lesson plan 6.2 end-of-fiscal period...

Lesson Plan 6.2 – End of Fiscal Period Activities Copyright © Texas Education Agency, 2011. All rights reserved.

ACCOUNTING 1

Lesson Plan 6.2 – End-of-Fiscal Period Activities Course Title – Accounting I

Session Title – End-of-Fiscal Period Activities

Lesson Purpose – Demonstrate skill in completing the end-of-fiscal period

activities for a merchandising business.

Behavioral Objectives Create a computer-generated Trial Balance after posting for the fiscal

period.

Find and correct any errors in a Trial Balance.

Create schedules of subsidiary ledgers.

Find and correct any errors in subsidiary ledgers.

Analyze and journalize adjusting entries for a merchandising business.

Create computer-generated financial statements for a merchandising business.

Analyze closing entries for a fiscal period.

Close the accounting records for a fiscal period in preparation for a new fiscal period.

Create a Post-Closing Trial Balance for a fiscal period.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C 2.d. prepare schedules for subsidiary ledgers; 2.e. generate Trial Balances and end-of-period adjustments; 2.f. prepare financial statements; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 6.c. – post to an accounts payable subsidiary ledger; 3.h. – prepare a trial balance; 3.i. – journalize and post adjusting and closing entries;

Lesson Plan 6.2 – End of Fiscal Period Activities Copyright © Texas Education Agency, 2011. All rights reserved.

ACCOUNTING 1

TAKS Correlation: READING Objective 1: The student will demonstrate a basic understanding of culturally diverse written texts. MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving.

Materials, Equipment and Resources: Textbook

Accounting software

Journal input forms

Teaching Strategies: Observation

Facilitation

Lesson Content: Review the steps of the accounting cycle. Students complete all end-of-fiscal period for a merchandising business independently.

Assessment: Observation

Graded Assignments

Additional Resources: Textbooks:

Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting Real-World Applications and Connections. Glencoe McGraw-Hill, 2000. ISBN/ISSN 0-02-815004-X.

Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting Multicolumn Journal Anniversary Edition, 1st Year Course. South-Western Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43524-0

Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General Journal Accounting Anniversary Edition, 7th Edition. South-Western Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43529-1.

Activity 6.2.1 – Creating a Trial Balance Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Lesson 6.2 Activity –Creating a Trial Balance – 6.2.1

Course Title – Accounting I


Activity Purpose – Create a computer-generated Trial Balance for a

merchandising business after posting for the fiscal period.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed.

120.42.C 2.e. generate Trial Balances and end-of-period adjustments;

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 3.h. – prepare a trial balance; 3.i. – journalize and post adjusting and closing entries;

TAKS Correlation:

MATH

Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving.


Accounting software


Facilitation

Activity Outline:

Have your students print a Trial Balance report at the end of the fiscal period for The Kewl Shoppe. Ask students to find any errors on the Trial Balance and correct them. Check the Trial Balance before the student proceeds to the next step of the accounting cycle.

Activity 6.2.1 – Creating a Trial Balance Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Assessment:

Observation

Graded Assignment

Quality Feature Score

Printed report of Trial Balance for The Kewl Shoppe

Corrects any errors in Trial Balance

Completes in a timely manner

Activity 6.2.2 – Creating Schedules of Subsidiary Ledgers Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Activity – 6.2.2 - Creating Schedules of Subsidiary Ledgers



Activity Purpose – Create a computer-generated Trial Balance for a

merchandising business after posting for the fiscal period.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed.

120.42.C 2.d. prepare schedules for subsidiary ledgers.

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 6.c. – post to an accounts payable subsidiary ledger;

TAKS Correlation:

MATH



Accounting software


Facilitation

Activity Outline:

Have students print a computer-generated report of the subsidiary ledgers. Ask them to be sure they equal the controlling account.

Check the subsidiary ledger before students proceed to the next step of the accounting cycle.

Activity 6.2.2 – Creating Schedules of Subsidiary Ledgers Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Assessment:

Observation

Graded Assignment


Printed report of Trial Balance for The Kewl Shoppe

Corrects any errors in Trial Balance


Activity 6.2.3 – Analyze and Journalize Adjusting Entries Copyright © Texas Education Agency, 2011. All rights reserved.

ACCOUNTING 1

Activity 6.2.3 – Analyze and Journalize Adjusting Entries



Activity Purpose – Demonstrate skill in analyzing and journalizing adjusting entries

for a merchandising business.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C 2.e. generate Trial Balances and end-of-period adjustments; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 3.h. – prepare a trial balance; 3.i. – journalize and post adjusting and closing entries;

TAKS Correlation:

MATH



Accounting software


Facilitation

Activity 6.2.3 – Analyze and Journalize Adjusting Entries Copyright © Texas Education Agency, 2011. All rights reserved.

ACCOUNTING 1

Activity Outline:

Have your students analyze and journalize the adjusting entries using a General Journal Input Form spreadsheet.

Merchandise Inventory: Beginning Inventory is 0 because this is a new business. The count at the end of the fiscal period shows $2,013 in inventory.

Office Supplies: End of fiscal period inventory $220

Store Supplies: End of fiscal period inventory $352

Value of Prepaid Insurance: 6 month policy at $600; the value is now $500

Ask students to enter the journal entries using their accounting software and print a report.

.

Assessment:

Observation

Graded Assignment


Adjusting entries analyzed correctly

General journal input form accurate

Report printed in correct format with correct total


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Activity 6.2.4 – Reporting and Analyzing Copyright © Texas Education Agency, 2011. All rights reserved. Financial Statements

ACCOUNTING 1

Activity 6.2.4 –Reporting and Analyzing Financial Statements



Activity Purpose – Demonstrate skill in creating financial statements and analyzing

the results of those statements.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C. 2.f. prepare financial statements; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C.

N/A

TAKS Correlation:

WRITING

Objective 5: The student will produce a piece of writing that demonstrates a command of the conventions of spelling, capitalization, punctuation, grammar, usage, and sentence structure.

Objective 6: The student will demonstrate the ability to revise and proofread to improve the clarity and effectiveness of a piece of writing.

MATH



Accounting software


Activity 6.2.4 – Reporting and Analyzing Copyright © Texas Education Agency, 2011. All rights reserved. Financial Statements

ACCOUNTING 1

Facilitation

Activity Outline:

Have your students print financial statements using their accounting software.

Ask students to write an analysis of the financial statements answering the following questions and using at least one chart visual in a spreadsheet or with their accounting software:

What percent of sales is gross profit? In your opinion, is this a good percent? How could it be better?

What percent of sales is the total expenses component? In your opinion is this a good percent? How could it be better?

What was the highest expense amount? Is this a normal amount? Was there an expense account that had a high balance for the fiscal period that should not have had a high balance? What was it? How can you decrease it next fiscal period?

How much did each partner receive in net income or net loss?

What is the ending capital for each owner? Is that more or less than their initial investment of $20,000?

Is the business in good condition?

List three things you think the owners need to do to improve the condition of their business.

List three ideas you have to improve sales.

Assessment:

Observation

Graded Assignment


Financial Statement printouts accurate

Written analysis of financial statement demonstrates understanding of the accounting concepts

Analysis thorough and well written

Visual appropriate and helps explain the financial progress or condition of the business

No errors in the written analysis


Activity 6.2.5 – Analyzing Closing Entries Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Activity 6.2.5 – Analyzing Closing Entries



Activity Purpose – Demonstrate skill in analyzing closing entries.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 3.i. – journalize and post adjusting and closing entries;

TAKS Correlation:

MATH



Accounting software


Facilitation

Activity Outline:

Have your students use a General Journal Input Form spreadsheet to analyze the closing entries to demonstrate an understanding of the process.

Ask your students to perform period-end-closing for The Kewl Shoppe using their accounting software.

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Activity 6.2.5 – Analyzing Closing Entries Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1


Graded Assignment


Analyzes closing entries accurately

Correct amounts in closing entries

Performs closing entries appropriately using the accounting software


Activity 6.2.6 – Create a Post-Closing Trial Balance Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Activity 6.2.6 – Create a Post-Closing Trial Balance



Activity Purpose – Demonstrate skill in completing the accounting cycle for the

fiscal period by creating a post-closing Trial Balance.

OLD TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C 2.e. generate Trial Balances and end-of-period adjustments; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled 7.c. make decisions using appropriate accounting concepts; 7.e. perform accounting procedures using manual and automated methods; 7.g. demonstrate use of the numeric keypad by touch

2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.166.C. 3.h. – prepare a trial balance; 3.i. – journalize and post adjusting and closing entries 6.c. – post to an accounts payable subsidiary ledger

TAKS Correlation:

READING

Objective 1: The student will demonstrate a basic understanding of culturally diverse written texts.

MATH

OBJECTIVE 10: The student will demonstrate an understanding of the mathematically processes and tools used in problem solving.


Accounting software


Facilitation

Activity 6.2.6 – Create a Post-Closing Trial Balance Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1

Activity Outline:

Have your students print a Post-Closing Trial Balance.

Ask them to answer these questions:

Is the Post-Closing Trial Balance in balance?

List the accounts in the debit column.

List the accounts in the credit column.

What accounts are missing from the Post-Closing Trial Balance? Why?

What financial statement does the Post-Closing Trial Balance look like because it has the same amounts and accounts on it?


Graded Assignment


Printout of Trial Balance accurate

Answers questions appropriately
