Accounting I

PA Academic Standards for  Business, Computer and Information Technology:

• 15.1.5.A Explore various accounting careers.
• 15.1.8.A Identify knowledge, skills, and attitudes needed for careers in accounting.
• 15.1.12.A. Summarize professional designations, careers, and organizations within the field of accounting, including education and certification requirements.
• 15.1.12.B. Analyze the roles of policy-setting bodies in the accounting profession, e.g., American Institute of Certified Public Accountants (AICPA), Pennsylvania Institute of Certified Public Accountants (PICPA), Generally Accepted Accounting Principles (GAAP), and Securities and Exchange Commission (SEC).
• 15.1.8.C. Identify the parts of the accounting equation.
• 15.1.12.C. Analyze business transactions using T-accounts to determine their impact on a business.
• 15.1.8.D. Describe the components of the accounting cycle.
• 15.1.12.D. Analyze, journalize, and post transactions to general & subsidiary ledgers.

• Types of accounting careers.
• Skills needed for accounting.
• Role of a CPA in accounting.
• Accounting Equation.
• Transactions and their effect on the accounting equation.
• The purpose of the general journal.
• The purpose of source documents.

• Accounting offers diverse career paths, including public accounting, management accounting, government accounting, and internal auditing. Each role involves different responsibilities, from tax preparation to financial analysis and compliance.
• Accountants need strong analytical skills, attention to detail, organizational abilities, and proficiency in math and financial software. Communication and ethical judgment are also essential for interpreting data and making sound financial decisions.
• A Certified Public Accountant (CPA) is a licensed professional who has met education, experience, and examination requirements. CPAs are trusted for tasks like auditing, tax preparation, and financial consulting due to their expertise and ethical standards.
• The fundamental accounting equation is Assets = Liabilities + Owner’s Equity. It ensures that a company’s financial statements are balanced and helps track the financial health of a business.
• Every accounting transaction impacts at least two accounts and keeps the accounting equation balanced. These changes reflect a company’s financial position and guide decision-making.
• The general journal is used to record all financial transactions in chronological order. It serves as the first step in the accounting cycle and ensures a complete and accurate record of business activities.
• Source documents, such as receipts, invoices, and checks, provide the original evidence for accounting transactions. They support the accuracy of entries and are essential for auditing and financial reporting.

• Define the language of business. 
• Identify the forms of business organizations.
• Identify the organizations that influence accounting practices. 
• Examine career opportunities in accounting.
• Define and apply the basic accounting equation.
• List and define the parts of the basic accounting equation.
• Examine business transactions.
• List and apply the rules of debit and credit for assets, liabilities, owners' equity, revenue, expenses, and withdrawals.
• Analyze transactions and record in the general journal. 
• Use T-accounts to analyze transactions into debit and credit parts.
• Analyze the effects of transactions using the accounting equation.
• Analyze and journalize source documents using double-entry accounting.
• Operate a calculator, adding machine, and computer.

• What is the role of accounting in business?
• What is the role of the accountant in business?
   

• What is accounting?
• What is a CPA?
• Who are the organizations associated with accounting?
• What is the accounting equation, and how is it affected by transactions?
• What is a debit or credit in accounting language?
• What is a general journal?

• Century 21 Accounting, Mindtap software, YouTube, Schoology, computer
   

• Accounting system
• Financial statements
• Net worth statement
• Asset
• Liability
• Personal net worth
• Equity
• Ethics
• Business ethics
• Service business
• Proprietorship
• Business plan
• GAAP
• Equities
• Owner’s Equity
• Accounting equation
• Transaction
• Account
• Account title
• Account balance
• Capital account
• Creditor
• Revenue
• Sale on account
• Expense
• Withdrawals
• T account
• Debit
• Credit
• Normal balance
• Chart of accounts
• Accounts payable
• Accounts receivable
• Journal
• Journalizing
• Entry
• Double-entry accounting
• Source document
• Check
• Invoice
• Sales invoice
• Receipt
• memorandum

• Formative - theory and application
• Summative Assessments
   

PA Academic Standards for  Business, Computer and Information Technology:

• 15.1.12.D. Analyze, journalize, and post transactions to general & subsidiary ledgers.
• 15.1.12.P. Analyze and perform the reconciliation of accounts. 

National Standards for Business Education

• Explain the purpose of journals and ledgers and their relationship.
• Explain and analyze how business transactions impact the accounting equation.
• Describe the steps involved in opening and using a checking account.
• Describe and demonstrate the steps involved in the bank reconciliation process.
• Compare and contrast the various forms of endorsement.

• The role of a chart of accounts.
• How to create a general ledger.
• The general ledger - posting procedure and its use.
• How to manage a checking account for a business.
• How to reconcile a checking account.
• The purpose of proving cash.
• The process of using petty cash.

• The chart of accounts is a systematic listing of all account names and numbers used by a business. It organizes financial information and provides a framework for recording and classifying transactions.
• The general ledger is created by grouping all individual accounts from the chart of accounts. It provides a complete record of all financial transactions, organized by account, and is essential for preparing financial statements.
• Posting is the process of transferring information from the general journal to the appropriate accounts in the general ledger. This ensures that each account reflects up-to-date balances and supports accurate financial reporting.
• Managing a business checking account involves recording all deposits and withdrawals, tracking balances, and ensuring that transactions are authorized and properly documented to maintain financial control.
• Reconciling a checking account means comparing the business's records with the bank statement to ensure they match. This process helps identify errors, missing transactions, or unauthorized charges.
• Proving cash confirms that the cash balance in the accounting records matches the actual amount of cash available. It is a critical control step to ensure accuracy and detect discrepancies.
• Petty cash is a small fund used for minor business expenses. The process involves tracking withdrawals with receipts, replenishing the fund as needed, and recording transactions to maintain accountability and accurate financial records.

• Maintain financial records, reports, and files.
• Prepare a chart of accounts and assign account numbers.
• Post from the general journal to the general ledger.
• Survey automated accounting software, e.g., QuickBooks, Peachtree, Sage 50.
• Analyze a bank deposit slip.
• Prepare and review bank reconciliation, including all service charges and fees.
• Prepare a petty cash report.
• Analyze cash receipts and disbursements of cash.
• Analyze checks and the checkbook register.

• Why is posting an important step in the Accounting Equation?
• What is a general ledger and why is it important?
• How do you control cash for a business?
   

• Why do we prepare a chart of accounts?
• How does a chart of accounts help accountants? Business owners?
• How does the chart of accounts relate to the general ledger?
• Why is posting important?
• Why is cash proved?
• What is the purpose of correcting entries? 
• Why do we endorse checks?
• Why is it important for businesses to use restrictive endorsements?
• What is the purpose of a bank reconciliation?
• Why do businesses establish a petty cash fund?

• Century 21 Accounting, Mindtap software, YouTube, Schoology, computer
   

• Ledger
• General ledger
• Account number
• File maintenance 
• Opening an account
• Posting
• Proving cash
• Correcting entry
• Checking account
• Deposit slip
• Endorsement
• Blank endorsement
• Special endorsement
• Restrictive endorsement
• Posted check
• Voided check
• Bank statement
• Canceled check 
• Dishonored check
• Non-sufficient funds transfer
• Electronic funds
• Debit card
• Petty cash
• Petty cash slip
• Cash short
• Cash over

• Formative - theory and application
• Summative Assessments
   

PA Academic Standards for  Business, Computer and Information Technology:

• 15.1.12.Q. Prepare financial statements (including a Balance Sheet, Profit & Loss and Owner’s Equity) and understand their relevance. 
• 15.1.12.R. Explain the primary areas of analysis (trend analysis, profitability, liquidity, capital structure) and the information that can be obtained from each. 

National Business Standards

• Explain the need for adjusting entries and record adjusting entries.
• Identify permanent and temporary accounts in the closing process and prepare closing entries.
• Prepare the financial statements for the different types of business operations and ownership structures.
• Explain the relationship between the closing process, the financial statements, and the post-closing trial balance.

• The purpose of adjusting entries.
• The importance and usefulness of a Balance Sheet, Income Statement, and Owner's Equity Statement.
• Closing entries are essential in the accounting cycle.
• Post Closing Trial Balances’ imperative use for the next accounting cycle.

• Adjusting entries ensure that revenues and expenses are recorded in the correct accounting period. They align the financial records with the accrual basis of accounting, providing accurate and up-to-date financial information.
• These financial statements are vital tools for evaluating a business’s financial health. The Balance Sheet shows assets, liabilities, and equity at a specific point in time; the Income Statement reports profitability over a period; and the Owner’s Equity Statement tracks changes in the owner's interest in the business.
• Closing entries transfer temporary account balances (revenues, expenses, and drawings) to permanent accounts, resetting them for the next period. This step ensures accurate tracking of financial performance over each accounting cycle.
• The post-closing trial balance confirms that all temporary accounts have been closed and that debits equal credits in permanent accounts. It provides a clean starting point for the new accounting cycle, ensuring the ledger is balanced and ready for future transactions.

• Complete multi-column worksheet.
• Apply internal controls, auditing, and error-correcting techniques.
• Record and post adjusting and closing entries.
• Prepare financial statements, e.g., income statement, statement of equity, balance sheet, statement of cash flow.
• Identify factors affecting a business's profit.
• Verify financial statements against the worksheet.
• Prepare a post-closing trial balance from the general ledger.
• Apply generally accepted accounting principles throughout the accounting cycle.
• Create, format, and maintain spreadsheets.
• Use advanced features to make enhanced, user-friendly spreadsheets.
• Summarize data for analysis.
• Identify emerging trends in the 21st century and the resulting growth of forensic accounting.
• Explain the types of crimes often associated with businesses and organizations.

• How are financial statements created and used to analyze the health of a business?
• Why are adjusting and closing entries essential in the accounting cycle?

• Why do businesses use fiscal periods?
• Why are adjustments necessary?
• How are errors in a worksheet found and corrected?
• What is the purpose of the income statement?
• Why are component percentages used to analyze financial statements?
• What is the purpose of the balance sheet and the owner’s equity statement?
• Why are adjustments needed?
• Why are temporary capital accounts closed at the end of a fiscal period?
• What is the purpose of the Income Summary Account?
• Why do we prepare a post-closing trial balance?
   

• Century 21 Accounting, Mindtap software, YouTube, Schoology, computer
   

• Fiscal period
• Fiscal year
• Worksheet
• Trial balance
• Prepaid expense
• Accrual basis of accounting
• Cash basis of accounting
• Adjustments
• Balance sheet
• Income statement
• Net income
• Net loss
• Adjusting entries
• Financial accounting
• Managerial accounting 
• Statement of owner’s equity
• Financial ratio
• Ratio analysis
• Vertical analysis
• Return on sales (ROS)
• Permanent accounts
• Temporary accounts
• Closing entries
• Post-closing trial balance
• Accounting cycle
   

• Formative - theory and application
• Summative Assessments
• Simulation
   

PA Academic Standards for  Business, Computer and Information Technology:

• 15.1.12.F. Analyze and journalize transactions for short- and long-term assets. 
• 15.1.12.G. Analyze and journalize transactions involving short- and long-term liabilities. 
• 15.1.12.I. Differentiate between and journalize entries for issuance or repurchase of stock and the declaration and payment of dividends. 
• 15.1.12.K. Describe, calculate, and journalize the sales and cost of sales, including purchases, transportation costs, sales taxes, and trade discounts. 
• 15.1.12.D. Analyze, journalize, and post transactions to general & subsidiary ledgers. 
   

• The specific use of special accounting journals.
• Purchasing merchandise and its effect on the accounting equation.
• Selling merchandise and its effect on the accounting equation.
• The role of subsidiary ledgers in a merchandising business.
• The use of dividends in a corporation.
   

• Special journals—such as sales, purchases, cash receipts, and cash payments journals—are used to efficiently record frequent and similar types of transactions. They help streamline the accounting process and reduce errors in large-volume businesses.
• When a business purchases merchandise, inventory (an asset) increases while either cash (an asset) decreases or accounts payable (a liability) increases. This maintains balance in the accounting equation: Assets = Liabilities + Owner’s Equity.
• Selling merchandise increases both revenue and either cash or accounts receivable (assets), while also decreasing inventory (an asset) and increasing cost of goods sold (an expense), which reduces owner’s equity. Multiple parts of the equation are affected simultaneously.
• Subsidiary ledgers, such as accounts receivable and accounts payable ledgers, provide detailed information about individual customer or vendor accounts. They support the general ledger by organizing large amounts of transaction data for better accuracy and tracking.
• Dividends are distributions of a corporation’s earnings to shareholders. Declaring and paying dividends reduces retained earnings (owners’ equity) and cash (assets), reflecting the sharing of profits with investors.

• Analyze and record the purchase invoice and payment terms.
• Analyze and record sales invoices and payment terms.
• Analyze and record purchase returns and allowances using debit memos.
• Analyze and record sales returns and allowances using credit memos.
• Review a batch report or calculator tape.
• Compare shipping terms and documents.
• Analyze a memorandum.
• Post transactions from general and special journals to ledger accounts.
• Prepare schedules of accounts payable and accounts receivable.
• Calculate and record dividends for a corporation.

• What transactions are unique to a merchandising business as compared to a service business?
• What role do dividends play in a corporation?
   

• How do sales invoice details and payment terms affect accounts receivable and revenue recognition?
• How does recording a debit memo for a purchase return impact inventory and accounts payable?
• What effect do credit memos have on sales revenue, customer accounts, and inventory when returns are processed?
• When is a memorandum used in accounting, and how does it document internal adjustments or unique transactions?
• How can reviewing a batch report or calculator tape ensure transaction accuracy before posting to the ledger?
• Why is it essential to accurately post from journals to ledger accounts, and how does this step ensure reliable financial records?
• What are the policies and procedures for declaring and distributing dividends?
   

• Century 21 Accounting, Mindtap software, YouTube, Schoology, computer
   

• Merchandise
• Merchandising business
• Retail Merchandising business
• Wholesale Merchandising business
• Corporation
• Share of Stock
• Capital Stock
• Stockholder
• Articles of incorporation
• Charter
• Vendor
• Subsidiary ledger
• Accounts payable ledger
• Controlling account
• Inventory
• Merchandise inventory
• Perpetual inventory
• Periodic inventory
• physical inventory
• Cost of merchandise
• Requisition
• Purchase order
• Special journal
• Purchase on account
• Purchases journal
• Special amount column
• Purchase invoice
• Terms of sale
• Due date
• Cash payments
• List price
• Trade discount
• Net price
• Cash discount
• General amount column
• Discount period
• Purchases discount
• Contra account
• Credit limit
• Schedule of accounts payable
• Selling price
• Markup
• Accounts receivable ledger
• Sales tax
• Sales journal
• Cash sale
• Point of sale terminal
• Terminal summary
• Batch report
• Batching out
• Cash receipts journal
• Sales discount
• Schedule of accounts receivable

• Formative - theory and application
• Summative Assessments
   

PA Academic Standards for  Business, Computer and Information Technology:

• 15.1.12.M. Analyze and calculate gross pay and net pay, including regular and overtime wages, commission, and piece rate. 

National Business Standards

• Explain the employer’s responsibility in reporting payroll records through federal tax forms.
• Explain common methods of paying compensation (e.g., hourly, salary, commission, independent contractor) and the financial and tax implications of each.
• Calculate net pay and the employer’s payroll taxes.
• Prepare payroll reports.

• The difference between gross and net pay.
• The role payroll taxes play in our society.
• The payroll forms used by a business.
• The importance of a retirement account.

• Gross pay is the total amount an employee earns before any deductions, while net pay is the amount they take home after taxes and other withholdings. Understanding this difference helps employees interpret paychecks and manage personal finances.
• Payroll taxes fund essential government programs such as Social Security, Medicare, and unemployment insurance. These taxes support public services and ensure financial assistance for retirees, the unemployed, and those needing healthcare.
• Businesses use various payroll forms to ensure compliance and accurate recordkeeping. Common forms include W-4 (employee tax withholding), W-2 (year-end wage and tax summary), and Form 941 (employer’s quarterly tax return), all of which help report and remit payroll taxes correctly.
• Retirement accounts, such as 401(k)s and IRAs, are essential tools for long-term financial security. They help individuals save and invest money during their working years to support themselves after retirement. These accounts often offer tax advantages, such as tax-deferred growth or tax-free withdrawals, which encourage consistent saving and help maximize retirement income. Starting early and contributing regularly can significantly increase financial stability in retirement.

• Compile and record employee time, production and payroll data from time sheets and other records.
• Analyze and calculate gross pay and net pay, including regular and overtime wages, commission, and piece rate. 
• Prepare payroll records.
• Prepare payroll checks.
• Compare 401K, Roth IRA, and IRA.

• How does payroll processing impact the amount an employee earns and the taxes they pay?
• Why is it important to understand retirement savings options and government payroll requirements?

• How is gross pay calculated?
• How much money comes out of your paycheck for taxes?
• Why do you pay federal income, social security and medicare taxes?
• What payroll forms are required by the government to be filed?
• What's the difference between an IRA and a 401K?
   

• Century 21 Accounting, Mindtap software, YouTube, Schoology, computer
   

• Wage
• Salary
• Commission
• Total earnings
• Pay period
• Payroll
• Payroll clerk
• Time clock
• Payroll taxes
• Withholding allowance
• Payroll deduction
• Social security tax
• Medicare tax
• Accumulated earning
• Tax base
• Qualified retirement plan
• 401(K)
• Individual retirement account (IRA)
• Roth Individual Retirement Account (Roth IRA)
• Payroll register
• Net pay
• Employee earnings record
• Voucher check
• Direct deposit

• Formative - theory and application
• Summative Assessments