Semester break

The final has come and gone. Handed in grades today. Let me know if you'd like your grade now. Hope to see everyone next semester in Acct. 202. Have a happy holidays and a safe new year.

Last class before final

Handed back projects and final quiz. Finished up homework for chapter 12 and went over what's on the final. Homework was rather difficult to get through as many of the questions had difficult names to pronounce. Everytime I tried to speak with a straight face everyone broke out laughing.

Still hobbling on my gimpy leg. At least I'm without crutches. Can't put any weight on my right leg but feel it's getting better. Hopefully I'll be skiing when the time comes.

Showed everyone linkedIn. Told everyone to add me if they wanted. (See last post).

One last test to go. 

Last lecture and quiz

Can't believe the semester is at an end. Always a fast semester as the classes are so enjoying and fun to teach. We finished chapter 12 lecture tonight and I assigned homework for Thursday.

I came hobbling in without crutches although it took me 10 mins to get from the parking lot. We discussed my trip to California purely for my enjoyment. Talked about partnerships and how to journalize starting and ending a partnership as well as admitting new partners at various entry prices. A show of hands says we will loose a couple of people for next semester.

QUIZ: I've been thinking about this last quiz I usually give. It's a summary quiz that lets you tell me what you have learned in the semester. Instead of you handing in a piece of paper telling me what you have learned and no one seeing the results but me. I'd like you to put your comments on this site. Put your answers in the comment to this blog entry. If you don't want to advertise your name you can put your initials instead of your name and I'll figure out who you are. Here's the quiz.

List for me your 5 top things you've learned, enjoyed, will remember, etc. about Accounting 201. Due by Tuesday December 16th.

Link to me if you want to stay connected: http://www.linkedin.com/in/pitcherda

Homework:

•P12-27A
•P12-28A
•P12-30A
•P12-36B
•P12-38B
•P12-39B

California Dreaming

Just got back from Los Angeles. Brought the whole family with me and had a good time in Santa Monica. Visited several clients around L.A. and got caught up with some old friends. Went to Disneyland with the family. Was on crutches the whole day. I didn't want to be pushed around in a wheel chair so got bruises in my arm pits instead. Got to the front of the line on most rides though so that was nice. My son liked the race cars but not space mountain. He's only 4 so was a little nervous on the fast rides.

Haven't started marking projects yet but hopefully tonight.

Started the last chapter in this course last Tuesday. Chapter 12 is on partnerships which leads well into the next course. We should get done the lecture next class.

I will post the final quiz after class tomorrow and you can fill it out here.

Project deadline

I'm heading to the great white north so will not be able to answer questions all weekend. I will be back Monday so you can IM me then if need be. I warned everyone I'd be leaving. Wish me luck in my basketball tournament for old guys.

In class we completed homework for chapter 10, took the 5th quiz of the year, then started chapter 11.

The home stretch is here. Hold on for a few more weeks as there are still a lot of grade busters coming. Project is 20%, 1 quiz is 3%, final test 20%. If you are happy with your grade keep going. If you are not happy with your grade there is still lots to do to significantly increase your outcome in the class.

Homework assigned:

•Read Chapter 11
•P11-25A
•P11-26A
•P11-29A
•P11-30A
•P11-32B
•P11-36B

DDB depreciation

As you see (click on the picture to see a better view) you only depreciate it down to the residual balance so you don't actually multiply the book value by the rate. Only take the difference in the 4th year. Hope you can sleep easier now that this mystery is explained.

Chapter 10

Had a good class. Finished off Depreciation, depletion and amortization. Big thing to remember is depreciation and depletion have an accumulated account. Amortization gets written off against the asset.

Started talking about buying companies and good will. Left it at the definition of good will. Made me start looking forward to next semester. Stocks, bonds, markets, analyzing companies, etc. Very fun stuff. Kind of gives you a good understanding of the economy in general with an accounting type view. Asked who was coming back next semester. Saw about half the hands go up. Normal for about half the class to drop off from first to second semester.

I said I'd put something on my blog but forgot what it was. If anyone remembers let me know. We will do homework next class and have a quiz on depreciation.

Answered project questions and reminded everyone that I'm gone Thanksgiving weekend so won't be able to answer anyones questions over the weekend. Still time to have me look over the project. Bring it to class on Tuesday even if you're not done and I'll look it over after class.

Anyone join Linkedin yet? Add me if you'd like to stay connected. http://www.linkedin.com/pub/6/a62/913

Make up blog

I realized last night I missed a blog for Tuesday. First time this semester. Kind of proud of that as I'm usually a procrastinator. We spent most of our time Tuesday telling stories about land, buildings, cars etc. Threw in a bit of depreciation and depletion. Always like a lively crowd. Amazing that this semester is almost over. Gone very fast.

Gave back the tests. The average was 83% and the medium was 85%. The high was 96% and the low was lower than that.

Also showed everyone their grade thus far. Some were happier than others. Still have 45% of the grade left so that can make a huge difference in the end.

Homework:

•Read Chapter 10
•P10-28A
•P10-29A
•P10-31A
•P10-34A
•P10-39B
•P10-40B
•P10-41B

Test night

Chapter 7-9 test tonight. Ashley was done in 45 mins. Must have been a super easy test. Nikki wasn't far behind and said she felt good about the test.

Just looked over Tammi's project and was impressed. Hope everyone does as good of a job.

One more chapter test/final, 2 quizzes and the project and the semester is over. Sad I know. Wish this semester could last forever.

Homework: Read chapter 10

Chapter 9 Homework

Showed up early to answer project questions and a class was inconsiderately hogging the room. Considered challenging their instructor to a thumb wrestle as they were clearing out but held my tongue so considered it a triumph of my emotions. (She actually looked pretty tough and I only pick fights with people smaller than me.)

Answered project questions at the beginning of class. Starting the countdown to the project due date. Only a few more weeks to get it done. (Dec 2nd).

Finished off chapter 9 lecture and went through most of the homework. Below are the two questions we didn't get to. Tammi told the class how sending out nice but firm letters to her over due customers have brought in 50% of her over due aging. Carrie got hit in the head again somehow but didn't hear the full story. Ashley's calculator needs an upgrade but she can get it to work most of the time. Nikki did something to her hair but I couldn't figure out exactly what. I knew I should have commented as I heard some of the other students comment but didn't know what exactly was different. Guess it's a guy thing. It's a standing joke in my house when my wife asks "notice anything different" I say "got your hair cut?" Some of the time I get it right (lucky guess) most of the time she's offended as she hadn't.

Homework went over journal entries for collection of note receivables, calculation of interest and recording interest for seperate periods, and calculation of acid test ratio and days sales in receivables.

Went over the test and I really think it's the easiest one I've ever made. smile.

Test on Thursday. Good luck.

Click on image to see a clearer view.

Chapter 9 in room 208

I was surprised to see everyone in the correct room when I showed up for the lecture. Someone must be reading my silly blogs as that was where this room change was announced. Julie was still missing in action so if someone can make sure she is only voluntarily lost that would be appreciate.

Gave a quiz on petty cash. Such an easy quiz, I can't believe I'm such a push over. That's the 4th quiz of the year so we only have 2 more remaining.

Had several questions on Monopoly to start off the class. Seems like everyone is getting that underway. I think a couple of people were doing their monopoly project in class during the lecture. Glad to see I can at least keep people awake even if its just to work on other things. I better not give myself too much credit as I think text messaging is the real thing that keeps some people awake in class.

Chapter 9 goes pretty deep into receivables. Internal control, best practices, estimating bad debt, payments from customers, etc. Found out who's Guido in their companies. Found out Carey actually has someone called Guido in her company that collects money (hopefully not with a bat). Tammy is Guido for her company. Jennifer says her company collect 42% of what they bill where the industry average (neuroscience care) is around 35%. Fun times. Always like it when everyone has something to say. I'd much rather listen to the students give examples than for me to babble on.

Homework assigned:

•E9-15
•E9-23
•E9-24
•P9-27A
•P9-30A
•P9-32A
•P9-37B
•P9-39B

Homework chapter 8

Showed up to class in the art and technology building where we were told to go and there was a spanish class already inhabitating the room. They looked pretty fierce and I didn't feel like thumb wrestling the instructor as she looked pretty dangerous so we slipped next door to room 203. We've been kicked out of that class however. I just talked with the powers that be and we've now been assigned to room 208. Spread the word to all your family and friends.

Funny thing is one of the students said they were moved into our old class in the business building for one of her daytime classes. Must be testing us to see if we will have class even with no room assigned. Never fear, nothing can stand between me and talking about accounting for 2 hours.

As I was walking by room 202 after class I saw one of last years all-star students in the spanish class we got kicked out of. Glad I didn't make a fuss and try to arm wrestle the spanish instructor (although I think I could have beaten her). I wouldn't want to ruin my reputation as a happy, easy going guy.

Got home and the election was already over. I think I saw around 100 million people voted for president. With the US population around 300 m that's one in 3 voted. Pretty good turn out.

We finished up the lecture for chapter 8 then did a couple of homework problems. Bank rec and petty cash.

Homework: Read chapter 9

Chapter 8

Told lots of stories on Thursday. I knew I needed to speed things up to get done the lecture but found myself telling story after story. Probably boring for everyone but myself. Internal control lecture is always a fun one. Bank recs, petty cash, stories of fraud and corruption. What more can you ask for.

Told everyone to expect a quiz on the homework. Probably either be a bank rec or petty cash question that is similar to the homework.

Next class we will finish up the lecture then move onto the homework. Probably finish that as well.

Homework assigned:

•E8-17
•P8-28A
•P8-33B
•P8-35B
•P8-37B

Homework Chapter 7

I warned everyone before class that this was going to be long and drawn out. Posting is not a great way to keep people awake (right Jenna). It's tedious and time consuming and thank heaven's we have computer accounting software to take most of the pain out of processing transactions.

We went through the first 3 homework problems assigned. I encourged everyone to do the optional homework problems as it is good for your soul. In fact, I could see some of the students get a gleam in their eye when I suggested doing the homework on Friday night if they wanted to impress their date. What would be more fun then to work on accounting problems on a Friday night. Or better yet, for your Halloween party on Friday dress up as an accountant and consider eating at least two of every candy as debits never go without credits. (If you smiled/groaned at that poor attempt at humor you have offically joined the geeky side).

Homework assigned: Read Chapter 8

Chapter 7

Good class tonight. More like a show and tell. Demo'd Microsoft Dynamics Great Plains as an introduction to the computer accounting section of the chapter. Good discussion about what to look for in a system, cost/benefit, time and cost needed, etc. This is what I do in real life. My real job is implementing, supporting, and consulting with Microsoft Dynamics.

Also showed spreadsheets. Showed a spreadsheet I use to evaluate potential rental properties. Input data and several worksheets are updated with the results telling me if the project is worth investing in.

Talked about special journals specifically in how to do them for the monopoly game. This is a big part of the project as you enter all transactions from entry 27 on.

Oh, gave back the test as well. Some good grades, some ok grades. Average on the test was 81%, Medium 86%.

Half way done the class. Showed everyone how to calculate their own grades. If it's not to clear, email me and I'll send you your grade.

Homework assigned:

•P7-26A
•P7-28A
•P7-34B
•Optional practice not going over in class
–P7-29A
–P7-31B
–P7-33B

Test Day

Gave/giving the second test of the semester tonight. That test along with all groups should be done the first 26 turns in Monopoly means we are about half way through the semester. Yeah!!! Gone quickly so far.

The remaining chapters are very fun for an accountant. By now you should be feeling a little more geeky and a lot less fun. That's the natural process as you start getting immersed in the accounting field. Don't worry, there's lots of people out there that will laugh at your new form of humor and applaud your mechanical pencil/calculator/debit and credit skills.

Must read financial book: Your money or your life by Joe Dominguez and Vicki Robin
Wish I had read this book sooner. Puts into perspective what I'd like my personal financial world to be like.

http://www.yourmoneyoryourlife.org/

Must read for those with small children: Read along handbook by Jim Trelease

http://www.trelease-on-reading.com/default.html

Homework: Read chapter 7

Monopoly class

Had a pretty casual class last night as all three groups played monopoly in the hopes of finishing off the first 26 turns in the project. Sounds like that was almost accomplished for each group.

I watched BYU get blown out with ESPN's gamecast on the overhead. Too bad. Boston came back from 7 runs down. Nice comeback. Don't really care now. The Blue Jays and Dodgers are out.

Turn 27 in the Monopoly project goes into a new way to journalize which we will learn in chapter 7. The special journals are more like real accounting as it deals with submodules that flow into the GL.

Test is on Tuesday and I'm pretty sure it's the easiest test I've ever made. Good luck.

Chapter 6

I like chapter 6. One of the nicest chapters to teach as you go through FIFO, LIFO, Average costing. Got to use some props. Wonder if anyone saw how dirty the carrots were I was using.

Got through chapter 6 lecture.

Assigned homework:

•E6-18
•E6-19
•P6-32A
•P6-34B
•P6-35B

We will go over chapter 6 homework next class and then I'll go over the test which happens to be next Tuesday. On Thrusday I will answer any questions about the test then will give remaining time to get into groups and start the Monopoly project. Hopefully this will give enough time to finish the first 26 turns.

Markets are up. Finally an halt in the dreadful slide on Wall St.

Finished Chapter 5

We finished chapter 5 and homework. Not too exciting of a chapter but we'll make up for it in chapter 6. Hardest thing in chapter 5 is getting the journal entries for selling inventory along with discounts. Also included are returns on sales.

Will have a quiz tonight. Make sure you did homework for chapter 5.

Homework chapter 5

Forgot to post homework. Here it is.

•P5-31A
•P5-33A
•P5-38B
•P5-39B

Monopoly project

Only lasted a hour last night as I was feeling dreadfully sick. My penmanship was better as I was moving pretty slow. Still feeling like my head will explode but have a little more energy today.

We went over the first part of chapter 5 which is on merchandising businesses. Assigned homework and we will finish off the chapter on Tuesday and hopefully get to some homework.

Here is the outline for the monopoly project as some of you don't have a way to open or print the documents I sent out by email. Click on the documents below to see a clearer view of the doc. This will open the doc so you can read it.

Homework and bailout

Finished chapter 4 homework after talking about the bailout. Here is a link to more info on the bailout to financial market - http://www.mydollarplan.com/

Homework: Read chapter 5

Finished chapter 4 - Quiz remarks

Handed back the test and was very impressed with the high marks. Here is a overview of the results.


I heard several comments about how hard the test was but by looking at the grades I probably shouldn't have made it so easy.

Also had a quiz (probably easiest one of the year). I like finding out how the class is going so did a Give Me Some Feedback quiz.

Here are some comments from the responses:

"I love your accounting jokes"

"I am actually understanding it and like doing the work. I actually have to think in class. Work more on deffinitions. Try not to focus on only work problems but concepts as well"

"Like working out problems on the board and getting to visualize the process."

"I like the hands on approach going through problems and walking through each step."

"Class is connecting the dots for me. I do a lot of computer accounting and it is god to see how it all works. Sometimes it gets a little tiresome when it takes so long on each problem."

"Need better penmanship and more comfortable chairs."

"Like the lack of stress. I don't feel pressured to go faster than I am able. Sometimes I have a hard time focusing because we go through problems so slowly and repeatedly. However that is why I don't feel too stressed. Dorky as it may be, thumbs sometimes help."

"Need sugar drinks to wake me up. Everything is gone over and you make it as fun as possible."

"Like going through problems as a group."

"Would like less interruption from the class when you are trying to teach."

"I find acct 201 challenging. However, when it clicks I understand what is going on. Your test is harder than you said it would be."

"It is very interesting stuff. Going over the homework is going very well. At least I know what I am doing. Could go over the section before giving homework."

Those were taken directly from each of the students quizzes. Seems like everyone thinks the class is going ok. Could speed up the homework on the board. Although I'm a slow poke and can't think that fast.

Homework assigned:

E4-20
E4-22
E4-23
P4-27A
P4-30A
P4-34B
P4-36B

Please bring Monopoly game practice set next class as we will go over project requirements

The Total Money Makeover Part 1

Had the first test of the semester. Didn't hear too many grunts or moans so hopefully that is a good sign. Will have the tests graded for Thursday if I get my act together.

Homework: Didn't mention it in class but we will start chapter 4 in class on Thursday. Read Chapter 4 and be prepared to discuss.


During the test I started to re-read The Total Money Makeover by Dave Ramsey. I've read it before and was inspired to battle my own debt. I thought I'd read the book again to glean more information. The total money makeover is a system used to build wealth.

Here is a link to a good overview of the book.

http://www.thesimpledollar.com/2006/12/09/review-the-total-money-makeover/

Here are my own notes so far.

Debt is not a tool. If you tell a lie often enough, loudly enough, and long enough, the myth will become accepted as fact. "Debt is a tool" is one of those lies.

Here are several points Dave Ramsey makes in the first few chapters in his book.

• Don't cosign. This will ruin your credit and start the person you are cosigning for on the debt trap path.
• Don't lend money to friends. If you have the money, give it.
• Don't use debt. Pay cash.
• Cash advance, payday loans, rent to own etc. are predatory to low income people
• 90 days same as cash is not same as cash. Two reasons- If you pay with cash you can usually get a discount. Also, many people don't pay off within 90 days and end up paying interest on full amount.
• Buy used reliable cars. Car payments are not a way of life.
• Leasing a car is the most expensive way to operate a vehicle.
• A new car loses 60% of it's value in the first four years
• You don't need a credit card to build credit. You can buy everything with cash anyways. For a house, 15 year mortgage with a large down payment. Credit can be arranged with a large down payment.
• You don't need a credit card to rent a car or a hotel room. Debit cards will do the same.
• Debit cards are not riskier then credit cards. They have the exact same protection.
• Sixty percent of people don't pay off credit cards monthly. Also, credit card users spend 12% to 18% more than if you pay with cash.
• Do not get a teenager a credit card. 80% of graduating college seniors have credit card debt. 19% of bankruptcy filings were are from college students.
• Debt consolidation is dangerous because you treat only the symptom. 78% of the time debt grows after a debt consolidation.
• If you borrow against your home you are stuck in your home. Especially if housing market turns south.
• The worlds economy would not collapse without debt. In fact the economy would prosper as individuals build wealth.

Quotes:
Great spirits have always found violent opposition from mediocre minds.
-By Albert Einstein

In every job that must be done there is an element of fun. Find the fun and snap! The job is a game.
- Mary Poppins

Time for a test

Finished up chapter 3 homework questions and went over what to study for the test. The test will cover chapters 1-3. There are 15 T/F questions and 50 M/C questions. There are also 4 long answer questions.

Usually the TF and MC questions seperates the grades. Not only definitions but how to apply the concepts we've discussed in class.

Good luck.

Adjusting entries

Had an OK class last night. Gave back quizzes and I was very impressed with the scores. Everyone did the question correctly and even had the title on the TB. Great to see. It's easy to sit in class and go through it on the board but to do it on your own is somewhat tougher.

Finished Chapter 3 which is all about adjusting entries. After the TB is completed you look to see what adjustments need to be done to make the balances of your accounts more correct.

Assigned homework is included in the previous blog. We finished the first 3 in class.

No class on Tuesday. We will finish up the homework next Thursday and go over the test.

Accruals and adjusted trial balance

Had our first quiz of the semester. Didn't hear to much squealing and gnashing of teeth. Quiz was copied from problem 39 (the one we did in class before we took the quiz) with amounts and wording just slightly changed. Still heard several vocal yawns but I attribute that to the late hour in the day. Couldn't have been me this time as we were still in the first half hour of class....could it?

I also revealed I have 5 younger sisters. I didn't mention my parents have adopted 2 boys and are foster 3 more girls. No place in the inn when I go back home.

Started chapter 3 which is all about adjustments that are made to the trial balance. Journal entries are recorded to adjust all non cash accounts to adhere to the matching principal.

Next class: Finish Chapter 3
Homework:
Read Chapter 3 if haven't done so already
•E3-15
•E3-17
•E3-19
•E3-21
•P3-33A
•P3-36A
•P3-39B
•P3-40B
•P3-42B
•P3-44

We will probably get through the first couple of problems in class on Thursday.

Meat of the semester

Another student showed up to class but I noticed a few others missing. Our only male contingent hasn't showed up since the first day of class so it may be an all female accounting class.

I feel Chapter 2 is the most important chapter for this semester. Everything else will stem from this chapter. So the things we've gone over in the past couple of classes must be mastered if a student is to do well from here on out.

Went through most of our homework questions. I told horrible jokes and acted like a fool in an attempt to liven up the drudgery of going over the homework. Can't tell if anyone likes the class. I see a few attempts at a smile once in a while but everyone still looks very serious. I also heard several yawns (probably deservedly) while my back was turned as I was writing on the chalk board.

One thing the class has going for it is they pretend to be able to read my hand writing. That's quite unusual as I often have students asking me to be more legible.

Assigned Homework: Read Chapter 3

Quiz alert: There will be a quiz next class on Chapter 2 (journalize>>post>>TB)

Next class: We will go over one homework question we didn't get to in class (for practice), then take a quiz that is similar to the homework questions. We will then start chapter 3.

Link to Chapter 2 homework outlines and power point slides: http://wps.prenhall.com/bp_horngren_accounting_7/55/14222/3640941.cw/index.html

Hint: Along the top of the page on the link above you can select the chapter you want to look at. On the left side of the page there is student power points and eWorking papers. The eWorking papers is the homework outlines.

Debits and Credits

Couple of new students showed up to class. Increasing our enrollment to 12 in all. Finished off Chapter 1 by looking at simple financial statements. Tackled chapter 2 and assigned homework.

Chapter 2 introduces many fundamental accounting principals. Main ideas from lecuture include the accounting flow, double entry accounting (debits and credits), "T" accounts and the Chart of accounts.

The accounting flow is as follows:

Transaction occurs>> source document is generated (reciept or invoice)>>Transaction is recorded (journalized)>> Journalized transaction is posted to the ledger>>all ledger accounts are summarized in the trial balance.

The next concept is something that is dear to any accountants heart, Debits and Credits. Below is the model that we will use to help us journalize any transaction.

Also inherent in the model is the normal balances for each account. Normal balances are debits for assets and expenses, Credit for liabilities, owner equity, and revenue. We will do about a thousand transactions using this model and it will become second nature.

Homework assigned:

•P2-32A
•P2-33A
•P2-34A
•P2-39B
•P2-40B
•P2-41B
•P2-44

Previous homework: Read chapter 1 and 2

Accounting is good for the soul

First night of classes. Have 10 students signed up. Last year I had 24 or something like that. We went over our syllabus for the year then almost got done chapter 1.

Assigned home work: Read Chapter 1 and 2.

I introduced our theme for this class which is: Accounting is good for the soul.

This theme came from the following story. I worked for a small start up company in El Segundo, CA called NaturalHealthlink.com as an intern installing and supporting their new accounting system (Microsoft Great Plains). We had an outside consultant named Freida Stevens who was a CPA. She was in her element in new startups figuring out procedures, accounting policies, inventory control, etc. She said she had a hundred years of experience if you count only a 40 hour work week as she has worked long hours most of her professional career.

My wife was also working for the company and got to know Freida quite well. Frieda told her several times that she needed to take an accounting class (Alita graduated with a bachelor of science in zoology, minor in chemistry. She also has a bachelor of education as well) . We got into a good conversation with her one day about how accounting is the basis of all business and how accounting skills are needed for life in general. Taking a first year accounting class should be mandatory for all college students. Freida finally said "Alita you must take an accounting class. It is good for your soul".

That sold Alita who did end up taking a first year accounting class. (she recieved a 100% in the class). And to put it in her words. "Freida was right. Every college student should take a first year accounting class. It was good for my soul."

So there you have it. Accounting class may not always be the most exciting but it will certainly be good for the soul.

Looking forward to a great year ahead.

First day of class

First day of class is Aug 28th. Had a great summer but looking forward to the new year. Can't get enough of debit's and credits.