Accounting I
Course Text
Wild, John J., Kermit D. Larson, and Barbara Chiapetta. Fundamental Accounting Principles,
Volume 1, 18th edition. McGraw-Hill/Irwin, 2007. ISBN 0-07-328661-3
Course Description
This course focuses on ways in which accounting principles are used in business operations.
Students learn to identify and use Generally Accepted Accounting Principles (GAAP), ledgers
and journals throughout the steps of the accounting cycle. This course introduces bank
reconciliation methods, balance sheets, assets, and liabilities. Students also learn about
financial statements including assets, liabilities, and equity. Business ethics are also discussed.
Course Objectives
After completing this course, students will be able to:
• Identify and apply Generally Accepted Accounting Principles (GAAP).
• Apply the steps of the accounting cycle.
• Post and analyze transactions using ledgers and journals.
• Record adjusting entries for prepaid expenses and unearned revenue.
• Complete an adjusted trial balance.
• Perform a bank reconciliation.
• Explain the purpose of the sales journal and the Accounts Receivable ledger and post
entries to both.
• Record the costs associated with the acquisition of property, plant, and equipment.
• Explain the purpose of and prepare entries for the purchase order journal and accounts
payable (A/P) ledger.
• Identify the fundamental principles of an accounting information system.
Course Prerequisites
There are no prerequisites to take Accounting I.
Course Evaluation Criteria
There are a total of 858 points in the course:
Quiz A 25 points
Quiz B 25 points
Quiz C 26 points
Quiz D 26 points
Quiz E 25 points

Quiz F 25 points
Quiz G 26 points
Quiz H 28 points
Quiz I 26 points
Quiz J 26 points
Exam #1 150 points
Exam #2 150 points
Exam #3 150 points
Exam #4 150 points
At the end of the course, each student will receive the number of points earned. The student’s
final letter grade is determined by the corresponding institution’s grading scale.
Course Topics and Objectives
Topic Lesson Topic Subtopics Objectives
1 Accounting for • The Purpose and Use of • Describe the users of accounting
Business Today Financial Information information, their informational needs,
• Generally Accepted and the people responsible for
Accounting Principles providing this information.
(GAAP) • Explain why ethics and personal
• Business Ethics integrity are important issues in the
• Careers in Accounting practice of accounting.
• Review the importance of GAAP in
relation to various standard bodies,
including the SEC, FASB, and IASB.
2 Recording • The Accounting Cycle • List the steps in the accounting cycle.
Business • Transactions • Describe the various source documents
Information • Journalizing the required for processing an accounting
Transactions transaction.
• Posting to the Ledger • Explain the processes of journalizing
• The End of the and posting.
Accounting Period • Outline the process of balancing and its
• The Unadjusted Trial importance.
Balance • List the different stages of a trial
• Adjusting Entries balance.
• The Adjusted Trial • Outline the process of entering
Balance adjustment entries to journals.
• Financial Statements • Identify different financial statements
• Closing Journal Entries that can be completed at the end of an
• Post-Closing Trial accounting cycle.
Balance • Describe the process of closing
• Overview of the accounts and explain why it is
Accounting Cycle important.
3 Financial • Fundamental Accounting • Define assets, liabilities, and equity.
Statements Equation • State the fundamental accounting
• Income Statements equation.
• Statement of Owner’s • Explain the elements of an income
Equity statement, and explain its purposes
• Balance Sheet and uses.
• Financial Statements • Define the elements of a statement of
owner’s equity (SOE,) and explain its
purposes and uses.
• List and explain the elements of a

balance sheet, and explain their
purposes and uses.
4 Journalizing and • Double-entry Accounting • Define the terms debit and credit.
Posting Debits and Credits • Understand the role of double-entry
Transactions • Using T-accounts bookkeeping in journalizing and
• Entering and Analyzing posting transactions.
Transactions • Record and analyze transactions using
• Preparing a Trial Balance T-accounts while maintaining the
integrity of the accounting equation.
• Post and analyze transactions using
ledgers and journals.
• Explain the importance and purpose of
a trial balance.
5 Preparing • Accrual Versus Cash • Compare and contrast accrual and cash
Adjusting Entries Basis of Reporting basis reporting methods in relation to
• Recognition and the accounting period principle.
Matching Principles • Explain the importance of revenue
• Journalizing and Posting recognition and the matching principle.
Adjusting Entries • Identify various types of adjusting
• Prepaid Expenses and entries for accruals, and describe how
Unearned Revenue accounts are adjusted.
• Record adjusting entries for prepaid
expenses and unearned revenue.
6 The Accounting • Preparing the Adjusted • Understand and complete an adjusted
Cycle Trial Balance trial balance.
• Calculating Net Income • Prepare financial statements from an
or Loss adjusted trial balance.
• Journalizing and Posting • Explain the closing process including
Closing Entries the use of temporary and permanent
• Preparing the Post- accounts and record closing entries.
closing Trial Balance • Create a post-closing trial balance.
• The Accounting Cycle • Name the steps in the accounting
and Classification cycle.
Structure • Describe the classification structure
and categories.
• Prepare a classified balance sheet.
7 Assets: Cash and • Cash Transactions • Identify the various types of cash
Controls • Establishing Internal transactions including receipts and
Controls disbursements.
• Cash Receipts and • Explain the purpose and use of a petty
Disbursements cash fund.
• Reconciling the Bank • Describe the purposes, principles, and
Statement limitations of limitations of internal
controls.
• Identify the major guidelines and
internal measures for controlling cash
receipts and disbursements.
• Perform a bank reconciliation.
8 Assets: Sales and • Sales Journal and • Explain the purpose of the sales
Receivables Accounts Receivable journal and the Accounts Receivable
Ledger ledger and post entries to both.
• Recognizing Accounts • Describe how accounts receivable are
Receivable recognized and valued.
• Sales Returns and • Record transactions for different types
Allowances of credit sales.
• Accounting for Bad Debts • Record transactions for sales
allowances and returns.
• Describe how to estimate bad debt
expense.
• Post adjusting entries using the
percent of sales, percent of A/R, and
aging of A/R methods.

9 Assets: Inventory • Accounting for • Describe the physical elements,
Valuation Inventory: Physical controls, and costs that make up
Count, Costs, and inventory valuation.
Controls • Explain inventory closing.
• Inventory Closing • Calculate the cost of inventory using
Methods the specific identification, first-in first-
• Valuing Inventory and out, last in-first out, or weighted
Lower of Cost or Market average method.
(LCM) • Determine the value of inventory using
the Lower of Cost or Market method.
10 Acquisition of • Acquisition of Property, • Record the costs associated with the
Property, Plant, Plant, and Equipment acquisition of property, plant, and
and Equipment • Depreciation of Property, equipment.
Plant, and Equipment • Account for subsequent improvements
• Disposition of Property, of property, plant, and equipment.
Plant, and Equipment • Define the term depreciation, and
• Accounting for Natural utilize particular methods to record
Resources depreciation expense.
• Accounting for Intangible • Record the appropriate entries for the
Assets disposal of plant, property, and
equipment for a realized gain or loss.
• Explain the procedures for acquiring
and accounting for natural resources.
• Identify the procedures for acquiring
and accounting for intangible assets.
11 Liabilities: • Purchasing and the A/P • Explain the purpose of and prepare
Purchasing and Ledger entries for the purchase order journal
Payables • Recording Account and the accounts payable (A/P) ledger.
Payables • Describe how accounts payable are
• Purchase Returns and recognized and valued, and then
Allowances record transactions for different types
of payables.
• Analyze and record transactions for
returns and allowances.
12 Liabilities: Notes • Classifying Current • Describe common types of liabilities,
Payable and Other Liabilities methods for estimating their values,
Current Liabilities • Notes Payable and their implications for accounting
• Taxes Payable purposes.
• Accounting for • Define short-term notes payable and
Contingent Liabilities demonstrate the ability to record
journal entries for these transactions.
• Discuss how deferred taxes are
accounted for and the journal entries
that are required to account for these
items.
• Explain how to account for contingent
liabilities and the journal entries
needed to record these liabilities.
13 Liabilities: • Employee versus • Determine if a person is an
Employee and Contractor independent contractor or an employee
Payroll Accounting • Recording Wages using various criteria.
Payable • Compute wages payable for full-time,
• Accounting for Employee part-time, salaried, hourly,
Benefits: Health, commission, and piece-rate
Pension, and Vacation employees.
• Legal Responsibilities: • Demonstrate the ability to calculate
Federal Withholdings and payroll tax deductions and liabilities
Reporting including vacation, health, and
pension-related transactions.
• Describe the responsibilities for
withholding and submitting payroll
taxes to the federal government.

14 Accounting • Foundation Principles for • Identify the fundamental principles of
Information Accounting Information an accounting information system.
Systems Systems • Describe the components of an
• Elements of an accounting information system.
Accounting Information • Explain the need for special journals
System and how to post to and from these
• Use of Special Journals journals.
in an Accounting • Explain the use of subsidiary ledgers in
Information System an accounting system.
• Use of the Sales Journal • Explain the impact of technology on
in an Accounting small, mid-size, and large companies’
Information System accounting systems.
• Use of a Cash Receipts
Journal in an Accounting
Information System
• Use of a Purchases
Journal in an Accounting
Information System
• Use of a Cash
Disbursements Journal in
an Accounting
Information System
• Technology Solutions for
Small, Mid-Sized, and
Large Companies
15 Review • Course Review • None