Unit 1 - Accounting Cycle for a Service Firm

7/27/2019 Unit 1 - Accounting Cycle for a Service Firm

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Unit 1: Accounting Cycle: Service

Firm

RationaleThis unit will introduce students to the very basics of accounting -- accounting

concepts, accepted accounting guidelines (GAAPs), and the common types of

business ownership. Five categories of accounts will also be introduced: Assets,

Liabilities, Capital, Revenues and Expenses. Simple transactions and financial

statements will then be covered -- the Balance Sheet and the Income

Statement. As well, accounting career options will be explored.

Foundational Objectives To examine the concepts of the Generally Accepted Accounting Principles

(GAAPs) and utilize these concepts within accounting activities.

To organize and process basic financial data using the accountingequation and ledger accounts.

To recognize technology as a tool to aid in the accounting process.Unit Objectives:By the end of this unit SWBAT;

Recognize and use the basic vocabulary of accounting in classroomdiscussions and assignments.

Distinguish between accounting and bookkeeping. Develop and propose why the study of accounting is important. Identify and explain the basic differences between financial accounting,

cost accounting and management accounting.

Distinguish and explain the advantages of each form of businessownership.

Identify different types of business enterprises: resources,merchandising, manufacturing and service, and suggest where they are

most appropriate.


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Develop and state the role of the manufacturer, producer, wholesaler,retailer, consumer, and citizens in the business world.

Develop and explain the concept and acceptance of the GenerallyAccepted Accounting Principles (GAAPs).

Prepare a balance sheet using the proper format; show its derivation fromthe accounting equation, and to identify it as the statement of financial

position at a certain date.

Organize and arrange transactions into revenue and expenses identifyingthe fact that there are primary and secondary sources of revenue.

Analyze revenue and expense transactions showing the effect on owner'sequity in each case and showing how the accounting equation stays in

balance at all times.

Perform transactions and explain the concept of drawings or withdrawalsfor a sole proprietorship displaying the accounting equation in balance at

all times

Understand the concept of an account using the T-account form and thebalance account form of a ledger account and to associate the left side of

any account as the debit side and the right side of any account as the

credit side.

Associate and relate the debit and credit of each type of account (assets,liabilities, owner's equity, drawings, revenue and expenses) as being anincrease or decrease to that account.

Analyze all types of transactions placing them in T-accounts and tofinally balance ledger accounts recording opening balances and final

balances after transactions.

Prepare an elementary income statement for a service firm. Differentiate between fiscal period and accounting period and to explain

and discuss the Time Period Concept.

Relate the income statement to the balance sheet on a date at the end ofthe fiscal period.

Discuss who would use financial statements and why. Analyze a source document and determine its relationship to a Balance

Sheet or an Income Statement.


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Understand the accounting cycle steps and explain how each activity tofollow will relate to this cycle.

o Originate Data: identify and examine the information contained onsource documents.

o Journalize: organize and record accounting data into a journal orjournals.

o Post to the Ledger: classify and transfer transactions into accountsin the general ledger.

o Using a Worksheet: organize and plan accounting information forfinancial statements by employing a worksheet.

o Preparing Financial Statements: prepare and interpret financialstatements for an accounting period.

o Prepare Adjusting and Closing Journal Entries: generate and relateadjusting and closing entries to the appropriate accounting period

in preparing general ledger accounts for the next accounting

period.

o Complete a Post-Closing Trial Balance: prepare a post-closing trialbalance to prove the general ledger is in balance after all work is

completed for the accounting period.

Interpret and analyze financial information.

Explain and discuss relevant GAAPs for nominal accounts; namely,Revenue Recognition,

Explain and correct discrepancies when preparing a series of accountingproofs before financial statement preparation.

demonstrate the ability to process information through the accountingcycle by completing a practice set/major assignment.

Common Essential Learnings Foundational Objectives To promote both intuitive, imaginative thought and the ability to evaluate

ideas and processes in accounting. (CCT)

To use a wide range of language experiences for developing studentsknowledge of accounting. (COM)

To support students in planning and managing projects and assignments,both individually and in groups. (IL)


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Content Outline:1. INTRODUCTION TO ACCOUNTING

I. Introduction to Accountinga. What is Accounting PowerPointb. Accounting WITT Youtube Video

II. Accounting vs. Bookkeepinga. Notesb. Handout- Accounting vs. Bookkeeping

III. Accounting as A Professional Careera. Notes CA, CMA, CGAb. Activity- Graphic Organizer Duties of Each

IV. The Different Types of Accountinga. Notes- The different types of accountingb. Assignment- Compare and contrast the Three Different Types of Accounting

V. Generally Accepted Accounting Principlesa. Notes Generally Accepted Accounting Principlesb. Assignment GAAP Quiz

VI. Business Ownership, Enterprise and Common Accounting Termsa. Research Assignmentb. Reference Page Notes

2. Introduction to the Balance Sheet and The Accounting EquationI. Determining Worth (Financial Position)

a.Notes- What is Worthb.

Assignment: Syme Page 17 #5

II. Assets, Liabilities and Capital (Owners Equity)a.Definitions and Examplesb.Activity: What am I?c.Assignment: Classify Each as an Asset, Liability or Capital

III. The Accounting Equationa.Activity: Find the Equation


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b.Notes: The Accounting Equationc.Assignment: C21 Page 48 3-Cd.Assignment: Use the Accounting Equation to Determine Capitale.Assignment: Syme page 17/39

IV. The Balance Sheeta.Notes: The Balance Sheet Power Pointb.Assignment: C21 Page 33 2-1c.Assignment: C21 Page 34 2-4d.Assignment: C21 Page 35 2-Me.Vertical Formatf. Assignment: Syme Page 24 #1g.Assignment: Syme Page 25 #2

V. Reviewa.C21 Page 35 2-Cb.Syme, Page 40 #6c.Syme, Page 38d.Listomaniae.Word Search

VI. Test #1

Documents

Unit 1 - Accounting Cycle for a Service Firm