It is easy to create your own business cards in publisher to print yourself at home or at a store such as Staples or Kinko’s.
Create a business card that features a job that you would like to have. When you finish the card, you will present it to the class and explain how you designed it.
ACV.03: demonstrate an understanding of ethics and issues in accounting.
Learning Goals
By the end of this activity you will be able to:
reflect on the ethical issues facing business people and accountants
examine current accounting issues
Success Criteria
I will know I am successful when:
I can research and report on information related to accounting careers and/or accounting issues
I can discuss the findings of other students and make valid comments about their reports
Texbook
pages 19-21, 32
Purpose
Accountants are expected to perform their job accurately and appropriately. They may be placed in positions where there is a conflict of interest (two competing objectives). Examples of conflicts include:
Accounts should honestly report financial statements but their firm will receive more business if they give companies a favourable report (Objectivity Principle).
Whistle blowers should come forward to advise shareholders about any material concerns about the business but if they do, they may not be protected (Full Disclosure).
Accountants have legal, professional and moral responsibilities to balance with their job duties.
What are some of the characteristics of an ethical accountant?
What are some of the accounting principles or ethical values that were/were not violated in this case?
A Larger Case Study
Bigger than Enron
When Enron failed in 2001, it was a shock to the business world not only because it was one of the largest companies in the world but because the checks and balances in the system, such as government regulation and external auditors, failed to identify the problem.
The Federal Government was criticized for pushing deregulation that favoured Enron while receiving campaign donations from the company, which was also tied to George W. Bush. Arthur Andersen was fined for eschewing its responsibility to accurately report on Enron’s financial state and painting the company in the best possible light.
One of the specific expectations of the course is to recognize the differences between Chartered Accountants (CA), Chartered Management Accountant (CMA) and Chartered General Accountant (CGA). Each required different post-secondary courses and professional certifications and is suited for different positions. A CPA was more likely to be involved in the preparation of financial statements and other accounting practices, a CMA might help interpret accounting information in order to make decisions and a CGA had a broader background in business.
To eliminate some of the overlap between the professional associations and reduce confusion, Canadian accounting associations merged in January 2013 under the auspices of CPA Canada. A designation - Chartered Professional Accountant - and training program is under development throughout Canada. It is in place in Ontario currently. Members retain their current designation and add CPA to their credentials.
Charts make data easier to understand. So firstly, charts should be neat and clear, well-labelled (series, axis, title) and readable (colours/size).
But charts should also make people think about the data. Therefore, the charts should highlight something important, insightful or unusual.
Charts should make people think. When you show what is happening with a professional chart and explain why it happened with thorough research, you have made a thoughtful project.
Chart Comparison
Which one of these charts highlights better information? Which one clearly shows changes that are happening in Canada?
Saying something like "Saskatchewan is experiencing a surprising growth rate because it has the highest job vacancy rate in Canada" is informative and shares useful information with the reader. Remember to prove a citation from http://www.citethisforme.com.
Microsoft Publisher is used by students for school newspapers, businesses to create posters and business cards and community groups to create newsletters.
It is similar to Word but used for projects with more graphics and images.
You can insert pictures, text, tables, borders and backgrounds.
Reversing entries are recorded when there has been a mistake or when an adjusting entry must be reversed to accurately display an accrued expense or revenue. The reversing entries are recorded on the first day of an accounting period. Reversing Entries are part of the Time Period concept in Accounting.
Learning Goals
By the end of this activity you will be able to:
explain why reversing entries are necessary
complete the process of adjusting, closing, reversing and routine entries.
Place in BAT4M Course
Reversing Entries are part of the Accounting Cycle unit
Textbook: pages 231-234
How to Use Reversing Entries
J. Bernier - an employee - is paid $200 per day ($1,000 per week).
Cheques are issued every Friday.
March 31 is a Monday but J. Bernier will not be paid until April 4th.
The accountant must record the following:
An adjusting entry is made March 31 to record $200 in salary expenses for February.
A closing entry occurs on March 31 to close the salary expenses account into the Income Summary for March.
A reversing entry on April 1st records that the salary expense is less than usual ($200 having been recorded for February).
A routine entry on April 4th records that J. Bernier was paid for the week.
When closing entries are completed April 30th, the appropriate amount of Wages Expense will be recorded in April's Income Summary.
Reversing entries are optional; not every company uses them. Some adjusting entries are reversed to display that an account has an abnormal balance. Only accrued expenses and revenues are reversed. Accrued expenses are costs that have been incurred but not paid or recorded, accrued revenues are goods and services delivered but not billed or recorded.
Closing entries are entries made at the end of a fiscal period to close temporary accounts (like expenses and revenues) into the owner/shareholder equity account.
Learning Goals
By the end of this activity you will be able to:
Understand the need for closing entries at the end of the fiscal period
Describe the four steps in the process of closing the accounts at the end of the fiscal period
Identify temporary and permanent accounts.
Success Criteria
I will know I am successful when:
I can record the journal entries to close temporary accounts
I can explain why closing entries are necessary.
Key Terms
Temporary Accounts: Accounts that must be closed (balance converted to 0) at the end of a fiscal period. Examples: Revenues, Expenses, Drawings.
Permanent Accounts: Accounts that can carry a balance from period to period. Examples: Assets, Liabilities, Capital.
Income Summary (or Revenue and Expense Summary): A temporary account used to close the revenues and expenses and quickly show whether the company earned or loss money in the period. It is closed to the Capital account.
Process
At the end of a fiscal period (month, quarter or year), temporary accounts need to be "emptied" with a closing entry that reduces the account balance to zero.
Revenue and Expenses need to be recognized and recorded for the time period when incurred. Drawings must be closed as well.
Close the temporary accounts into an account called "Income Summary" or "Revenue and Expense Summary". Follow this order:
Close all the revenues (a debit entry in the revenue account that matches with a credit entry in the Income Summary). For example, in Service Fees, create a debit entry called "Closing Entry" for the account balance and a matching credit entry in Income Summary called or "To close revenue".
Close all the expenses (a credit entry in the expense(s) account and a debit entry in Income Summary). You can close all the expenses with a compound entry (multiple credit entries for each expense account and one debit entry in Income Summary.
Close the Income Summary into the Capital account (if the company earned income, use a debit entry in Income Summary and a credit entry in Capital to show an increase in value, if the company incurred a loss, use a credit entry in Income Summary and a debit entry in Capital to show a decrease in value).
Close Drawings into Capital (credit Drawings the sum of all that was withdrawn by the owner in the fiscal period and debit Capital).
Remember to make entries in the General Journal and the General Ledger.
Accrual basis accounting means that a business will recognize revenue that has been earned, but not yet received, and claim expenses incurred, but not yet paid. The accounting term “accrued expense” means an expense which has been incurred during the accounting period but has not been paid or recorded.
Terminology
Accrued revenues are revenues that have been earned in this year but the customer will not be invoiced for payment until the next year. A temporary current asset is created when the adjusting entry is recorded.
Accrued expenses are expenses that have been incurred but the invoice will not be received until the next year. A temporary current liability is created when the adjusting entry is recorded.
Process
Calculate the amount of the revenue earned or expense incurred from the last time money was paid/received up to the year-end date.
Make the adjusting entry to record the revenue or expense.
More Uses
Adjusting
Entry
Account
Debited
Account
Credited
Recording
salaries for one month that will not be paid until later.
Salaries
Expense
Wages/Salaries
Payable
Paying
salaries that were earned last month but not paid until now.
Wages/Salaries
Payable
Bank
Recording
interest revenue that was earned during a time period but will not be paid
until later.
Accrued
Interest
Interest
Revenue
Receiving
payment of interest that was earned in an earlier time period.
Bank
Accrued
Interest
Recording
depreciation of a fixed asset.
Amortization/Depreciation
Expense
Accumulated
Amortization/Depreciation
Writing
off bad (uncollectible) debts.
Bad
Debt Expense
Accounts
Receivable
Recording
the insurance expense for a time period.
In class, we will discuss some search tips to help get the information that you need when you are researching. Here are some graphic organizers to help remind you.
Adjusting entries are part of the Accounting Cycle and consist of entries made at the end of fiscal period as part of the Time Period Concept and to better match expenses and revenues.
Learning Goals
Explain why adjusting entries are necessary
Analyze information and decide whether an adjusting entry is needed
Record adjusting entries for prepaid expenses and unearned revenues in a general journal
Uses of Adjusting Entries
Match unearned revenue and prepaid expenses to the time period that the transaction occurred
Account for the use of supplies and depreciation in each period
Divide items that might have been paid in a lump sum into smaller periods (like rent and insurance)
Practice Activity
We will do some of this activity together in class and you will do some on your own. Click here.
Google News (http://news.google.ca) allows you to search the most recent news items about a topic. However, you still need to ensure that the source is reliable.
Task
Search for a topic in Google News
Write down the important information about the article (title, author, address, source, date)
Write a short summary of the article
Rate the website according to reliability, objectivity and accuracy and explain why
Use a table to create a 4 row, 3 column table that has terms (reliable, objective, accurate), synonyms (words with similar meanings) and definitions (word meanings).
Topic: Some variation of the accounting cycle and financial statements
Last Class
We worked on Income Statements and Balance Sheets for R. Brown accounting. Here are the solutions. I want to stress that checking your work after you do the practice activities is an important part of self-evaluation and preparing for tests and assignments.
Accounting Concepts
Textbook Pages: 52-56
Canada hass followed International Financial Reporting Standards since July 2011
Last year, you studied key concepts and principles for Canadian accountants. Four significant concepts that you should know and be able to explain in your own words are:
The Business Entity Concept
Going Concern Assumption
Time Period Concept
Monetary Unit Assumption
Accounting Principles
Textbook: Look up each principle in the index at the back of the text.
Generally Accepted Accounting Principles (GAAP) are the general guidelines (rules) for recording accounting transactions and the preparation of financial statements.
Essential accounting principles that you should be able to understand and apply to case studies:
Principle of Conservatism
Objectivity Principle
Revenue Recognition Convention
Expense Recognition Convention
Matching Principle
Cost Principle
Consistency Principle
Materiality Principle
Full Disclosure Principle.
Case Studies
What accounting concept or principle(s) is involved and what is the correct way to handle the situation?
A company purchases machinery for $10,000 but an employee thinks that it's worth more and lists the asset for $15,000 on the books. Cost Principle, Conservatism, Objectivity
Jacobs Ltd. buys a car but owner Brad Jacobs only uses it for his personal use. Business Entity
A company files its 2012 financial statements using the straight-line depreciation method but decides to switch to the declining-balance method for 2013. Consistency
Jennifer Jones receives $20,000 in services on February 15th on account. Jones pays the account balance March 12th so the accountant records the sales in the March income statement Revenue Recognition Principle, Time Period Concept
After a storm, a warehouse is flooded. It seems like about half of the merchandise has been ruined so that's what the accountant writes off the books. Objectivity, Conservatism, Cost Principle
The depreciation of a $50 lamp, with an estimated useful life of twenty years, is included in the income statement for every month. Materiality
A Canadian mining company has a gold mine in a another country that is a key source of income. However, after a change in government, that country may make foreign ownership of the mine illegal. Nevertheless, nothing is mentioned in the financial statements. Going Concern, Full Disclosure, Materiality
Chum Lee works at the Gold and Silver Pawn shop, where $25,000 in sales occurred in January. The sales were included in January's statements but since Chum Lee had asked Rick for an advance, his pay was added to December's salary expense account. Matching Principle, Expense Recognition
A company with $250,000 in assets realizes that they forgot to list a $50,000 debt repayment on the statements for the previous quarter. They decide to list it in the statements when the error is discovered. Materiality
An accounting firm reaches an agreement with a corporate client on February 20th to provide $200,000 in services per year for five years, starting in 2014. They record $200,000 in sales on the Income Statement for 2013. Revenue Recognition, Time Period
This page will introduce M.S. Excel and show you what a Grade 9 Assignment will look like (in terms of rubrics, learning goals, instructions and exemplars).
What is Microsoft Excel
Microsoft Excel is a piece of software designed to organize data.
Users can build tables, calculate formulas, and create charts to organize their information
Excel shares many attributes with M.S. Word, such as the Menu Bar and Toolbars.
The rest of the information is point and click.
Information is written in Cells and Worksheets, instead of lines and paragraphs.
Excel formulas perform calculations to save time and link cells from one worksheet to another for large spreadsheets.
The correct extension for M.S. Excel is *.xls or *.xlsx
Information in charts and tables is often better organized and easier to understand than a long paragraph of text.
Learning Goals
This is an Assessment as Learning activity. The objective of these three tasks is to:
Apply M.S. Excel skills to display data in a clear and easy to understand format; and
Utilize a variety of M.S. Excel formatting techniques to enhance the appearance of the information.
Success Criteria
I will know I am successful when:
Information is entered accurately in M.S. Excel;
It is easy to understand the data because it is properly displayed in tables and charts;
Formulas are used to calculate values; and
The fonts, colours, borders and shading are interesting but do not become excessive, overwhelming or hard to read.
Instructions
We will be working on M.S. Excel throughout the week. I will cover one topic each class on the board and there will be individual work time to practice.
Read the instructions in each file and complete each task individually:
This information is not in the textbook. Please be aware of this change in Ontario accounting procedures.
The Harmonized Sales Tax (HST) is a value added tax that took effect in Ontario in July 2010 replacing the federal Goods and Services Tax (GST) and the Provincial Sales Tax (PST).
Businesses charge and collect HST on sales of goods and services. They also pay HST when they purchase goods and services needed to operate their business. Each month, businesses remit the difference between the HST collected (payable) and the HST paid (recoverable) to the government.
A business has two accounts to record HST transactions:
(1) HST Recoverable. This is a contra-liability account where businesses record the HST they paid. This will be deducted from the HST Payable at the time the business makes a remittance to the government.
(2) HST Payable. This is a current liability account where the business records the HST it has charged its customers. This is a liability because the business owes the HST collected to the government.
H.S.T. in Ontario is 13%. Read problems carefully to determine if the 13% was included in the amount listed or not.
Last Class
Last class, we reviewed the Accounting Cycle.
Terms to know: Source Documents, General Journal and General Ledger
We looked at the General Journal entries and did the practice exercise for Ken's Barber Shop (Solutions - students are at different stages of the activity - don't look at the solutions until you have finished).
This information can be found in the textbook on pages 98 to 109.
Today's Class
We will review balance sheets and income statements.
This information can be found in the textbook on pages 62 to 65.
Terms to know: Current Assets and Current Liabilities, Fixed Assets and Long-Term Liabilities, Revenue, Expenses, Contra-Asset and Contra-Liability accounts.
A digital tattoo is the remains of your online activities that remain years after they have taken place. For example, posts on message boards, photos and other information may be stored on a server and appear when others search for you.
Since employers may search a person's name or their previous experience (schools, jobs, etc.) it is important to balance having fun online with maintaining your reputation. "Digital Footprint" is another name for all the information that you leave as a result of your computer use.
Even web sites, blogs and tweets can be recovered - even if the original is deleted - since they are stored on the Internet Archive's WayBack Machine (http://archive.org/web/).
1) Google Yourself
does anything come up? (try quotation marks around your name, your name and Toronto and your name 2010..2013 to limit results)
are you happy or displeased about the information?
what does it say about you?
You can set up a Google Alert (http://www.google.ca/alerts) to send you an email when your name appears in a search result.
Online Article: "Google Me" Link: http://digitaltattoo.ubc.ca/2013/11/07/google-me/
2) Assess Your Own Habits
how would you evaluate your habits? (on a scale of 1 to 10)
privacy (limiting personal information posted online)
professionalism (avoiding embarrassing pictures and posts)
Personality (being positive, talking about your own accomplishments and those of others)
list three good tips that would help you and your friends stay safe and private online.
Today's Task
Answer the questions in a well-formatted M.S. Word document that demonstrates your skills with that software. Save the document in a folder in your BTT1O folder.
My name is Mr. Bourgase and I will be teaching this class until Mr. Tulumello returns. I can be reached at brock.bourgase@tdsb.on.ca. First, we need to talk about where the course is and what information has been covered. We can review any question that you would like.
2) Accounting in the News
Rihanna: I Was Bankrupt Because of My Stupid Accountant
Rihanna says her accountant made so many boneheaded decisions that he blew her fortune and she was "effectively bankrupt" by the end of 2009.
The singer claims in new legal docs she had $11 MILLION in cash at the beginning of 2009. Rihanna says the accountant was not on the ball and she was horrified to learn at the end of the year she had $2 million left. To make matters worse, her expenses doubled, which left her on a financial cliff.
As for how Rihanna blew through $9 million in one year ... she says her accountant gave her the green light to buy a house priced between $7 and 7 1/2 million. So she took his advice. She ultimately sold the house for a $2 million LOSS.
She also claims her 2009 tour -- Last Girl on Earth Tour -- was losing money but the accountant never gave her the heads up.
The legal docs were filed in connection with a lawsuit Rihanna filed against her accountant, claiming gross mismanagement. BTW ... Rihanna has rebounded nicely. Her net worth is now estimated at $43 mil.
3) Activity
Record the activities for Ken's Barber Shop and update the General Journal and T-Accounts in the spreadsheet file. Verify your work by updating the Trial Balance. Save the spreadsheet file on your home drive.
You have been reviewing Chapters 1 & 2. Write a list of concepts that you want to review or questions that you have and email it (list 3 to 5 things). We need to balance reviewing what has been covered with moving forward in the course. If you want your questions to be anonymous, you can hand in the list on paper next class.
