Accounting Monopoly. Accounting Monopoly. Ed Valenski CPA. (516)

Transcription

1 Accunting Mnply Accunting Mnply Ed Valenski CPA (516) NYS Certified Business Teacher Part Time Massapequa High Schl, Berner Middle Schl and Birch Lane Elementary Schl Ed Valenski (516) Page 1

2 Accunting Mnply Curse Applicatin: Accunting Finance: (fcus n Financial Statement Creatin, Rati Analysis and Valuatin (analyze the financial statements f the players and prject future grwth based n prbability thery) Entrepreneurship: (Limited Versin T Accunts Only) Persnal Mney Management and Investing: (with a revised versin f the game: prperties are stcks etc. This is a separate lessn plan) Objective: Apply Accunting techniques t simulated business transactins by playing the game f Mnply. Apply knwledge t cnstructin f T Accunts, Recrding Transactins, Creating and Psting t Jurnal and General Ledger, Creating Three Clumn Trial Balance, Financial Statements and cnducting an Audit. OPTIONAL: Preparing an Annual Reprt, Valuing a Business and Analyzing perfrmance thrugh the use f ratis and benchmarks. Prcess Overview: Have students play the game f Mnply nce per week r every ther week ver the curse f a full year. Students recrd every transactin that results in an exchange f cash in T Accunts. Student s peridically pst transactins t a Jurnal and General Ledger (at least mnthly). Quarterly each student prepares a three clumn Trial Balance. Midyear and at yearend students prepare a full set f Financial Statements (Incme, Balance Sheet, Statement f Changes in and Stckhlder s Equity) At year end, students Audit each ther s final financial statements render an audit pinin and prduce an Annual Reprt. Ntes: Once students have started this exercise is easy and effective t use as the lessn plan fr a substitute. Activity can be paperless and integrated with technlgy by using MS Excel, Wrd and Publisher. Use f ratis and financial analysis integrates with Math. Ed Valenski (516) Page 2

3 Accunting Mnply Materials: A Mnply Game with enugh pieces fr all players - teams n larger than 4 players per game bard. One envelpe fr each student playing. Each player will stre his/her mney and Mnply cards in this envelpe and leave it in the rm each day. One flder fr each student playing. Scrap paper fr jtting dwn transactins Jurnal pages Frms fr prving cash General ledger pages Frms fr Incme statement, Balance Sheet, Statement f Changes and Trial Balance Lgn and game instructins Chart f accunts (All f these frms shuld be available in the students wrkbk, nline teacher material r teachers text) Hw t Play: Each grup selects a banker. The banker issues $1500 in cash t each player. Each player shuld cunt his mney t make sure he receives the crrect amunt. Each player shuld recrd this in a T accunt. (Yu have nly ne asset (cash), n liabilities, and capital is $1500. Shw example transactins t the class (see appendix at end). Set up yur jurnal. All students in a grup shuld have the same clumn headings. Suggested headings: Debit, Credit, Date, Accunt Title, Pst Ref, General Debit, General Credit, Prperty Debit, Prperty Credit, Rent Expense, Rent Incme, Other Incme teacher may wish t give students jurnal pages with preprinted headings). Recrd the pening entry in yur jurnal. Open accunts in the general ledger fr the accunts listed in the chart f accunts (see appendix at end). Ed Valenski (516) Page 3

4 Accunting Mnply Students must make ne full spin arund the bard befre they may purchase prperty. Pst the pening entry Start the game. Be sure t fllw the rules f the game. Each grup shuld set their wn rules n building huses, selling prperty, etc. and have the banker dcument, in writing any game specific rules. Each rll f the dice may result in either n jurnal entry, ne player making an entry, r in tw players making an entry. There are usually business transactins t recrd after each thrw f the dice. D nt rll until all parties have cmpleted recrding their transactins. Any time mney changes hand, students must recrd the transactin n their wrksheets in T accunts. (Have students put a shrt descriptin next t each entry). When jurnalizing--if yu are using tw special clumns, it may be wise t make a ntatin abut the entry under the accunt title clumn. Example: When using Prperty Debit and Credit--yu may want t put the name f the prperty yu purchased in the accunt title clumn. When yu pay taxes, yu may want t tell what kind f taxes yu are paying, etc. Give details abut any jurnal entry that yu feel will benefit yu later when preparing financial statements. Allw time each day at the beginning r end f class fr students t make jurnal entries and prve cash. This shuld be dne EVERY day. If students are ver r shrt n cash each day, they must recrd this in their transactin lg as " Shrt and Over". At the end f each day, cash is prved t see if the bks cincide with the actual cash cunt. If it des nt, make an entry in the jurnal thrugh the cash shrt and ver accunt. Each student shuld recrd n a sheet the lcatin f their piece n the bard, the number f huses r htels wned n each piece f prperty, list f prperty wned, and a list f prperty that may be mrtgaged. (Teachers may wish t create a frm fr this.) Place the papers used in yur envelpe and flder. Return the game pieces t the bx. Ed Valenski (516) Page 4

5 Accunting Mnply Peridically, (every tw mnths) yu will clse yur bks t see hw well yu have dne (prfit r lss). Yu need t: Ft the jurnal Prve cash Prve the equality f debits and credits Ttal and rule the jurnal Pst t the general ledger Prepare a three clumn trial balance Prepare an incme statement, balance sheet, statement f changes in cash and stckhlder s equity Recrd and pst clsing entries Prepare a pst-clsing trial balance Prepare an annual reprt Special Situatins: Bankrupt: Student becmes bankrupt t early in the game. Have student save their wrk t prepare statements later in the game prcess and curriculum. Have the student assume the rle f the banker in an fficial capacity and recrd all transactins frm the banker s perspective. Change rules t require a 10% fee n any transactin in which the bank is a party either dispensing r receiving cash and a 5% transactin fee fr any transactin between r amng parties in the game. This is the banker s surce f revenue. The banker shuld recrd all Passing G expenditures as a capital asset depreciated at 5% per week f play. The banker student will prepare all entries, bks and statements fr the bank. Ed Valenski (516) Page 5

6 Accunting Mnply Example: T Accunts Prperty Rental Incme Stckhlder Equity Buy Park Place Example: Jurnal Entries Transactins Transactin Purchased huse fr prperty n Park Place, $125. Accunt Type Purchased Park Place prperty, $400. Descriptin Huses Prperty Debit Credit Rec'd cash fr rent frm Indiana Avenue, $50. Revenue Rent Incme Paid fr rent (R&R Railrad), $100. Expense Rent Expense Received cash fr passing g, $ Revenue Other Incme 200 Received lan frm the bank, $ Liability Mnply Bank 1000 Paid $150 fr incme tax. Expense Tax Expense Ed Valenski (516) Page 6

7 Accunting Mnply s Chart f Accunts Acct # Revenue Acct # 110 Rent Incme 410 Prperty 120 Other Incme 420 Huses 130 Expenses Htels 140 Interest Expense 510 Mnply Bank 210 Other Expense 520 (Students Name r Fictitius Cmpany Name), Capital 310 Rent Expense 530 Incme Summary 540 Tax Expense 410 Utility Expense 550 Shrt and Over 560 Ed Valenski (516) Page 7