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FIN2020 Retail Accounting 1

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

Description
Students apply specialized accounting procedures associated with buying and selling goods in a retail system with a credit system and a partnership.
Prerequisite
FIN1030: Accounting Cycle 2
Parameters
Access to appropriate computer equipment, software, the Internet and supporting materials.

Outcomes The student will:

  • 1 explore accounting procedures associated with buying and selling merchandise

    • 1.1 differentiate between service and merchandising businesses

    • 1.2 compare the advantages with the disadvantages of using various journals

    • 1.3 describe the need for and recording of returns/allowances and sales taxes

    • 1.4 describe the relationship between the subsidiary ledgers and the controlling accounts

    • 1.5 describe the need for recording merchandise inventory

    • 1.6 introduce the concept "Cost of Goods Sold" and its relation to expenses; e.g., rent, wages, utilities

    • 1.7 describe the need for perpetual, periodic and year-end inventory calculations

  • 2 analyze transactions for a small retail business and prepare journals and ledgers allowing for accounts receivable and payable

    • 2.1 open accounts for a merchandising business

    • 2.2 analyze journal transactions specific to a merchandising business

    • 2.3 analyze and record business transactions in a journal(s)

    • 2.4 total and prove the journal(s)

    • 2.5 post from the journal(s) to the general and subsidiary ledgers

    • 2.6 prepare schedules of accounts for subsidiary ledgers

    • 2.7 prepare a trial balance for the general accounts

  • 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 identify possible life roles related to the skills and content of this cluster

    • 4.1 recognize and then analyze the opportunities and barriers in the immediate environment

    • 4.2 identify potential resources to minimize barriers and maximize opportunities

Program of Studies 2009. Source document, © Alberta Education.