Accounting Fundamentals (Bookkeeping) Course Learning Objectives

Bookkeeping course learning objectives:

Chapter 1:

• Define accounting.
• Identify and discuss career opportunities in accounting.
• Identify the users of financial information.
• Compare and contrast the three types of business entities.
• Describe the process used to develop generally accepted accounting principles.

Chapter 2:

• Record in equation form the financial effects of a business transaction.
• Define, identify, and understand the relationship between asset, liability, and owner's equity accounts. Analyze the effects of business transactions on a firm's assets, liabilities, and owner’s equity and record these effects in accounting equation form.
• Prepare an income statement.
• Prepare a statement of owner's equity and a balance sheet.

Chapter 3:

• Set up T accounts for assets, liabilities, and owner's equity.
• Analyze business transactions and enter them in the accounts.
• Determine the balance of an account.
• Set up T accounts for revenue and expenses.
• Prepare a trial balance from T accounts.
• Prepare an income statement, a statement of owner's equity, and a balance sheet. Develop a chart of accounts.

Chapter 4:

• Record transactions in the general journal.
• Prepare compound journal entries.
• Post journal entries to general ledger accounts.
• Correct errors made in the journal or ledger.

Chapter 5:

• Complete a trial balance on a worksheet.
• Prepare adjustments for unrecorded business transactions.
• Complete the worksheet.
• Prepare an income statement, statement of owner’s equity, and balance sheet from the completed worksheet.
• Journalize and post the adjusting entries.

Chapter 6:

• Journalize and post closing entries.
• Prepare a postclosing trial balance.
• Interpret financial statements.
• Review the steps in the accounting cycle.

Chapter 7:

• Record sales on account, credit card sales, sales returns, sales allowances, and cash receipt transactions in a general journal.
• Compute trade discounts.
• Compute and record cash discounts on sales.
• Post from the general journal to the general ledger accounts and to the subsidiary ledger.
• Prepare a schedule of accounts receivable.
• Record the payment of sales taxes.

Chapter 8:

• Record purchases of merchandise on credit in a general journal.
• Compute the net delivered cost of purchases.
• Post from the general journal to the general ledger accounts.
• Post transactions to the accounts payable subsidiary ledger.
• Prepare a schedule of accounts payable.
• Demonstrate a knowledge of the procedures for effective internal control of purchases.
• Record transactions for a retailer using the perpetual inventory system.

Chapter 9:

• Account for cash short or over.
• Demonstrate a knowledge of procedures for a petty cash fund.
• Demonstrate a knowledge of internal control routines for cash.
• Write a check, endorse checks, prepare a bank deposit slip, and maintain a checkbook balance.
• Reconcile the monthly bank statement.
• Record any adjusting entries required from the bank reconciliation.
• Understand how businesses use online banking to manage cash activities.

Chapter 10:

• Explain the major federal laws relating to employee earnings and withholding.
• Compute gross earnings of employees.
• Determine employee deductions for social security tax.
• Determine employee deductions for Medicare tax.
• Determine employee deductions for income tax.
• Enter gross earnings, deductions, and net pay in the payroll register.
• Journalize payroll transactions in the general journal.
• Maintain an earnings record for each employee.

Chapter 11:

• Explain how and when payroll taxes are paid to the government.
• Compute and record the employer's social security and Medicare taxes.
• Record deposit of social security, Medicare, and employee income taxes.
• Prepare an Employer’s Quarterly Federal Tax Return, Form 941.
• Prepare Wage and Tax Statement (Form W-2) and Annual Transmittal of Wage and Tax Statements (Form W-3).
• Compute and record liability for federal and state unemployment taxes and record payment of the taxes.
• Prepare an Employer’s Federal Unemployment Tax Return, Form 940.
• Compute and record workers’ compensation insurance premiums.

Chapter 12:

• Determine the adjustment for merchandise inventory, and enter the adjustment on the worksheet.
• Compute adjustments for accrued and prepaid expense items, and enter the adjustments on the worksheet.
• Compute adjustments for accrued and deferred income items, and enter the adjustments on the worksheet.
• Complete a 10-column worksheet.

Chapter 13:

• Prepare a classified income statement from the worksheet.
• Prepare a statement of owner’s equity from the worksheet.
• Prepare a classified balance sheet from the worksheet.
• Journalize and post the adjusting entries.
• Journalize and post the closing entries.
• Prepare a postclosing trial balance and calculate various financial ratios.
• Journalize and post reversing entries.

‍