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WFTR537 - Intro Accounting for Small Businesses & Entrepreneurs Level 2
Course Code:
WFTR 537

Calendar Description:
This course builds on Level 1 and includes payroll, receivables, inventory, merchandising, accounting information systems and internal controls. This course focuses on the needs of entrepreneurs with small and home-based businesses. The course presents accounting principles in a clear, comprehensive, and technically accurate way, which reflects evolving market needs. The course focuses on the basics of the accounting cycle with emphasis on hands-on learning. This course is delivered using manual accounting practices.

Date First Offered:
2009-07-01

Hours:
Total Hours: 30
Seminars and Tutorials: 30

Total Weeks:
6

This course is offered online:
No

Pre-Requisites:
WFTR 536 - Introductory Accounting for Small Businesses and Entrepenuers Level 1

Non-Course Pre-Requisites:
NONE

Co-Requisites:
NONE

Rearticulation Submission:

No

Course Content:
Accounting for Merchandising Activities
- Income statement and balance sheet components for a merchandising company
- Perpetual and periodic inventory systems
- Transactions for merchandise purchases and sales using a perpetual system
- Adjustments for a merchandise company
- Merchandising income statements
- Closing entries for a merchandising company
- Merchandising transactions using both periodic and perpetual inventory systems
- Provincial Sales Tax (PST) and Goods and Services Tax (GST)

Merchandise Inventory and Cost of Sales
- Components and costs included in merchandise inventory
- Cost of goods sold and merchandise inventory using specific identification, moving weighted average, FIFO, and LIFO-perpetual and periodic
- Costing methods effects on financial reporting
- Cost or market value of inventory
- The effects of inventory errors on current and future financial statements-perpetual and periodic
- Gross profit and retail inventory methods to estimate inventory
- Inventory management using both merchandise and days' sales in inventory

Accounting Information Systems
- The relationship of the accounting information system (AIS) to the management information system (MIS) and identify the components of an AIS
- Goals and uses of special journals
- Use of controlling accounts and sub-ledgers
- Using special journals in a periodic inventory system
- Transactions with sales tax in special journals

Internal Control and Cash
- Principles of internal control
- Cash reporting
- Internal control and cash
- Petty cash fund transactions
- Banking activities and the control features they provide
- Bank reconciliation and resulting adjustments
- The acid-test ratio and explain its use as an indicator of a company's liquidity

Receivables
- Accounts receivable and how they occur and are recorded
- The allowance method to account for uncollectible accounts receivable
- Uncollectible accounts receivable using approaches based on sales and accounts receivable
- The direct write-off method to account for uncollected accounts receivable
- Short-term note receivable, it's maturity date and interest
- Converting receivables cash before maturity
- Accounts receivable turnover and days' sales uncollected related to company liquidity



Payroll Liabilities
- The taxes and other items frequently withheld from employees' wages
- The Payroll Register and the entries recording payroll liabilities
- Payroll costs levied on employers and the entries to recording the accrual and payment of these amounts
- Employee fringe benefit costs

Learning Outcomes:
Upon the successful completion of this course, the student will be able to:

- Describe merchandising and identify and explain the important income statement and balance sheet components for a merchandising company
- Describe both perpetual and periodic inventory systems
- Analyze and record transactions for merchandise purchases and sales using a perpetual system
- Prepare adjustments for a merchandise company
- Define, prepare, and use merchandising income statements
- Prepare closing entries for a merchandising company
- Record and compare merchandising transactions using both periodic and perpetual inventory systems
- Explain and record Provincial Sales Tax (PST) and Goods and Services Tax (GST)
- Identify the components and costs included in merchandise inventory
- Calculate the cost of goods sold and merchandise inventory using specific identification, moving weighted average, FIFO, and LIFO-perpetual and periodic
- Analyze the effects of the costing methods on financial reporting
- Calculate the lower of cost or market value of inventory
- Analyze the effects of inventory errors on current and future financial statements-perpetual and periodic
- Apply both the gross profit and retail inventory methods to estimate inventory
- Assess inventory management using both merchandise and days' sales in inventory
- Explain the relationship of the accounting information system (AIS) to the management information system (MIS) and identify the components of an AIS
- Explain the goals and uses of special journals
- Describe the use of controlling accounts and sub-ledgers
- Journalize and post transactions using special journals in a periodic inventory system
- Journalize and post transactions with sales tax to special journals
- Define, explain the purpose, and identify the principles of internal control
- Define cash and explain how it is reported
- Apply internal control to cash
- Explain and record petty cash fund transactions
- Explain and identify banking activities and the control features they provide
- Prepare a bank reconciliation and journalize any resulting adjustments
- Calculate the acid-test ratio and explain its use as an indicator of a company's liquidity
- Describe accounts receivable and how they occur and are recorded
- Apply the allowance method to account for uncollectible accounts receivable
- Estimate uncollectible accounts receivable using approaches based on sales and accounts receivable
- Apply the direct write-off method to account for uncollected accounts receivable
- Describe and record a short-term note receivable and calculate it's maturity date and interest
- Explain how receivables can be converted to cash before maturity
- Calculate accounts receivable turnover and days' sales uncollected to analyze liquidity
- Identify the taxes and other items frequently withheld from employees' wages
- Make the calculations necessary to prepare a Payroll Register and prepare the entries to record and pay payroll liabilities
- Calculate the payroll costs levied on employers and prepare the entries to record the accrual and payment of these amounts
- Calculate and record employee fringe benefit costs

Grading System:
Percentage

Passing Grade:
70%

Grading Weight:
Quizzes and Tests: 30 %
Assignments: 70 %

Number of Assignments:
6

Percentage of Individual Work:
100

Course Offered in Other Programs:
No

Text Books:

Required - K.D. Larson, T. Jensen, 2007, Fundamental Accounting Principles (McGraw-Hill Toronto, Montreal, Boston etal). Chapters Covered: 6-11
Required - K.D. Larson, T. Jensen, 2007, Fundamental Accounting Principles Student Workbook (McGraw-Hill Toronto, Montreal, Boston etal). Chapters Covered: 6-11
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