ACC 220 - Accounting for Small Business (3 CR.)

Presents practical accounting procedures for small business operations including service occupations, retail stores, and manufacturing operations. Covers the accounting cycle, journals, ledgers, preparation of financial statements and payrolls, and checking account management. Includes regulations applicable to payroll, self-employment, Social Security, and other taxes. Lecture 3 hours per week.

Course Objectives
Upon completion of this course, the student will be able to:

describe the accounting process
explain fundamental accounting principles
explain the accounting equation
explain the accounting process from recording entries through the trial balance
prepare financial statements and post-closing trial balance
explain the different methods of asset depreciation for recovering cost
reconcile bank statements
process payroll transactions
describe the reporting requirements for state and federal income taxes, unemployment taxes, and worker’s compensation insurance
describe the record keeping procedures associated with perpetual and periodic inventory systems
understand the basics of budgeting

Major Topics to be Included

Transaction analyzing, journalizing and posting to ledgers.
The cycle of actions required to identify, record, and summarize the financial transactions for small business.
Special accounting techniques for merchandising businesses.
Managing and accounting for cash receipts, payments, and merchandise inventories.
Determining and recording the financial effects of internal value changes within the business.
Preparing financial statements for use by managers, owners, creditors, and potential owners and creditors.
Use of accounting software.
Managing and accounting for receivables and payables.
Inventory valuation and cost of goods sold.
Plant asset valuations and depreciation.
Payroll accounting including self-employment taxes, social security, and other taxes

Revised 3/2011