SRJC Course Outlines

12/8/2022 7:21:21 AMAGBUS 71 Course Outline as of Fall 2016

Changed Course

Discipline and Nbr:  AGBUS 71Title:  AGRICULTURAL ACCOUNTING  
Full Title:  Agricultural Accounting
Last Reviewed:11/9/2015

UnitsCourse Hours per Week Nbr of WeeksCourse Hours Total
Maximum3.00Lecture Scheduled2.0017.5 max.Lecture Scheduled35.00
Minimum3.00Lab Scheduled3.006 min.Lab Scheduled52.50
 Contact DHR0 Contact DHR0
 Contact Total5.00 Contact Total87.50
 Non-contact DHR0 Non-contact DHR Total0

 Total Out of Class Hours:  70.00Total Student Learning Hours: 157.50 

Title 5 Category:  AA Degree Applicable
Grading:  Grade Only
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 
Formerly:  AG 73

Catalog Description:
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Applications of the principles and practices of financial and managerial accounting in agribusiness. The course also includes methods of record-keeping, measurement of revenue and expenses and analysis of financial positions in agribusiness.


Recommended Preparation:
Eligibility for ENGL 100 or ESL 100

Limits on Enrollment:

Schedule of Classes Information
Description: Untitled document
Applications of the principles and practices of financial and managerial accounting in agribusiness. The course also includes methods of record-keeping, measurement of revenue and expenses and analysis of financial positions in agribusiness.
(Grade Only)

Recommended:Eligibility for ENGL 100 or ESL 100
Limits on Enrollment:
Transfer Credit:CSU;
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP


Associate Degree:Effective:Inactive:
CSU GE:Transfer Area Effective:Inactive:
IGETC:Transfer Area Effective:Inactive:
CSU Transfer:TransferableEffective:Fall 2013Inactive:
UC Transfer:Effective:Inactive:
 CID Descriptor: AG - AB 128 Agricultural Accounting SRJC Equivalent Course(s): AGBUS71

Certificate/Major Applicable: Both Certificate and Major Applicable


Student Learning Outcomes:
At the conclusion of this course, the student should be able to:
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1.   Apply the principles of agricultural accounting systems and the accounting cycle in agribusiness.
2.   Compute, interpret and apply financial ratios in agribusiness.
3.   Analyze the differences between accrual and cash accounting, current versus non-current assets in agricultural  accounting.
4.  Identify and understand the purpose of documents required for farm accounting.

Objectives: Untitled document
Upon successful completion of this course, students will be able to:
1.  Explain the value of agricultural records to a successful agricultural enterprise.
2.  Define common agricultural bookkeeping terms.
3.  Identify documents required for conducting cash flow analysis.
4.  Demonstrate the principles of accrual accounting by opening, analyzing and entering transactions and closing a set of double-entry accounting records.
5. Perform  expense and revenue measurements
6. Analyze financial positions and financial performance using ratio analysis.
7.  Create a balance sheet for a small business.
8.  Use quickbooks accounting software to develop summary accounting reports.
9.  Develop financial statements for small agribusiness firms.
10.  Compare and contrast accrual versus cash accounting
11. Contrast the basic methods of depreciation and calculate yearly depreciation.
12. Construct inventory analysis procedures.
13. Determine the payroll for employees given the major deductions.
14. Explain the basis for agricultural income tax computing.

Topics and Scope
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I.  Importance of Record Keeping
   A. Record keeping objectives
   B. Components of agricultural records and accounting systems
   C. Accounting periods
II.  Principles of Accounting
   A. Single-entry accounting
   B. Double-entry accounting
   C. Accrual versus cash bases of accounting
III.  Kinds of Agricultural Accounts and Record Keeping Systems
   A. The charts of accounts
   B.  Definition of common accounts in agribusiness         
IV. Revenue and Expense Measurements
   A. Revenue recognition
   B. Government loans
   C. Accounting Equation
   D. Gains and losses
   E. Depreciation Expenses
        1. Partial Period
        2. Revised Period
   F. Interest Expense                                    
   G. Net Farm Income
V. Preparing Financial Statements
   A. Income Statement
   B. Financial Statement of Ownership
   C. Balance Sheet
   D. Statement of Cash Flows
   E. Cash-basis versus market based
   F. Financial Statement
VI.  Types of Entries and Their Uses
   A. Diary
   B. Inventory
   C. Receipts
   D. Expenses
   E. Accounts payable
   F. Accounts receivable
   G. Balance sheets (net worth or financial statement)
   H. Profit/loss statement
VII.  Accounting Cycle
   A. Beginning balance sheet (net worth statement)
   B. Opening entries
   C. Recording transactions
         1. Journal entries
         2. General ledger posting
   D. Trial balances
   E. Correcting entries
   F. Adjusting entries
   G. Adjusted trial balance
   H. Closing entries
   I. Post-closing trial balance
   J. Ending balance sheet
  K. Profit and loss statements
VIII.  Income Statements
   A. Different forms
   B. Profit/loss ratios
IX. Accrual adjusted Farm Financial Statements
   A. Inventories
   B. Prepaid Expenses
   C. Accrued Expenses
   D. Income Taxes
X. Analyzing Financial Positions and Financial Performance
   A. Comparative financial statements
    B. Financial Ratios
   C. Liquidity Ratios
   D. Solvency Ratios
   E. Repayment Capacity Ratios
   F. Profitability Ratios
   G. Financial Efficiency Ratios
XI.  Asset Valuation and Depreciation
   A. Current Assets
          1. Validation Method
          2. Cash
          3. Accounts Receivable
          4. Inventory Valuation and Control                                                                                                                                                                                           
     B. Non-current Assets
          1. Cash investment
          2. Capital investment
          3. Leased Assets
          4. Disposing of non-current assets
XII.  Liabilities and Debt
    A. Calculating simple interest loans
    B. Transactions involving loans and loan payments
         1. Determining current principle loan balance
         2. Determining interest payable
    C. Loan applications
    D. Cash flow budgets
XIII.  Software Accounting and Analysis
    A. Introduction to QuickBooks
    B. Basic reports in QuickBooks
XIV.  Payroll Accounting
   A. Allowable deductions
   B. Reporting requirements
XV.  Social Security
   A. Deductions
   B. Separate accounts and deposits
   C. Reporting procedures
XVI.  Income Tax (Federal)
   A. Cash or accrual basis
   B. Proper entries
   C. Allowable deductions
   D. Depreciation requirements
   E. Capital gains tax

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1. Weekly lab reports
2.  Accounting problem sets.
3.  Quizzes (6-8)
4. Two Term papers on agricultural accounting and taxation ( 5-7 pages).
5. Midterm and final exam.
6. Reading 20-30 pages per week.

Methods of Evaluation/Basis of Grade.
Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.Writing
10 - 15%
Term papers
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.Problem Solving
40 - 50%
Lab reports and problem sets.
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.Skill Demonstrations
0 - 0%
Exams: All forms of formal testing, other than skill performance exams.Exams
35 - 45%
Quizzes, Midterm, and Final exam (Multiple choice, True/false, Matching items)
Other: Includes any assessment tools that do not logically fit into the above categories.Other Category
0 - 0%

Representative Textbooks and Materials:
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Farmer's Tax Guide--Current yearly edition
QuickBooks for Agricultural Financial Records. QuickBooks Pro 2015
Financial and Managerial Accounting, Warren, Carl S., Reeve, James M., Duchac, Jonathan. Cengage Learning 2015
Introduction to Agricultural Accounting, Wheeling, Barbara M., Cengage/Thompson, 2007 (classic)
Accounting for Agriculture: Skidmore, Richard, Soft Data, Lancaster, CA 1995 (classic)
Financial Accounting: Hermanson, Roger, Richard D. Irwin, 1999 (classic)

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