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