Accounting Summative: Journalopoly. Mrs. Van Dam

Transcription

1 Accounting Summative: Journalopoly Mrs. Van Dam

2 Review Rules, Requirements & Materials Let s read through all of this: Objectives Rules Procedures Let s see what Materials are in the packet Let s see what the summative requirements are! (this is what must be handed in!) Now let s circle back

3 Objectives Students should be able to perform procedures necessary in setting up a partnership business (i.e. choosing a name, creating a partnership agreement, setting up accounts, etc.) Students should be able to maintain a set of accounting records in operating a partnership Students should be able to complete the accounting cycle for a service business operating as a partnership Students should be able to work effectively with another member when running a partnership business.

4 Playing the Game!

5 Playing the game: Beginning The students in the class will divide up into teams of two or three (only if needed) to create a partnership. Each partner starts the game with $1,500 each (or if 3 partners then $1,000 each) in capital. Bank is debited $3,000 In the synoptic journal: Roll the dice, move your token (one token per team)

6 Transactions Type: Property Purchase You land on Connecticut and decide to buy Property 120 Bank 120

7 Transactions Type: Pay Rent You land on St James and have to pay rent Include the name of the property in your journal Rent Expense 14 Bank 14

8 Transactions Type: Getting out of Jail You must pay to get out of Jail! Drawings 50 Bank 50

9 Transactions Type: Special Luxury Tax and Income Tax Drawings, Van Dam 75 Bank 75 Free Parking, or Pass Go Bank 200 Capital, Van Dam 200

10 Transactions Type: Houses and Hotels Can purchase a house anytime Include property name in particulars Each team must purchase a minimum of 3 houses Building 200 Bank 200 Purchase a hotel after 4 houses Include property name in particulars Building 200 Bank 200

11 Transactions Type: Trading properties Can only initiate a trade during your turn Both parties record the transaction Bank 200 Loss on Sale/Trade 50 Property (at cost) 250 Bank 300 Property 250 Gain on sale/trade 50

12 Transactions Type: Chance & Community Chest (CC) Pay Chance/CC Expense 200 Bank 200 Earn Bank 200 Chance/CC Revenue 200

13 Transactions Type: Audited Your records will be audited, if they are NOT in order you will be fined $200 (a debit to the individual partners drawings acct) If they ARE in order, $100 Bonus will be awarded (a credit to the individual partner s capital acct) Fined! Drawings 200 Bank 200 Bonus! Bank 100 Capital 100

14 Finishing Each Day! To be completed 10 minutes before class end.

15 Day s End: Daily Cash Count Count Cash, record your cash amount Record where you & your opponents are on the board Opposing team member must validate cash count Mrs. Van Dam MUST SIGN your Daily Cash Count Sheet

16 Procedures: Each day is one month Day 1 ends January 31 Day 2 ends February 28 Day 3 ends March 31 The partner who journalizes during the day will post all transactions to the general ledger Each partner must complete this once during the activity The posting must be completed before the next playing day.

17 Procedures Continued If the daily cash count sheet does not agree with the bank account in the general ledger, then a correcting entry must be made. if cash is SHORT, you lost money somewhere. This is like an expense and will be recoded as a debit If cash is OVER, you have gained money somewhere. This is like a revenue and will be recoded as a credit. SHORT! Cash short & over 135 Bank 135 OVER! Bank 62 Cash short & over 62 * You MUST properly forward balances to new accounts

18 Your Deliverables!

19 Summative Requirements Title Page Name of company (think something Real Estate Company) Partnership agreement (see page & next slide) Daily Cash Count Sheets, Property check list, Synoptic journal, General Ledger Trial March 31, 2017 Schedule of Properties listed alphabetically + real estate portfolio with cost = property ledger control 8 Column worksheet, adjustments as follows: Building depreciate at 15% Interest on bank Loans Interest expense is calculated at 7% Interest on Mortgages Interest expense is calculated at 5% Partnership Financial Stmts Income statements (service firm) Statement of Distribution of Net Income* Statement of Changes in Partner Equity* *partnership notes Classified Balance Sheet, incl Partners Equity Journalize & post adjusting entries Journalize & post closing entries Revenue to Income Statement Summary Expenses to Income Statement Summary I/S to Capital Drawing to Capital Post-Closing Trial Balance Consider Neatness, Use Excel

20 Partnership Agreement Firm s name and address Partners names, addresses & phone # s The date on which the partnership is formed January 12, 2017 Nature of the partnership business ie Real Estate Company Duties of the individual partners and the amount of time that they agree to devote to business activities Be specific here, suggest creating a table Duties Partner 1 Partner 2 1 Title page 2 Partner agreement 3 Journal Day 1 4 Post Day 1 5 Journal Day 2 Amount of capital to be contributed by each of the partners $1500 Salaries (if any) to be paid to each of the partners ie $100 Rate of interest (if any) to be paid on the partners capital account balances ie 2% How net income or net loss will be shared ie a fixed ratio 1:1 The procedure to be followed in case the partnership ends suddenly because of the death or bankruptcy of a partner liquidate assets, pay off creditors, divide remaining income An exit procedure for any partner wanting to leave the partnership Both partners must sign and date the agreement!!