Covers fundamentals of accounting theory and practice continued from ACCT& 201. Focus is on issues related to businesses organized as a partnership or corporation and their effects on balance sheet accounts. Also covers investment, dissolution, and distribution of income.
 
Prerequisite:
ACCT& 201.

 
Learning Outcomes:

• Describe the advantages and disadvantages of a Corporation prepare journal entries for the creation of a corporation, issuing both common stock and preferred stock, calculate and account for dividends, prepare the Equity section of a Balance Sheet, evaluate rate of returns, book value and account for corporate income taxes.
• Describe and illustrate journalizing and posting for stock dividends, stock splits and Treasury stock activities; restrictions on and appropriations of retained earnings; and prepare and analyze a corporate Income Statement.
• Describe and illustrate corporate presentation of long-term liabilities to include types of bonds, issuing bonds at a discount or a premium, bond interest expense and presentation of bonds on statements, methods of amortizing discounts and premiums.
• Describe, illustrate, prepare and analyze a Statement of Cash Flow using the direct, indirect, and work sheet approach.
• Describe, illustrate and prepare different types of financial statement analysis to include horizontal, vertical, common-size, benchmarking and ratio analysis.
• Describe the advantages and disadvantages of a partnership and the basic accounting system for a partnership; prepare appropriate journal entries for the formation of a partnership, division of income (loss), admission of a new partner, withdrawal of a partner and dissolution of the partnership.