| FIRST YEAR ACCOUNTING JOINT COMPETENCIES | EALRs |

FIRST YEAR ACCOUNTING JOINT COMPETENCIES

Read, write, define, spell, and use accounting terminology appropriately.

Describe the purpose and users of the Income Statement, Statement of Owner’s Equity and Balance Sheet

Describe in a general sense, the relationship between management & accountants in making decisions.

Identify careers in accounting.

Describe the Fundamental Accounting Equation
Define the terms: Assets, Liabilities, Owner’s Equity
Classify accounts as Assets, Liabilities, Owner’s Equity

Demonstrate the effects of transactions on the accounting equation.

Read, analyze and interpret source documents.

Prepare a chart of accounts using proper numerical sequencing.

Use T accounts to analyze transactions.

Analyze and record transactions in
General Journal
Sales Journal
Purchases Journal
Cash Receipts Journal
Cash Disbursements Journal

Post Entries to the general ledger from
General Journal
Sales Journal
Purchases Journal
Cash Receipts Journal
Cash Disbursements Journal
Calculate account balance in the General Ledger
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Demonstrate the proper line-through correction technique.

Demonstrate using a systematic process to identify errors if debits and credits are not equal in the
Individual Journal Entries
Journals
Trial Balance
Financial Statements

Prepare a trial balance directly from the general ledger.

Define the purpose of adjusting entries.

Define the purpose of recording depreciation of assets.

Calculate depreciation expense using the straight-line method.

Calculate the four basic end-of-period adjustments for the worksheet (prepaid expenses, inventory, wages, depreciation).

Prepare a ten-column worksheet, verifying mathematical accuracy.

Prepare an Income Statement of a service business from the worksheet.

Prepare the Statement of Owner’s Equity of a sole proprietorship from the worksheet.
Prepare the Statement of Partner’s Equity of a Partnership from the worksheet.

Prepare a Balance Sheet
 Of a sole proprietor from the worksheet.
Of a partnership from the worksheet.
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Analyze the effect(s) of a variety of errors on the financial statements
Income Statement
Balance Sheet
Statement of Changes in Owner’s Equity

Record and post the single journal entry to correct an error.

Define the purpose of closing entries.

Journalize the closing entries.
Post the closing entries.

Prepare a post-closing trial balance.

Define the purpose of reversing journal entries.
Analyze and identify which adjusting journal entries should be reversed.
Journalize the reversing entry.

Define the purpose of the subsidiary ledger.

Define the relationship between a subsidiary ledger and its controlling account.

Post to a subsidiary ledger.

Prepare a schedule of accounts receivable and a schedule of accounts payable
Verify the agreement of the schedule’s totals to the controlling account balance.

Calculate
Sales tax on merchandise purchases or sales.
Discounts on merchandise purchase or sales.
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Define the purpose of a Bank Reconciliation
Prepare a Bank Reconciliation.
Prepare the necessary journal entries from a Bank Reconciliation.

Prepare journal entries to establish a petty cash fund
Prepare journal entries to replenish a petty cash fund.

Define a merchandising type of business
Identify Normal Balances of merchandising types of accounts.
Prepare adjusting entries for Merchandise Inventory.

Prepare an Income Statement of a merchandising business from the worksheet. (NOTE: The Income Statement of a sole proprietorship, partnership, and corporation do not differ except for the Income Statement Expense section(s).)

Prepare a Classified Balance Sheet from a trial balance.

Contrast the difference between an employer-employee relationship versus an independent contractor.

Calculate gross earnings, employee deductions for Social Security, Medicare Taxes, Federal Income Taxes, labor and Industries, and garnishments.

Prepare an individual earnings record and payroll register.

Prepare the journal entry to record the employee gross wages, deductions, and net wages.

Define the obligation of the employer for payroll taxes.

Calculate employer tax liability for Social Security and Medicare taxes, Federal and State Unemployment taxes, and Worker’s Compensation.
Prepare the journal entry to record the employer’s tax expense.

Prepare Form 941, showing the tax liability for Social Security and Medicare taxes and Federal Income taxes.

Identify the impact of cash versus accrual basis accounting on journal entries. On Financial Statements. On Taxes

Demonstrate the ability to use the computer to maintain accounting records and safeguard data
Enter Accounts
Classify Accounted. Enter Journal Entries. Print Financial Statements. Identify the full cycle of accounting “hidden” within a computerized accounting package.
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EALRS

1. The student develops the skills to create and present accurate and effective communication (oral and written) tailored to the specific purpose and needs of the audience.

To meet this standard, the student will:

1.1 Read, write, define, understand and use accounting terminology.
1.2 Prepare a Chart of Accounts.
1.3 Explain how transactions affect owners equity.
1.4 Demonstrate the ability to use e-mail effectively and appropriately.

2. The student acquires the knowledge and skills necessary to determine the correct mathematical process to use for various problem situations and to use formulas when appropriate.

To meet this standard, the student will:

2.1 Journalize transactions, post to general ledgers, record adjusting and closing entries.
2.2 Use cash control systems.
2.3 Prepare and complete a Worksheets, Financial Statements, Trial Balances, Balance Sheets, and Income Statements.
2.4 Journalize purchases/cash payments, and sales/cash receipts.
2.5 Post to general and subsidiary ledgers.
2.6 Prepare payroll records, including taxes and reports.

3. The student applies basic business knowledge and skills to reason and to solve problems.

To meet this standard, the student will:

3.1 Complete a simulated accounting project for a service business organized as a proprietorship, as well as an accounting cycle for a partnership, including journalizing and posting transactions.
3.2 Analyze transactions into debit and credit parts
3.3 Demonstrate the ability to "troubleshoot" typical computer and printer problems.

4. The student understands how business connects to other subject areas, as well as future career/educational opportunities.

To meet this standard, the student will:

4.1 Listen to speakers in business related careers.
4.2 Identify career/educational opportunities through advertisements, electronic sources, and other forms of communication.
4.3 Demonstrate an ability to use the Internet as a research tool in a highly efficient manner.
4.4 Demonstrate leadership skills through participation in a student leadership organization (i.e., FBLA) and school/community activities.
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