Active Outline

General Information

Course ID (CB01A and CB01B)
ACCT D051B
Course Title (CB02)
Intermediate Accounting II
Course Credit Status
Credit - Degree Applicable
Effective Term
Fall 2024
Course Description
This course covers the principles, control, and theory of accounting for liabilities and equities, corporations, accounting changes, pensions and leases, price level, and fair-value accounting.
Faculty Requirements
Discipline 1
[Accounting]
FSA
[FHDA FSA - ACCOUNTING]
Course Family
Not Applicable

Course Justification

This course is CSU transferable and belongs on the Accounting A.A. degree. Students will develop skills in accounting for bond and stock issuances, investments, and income taxes as well as preparing and analyzing the cash flow statement.

Foothill Equivalency

Does the course have a Foothill equivalent?
No
Foothill Course ID

Course Philosophy

Formerly Statement

Course Development Options

Basic Skill Status (CB08)
Course is not a basic skills course.
Grade Options
  • Letter Grade
  • Pass/No Pass
Repeat Limit
0

Transferability & Gen. Ed. Options

Transferability
Transferable to CSU only

Units and Hours

Summary

Minimum Credit Units
5.0
Maximum Credit Units
5.0

Weekly Student Hours

TypeIn ClassOut of Class
Lecture Hours5.010.0
Laboratory Hours0.00.0

Course Student Hours

Course Duration (Weeks)
12.0
Hours per unit divisor
36.0
Course In-Class (Contact) Hours
Lecture
60.0
Laboratory
0.0
Total
60.0
Course Out-of-Class Hours
Lecture
120.0
Laboratory
0.0
NA
0.0
Total
120.0

Prerequisite(s)

ACCT D001B or ACCT D01BH

Corequisite(s)

Advisory(ies)

ACCT D051A

Limitation(s) on Enrollment

Entrance Skill(s)

General Course Statement(s)

Methods of Instruction

Lecture and visual aids.

Discussion of assigned reading.

In-class/online discussion and problem-solving.

In-class/online quiz and examination review.

Homework, cases and/or extended projects.

Collaborative projects, cases and/or small group exercises.

Assignments

A. Required reading from text

B. Written/online assignments

          1. Problem solving cases/exercises

          2. Analysis and application of theory and principles in accounting

C. Classroom presentations

D. Use computer spreadsheet programs

Methods of Evaluation

  1. Essay examinations requiring students to demonstrate abilities to summarize integrate and analyze concepts that have been introduced and studied throughout the course
  2. Quizzes and exams requiring students to demonstrate computational problem solving skills and to demonstrate the ability to analyze and apply accounting theory and principles
  3. Written homework requiring students to demonstrate computational problem solving skills and to demonstrate the ability to analyze and apply accounting theory and principles
  4. Comprehensive final examination requiring students to demonstrate abilities to summarize integrate and analyze concepts that have been introduced and studied throughout the course
  5. Classroom presentations requiring students to demonstrate the ability to analyze and apply accounting theory and principles

Essential Student Materials/Essential College Facilities

Essential Student Materials: 
  • None
Essential College Facilities:
  • None

Examples of Primary Texts and References

AuthorTitlePublisherDate/EditionISBN
Kieso, Weygand, and WarfieldIntermediate AccountingJohn Wiley & Sons2022/18th Edition9781119790976

Examples of Supporting Texts and References

None.

Learning Outcomes and Objectives

Course Objectives

  • Compare and assess acceptable accounting and disclosure practices for a variety of current liabilities and contingencies.
  • Calculate and account for premiums and discounts on long term debt instruments. Account for restructuring of troubled debt.
  • Assess the characteristics, advantages and disadvantages of the corporate form of business enterprise. Account for the issuance of stock.
  • Calculate and account for cash and stock dividends, stock splits and appropriation of retained earnings.
  • Assess the impact of tax laws on financial statements.
  • Assess the impact of accounting changes, record correction of errors, and restatement of prior period financial statements.
  • Identify the basic issues for accounting for leases. Identify issues concerning off-balance sheet-financing.
  • Calculate the cost of pension plans.
  • Create the Statement of Cash Flow.
  • Create a comprehensive financial statement analysis.
  • Recognize and explain the concept of interim reporting and segment disclosure.
  • Calculate Earnings per Share.
  • Create financial statements restated for changing prices.
  • Calculate and account for temporary and long-term investments, and consolidated financial statements.

CSLOs

  • Demonstrate the ability to apply professional knowledge of the role of accountants in providing and ensuring the integrity of financial and other information relating to the equity and/or debt capitalization of a company.

Outline

  1. Compare and assess acceptable accounting and disclosure practices for a variety of current liabilities and contingencies.
    1. Meaning and nature of current liabilities
    2. Determinable, estimated and contingent liabilities
    3. Obligations arising from payroll transactions
    4. Current and long term liabilities
  2. Calculate and account for premiums and discounts on long term debt instruments. Account for restructuring of troubled debt.
    1. Nature of bonds and notes payable
    2. Issuance and reacquisition or retirement of debt
    3. Premiums and discounts on long term debt
    4. Convertible debt and detachable stock purchase right
    5. Restructuring of troubled debt
  3. Assess the characteristics, advantages and disadvantages of the corporate form of business enterprise. Account for the issuance of stock.
    1. Characteristics, advantages, and disadvantages of the corporate form of business
    2. Stockholders' rights and types of equity securities
    3. Accounting for the issuance of capital stock
    4. Accounting for stock subscriptions
    5. Methods of accounting for treasury stock and transactions
  4. Calculate and account for cash and stock dividends, stock splits and appropriation of retained earnings.
    1. Accounting for stock dividends and stock splits
    2. Appropriation of retained earnings
    3. Stock options and compensation plans, stock warrants and stock rights
    4. Quasi reorganization
    5. Retained earnings
  5. Assess the impact of tax laws on financial statements.
    1. Financial income vs. taxable income
    2. Accounting for operating loss carrybacks and carryforwards
    3. Interperiod and intraperiod income tax allocation
  6. Assess the impact of accounting changes, record correction of errors, and restatement of prior period financial statements.
    1. Nature of accounting change and errors
    2. Financial reporting for accounting changes and errors
    3. Restatement of financial statements
    4. Financial statement disclosure
  7. Identify the basic issues for accounting for leases. Identify issues concerning off-balance sheet-financing.
    1. Application of appropriate accounting measurement
    2. Economic substance of a lease: rental vs. purchase
    3. Real estate leases and subleases
    4. Off-balance sheet-financing
  8. Calculate the cost of pension plans.
    1. Nature of modern pension plans
    2. Determining the cost of pension plans
    3. Five primary components of net periodic pension cost
    4. Pension records and information
  9. Create the Statement of Cash Flow.
    1. Relationship of cash flow statement to other financial statements
    2. Three categories of cash flows
    3. Three steps in preparing a statement of cash flows
  10. Create a comprehensive financial statement analysis.
    1. Role of financial statement disclosure
    2. Meaning of "adequate disclosure"
    3. Financial statement disclosure checklist
    4. Comprehensive financial statement analysis
  11. Recognize and explain the concept of interim reporting and segment disclosure.
    1. Problem of standards overload
    2. Concept of interim reporting
    3. Segment disclosure required by FASB
  12. Calculate Earnings per Share.
    1. Significance of Earnings Per Share
    2. Potential for dilution in EPS
    3. EPS for simple and complex capital structure
  13. Create financial statements restated for changing prices.
    1. Nature and measurement of price change
    2. Constant dollar accounting
    3. Current value accounting
    4. FASB's disclosure recommendations
  14. Calculate and account for temporary and long-term investments, and consolidated financial statements.
    1. Nature of temporary and long-term investments
    2. Financial statement presentation of gains and losses
    3. Recognition of gains and losses
    4. Consolidated financial statements
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