FIN1030 Accounting Cycle 2

Introductory · 1 credit · BIT - Business, Admin, Finance and IT

Description: Students complete the accounting cycle for a service business, preparing financial statements and closing accounts. They also will explore other factors of a business, including budgets.
Prerequisite: FIN1020: Accounting Cycle 1
Parameters: Access to appropriate computer equipment, a computerized spreadsheet or financial software, the Internet and support materials.
Supporting courses: INF1060: Spreadsheet 1 or INF2080: Spreadsheet 2

Outcomes The student will:

1 identify and apply the steps in the accounting cycle, from the worksheet to the post-closing trial balance, for a service business
- 1.1 record all ledger accounts in the trial balance section of the worksheet
- 1.2 classify and record ledger account balances in the appropriate section of the worksheet and calculate the net income or net loss
- 1.3 prepare an income statement, a statement of changes in owner’s equity and a balance sheet from the information in a completed worksheet
- 1.4 record closing entries in a journal
- 1.5 post the closing entries to the appropriate accounts
- 1.6 outline the purpose of a post-closing trial balance
- 1.7 prepare a post-closing trial balance from the general ledger
2 recognize the need for preparing budgets
- 2.1 describe the need for preparing specific budgets as a planning tool
- 2.2 prepare a simple budget for a small business
- 2.3 compare actual revenues and expenditures with budgeted amounts for the purpose of decision making
3 demonstrate basic competencies
- 3.1 demonstrate fundamental skills to:
  - 3.1.1 communicate
  - 3.1.2 manage information
  - 3.1.3 use numbers
  - 3.1.4 think and solve problems
- 3.2 demonstrate personal management skills to:
  - 3.2.1 demonstrate positive attitudes and behaviours
  - 3.2.2 be responsible
  - 3.2.3 be adaptable
  - 3.2.4 learn continuously
  - 3.2.5 work safely
- 3.3 demonstrate teamwork skills to:
  - 3.3.1 work with others
  - 3.3.2 participate in projects and tasks
4 make personal connections to the cluster content and processes to inform possible pathway choices
- 4.1 complete/update a personal inventory; e.g., interests, values, beliefs, resources, prior learning and experiences
- 4.2 create a connection between a personal inventory and occupational choices