Spanish-American Institute

304 Accounting (Advanced I) 60 Classes

Prerequisite(s): Accounting 303 or equivalent

Textbooks: Kermit D. Larson et al, Volume II: Fundamental Accounting Principles With Working Papers, McGraw Hill Irwin, 2002 (or comparable text).

Course Description: While developing English language skills, this third course in an accounting sequence expands students' knowledge about the purposes and principles of accounting and the practice of fundamental accounting procedures. Students analyze and apply accounting concepts and procedures to real-life situations drawn from various types of businesses.

Objectives: By the end of the course, students should be able:

• to read and better understand written English language descriptions of accounting, the language of business;
• to develop oral fluency with numbers and numerical functions;
• to interpret charts, graphs, and other visual materials;
• to talk and to write in English about situations and problems requiring accounting activities or solutions;
• to read for detail in the context of accounting problems and directions;
• to interpret how business communicates with financial statements
• to apply accounting principles and procedures to equity transactions and corporate accounting, term liabilities, long-term investments, reporting and analyzing cash flows, analysis of financial statements, and managerial accounting and job order cost accounting concepts and principles.

Instructional Methods: Classes will include reading for detail, oral discussion and presentations, instructor and student explanations of accounting principles and procedures, and problem solving through analytical and procedural exercises within real-world business and financial contexts.

Grading: The final grade is based on the following:

Class Participation	25%
Assignments	50%
Exams	25%
Total	100%

The grading scale is: A=90-100%, B+=85-89%, B=80-84%, C+=75-79%, C=70-74%, D=65-69%, F=60-64%

Course Outline:

Week	Topics	Assignments and Tests
1-2	Equity transactions and corporate reporting: corporate form of organization; common and preferred stock; dividends; treasury stock; reporting income information; retained earnings, Close reading of selected text. Oral practice: describing one of the problems in the assigned exercises and demonstrating the steps you used to solve it. Discussion of responses to ethics challenge. Close reading of selected text.	Reading: pp. 556-590. Questions: QS 14-1 to 14-6. Answer questions in one or more complete sentences. Exercises: as assigned. Where exercises require a written response, answer in complete sentences with answers that explain why the answer is correct. Problem Set: as assigned. In a paragraph or more, explain one of the problems in the exercises and describe the steps you used to solve it.
3-4	Long-term liabilities: bond basics, bond issuances, bond retirement, long-term notes payable. Oral practice: describing how you would handle the ethics challenge on p. 611 or the entrepreneurial decision problem on p. 612. Close reading of selected text. Quiz. .	Reading: pp. 614-646. Questions: QS 15-1 to 15-14. Exercises and Problem Set: as assigned Ethics challenge, p. 348, or entrepreneurial decision problem on p, 612: Write a paragraph or more in response, using the questions as a guide. Quiz.
5-6	Long-term investments and international transactions: classifying investments, long-term investments in securities, investments in international operations, comprehensive income. Oral practice: describing one of the problems in the assigned exercises and demonstrating the steps used to solve it. Oral practice: discussion of question 14 or 15. Close reading of selected text.	Reading: pp. 660-676. Questions: QS 16-1 to 16-10. Exercises and Problem Set: as assigned. In a paragraph or more, explain one of the problems in 16-1 to 16-10 and describe the steps you used to solve it
7-8	Reporting and analyzing cash flows: basics of cash flow reporting; cash flows from operating, from investing, and from financing. Oral practice: interpreting and explaining cash flow statements in chapter exhibits. Oral practice: Prepare a brief oral presentation of discussion of "Ethics Challenge" or "Entrepreneurial Decision" problems on pp. 738 or 739. Close reading of selected text. Review for exam, week 8.	Reading: pp. 690-723. Question: QS 17-1 to 17-12. Exercises and Problem Set: as assigned Respond to either the "Ethics Challenge" or the "Entrepreneurial Decision" problem on pp. 738 or 739, using the questions as a guide. Bi-monthly exam, week 8.
9-10	Analysis of financial statements: basics of analysis; horizontal, vertical, and ratio analysis. Oral practice: describing one of the problems in the assigned exercises and demonstrating the steps used to solve it. Close reading of selected text.	Reading: pp. 740-767 Question: QS 18-1 to 18-6. Exercises and Problem Set: as assigned In a paragraph or more, explain one of the problems in one of the assigned exercises and describe the steps you used to solve it.
11	Managerial accounting concepts and principles: cost accounting concepts; reporting manufacturing activities. Close reading of selected text.	Reading: pp. 784-807. Questions, Exercises, and Problem Set: as assigned.
12	Job order cost accounting: inventory system and cost accounting, job order cost accounting, adjusting over applied and under applied, overhead. Review for exam	Reading: pp. 826-844. Questions, Exercises, and Problem Set: as assigned Exam.

rev. 2/04, 2/07