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 [email protected]
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: [email protected]
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.
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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)
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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
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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
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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.
Introduction to Financial Accounting –ACCT1002 - Academic Year 2011/2012,
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