DE LA SALLE UNIVERSITY

Accountancy Department
College of Business and Economics
COURSE SYLLABUS

COURSE CODE : ACTBAS1

COURSE TITLE : Introductory Accounting for Service Enterprise
PRE-REQUISITE : None
PRE-REQUISITE TO : ACTBAS2
TYPE OF COURSE : BASIC
FACULTY :
TERM/ TIME/ ROOM :

I. COURSE DESCRIPTION

This introductory course is designed to develop a basic understanding of the conceptual framework
underlying the measurement and communication of financial data for business decisions as well as
their relevance in the national context. This course deals with analyzing, recording and processing
business transactions commonly engaged by a sole proprietor of a service enterprise. The
fundamental concepts and principles essential to the measurement and communication of said
transactions are introduced and emphasized as the course progresses.

II. OBJECTIVES / VALUES

At the end of the course, the students should be able to do the following:
2.1 Cognitive (Knowledge)
2.1.1.Discuss the definition, nature, and scope of accounting.
2.1.2.Discuss the brief history of accounting.
2.1.3.Identify the basic principles, theories and concepts underlying the preparation of
financial statements for a sole proprietorship service enterprise.
2.1.4.Illustrate and give examples of each of the basic accounting principles, theories and
concepts.
2.1.5.Demonstrate acquired skills in performing the steps of the accounting cycle.
2.1.6.Calculate net pay, construct payroll sheet and journalize payroll transactions, including its
remittance to various government agencies.
2.1.7.Relate accounting to other fields of discipline.
2.1.8.Compare different forms of business organization, as to ownership and activity.
2.1.9.Analyze business transactions of a sole proprietorship service enterprise, including
transactions subject to VAT.
2.1.10.Measure the value and determine the journal entries concerning promissory notes.
2.1.11.Measure financial position of a sole proprietorship service enterprise.
2.1.12.Evaluate financial performance of a sole proprietorship service enterprise.
2.1.13.Measure changes in owner’s equity of a sole proprietorship service enterprise.
2.1.14.Assess the cash flow position of a sole proprietorship service enterprise.
2.1.15.Determine the errors in journal, ledger and trial balance.
2.1.16.Prepare correcting entries, year – end adjusting entries, closing entries and reversing
entries and explain their effects on financial statements.

2.2 Cognitive (Skills)

2.2.1.Apply accounting principles in the national and global context.
2.2.2.Analyze business cases based on ethical and current issues.
2.2.3.Prepare financial statements for a sole proprietorship service enterprise.

2.3 Affective / Value Aims

2.3.1.Demonstrate 5 C’s of the College of Business and Economics, namely: Critical thinking;
Commercial ethics; Computer literacy; Communication skills; and Community service.
2.3.2.Value professionalism and business ethics in all aspects of accounting work.
2.3.3.Develop the La Sallian values of faith, zeal for service, and communion in mission, in
learning basic skills in accounting.

III. COURSE OUTLINE

TOPICS Pages
Introduction / Classroom Policies / Groupings
I. INTRODUCTION TO ACCOUNTING
1.1 Case Overview – Financial Statements Workbook
1.2 Definition, nature, and scope of Accounting 2 - 9, 29 - 30
1.3 Brief History of Accounting Workbook and
1.3.1 Double-entry bookkeeping Lecture Notes
1.3.2 Harmonization of accounting reports
 1.3.3 International Accounting Standards 10-11, 553-555
TOPICS Pages
1.4 Relationship of Accounting to other fields of discipline 8-9, 29 – 30
1.5 Forms of business organization as to ownership and activity 11 - 12
1.6 Basic professional values and business ethics 9 - 10, and Lecture
notes

II. MEASURING AND REPORTING FINANCIAL POSITION

2.1 Nature and forms of Statement of Financial Position 22 - 27, 162 - 172
2.1.1 Report form
2.1.2 Account form
2.2 Related Accounting Concepts / Principles Lecture notes
2.2.1 Entity 11-12, 566
2.2.2 Monetary 11, 566
2.2.3 Cost 572-573
2.2.4 Objectivity or Reliability 557, Lecture notes
2.2.5 Going Concern 567
2.2.6 Materiality 556
2.2.7 Disclosure 571-572
2.3 Accounting Equation 12-13, 559-562
2.4 Transactional Analysis: assets, liabilities and owner’s equity 14-22
2.5 Preparation of Statement of Financial Position 162 – 169, and
Lecture Notes

III. MEASURING AND REPORTING FINANCIAL PERFORMANCE

3.1 Nature and forms of Income Statement 22 - 24
3.1.1 Natural form 215 - 216
3.1.2 Functional form 213 - 215
3.2 Related Accounting Concepts / Principles Lecture notes
3.2.1 Time Period 97-98, 100 and 566
3.2.2 Income Recognition 99-100, 568 - 570
3.2.3 Matching or Expense Recognition 99-100, 570-571
3.2.4 Accrual 98-99, 566
3.2.5 Consistency 557-558
3.2.6 Conservatism (Prudence) 557
3.2.7 Disclosure 571-572
3.3 Expanded accounting equation Lecture Notes
3.4 Transactional Analysis: revenues and expenses 49-54
3.5 Preparation of natural form Income Statement Lecture notes

IV. MEASURING AND REPORTING CHANGES IN EQUITY

4.1 Nature and form of Statement of Changes in Owner’s Equity 22-24
4.2 Transaction analysis: investments, withdrawals, net income (loss) Lecture Notes
4.3 Preparation of Statement of Changes in Owner’s Equity Lecture Notes

V. MEASURING AND REPORTING CASH FLOWS

5.1 Nature and forms of Statement of Cash Flows 792-799
5.1.1 Direct method 799-810
5.1.2 Indirect method 810-822
5.2 Components of Statement of Cash Flows 801-806
5.2.1 Operating activities
5.2.2 Investing activities
5.2.3 Financing activities
5.3 Preparation of Statement of Cash Flows – direct method Lecture notes

VI. THE ACCOUNTING CYCLE 159

6.1 Accounting cycle and business documents used Lecture notes
6.2 Analyzing business transactions in terms of debits and credits 48 – 54
6.3 Recording of business transactions in the journal 54 – 58, 61-68, and
6.3.1 Rendering of service, with Output VAT Lecture notes
6.3.2 Purchase of supplies and equipment, with Input VAT
6.3.3 Remittance of VAT
6.4 Accounting for payroll Lecture notes
6.4.1 Definition of payroll terms
6.4.2 Calculation of Net Pay or Take Home Pay
6.4.3 Payment with deductions (SSS, Philhealth, Pag-ibig,
withholding tax, advances to employees)
6.4.4 Subsequent remittance to government agencies
of amounts withheld from salaries and corresponding
 employer’s contribution
TOPIC Page
6.5 Accounting for promissory notes 426-431, 514-515
6.5.1Determination of maturity date, interest, maturity value, Lecture Notes
discounts and cash proceeds
6.5.2 Recording of transactions involving promissory notes
6.5.2.1 Receipt and issuance
6.5.2.2 Collection and payment at maturity
6.5.2.3 Dishonor by the maker
6.5.2.4 Renewal of note
6.5.2.5 Discounting of notes receivable with recourse
(Separate recording of interest expense and income)
6.5.2.5.1 Honor or dishonor of discounted note
6.5.2.6 Discounting of own note
6.5.2.6.1 Honor or dishonor of discounted own note
6.5.2.6.2 Amortization of discount on note payable
(straight – line method)
6.6 Posting to the general ledger (T – account form of ledger) 58 - 69, Lecture
notes
6.7 Preparing the trial balance
6.7.1 Use and limitations of a trial balance 69 - 71
6.7.2 Locating errors in the trial balance 71
6.7.3 Preparing correcting entries 159 – 161
6.7.4 Preparing corrected trial balance Lecture notes
6.8 Journalizing and posting year – end adjustments (accrual basis) 96-118, 151
6.8.1 Accrued expenses 110 - 113
6.8.2 Accrued income 109 – 110
6.8.3 Prepaid expenses 102-104, 119-121
6.8.4 Amortization of discount on notes payable (straight – line Lecture notes
method)
6.8.5 Unearned income 106-108, 121 – 122
6.8.6 Depreciation (straight – line method) 104– 106, 459-463
6.8.7 Doubtful accounts (allowance method) 415-423
6.8.7.1 Balance Sheet approach
6.8.7.1.1 Percentage of Accounts Receivable
6.8.7.1.2 Aging of Accounts Receivable
6.9 Preparing Financial statements 115-117
6.9.1 Income Statement
6.9.2 Statement of Comprehensive Income (Introduce and not Refer to Units
prepare) 2,3,4, and 5
6.9.3 Statement of Financial Position
6.9.4 Statement of Changes in Equity
6.9.5 Statement of Cash Flows
6.9.6 Notes to Financial Statements
6.11 Closing the books
6.11.1 Journalizing closing entries 152-154
6.11.2 Posting closing entries 154-155
6.11.3 Ruling nominal accounts and balancing real accounts 155
6.11.4 Preparing post-closing trial balance 155-158
6.12 Journalizing and posting reversing entries 158-159, 173-175

IV. PROPOSED SCHEDULE

TOPIC No. of Hours Week #

Introduction / Classroom Policies / Groupings 1 1
I. Introduction to Accounting 3 1,2
II. Measuring and reporting financial position 3 2,3
QUIZ #1 1 3
III. Measuring and reporting financial performance 3 3,4
IV. Measuring and reporting changes in owner’s 1 4
equity
QUIZ#2 1.5 5
V. Measuring and reporting cash flows 1 5
VI. The accounting cycle 16 5-13
QUIZ#3 (up to topic 6.4.4) 1.5 6
MIDTERM EXAM (up to Topic 6.5.2.6.2) 3 7
QUIZ #4 (from 6.5 up to Topic 6.7.4) 1 9
QUIZ #5 (up to Topic 6.8.5) 1.5 11
QUIZ #6 (up to Topic 6.9.6) 1.5 12
DEPARTMENTAL FINAL EXAM 3 14
 TOTAL 42
V. TEACHING METHODOLOGIES

5.1 Lecture and discussion

5.2 Drill and exercises
5.3 On-line learning
5.4 Case analysis

VI. COURSE REQUIREMENTS

6.1 Workbook
6.2 Assignment Folder
6.3 Cases and Unstructured Problems
6.4 Term-End Course Evaluation Form

VII. ASSESSMENT/EVALUATION

7.1 Grading System*

GRADE POINT DESCRIPTION PERCENTAGE
4.0 Excellent 97 – 100
3.5 Superior 94 – 96
3.0 Very Good 91 – 93
2.5 Good 87 – 90
2.0 Satisfactory 83 – 86
1.5 Fair 77 – 82
1.0 Pass 70 – 76
0.0 Fail Below 70
*Minimum grade requirement for BSA student is 2.0.

The percentage equivalent should be computed as follows:

BASIS 1ST HALF 2ND HALF
Average Quizzes* 40% 40%
Final Examination 40% 40%
Class Standing** 20% 20%
TOTAL 100% 100%

Final Grade Computation 40% 60%

*Minimum of 3 long quizzes before and after midterms.

**Class standing shall consist of the following: (1) 10% - prompt submission of assignments and
compilation; (2) 5% - Business case; (3) 5% - attendance, active participation in class and good
manners and right conduct.

7.2 Requirements for shiftees to BSA

7.2.1 Cumulative GPA of at least 3.0 at time of shifting;
7.2.2 Final grade of at least 2.0 in ACTBAS1;
7.2.3 A grade of at least 2.5 in English and Math subjects;
7.2.4 Pass an interview conducted by the Accountancy faculty; and
7.2.5 Pass the qualifying exam.

VIII. REQUIRED TEXT AND REFERENCE MATERIALS

8.1 Required text and materials

8.1.1Chalmers, K., Fyfe, M., Kieso, D., Kimmel, P., Mitrione, L., and Weygandt, J.(2007).
Principles of Financial Accounting. John Wiley and Sons Australia, Ltd.

8.1.2 Bernados, H., Velasco, E., Manalo, M., Aquino, N., and Manaligod, G.
Workbook in Introductory Accounting for Service Business (2008).

8.2 References
8.2.1 Kimwell, Mercedes (2009). Fundamentals of Accounting, 2nd edition. Manila: GIC
Enterprises & Co., Inc.

8.2.2 Valencia, E., and Roxas, G. (2009). Basic Accounting, 3rd edition. Baguio City: Valencia
Educational Supply.

8.2.3 Kieso, D., Kimmel, P. and Wegandt, J. (2008). Accounting Principles, 8th edition. New
Jersey: John Wiley and Sons, Inc.

8.2.4 Cabrera, M.E.B, Ledesma, E.F., and Lupisan M.C.Y. (2007). Fundamentals of Accounting
 Vol. 1. Manila: GIC Enterprises and Co., Inc.

8.2.5 Mamalateo, V. (2007). Value Added Tax. Metro Manila: V.C. Mamalateo Law Office.

8.3 Websites
8.3.1 http://www.wiley.com/college/weygandt
8.3.2 http://www.swcollege.com
8.3.3 http://www.sss.gov.ph
8.3.4 http://www.philhealth.gov.ph
8.3.5 http://www.bir.gov.ph

Basic Accounting One Committee

14 May 2009