1/14/2025 4:11:37 PM	AGBUS 71 Course Outline as of Fall 2023	Inactive Course
CATALOG INFORMATION
Discipline and Nbr:  AGBUS 71	Title:  AGRICULTURAL ACCOUNTING
Full Title:  Agricultural Accounting
Last Reviewed:11/9/2015

Units		Course Hours per Week			Nbr of Weeks	Course Hours Total
Maximum	3.00	Lecture Scheduled	2.00		17.5 max.	Lecture Scheduled	35.00
Minimum	3.00	Lab Scheduled	3.00		6 min.	Lab Scheduled	52.50
		Contact DHR	0			Contact DHR	0
		Contact Total	5.00			Contact Total	87.50
		Non-contact DHR	0			Non-contact DHR Total	0

Total Out of Class Hours:  70.00

Total 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:

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.

Prerequisites/Corequisites:

Recommended Preparation:
Eligibility for ENGL 100 or ESL 100

Limits on Enrollment:

Schedule of Classes Information
Description:

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

ARTICULATION, MAJOR, and CERTIFICATION INFORMATION

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

Certificate/Major Applicable: Both Certificate and Major Applicable

COURSE CONTENT

Student Learning Outcomes:
At the conclusion of this course, the student should be able to:

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:

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

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

Assignments:

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%
None
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%
None

Representative Textbooks and Materials:

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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