Jan 15, 2021  
2016-2017 Catalog 
2016-2017 Catalog [PAST CATALOG]

BPA 241 - Intermediate Accounting 1

3 credit hours - Three hours weekly; one term.
Focus on the comprehensive study of accounting principles, theory and practice as they relate to financial statements. Learn income measurement and its effect on the valuation of assets and equity, accounting for current assets, long-term assets, current liabilities and long-term liabilities.

Prerequisite(s): BPA 202 .

Course Outcomes
Upon successful completion of this course, students will be able to:

  • Identify the parts of the accounting conceptual framework as developed by FASB and determine its relevance to financial reporting.
    • Paraphrase the six statements of Financial Accounting Concepts
    • Describe the components of GAAP
    • Determine the challenges surrounding the accounting environment, legal, ethical, complex reporting issues and international concerns
    • Determine the challenges surrounding the accounting environment, legal, ethical, complex reporting issues and international concerns
    • Identify the relevancy of GAAP as it relates to accurate financial reporting
    • Identify the groups which set accounting standards and outline the tasks they perform
    • Identify the types of pronouncements which support GAAP and their relative importancei.(FASB)–Statements of Financial Accounting Standards & Interpretations
      iii.AICPA Research Bulletins
      iv.FASB Technical Bulletins
      v.AICPA Industry Audit & Accounting Guides
      vi.AIPCA Statements of Position
      vii.ACSEC Practice Bulletins
      viii.FASB Emerging Issues Task Force
  • Demonstrate knowledge and understanding of basic accounting concepts
    • Express the various steps in the accounting cycle.
    • Prepare journal entries from source documents and/or actual transactions
    • Identify the reasons the accrual method of reporting is preferred to the cash method of reporting
    • Prepare adjusting entries needed for accrual basis accounting
    • Prepare financial statements in accordance with GAAP; use proper format
    • Construct accrual basis financial statements from cash basis statements
  • Demonstrate knowledge of the comprehensive basis of income
    • Prepare in proper format an income statement using the comprehensive basis
    • Define and categorize the different areas of an income statement:
      i.Income from continuing operations (COGS, Other Revenues & Gains)
      iii.Discontinued operations
      iv.Extraordinary items
      v.Unusual gains and losses
      vi.Changes in accounting principle
      vii.Changes in estimates
    • Research the definitions of the items in b using FARS
    • Prepare in proper format a retained earning statement
      i.Identify what constitutes a prior period adjustment to retained earnings
      ii.Differentiate between Restricted and Unrestricted Retained Earnings
    • Define the items that should be included in income
    • Prepare any necessary disclosures/footnotes for the income statement
  • Demonstrate knowledge of the balance sheet and statement of cash flows
    • Prepare in proper format the balance sheet
    • Prepare in proper format the statement of cash flows (indirect and direct)
    • Identify and define the major classifications on the balance sheet
    • Prepare the required disclosures for the balance sheet by using FARS as a research engine
  • Be able to apply time value of money concepts when necessary
    • Identify the accounting topics to which time value of money applies
    • Describe the basic variables needed to solve time value problems
    • Differentiate between future and present values of 1 versus future and present values of an annuity
    • Differentiate between present value of an ordinary annuity and an annuity due
    • Solve basic problems involving time value concepts
    • Define the difference between simple interest and compound interest
  • Ascertain the accounting issues related to long term liabilities
    • Identify and define the different types of
    • Calculate the price of a bond payable using time value concepts
    • Calculate the bond amortization using straight line and effective interest method
    • Identify the costs of bond issuances
    • Identify the disclosures required for long term liabilities
    • Calculate the gain or loss on extinguishment of debt
    • Solve problems using imputed interest rates
    • Identify any disclosures for long term liabilities as required by GAAP
    • Identify the progression of troubled debt situations and the accounting for them
    • Solve basic troubled debt restructuring problems
    • Research long term liabilities using the FARS system
  • Examine current liabilities, contingencies and the topics surrounding them
    • Define and classify current liabilities
    • Define and classify contingencies
    • Prepare appropriate disclosures for current liabilities and contingencies in accordance with the research done in FARS
    • Define and classify current liabilities arising from litigation
    • Determine the proper accounting for compensated absences
    • Solve problems for current liability and contingency issues, including guarantee and warranty costs, payroll liabilities, compensated absences, etc
  • Examine cash and other related cash topics in detail.
    • Define the items that constitute cash
    • Classify cash as to correct areas on the balance sheet
    • Prepare a bank reconciliation; regular method and four-column proof of cash reconciliation and the associated adjusting entries
    • Prepare proper cash disclosures for financial statements using the FARS system as a guide
    • Describe various internal controls for cash and their importance
  • Examine receivables and other related topics in detail
    • Define all aspects of receivables
    • Correctly classify receivables for financial statement purposes
    • Prepare proper disclosures for receivables for financial statements using FARS system as a guide
    • Differentiate between direct write off method and allowance methods for accounts receivable
    • Prepare calculations for bad debt expense using the various allowance methods
    • Explain pledging and factoring of receivables
    • Describe the difference between factoring of receivables with and without recourse
    • Solve problems related to pledging and factoring of accounts receivable
    • Summarize the accounting for the transfer of receivables; control surrendered and control not surrendered
    • Calculate financial ratios dealing with cash and receivables (i.e. current asset ratio, acid test ratio, receivables turnover) and be able to interpret the ratios
  • Examine inventory and the accounting issues surrounding it
    • Determine the ownership of the inventory
    • Determine which costs are assigned to inventory for valuation
    • Define the different cost flow assumptions
      i.Specific ID
      ii.Weighted Average
      iii.Simple Average
      iv.Moving Average
      v.Lower of Cost or Market
      vi.Losses on purchase commitments
      ix.Dollar value LIFO
      x.Gross Profit
      xi.Standard costs
      xii.Direct costing
      xiv.Cost apportionment by relative sales volume
    • Solve problems related to b & c
    • Solve problems related to lower of cost or market and when it is used (ceiling and floor concepts)
    • Calculate inventory ratios (inventory turnover and supply)
    • Calculate cost of goods sold under any cost flow assumption
    • Differentiate between perpetual and periodic inventory systems
    • Solve problems relating to the percentage of completion method and the completed contract method
    • Research inventory issues using FARS
  • Examine property, plant and equipment and the accounting issues surrounding them
    • Define and identify the costs that comprise the acquisition cost of property, plant and equipment
    • Determine when interest should be capitalized as part of the cost of fixed assets
    • Solve basic problems involving acquisition costs and interest capitalization
    • Solve problems concerning lump-sum purchase
    • Solve problems concerning non-monetary exchanges of similar and dissimilar assets with and without boot
    • Differentiate between revenue and capital expenditures
    • Solve problems related to revenue and capital expenditures
    • Research fixed assets issues with the FARS system
    • Identify different methods of depreciation
    • Solve problems related to depreciation (straight line, accelerated, fractional year depreciation, changes in depreciation, composite group, etc.)
    • Determine when impairment of a fixed asset occurs and the proper accounting treatment
    • Prepare journal entries for disposals of assets
    • Define depletion and solve basic problems
  • Examine intangible assets and related accounting topics
    • Define and classify intangible assets
    • Solve problems relating to amortization of intangible assets
    • Determine when an intangible asset becomes impaired and the proper accounting treatment
    • Examine start-up costs and their proper accounting treatment
    • Examine computer software costs, research and development costs, and development stage enterprises
    • Solve problems related to e
    • Research issues surrounding intangible assets with FARS
Core Competencies
Core 1 Communication Core 2 Technology Fluency Core 3 Information Literacy Core 5 Self Management Core 7 Quantitative Reasoning Core 9 Global Perspective Core 10 Innovative and Critical Thinking