NORTHEASTERN UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION ACCT1201: FINANCIAL ACCOUNTING & REPORTING Spring, 2013

Professor: Ronald Zullo Class days/time/location: M/W/Th, 4:35 pm 5:40 pm 012 Hayden Hall Office hours/location: E-mail: TAs hours/location: Monday & Wednesday 2:45 pm 4:00 pm 408 Hayden Hall ron@zullocpa.com Hours to be posted on Blackboard 439 Dodge Hall

Course Materials: Financial Accounting, 7th edition, Libby, Libby, & Short (Irwin McGraw-Hill); ISBN: 007763599X CONNECT Registration Code (included in custom textbook purchase) Simple function calculator (required) CONNECT, as well as the registration of it into this course, is required. Your homework will be completed and submitted via McGraw-Hills website. I will offer instructions during class if you are having difficulty. Purchasing Textbooks and CONNECT access: (1) Customized Version of Libby Softcover including CONNECT access; IN THE BOOKSTORE: $180 new; $135 used (buying a used textbook is not cost effective because you will still need to purchase a CONNECT access code for $49.99). (2) Customized Version of Libby Softcover including CONNECT access; DIRECTLY THROUGH THE PUBLISHER) ISBN 007763599X $141.75 plus shipping. (Copy and paste this URL to find the textbook) shop.mcgraw-hill.com/mhshop/productDetails?isbn=007763599X Please allow 7-10 days for shipping. This option is not recommended unless the student purchases the textbook 10 days before the start of classes.

(3) Ebook Only (including CONNECT access): $117.25 (DIRECT TO STUDENT PRICE ONLINE purchase from CONNECT link set up in course Blackboard account). Select this option if you only want to use an e-book for the course. The new Customized softcover options (1) and (2) above include free e-book access within CONNECT whereas this option does not provide you with a softcover textbook. (4) CONNECT as a standalone (this additional cost is incurred if a student buys a used book containing chapters 1-11 and 13) - $49.99 direct to student price online. If you have not bought the book/package yet and are not sure if you will remain in this course, you can still register with CONNECT to do our first assignment by selecting the free trial option. Click on the first assignment, then enter your email address and select the Free Trial option. The URL to CONNECT has been set up as a link in Blackboard. For reference, it is: http://connect.mcgraw-hill.com/class/xxxxx (*** TO BE ANNOUNCED ***) To register and/or purchase access to CONNECT you will need to log onto CONNECT and click on the first assignment, then select Register Now button. (There is also a video on the left hand side to help answer any questions you may have when registering if you have a code or if you would need to buy one). Put in your email address. If you have registered with McGraw-Hill previously they will recognize you in their system so you can use your old password that you had previously set up with them. If you have the access code you can enter this on the left hand side to redeem this. This can only be redeemed once and must be the code for the required book we are using. If you have any questions regarding CONNECT please direct these to McGraw-Hill tech support, either by visiting their website at: www.mhhe.com/support for helpful FAQs, or by calling 800-331-5094. If you do contact McGraw-Hill with a question please write down the case number they will give you. They are open Monday-Thursday 9amMidnight, Fridays 9am-7pm, as well as Sundays 7pm-Midnight, so if you have any questions you will be responsible for following up with them to make sure that you complete the required homework assignment on time.

Use of Laptop & In Class Technology Please refer to separate Technology Policy Handout, provided during first class.

Course Objectives and Policies Accounting is often referred to as the language of business. The objective of this course is to develop an understanding of financial accounting and reporting issues, and their impact on business decisions. Although students should be able to prepare basic financial statements upon successful completion of the course, a user/decision-maker perspective will be emphasized. Further, the importance of integrity and ethical behavior in financial reporting will be discussed throughout the course. The financial statements and reports of publicly traded corporations will be examined in order to emphasize the practice-oriented focus of the course. The workload for this course is heavy since (a) several key concepts and related terminology must be mastered in a relatively short period of time and (b) akin to the real world, students will be required to engage in critical thinking and exercise judgment in dealing with practical situations (rather than relying on memorized rules). On average, students should expect to spend at least twice the amount of actual class time on advance preparation for each class to ensure that they have completed the assigned readings and attempted the problems scheduled for class discussion. Class sessions will be a combination of lecture and discussion, as well as group and individual problem-solving. Although some class time will be devoted to reviewing the material in the text, emphasis will be placed on discussing illustrative examples and providing hands-on experience in problem-solving and in developing analytical and critical thinking skills. This course is designed to achieve the following: Critical thinking and analytical reasoning. This course adds to a student's ability to effectively think and reason through quantitative and qualitative problems. Critical thinking is demonstrated by one's ability to examine issues in a probing and challenging manner, and to successfully apply a particular analysis or accounting tool to a different, but related problem area. For example, after learning how to value inventory using LIFO and FIFO, a student should be able to determine the impact on the financial statements when prices fluctuate, and further critically evaluate managements incentives to choose a specific accounting method. Effective communication. Many business executives emphasize that one of the most important skills a student should develop is effective communication. Students in this course will have an opportunity to work on their oral communication skills directly through class discussions and teamwork activities. In addition, you will have an opportunity to develop written communication skills in the Financial Reporting Project (discussed later). Interpersonal and team learning skills. The class will be structured such that there will be an opportunity to work together on class assignments. In addition, students will be working in teams throughout the quarter to prepare for their financial reporting term project. An important aspect of the course is not only to develop the ability to think and work independently, but also to engage in skills that develop teamwork and team learning. Importance of Professionalism, Integrity, and Ethics: Recent events relating to corporate malfeasance and financial frauds have reminded us about the importance of professionalism, 3

integrity, and ethical behavior in the business world. Class discussions, exercises, cases, and the financial reporting project will be utilized to help understand and appreciate the importance of professional and ethical behavior in the business world in general, and in financial reporting in particular. Social, cultural, and global perspectives: The social and political aspects that influence the accounting standard setting process in the international and domestic environment will be discussed in this course. In addition, the impact of international and cultural differences on the generation and use of accounting information will be discussed. Across disciplines: Accounting information and analysis is gathered and conducted to enable investors, shareholders, and managers make the most informed business decisions. These people work in banks, investment firms, regulatory agencies, etc. in areas such as finance, auditing, international business, etc. Throughout the course, a user-perspective will be emphasized to provide an appreciation of the use of accounting information by various stakeholders. Between theory and application: In this course, class discussion, assignments, and projects will help students to bridge the theory/practice divide. In order to succeed in business, it is important not only to understand the theoretical underpinning of accounting and financial concepts and theory, but also to have the ability to apply them in practice situations, such as in your coop assignment. In order to further emphasize the integration of practice and theory, whenever feasible, a professional from the real-world will be invited to speak with the class and will help serve as an effective role-model for the students. Integration of Technology: The Financial Reporting Project and other homework assignments will require the use of technology in completing the assignments. For example, the Financial Reporting Project requires/encourages students to access such resources as the EDGAR database of the Securities & Exchange Commission, PWC Edgarscan, electronic news resources, among others. The Three Ps: Preparation, Presence, Participation You are expected to be prepared for each class. Specific assignments should be reviewed and required homework must be completed. Your attendance and active participation are critical to your learning experience and have a direct effect on your course average. These points are subjectively determined by the instructor. Getting Help Teaching assistants (TAs) will hold office hours regularly during the semester in 439 Dodge Hall. The hours and location will be posted on the blackboard and announced in class. When seeking help from the TAs, students should read the relevant text material, and independently develop specific questions. TAs are not expected to solve homework assignments or to provide repeat lecturers of classes that have been missed, but rather to help with specific unclear issues.

Academic Honesty Please note the following policy of the University: Northeastern University is committed to the principles of intellectual honesty and integrity. All members of the Northeastern community are expected to maintain complete honesty in all academic work, presenting only that which is their own work in quizzes, tests and graded assignments. If you have any questions regarding proper attribution of the work of others, contact your professor prior to submitting the work for evaluation. Students with Disabilities If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact me and the Disability Resources Center, 20 Dodge Hall, 617-3732675/617-373-2730 (TTY) as early as possible in the term. DRC will verify your disability and determine reasonable accommodations for this course.

Grading Percent 7 10 18 10 30 25 100

Attendance/participation/Learn Smart CONNECT (homework) assignments Quizzes (4) Group Financial Project Interim exams (2) Final exam Total

Final Course Grades The overall grade in this class will be determined by the following chart. Grades are not typically rounded up. Earned Credit Grade A
94-100

A90-93

B+
87-89

B
84-86

B80-83

C+
77-79

C
74-76

C70-73

D+
67-69

D
64-66

D60-63

F
59 and below

Learn Smart Students are expected to use the Learn Smart modules to help prepare for quizzes and exams. Your progress will be monitored and factored into the final course grade.

Quizzes and Exams There will be four quizzes and two (2) interim exams, in addition to a comprehensive final exam. Your lowest quiz grade will be dropped. If a quiz is missed for any reason, that is the one that will be dropped. Missed homework assignments and exams cannot be made up, unless with the prior permission of the professor. Excuses will be granted only for University recognized reasons. No notes or cellphones are allowed to be used during any quizzes or exams. No graphing or scientific calculators are allowed during quizzes and exams. You are responsible for bringing a simple function calculator to use for quizzes and exams. Important: Final Exam Week begins Friday 4/19 and continues through 4/26. It is quite common for the final exam for this course to be scheduled near the end of finals week. Do not make travel plans until your final exam schedule has been announced by the Registrars office. This usually happens around the middle of the semester and is available by accessing myneu account. Homework (CONNECT) and Due Dates The nature of the course is such that each topic builds on previous material so that if you do not master one chapter or topic you may continue to have trouble throughout the course. Attempting to complete several chapters assignments right before an exam is detrimental to your learning and is strongly discouraged. Your homework assignments should be completed online through the CONNECT link set up in Blackboard for you. Your assignments will be graded by CONNECT based on correctness. All assignments should be submitted by the due date specified below in order to receive a grade. Please note that all problems in an assignment must be completed before submitting for a grade. You may work individual exercises within an assignment block on a piecemeal basis. Be sure to save your work and submit the entire assignment before the deadline after all exercises and problems are completed. You are allowed two attempts for each assignment and may check your work along the way. All homework problems can be found both on CONNECT and at the end of the related chapter in the textbook, although several of the exercises and problems are algorithmic. Should you have any trouble submitting an assignment online, please contact me or the TA before the assignment is due for assistance. Homework will not be accepted late. Group Work This project involves an in-depth analysis of a publicly traded company, and a comparison to its peers in the industry. The project should be completed in groups of three or four participants. Students will be assigned to groups by the second week of classes.

Schedule for CONNECT Assignments and Due Dates Please note: There is no penalty for completing assignments ahead of schedule. Students are encouraged to do so. All assignments will be automatically graded on the due date, whether completed in full or not.
Connect Assignments 1 2 3 4 Homework Assignments E1-3, E1-4, E1-6, E1-11, E1-12 E2-8, E2-9, E 2-11, P2-1, P2-3 E3-3, E3-4 E3-9, E-3-13, E3-14, P3-2 M4-4, M4-5, M4-6, M4-7 E4-6, E4-8, P4-3, P4-7 E5-6, P5-5, P5-6 E6-3, E6-6 E6-11, E6-13, E6-18, E6-20, E6-23, E7-6, E7-9 E7-10, E7-14, E8-3, E8-8, P8-3 E8-14, E8-17, P8-4, E9-1, P9-1, P9-7, E9-15, E9-21 E9-24, E9-25, P9-12 E10-5, E10-8, E10-9, E10-11, E10-16, E10-17, P10-10 E11-9, E11-15, E11-24, E11-18, P11-9 E13-1, E13-6, E13-14, P13-2 Sunday Due Date 11:59 pm 1/13 1/20 1/27 2/3

5 6 7 8 9*

2/10 2/17 2/24 3/3 3/17

10* 11 12 13

3/24 3/31 4/7 4/14

. * Connect has strict number rounding rules, use the present value/future value tables provided in the textbook or by the link in CONNECT when working on HW9 and HW10. 7

Schedule of Class and CONNECT Due Dates Spring, 2013 Session 1 Date Mon 1-7 Wed 1-9 Topic Introduction to Financial Accounting Elements of the Financial Statements and the Relationship between the Statements GAAP, IFRS, and the Role of Independent Auditors Read Chapter 1 pages 3-17 Work CONNECT assignments E1-3, E1-4, E1-6 Read Chapter 1 pages 18-24 Work CONNECT assignments E1-11, E1-12 Work LearnSmart Module for Chapter 1 (30 minute minimum) Reading and Homework Assignment Additional Assignments Purchase textbook Register for CONNECT

Thurs 1-10

Sun 1-13 4 Mon 1-14 Objectives of Financial Reporting; Elements of the Balance Sheet; Accounting Concepts and Assumptions; Transaction Analysis; Debits and Credits The Accounting Cycle; Classified Balance Sheet Current Ratio Read Chapter 2 pages 43-65

CONNECT ASSIGNMENT 1 DUE Form Groups in Class for Financial Reporting Project

Wed 1-16

Read Chapter 2 pages 66-77 Work CONNECT assignments E2-8, E 2-9, E2-11 Work CONNECT assignments P2-1, P2-3

Work LearnSmart Module for Chapter 2 (30 minute minimum)

Thurs 1-17 Sun 1-20

CONNECT ASSIGNMENT 2 DUE

Mon 1-21 Wed 1-23

Martin Luther King Jrs Birthday Holiday, No Class Quiz #1 Chapters 1-2 Elements of the Income Statement and Revenue Recognition Matching Principle; Expanded Transaction Analysis Read Chapter 3 pages 111-124 Study for Quiz

Thurs 1-24

Read Chapter 3 pages 125-134 Work CONNECT assignments E3-3, E3-4 CONNECT ASSIGNMENT 3 DUE

Sun 1-27 9 Mon 1-28 Asset Turnover Ratio Work CONNECT assignments E3-9, E3-13, E3-14, P3-2 Read Chapter 4 pages 163-176 Work CONNECT assignments M4-4, M4-5 Work CONNECT assignments M4-6, M4-7

Work LearnSmart Module for Chapter 3 (30 minute minimum) Work on Group Financial Project

10

Wed 1-30

Purpose of Adjusting Entries; Deferred Revenues and Expenses Adjusting Entries; Accrued Revenues and Expenses including Depreciation

11

Thurs 1-31

Sun 2-3 12 Mon 2-4 Adjusted Trial Balance; Effect of Error on Financial Statements

CONNECT ASSIGNMENT 4 DUE Read Chapter 4 Work LearnSmart Module pages 177-194 for Chapter 4 Work CONNECT (30 minute minimum) assignments E4-6, E4-8, P4-3, P4-7 Read Chapter 5 pages 228-240 Study for Quiz Work on Group Financial Project

13

Wed 2-6

Quiz #2 Chapters 3-4 Information found in Annual Reports and SEC Filings

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Thurs 2-7

Classified Balance Sheet Read Chapter 5 and Multistep Income pages 241-257 Statement; Return on Work CONNECT Assets assignments E5-6, P5-5, P5-6 CONNECT ASSIGNMENT 5 DUE Review for Exam #1 Review Chapters 1-5 Work LearnSmart Module for Chapter 5 (30 minute minimum) Study for Exam Read Chapter 6 pages 278-295 (mid) and page 304 Work CONNECT assignments E6-3, E6-6 CONNECT ASSIGNMENT 6 DUE Presidents Day, No Class Estimating Bad Debt Expense using Aging Method; Write offs; Bank Reconciliation Read Chapter 6 pages 295-306 Work CONNECT assignments E6-11, E6-13, E 6-18, E6-20, E6-23 Read Chapter 7 pages 330-345 Work CONNECT assignments E7-6, E7-9 CONNECT ASSIGNMENT 7 DUE Work LearnSmart Module for Chapter 6 (30 minute minimum)

Sun 2-10 15 Mon 2-11 Wed 2-13 Thurs 2-14

16 17

Exam #1 Chapters 1-5 Accounting for Net Sales; Gross Profit Percentage; Estimating Bad Debt Expense using Percent of Credit Sales

Sun 2-17 Mon 2-18 18 Wed 2-20

19

Thurs 2-21

Costs included in Inventory; Four Different Inventory Costing Methods

Sun 2-24

10

20

Mon 2-25

Comparing Alternative Methods of Inventory Valuation; Inventory Turnover Ratio Determining Cost of Fixed Assets; Fixed Asset Turnover Ratio

Read Chapter 7 pages 347-357 and 361-362 Work CONNECT assignments E7-10, E7-14 Read Chapter 8 pages 386-396

Work LearnSmart Module for Chapter 7 (30 minute minimum)

21

Wed 2-27

Study for Quiz Work on Group Financial Project

22

Thurs 2-28

Quiz #3 Various Depreciation Methods; MACRS

Read Chapter 8 pages 397-407 Work CONNECT assignments E8-3, E8-8, P8-3 CONNECT ASSIGNMENT 8 DUE

Sun 3-3 Spring Break March 3 10

23

Mon 3-11

Disposal of Property Plant and Equipment; Accounting for Intangible Assets Current and Contingent Liabilities; Quick Ratio; Accounts Payable Ratio

Read Chapter 8 pages 408-417 and 420-422 Work CONNECT assignments E8-14, E8-17, P8-4 Read Chapter 9 pages 454-467 Work CONNECT assignments E9-1, P9-1, P9-7 Read Chapter 9 pages 469-478 Work CONNECT assignments E9-15, E9-21

Work LearnSmart Module for Chapter 8 (30 minute minimum)

24

Wed 3-13

Work on Group Financial Project

25

Thurs 3-14

Long-term Liabilities; Present Value Concepts

Sun 3-17

CONNECT ASSIGNMENT 9 DUE

11

26

Mon 3-18

Present and Future Value Applications

Read Chapter 9 Supplement C pages 481-484 Work CONNECT Assignments E9-24, E9-25, P9-12

Financial Reporting Project Due: Part 1 Note to Students: Although the CONNECT Assignments are not due until Sunday, you should work them early this week to prepare for the exam. Work LearnSmart Module for Chapter 9 (30 minute minimum) Study for Exam CONNECT ASSIGNMENT 10 DUE

27

Wed 3-20 Thurs 3-21 Sun 3-24

Review for Exam #2

Review Chapters 6-9

28

Exam #2 Chapters 6-9

29

Mon 3-25

Characteristics of Bonds, Bonds Issuance Calculations, Times Interest Earned Ratio Bonds Issued at a Discount , Straight Line vs. Effective Amortization

Read Chapter 10 pages 504-514

30

Wed 3-27

Read Chapter 10 pages 515-519 Work CONNECT assignments E10-5, E10-8, E10-9, E10-11 Read Chapter 10 pages 519-526 Work CONNECT assignments E10-16, E10-17, P10-10 Work CONNECT assignment E10-16, P10-10 Work LearnSmart Module for Chapter 10 (30 minute minimum) CONNECT ASSIGNMENT 11 DUE

31

Thurs 3-28

Bonds Issued at a Premium, Straight Line vs. Effective Amortization Early Retirement of Debt

Sun 3-31 32 Mon 4-1 Corporate Structure, Earnings per Share, Stock Issuance Entries Read Chapter 11 pages 550- 558 (mid)

Work on Group Financial Project Part 2

12

33

Wed 4-3

Accounting for Treasury Stock, Cash and Stock Dividends

Read Chapter 11 pages 558-564 (mid) Work CONNECT assignments E11-9, E11-15, E11-24 Read Chapter 11 pages 565-569 Work CONNECT assignments E11-18, P11-9 Work LearnSmart Module for Chapter 11 (30 minute minimum)

34

Thurs 4-4

Preferred Stock Characteristics and Cumulative Dividends

Sun 4-7 35 36 Mon 4-8 Wed 4-10 Quiz #4 Sections of Cash Flow Statement Indirect Method of Operating Cash Flows Read Chapter 13 pages 636-645 Read Chapter 13 pages 645-652 Work CONNECT assignments E13-1, E13-6

CONNECT ASSIGNMENT 12 DUE Study for Quiz Work on Group Financial Project Part 2

37

Thurs 4-11

Quality of Income Ratio, Read Chapter 13 Investing and Financing pages 652-659 and Cash Flows 667-668 Work CONNECT assignments E13-14, P13-2

Work on Group Financial Project Part 2

Sun 4-14 Mon 4-15 38 Wed 4-17 Patriots Day No Class Scheduled Complete Statement of Cash Flow Bring laptops to class for TRACE Evaluations

CONNECT ASSIGNMENT 13 DUE

Work CONNECT assignment P13-2 Work LearnSmart Module for Chapter 13 (30 minute minimum) Financial Reporting Project Due: Part 2

13