Announcements  Student Evaluations… Open in my.ucf.edu – please provide feedback!  Due 4/21/16 Final Exam Review sessions - During normal class on 4/21/16 (I will go through study guide and Louis will do exam review). Accounting Research Survey – 3 points extra credit – available next week until Thursday April 21  SARC Tutoring Lab open through Friday 4/22/16. SARC Final Exam Study Session in the Student Union  Saturday, April 23 from 1:30 pm to 3:30 pm in Key West CD  Tuesday, April 26th from 11:30 am to 1:30 pm in Key West AB  Assignments – Due 4/24/16 Chapter 11 Homework (Connect) – unlimited attempts Participation questions for Chapter 11 (Webcourses) – 1 attempt SEC Annual Report Assignment (Webcourses) – 1 attempt. Please wait until we have started chapter 11 to work on this assignment.  Tutoring Lab hours - CBA Tutoring Lab Rm #355 open thru Monday, 4/25/16 only.  Learn Smart Extra Credit for Block 3 - Chapters 8 – 11 closes on April 27 th at 11:59 PM.  Final Exam 4/28 – 4/29

Class Objectives An understanding of the process of measuring and documenting individual business transactions to allow for the aggregation of information. An appreciation for how accounting principles and different accounting treatments guide the recording of transactions to ultimately provide consistency and ‘allowed’ differences in the financial reporting. The ability to complete the accounting cycle to construct financial statements that are useful for decision-making. Identify common fraud found in financial reporting, and internal controls that can reduce the likelihood of fraud. Analyze how transactions common to large corporations impact each of the financial statements, with specific emphasis on the income statement. Develop an understanding of the interrelationships within the financial statements.

Interested in Accounting??? – Next Steps Join a club/fraternity ALPFA - Association of Certified Fraud Examiners - National Association of Black Accountants - Student Accounting Society - Check Exchange Schedule for Accounting speakers FICPA student field day in Fall 2016 Figure out your end game….

Final Exam – Topics and Sample Questions Overall Study Tips  New accounts introduced – know definitions, financial statement, main category, and normal balance as well as how transactions are recorded into the account. For example, sale tax payable is an accrual for sales tax collected from customers and subsequently remitting to government agencies; balance sheet, current liability, and normal balance of credit.  a.How do these new accounts impact the accounting equation?  b.Block 3 definitions Flash Cards: definitionshttps://materia.ucf.edu/play/Ogmhc/block-3- definitions  How are account balances changed/calculated.  Cash Flow - understand how the cash flow statement is constructed, what information is required for each section, and how and increase or decrease in certain balance sheet accounts affects cash (as well dep., gains/losses).  Connect – Do not use as the initial study resource. Use Connect to verify that you understand only after you have been studying and are comfortable with the materials. a. Learn Smart b. Exam Practice Questions  Complete Self-study questions at the end of each chapter related to the topics listed below.

Chapter 8  Current Liabilities Accounts - know definitions, financial statement, main category, and normal balance as well as how transactions are recorded into the account.  Accounts Payable  Short-term Notes Payable & Interest calculation  Sales tax payable  Unearned revenue  Current portion long-term debt  Warranty expense and warranty payable  Contingent liability Final Exam Review

Chapter 9  Bonds Definitions for bond itself  Face value  Interest rate (stated or coupon)  Market interest rate Interpreting Bond Price quotes (not calculating a bond price) Record new bond issuance at par, premium, or discount. Interest payments for bonds issued at par. Effective Interest Rate Method for interest expense and interest payments (steps and formulas)  Bonds issued at a premium or discount - effective interest rate calculation using actual cash interest payments and the market rate of interest to amortize the premium or discount.  What is the carrying value for bonds and how does is change over time through the effective interest rate method? Bond retirement  Notes Payable – recording original transaction and accruing interest at year-end.  Operating and capital leases – just the basic understanding of what they are and which financial statement they primarily impact Final Exam Review (cont.)

Chapter 10 (Exclude – ratio analysis) Two sources of Stockholders equity  Paid in capital Common Stock Preferred Stock Additional Paid in capital  Earned Capital - Retained earnings Shareholder rights  Common Stock – 4 rights  Preferred Stock – 2 additional rights Shares authorized, issued, outstanding - definition and formulas Par value of stock – definition and how it is used to record stock issuance Classes of stock  Common  Preferred Features of preferred stock Issuing common stock and preferred (par & no par) Treasury stock – repurchase and reissuing Cash Dividends (only) – steps in issuing dividends Final Exam Review (cont.)

Chapter 11 (Exclude – direct method of cash flow preparation and ratio analysis)  Format for cash flow statements – Three sections and cash balance reconciliation at the end.  Be able to follow the steps to construct a cash flow statement for each of the three sections (you will not have to construct a statement, but you do need to understand the steps).  Source of information (which financial statement and area of financial statement) for each section in the cash flow – i.e. investing is based on long-term assets on balance sheet  Most important section of cash flow? Final Exam Review (cont.)

Exam 3 TA Review

CHAPTER 8

Obtain an $8,000, 6 month loan from the bank on November 1, % interest is payable at maturity. Record the adjusting entry on Dec. 31, 2015

Expenditures related to warranties on sales of $2,500,000 are expected to total 4% of sales in 2015 In 2016, $74,000 is paid related to the warranties from What is the remaining balance in the warranty liability account?

Sell $10,000 worth of goods on credit with a 6% sales tax

A company has $100,000,000 of long-term notes payable outstanding. A $10,000,000 principal payment on these notes payable will be made next year. What is the journal entry to record the reclassification of long-term debt?

CHAPTER 9

$100,000 worth of 10 year, 7% bonds were issued on January 1 st, 2014 for $93,205 when the market rate was 8%. Interest is paid semiannually Record the issuance of the bonds Record first payment of interest Record second payment of interest

Issue 100 bonds with a par value of $1,000 each and a stated interest rate of 7% paid semiannually for $107,439. The market rate on the date of issuance was 6% Record the issuance of the bonds Record first payment of interest Record second payment of interest

General Terms from Chapter 9  Bond Pricing: Premium/Discount  Price Interpretation: Ex. 99, 101  Capital Lease vs. Operating Lease

CHAPTER 10

Issue 10,000 shares of $0.01 par value stock for $50 each How would the journal entry change if this was no-par common stock?

Repurchase 100 shares of company stock at $30 each on March 1 st, 2014 Reissue 50 shares back on the open market at a price of $40 per share on May 15, 2014

Repurchase 1,000 shares of company stock for $10 each on June 1 st, 2014 Reissue 700 shares at a price of $8 each November 15, 2014

Company ABC has 700,000 shares authorized and 550,000 issued. The company has reacquired 50,000 shares as treasury stock. At the end of the year 2015, the company declares a dividend of $1 per share for all shareholders of record on January 10, 2016 to be paid on January 22, December 31, 2015 January 10, 2016 January 22, 2016

CHAPTER 11

Operating Cash Flows Formula Net Income + Depreciation expense + Losses on sale - Gains on sale - Increase in current assets + Decrease in current assets + Increase in current liabilities - Decrease in current liabilities Operating Cash Flows

Account TitleJan 1, 2013Dec 31, 2013Increase / (Decrease) Accounts Receivable100,000105, Inventory24,00022,000(2,000) Accounts Payable40,00042,0002,000 Net income for the period totals $100,000. Depreciation of $14,000 was taken. Total losses amounted to $4,000

Investing Activities – Purchase/Sale of long term assets or investments Financing Activities – Issue bonds/notes/stock. Repayment of bonds/note or DIVIDENDS PAID