University of the Philippines Los Banos

College of Economis and Management

Department of Agribusiness Management and Entrepreneurship

MANAGEMENT 111
Principles of Accounting

COURSE PREREQUISITE: Consent of Instructor (COI)

COURSE DESCRIPTION: An introductory course in accounting as a tool and basis for

business decisions.

COURSE OBJECTIVES:

At the end of the semester, the students must be able to:

1. Understand accounting concepts and principles.

2. Prepare basic financial statements for service and merchandising business.
3. Understand basic accounting for partnership and corporations.

REFERENCE:

Any book on Fundamentals of Accounting (foreign or local authors)

Principle of Accounting 2nd edition (Weygandt etal)

COURSE CONTENT:

I. ACCOUNTING CONCEPTS
A. Accounting: The Language of Business
1. Definition and importance of accounting
2. Business organizations and operations
3. Users and uses of accounting information
B. Brief History of Accounting
C. Generally Accepted Accounting Principles (GAAP)
D. Basic Financial Statements
1. Balance sheet or Statement of Financial Position
2. Income Statement or Profit or Loss Statement
3. Statement of Owner’s Equity

II. ACCOUNTING PROCESS & PROCEDURES

A. Elements of Financial Statements
B. The Accounting Equation
C. The Accounting Cycle:
1. Rules on debits and credits
2. Chart of accounts
3. Accounting cycle:
a. Analyzing of business transactions
b. Journalizing
 c. Posting
d. Trial Balance
e. Adjusting entries are assembled
f. Worksheet
g. Preparations of Financial Statements
h. Adjusting entries are journalized and posted
i. Closing entries
j. Post closing Trial Balance
k. Reversing entries

1st long exam

III. ACCOUNTING FOR MERCHANDISING CONCERN

A. Accounting for Purchases and Sale of Merchandise
B. Inventory Systems
1. Periodic inventory system
2. Perpetual Inventory system
C. Multiple-step Income Statement
D. Special Journals

2nd long exam

IV. PARTNERSHIP AND CORPORATION

A. Partnership Formation, Operation, Dissolution & Liquidation
B. Equity Section of Corporation
C. Accounting for Stocks and Dividend

V. CASH FLOW STATEMENT

A. Categories of Cash Flows
B. Preparation of Cash Flows Using Indirect Method

3rd long exam

GRADE STRUCTURE: GRADES EQUIVALENT:

3 long exams 45% 96-100 1.0

Assignments & Group Cases 10% 91-95 1.25
Class Participation/Graded Exercises 15% 86-90 1.50
Quizzes 15% 81-85 1.75
Attendance 5% 76-80 2.0
Project 10% 72-75 2.25
TOTAL 100% 68-71 2.5
64-67 2.75
60-63 3.0
57-59 4.0
0-56 5.0