Accounting Principles

Curriculum Guideline

Effective Date:
Course Code
HOSP 1210
Accounting Principles
Hospitality Management
Commerce & Business Administration
Start Date
End Term
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
Contact Hours
Lecture: 4 Hours
Method(s) Of Instruction
Learning Activities

Lectures, demonstrations of material, and discussions will be used, together with any appropriate technology available which may be of assistance to students.

Course Description
This course introduces the hospitality management student to the principles and concepts of financial accounting within the hospitality industry. Topics include: the accounting cycle, the uniform system of accounts, financial statements, subsidiary ledgers (front and back office), cash control, receivables, inventories, capital assets and liabilities.
Course Content

1.1          Introduction to accounting

                1.1.1  Forms of business organization

                1.1.2  Accounting principles

                1.1.3  The accounting equation

1.2          Accounting for business transactions

                1.2.1  Balance sheet accounts

                1.2.2  Debits and credits

                1.2.3  Recording changes in balance sheet accounts

                1.2.4  Recording changes in revenues and expenses

                1.2.5  Journalizing, posting, trial balance

1.3          Accounting adjustments

                1.3.1  Purpose

                1.3.2  Deferral adjustments

                1.3.3  Accrual adjustments

1.4          Completing the accounting cycle

                1.4.1  Adjusted trial balance

                1.4.2  Financial statements

                1.4.3  Closing entries

                1.4.4  Worksheet

                1.4.5  Reversing entries

2.1          Income statement

                2.1.1  Classifications

                2.1.2  The uniform system of accounts

                2.1.3  The contribution approach

                2.1.4  Departmental operating statements

2.2          Balance sheet

                2.2.1  Formats

                2.2.2  Classifications

                2.2.3  Uniform system of accounts

3.1          Subsidiary ledgers, specialized journals, and computerized systems.

                3.1.1  Subsidiary ledgers (front and back office)

                3.1.2  Special journals

                3.1.3  Computerized systems

4.1          Cash

                4.1.1  Internal control

                4.1.2  Petty cash

                4.1.3  Bank reconciliations

                4.1.4  Gross vs. net method

                4.1.5  Credit card sales

4.2          Accounts and notes receivable

                4.2.1  Uncollectible accounts

                4.2.2  Notes receivable



4.3          Inventory

                4.3.1  Review of the periodic method

                4.3.2  Inventory valuation methods

                4.3.3  Inventory errors

                4.3.4  Estimation methods

                4.3.5  LCM

                4.3.6  The perpetual method

4.4          Property, equipment, intangible, and other assets

                4.4.1  Classifications

                4.4.2  Acquisition costs

                4.4.3  Methods of Depreciation (Amortization)

                4.4.4  Disposals and trade-ins

                4.4.5  Intangible assets

                4.4.6  Other assets

5.1          Current Liabilities

                5.1.1  Common current liabilities

                5.1.2  Notes payable

                5.1.3  Payroll-related liabilities

6.1          Terminology throughout the previous content

Learning Outcomes
  1. demonstrate the completion of all steps in the accounting cycle for hotels, restaurants and/or clubs;
  2. demonstrate the completion of industry-specific uniform operating statements and statements of financial position;
  3. demonstrate the use of subsidiary ledgers (front and back office) and explain other system efficiencies appropriate to the industry;
  4. demonstrate the accounting for assets appropriate to the industry;
  5. demonstrate the accounting for current liabilities appropriate to the industry;
  6. demonstrate an understanding of general and industry-specific accounting terms through appropriate use, definition, and explanation.
Means of Assessment
Assignment/Quizzes          10% - 25%
Midterm (2) 50% - 60%
Final Examination 25% - 30%
Total         100%

STUDENTS MUST WRITE ALL MIDTERMS AND FINAL EXAMINATIONS TO OBTAIN CREDIT FOR THE COURSE.  Only approved calculators can be used during examination(s).

Textbook Materials

Textbooks and Materials to be Purchased by Students


Schmidgall, Raymond S. and Damitio, James W.  Hospitality Industry Financial Accounting, Latest Ed.  Educational Institute of the American Hotel and Motel Association.


Two-column accounting paper.


Calculator:  Any Financial Calculator, non-programmable, only one display line and no alpha key/input.  Recommended: BAII Plus and HP 10B.

Which Prerequisite