeks 13, beginning April 16th

2012

Revision

*All references are from the course manual, unless otherwise stated.

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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Course Delivery:

This course will be delivered over 13 weeks using the following strategies:

This course will be delivered through exchange forums, online content (units), printed

package, tutorial questions, Elluminate sessions, and online interaction

The main course material will be delivered in a course package comprising Units and

Readings.

Each week a set of tutorial problems are assigned which you must attempt and submit to

you tutor. You must also be prepared to work through, independently, all your course

material.

You will be expected to participate in your online groups with your e-tutor or instructor.

You should log in frequently and interact with their peers and tutor and participate in

online activities such as discussion forums.

You must attempt tutorial questions/problems and submit to tutors no later than one week

after the discussion topic. Tutors will provide feedback through the relevant forum.

During the Elluminate sessions scheduled for this course the Course Coordinator will

review the content of the Units and address any queries on course assessment or any

other issues pertaining to the course. Prior to the teleconference sessions, you will be

given additional materials to study in preparation for the session. These materials will

form the basis of the teleconference discussion and are encouraged to participate actively.

ASSESSMENT

There will be three (3) course assessments as follows:

Assignment 1 A comprehensive problem covering the entire Accounting Cycle

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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A web based quiz consisting of thirty (30) multiple choice questions (1 hour duration,

based on units from weeks 1-8 i.e. Units 1, 2, 3, 4, & 6).

The final examination will cover all of the material presented in the course.

The weighting and due dates for the assessments in this course are as follows:

Assessment Item Weighting and due dates

Assignment 1: Comprehensive Problem 10% due Tuesday 27th

March 2012

3.30 pm EC time

Web based Multiple Choice Quiz 30% available from Sun. 1st Apr. 3.30pm EC to

Tuesday 3rd April 2011 3.30 pm EC time

Final Exam 60% TBA

Total 100%

Important dates to keep in mind:

SEMESTER 2

January – May 2012

Registration Jan. 11nd

to Jan. 22nd

2012

Semester Begins January 22nd 2012

Teaching Begins January 23rd

2012

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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Comprehensive Problem

due.

March 27th 2012 at 3.30pm

EC time

Web based Quiz

From Sunday April 1st. 3:30

pm to Tue. April 3rd

. 2012,

3:30 pm (EC time)

Teaching Ends April 19th, 2012

Examinations Begin April 24th

2012

Examinations End May 9th

, 2012

Semester Ends May 9th

, 2012

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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COURSE DELIVERY SCHEDULE

W

E

E

K

DATES

MAIN TOPIC

OBJECTIVES

Teaching

Strategy/Technology

.

DATES AND

ACTIVITIES

Marks

0/

1

January

23rd

Orientation and

introduction

Unit 1 (All

sessions)

Introduction.

Establishing the type of

climate/environment for

learning - Introduction to

each other in the class.

Plagiarism

State the nature and

purpose of accounting.

Define the various types

of business organizations.

Define the various types

of financial statements.

List and state the purpose

of the accounting

equation.

Online unit 1

E-tutor presentation

Discussion forum

Exercise I all

questions and

problems.

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Semester 2

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2 January

30th

Unit 2 (Sessions

1&2): The

Accounting Cycle

(Part 1)

Classify the various types

of accounts.

List the steps in the

accounting cycle.

Explain the fundamental

principle of debit and

credit.

Online unit 2

E-tutor presentation

Discussion forum

Exercise II all

questions and

problems.

3 February

6th

Unit 2 (Session 3)

and Unit 3 (Session

1): The Accounting

Cycle (Part 11) and

the Trial Balance

Record transactions in the

journal.

Post transactions to ledger

accounts.

Prepare the trial balance

Online unit 2 and 3

E-tutor presentation

Discussion forum

Exercise III all

questions and

problems.

4 February

13th

Week 3 continued Week 3 continued Week 3 continued Week 3 continued

5 February

20th

Unit 3 Sessions 2

and 3

Final Accounting

Statements

Prepare simple income

statements and Balance

sheet.

Identify errors and state

various corrective

measures.

Online unit 3

E-tutor presentation

Discussion forum

Exercise IV all

questions and

problems.

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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6 February

27th

Unit 4 (All

sessions)

Adjustments

Distinguish between

accruals and prepayments.

Adjust accounts to reflect

bad debts and recovery of

bad debts.

Make provision for bad

debts.

Online Unit 4

E-tutor presentation

Discussion forum

Exercise V all

questions and

problems.

7 March

5th

Unit 6

Final Accounting

statements

Use profit figure to

determine mark up and

margin.

Calculate freight costs

and transportation.

Prepare financial

statements.

Online Unit 6

E-tutor presentation

Discussion forum

Exercise VI all

questions and

problems.

8 March

12th

Week 7 continued Week 7 continued Online Unit 6

E-tutor presentation

Discussion forum

Exercise VI all

questions and

problems.

9 March

19th

Unit 5 All sessions

Adjustments (II)

Define depreciation.

List the methods of

depreciation.

Use the methods to

calculate depreciation.

Make adjustments for the

acquisition and disposal

Online Unit 5

E-tutor presentation

Discussion forum

Exercise VII all

questions and

problems.

Comprehensive

problem due (10

Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,

Semester 2

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of fixed assets. marks)

10 March

26th

Unit 7 (All

sessions)

Partnership

Accounts

Identify the various types

of partners and

partnership.

Prepare partners’ capital

and current accounts

Prepare balance sheet.

Online Unit 7

E-tutor presentation

Discussion forum

Refer to Chapter 9

of the Highly

recommended Text

by Raghunandan et

al.

Exercise VIII all

questions and

problems.

11 April 2nd

Unit 8 (All

sessions)

Company

Accounts

Identify and distinguish

the various types of

companies.

Describe the various

sources of capital.

Prepare journal entries to

record the issue of shares

Prepare the stockholders

equity section of the

balance sheet

Online Unit 8

E-tutor presentation

Discussion forum

Refer to Chapter 10

of the Highly

recommended Text

by Raghunandan et

al.

Exercise IX all

questions and

problems.

12 April 9th

Unit 9 ( Sessions 2

and 3)

Cash control

Prepare bank

reconciliation statements.

Prepare the petty cash

book.

Online Unit 9

E-tutor presentation

Discussion forum

Exercise X all

questions and

problems.

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Semester 2

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13 April

16th

Revision Discussion Forum

COURSEWORK ASSIGNMENTS

Assignment 1

You are required to submit Assignment 1 by Tuesday 27th

March 2012 at 3:30 pm EC

time. This coursework problem will account for 10% of your overall mark.

Assignment 2

A web based quiz and will consist of 30 Multiple Choice questions worth 30 marks of

your overall mark. This quiz will be available from Sunday April 1st. 3:30 pm EC time to

Tuesday April 3rd

. 3:30 pm EC time.

The guideline developed to assist you in completing this assignment is indicated below.

________________________________________________________________________

This Comprehensive problem will be marked out of 10% as follows:

Marking Guidelines

In Year 1 –Introduction to Financial Accounting students are more exposed to calculation

rather than analysis and interpretation which are done in years 2 and 3. As such marks

will be awarded for:

Numeracy-accuracy of calculations

Presentation-knowledge of formats, and

Completeness

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Semester 2

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All students are required to attach their Coursework Accountability Statement to their

papers on submission of an assignment. This form is can be downloaded from the Quick

Link found in your course space.

PENALTY FOR LATE SUBMISSION

Submission of late assignments will accrue a penalty – Unless the student obtains prior

approval. There will be a late assignment box which will allow submission with a penalty

[i.e. An assignment may be submitted in the late box but a penalty of 10% for each day

late will be subtracted from the student’s final mark on the assignment.

For example,

10% of 10 = 1