San Francisco State University

College of Business
Intermediate Financial Accounting
Accounting 302
Spring 2011 (MW 11:10am-12:25, 12:35-13:50pm)

Instructor:

Professor Scott I. Jerris Office: Science 309

Phone: 338-6713,office Hours: MW 9:10-11:10am

E-mail: [email protected]

Prerequisites:

A grade Of C- or better in Accounting 301 (Intermediate I), including a professional attitude

and a strong work ethic.

Course Objectives and Outcomes Assessment:

Accounting 302 is the second of two courses in intermediate financial accounting. The
primary emphasis of the course is directed toward (a) the basic concepts and theories
underlying contemporary external financial reporting and (b) alternative rules and
principles used to measure and analyze financial data with respect to corporate business
organizations. In general, this course is concerned with the production of financial
information for external users and the use of such financial information by users. The
topics to be covered include: accounting for long-term liabilities, leases, pensions and
OPEBs, accounting for owners' equity and the derivation of earnings per share numbers,
accounting for investments, and the statement of cash flows. In addition, ethics
considerations will be discussed wherever appropriate. Besides obtaining proficiency with
regard to understanding and applying generally accepted accounting principles, this course
is also concerned with improving your ability to think critically, as well as improving your
oral and written communication skills.

When you have completed this course, you should be able to demonstrate:

1. An understanding of the concepts and methods used in certain aspects of external

reporting by:

a. Preparing journal entries which properly reflect certain transactions and events
in accordance with Generally Accepted Accounting Principles (GAAP) and the FASB's
conceptual framework.

b. Preparing financial statements and disclosures in accordance with GAAP

and the FASB's conceptual framework.

2. An ability to effectively critique GAAP.

Required Materials:

1. Textbook: Intermediate Accounting (13th edition, Wiley)

by Kieso et al.
Highly Recommended Materials:

1. Book: CPA Exam Review – Financial Reporting (several publishers)

Grading Policy:

Your final grade will be based upon the following:

Possible Points

Exam I 135
Exam II 135
Written Case 40
Exam III 90
400

Examinations will include a combination of multiple-choice, matching, other objective-type

questions, problems and short essays similar to that of the style and level of difficulty of
the CPA examination. Examinations will not only test GAAP specifics, but will also test your
ability to synthesize complex ideas. I will solicit individuals to answer both "thought"
questions as well as the assignment material each class period.

The following grade scale will be used at the conclusion of the semester:

Grade Standard Points needed

A Excellent 360
B Good 320
C Fair 280
D Poor 240

That means if you have 360 total points you are guaranteed a grade of A, and if you have
320 points you are guaranteed a grade of B, etc... Plus and minus grades will also be
given.

Class Policy:

Classes will generally be conducted using a lecture and problem-

solving format. Homework problems and cases will be used to
focus discussion on important topics. Therefore students are
required to be prepared for the day's material, both reading
assignments and completed problems. At a minimum, you should
spend three hours preparing for each hour of class time. Class
participation is an integral part of the learning process in
this course. No make-ups will be given for any exam. Doing
additional problems besides the assigned minimum ones listed in
this outline are strongly recommended to achieve mastery of the
course material as well as problems from the recommended CPA
exam review. If you want to pass this class, you really must
practice extra problems! Solutions to extra problems are located
in HSS 102. No cell phones are allowed in class or on exam days
as they disrupt the continuity of the class discussions.

Disabilities:
If you have a disability and need assistance in any way, please let me know
as soon as possible. This course adheres to San Francisco States University’s
policy on accommodating disabled students. If you need assistance of any
kind, please do not hesitate to ask.
Honor System:
This course also complies with the University’s policy on cheating and
plagiarism. Please consult the student handbook for details of this policy.
Plagiarism will not be tolerated and will be closely monitored given the
number of written assignments that you will submit throughout the
semester. In short, if I catch you cheating, your career plans at the end of
the semester will differ from your career plans at the beginning of the
semester.

Exam Policy:
To avoid any ambiguity about the coverage of material on exams, eligible
exam material shall include:
1. Anything specifically covered in class discussions,
2. Anything stated in the textbook chapters.

Be prepared for all material above as the professor will not state in advance
nor answer questions about the specific material on the exam. Exam
format, as discussed on the syllabus, shall include: problems, essays,
multiple choice and other objective-type questions.

To prepare for exams:

1. Come prepared for class doing the assigned problems for that day in
advance (as I call on students in class),
2. Do extra problems in the text (all answers are available in the closed
reserve book room in the library).
3. For students wanting more practice on objective type questions,
acquire one of the CPA review manuals for financial reporting
(covers 301, 302 and 501),
4. Come to class every day to learn and to participate (if you are to
miss class let me know in advance and tell me why)!
Exam Checklist- Bring:
1. Yourself (exam is open brain, not open book)
2. Calculator
3. Extra blank paper – scantrons NOT needed
4. Stapler
5. Present Value Tables

Week Date Chapter Assignment Problem Assignment

Students MUST review Chapter 6: (Time Value of Money) – computation of present value,
imputation of interest rates (same as the IRR in FIN350) and computation of payments (see
recommended exercises below). Students who cannot perform these calculations will have
great difficulty passing the course.
0 before class E6-1,5,9,12,13,17, additional as needed for practice.

1 1/24 13. Current Liabilities

-characteristics P13-11.
-contingencies

1 1/24 14. Long-Term Liabilities

1 1/26 -bond issuance, P14-1,P14-7,
2 1/31 -bond amortization, E14-7,P14-9,
2 2/2 -extinguishment of debt, P14-11,E14-12,
-troubled debt. P14-9,E14-17,
E14-20,E14-21,
E14-23.

3 2/7 16. (Part I) Other Debt

3 2/9 -convertible debt, E16-8,E16-4.
-stock warrants with debt.

4 2/14 21. Accounting for Leases

4 2/16 -basics of leases, P21-4,P21-6,
-accounting by lessees. E21-1,E21-3.

5 2/21 21. Accounting for Leases

5 2/23 -accounting by lessors, E21-8,E21-9,
-bargain purchase options, P21-10.
-initial direct costs.

6 2/28 EXAM I (PART I)

6 3/2 EXAM I (PART II)

17. Accounting for Pension Plans

7 3/7 -types of pension plans,
7 3/9 -pension expense and liability, Special handout
8 3/14 -additional pension liabilities problems.
8 3/16 -OPEBs

9 3/21 15. Stockholders’ Equity

9 3/23 -issuance of common stock, E15-1,P15-1,
-treasury stock (cost). E15-7,
-features of preferred stock. E15-15,
-retained earnings, E15-13,
-dividends, E15-18.
-appropriations.
 10 4/4 16. (Part II) Earnings Per Share
10 4/6 -firm capital structures, Special handout
-stock options plans, problem,
-earnings per share numbers. P16-5,P16-8.

Research Case Due 4/6 (see below)

11 4/11 EXAM II (PART I)

11 4/13 EXAM II (PART II)

12 4/18 17. Investments E17-1,

12 4/20 -investments in debt securities, P17-1,P17-2,
-investments in equity securities, E17-7,E17-9,
-transfers between categories. E17-16.

13 4/25 23. Statement of Cash Flows

13 4/27 -statement classification P23-1,P23-2,
14 5/2 -statement preparation Handout Case
-statement analysis (Midland Oil)

14 5/4 EXAM III

15 5/9 Advsing and final comments on the course.

15 5/11 Financial Statement Analysis

Go to the MSN Money Central website for Cisco Systems:
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=CSCO
and calculate the important financial ratios found in the text for fiscal years 2009, 2008, and 2007.
Would you buy/hold/sell CSCO on those dates?

About the Research Case Due on 4/6:

Students are to prepare a research paper investigating earnings per share reporting. The
paper should be at a minimum, ten double-spaced pages (not including the bibliography or
citations). The paper will discuss (1) US GAAP with respect to earnings per share reporting
from the earliest pronouncements until the current day, and (2) relevant professional and
research journal responses regarding EPS reporting. The paper should (1) be professionally
appearing, (2) be well written with respect to proper grammar and usage, and (3) have
necessary citations with proper footnotes or endnotes. Resources such as the codification
of accounting standards on the FASB website, the internet, and the library should provide
you with the materials to undertake this assignment. In addition, writing and English usage
manuals should be consulted with respect to proper form of citations, bibliography,
footnotes and endnotes. The grade earned on this research assignment will be based on
all of the above requirements. I will discuss more specific information in class.

Students MUST (1) give me a hard copy of the paper in class on the due date and (2) send
me an electronic copy through iLearn (turnitin.com) by the time class begins on the due
date.

Writing is an essential skill for the profession that recruiters look for when hiring (students
tell me that recruiters ask for samples of your writing before a job offer is made). You
improve your writing but doing it. This case is aimed at improving this essential skill for
your future.