Lesson Plan: Accounting Monopoly

Duration: One 90-minute class period

At the Bell: Read the instruction sheet and study the chart of accounts you will be using for the game.

Objectives:

  1. Analyze business transactions into debit and credit parts
  2. Journalize transactions
  3. Post transactions from the journal into the general and subsidiary ledgers
  4. Prepare a worksheet
  5. Create financial statements
  6. Journalize and post adjusting and closing

Procedure:

  1. Teacher will hand out papers and explain the game.
  2. Students will play Monopoly while updating their journals.
  3. Students will prove and rule their journals and prove their cash.

Handouts:instructions, chart of accounts, Journal Sheets

Assessment: Students will earn 15 points for completing their worksheets correctly.

Extension:Peer tutoring

Modifications: Students can work with a partner to help them complete the journal entries.

Closure: Review of proving and lining journals and proving cash

Student name(s): ______

Accounting Monopoly

Getting Started:

You are going to practice journalizing and proving cash using the game of Monopoly. Since this is the first time we’re doing this, you may play with a partner to help you journalize transactions (two people = one piece going around the board). As you play the game, make note of which accounts you would add or remove from the given chart of accounts to create your own chart of accounts.

Step 1: Create a company name ______

Step 2: Choose a banker for your group of players. Assume you wrote a personal check for $2000 to start the business.

  • Journalize a transaction of $2000 cash DEBIT and $2000 capital CREDIT.
  • Instruct the banker what denominations you would like for your cash.

Step 3:Look over the Chart of Accounts (COA) on the back of this page. You will use this list to record business transactions on your Journal Sheets as you play.

Step 4:Play the game.

Journalize each transaction making sure you have a date, a document number, and at least
one DEBIT and one CREDIT for each transaction. Leave space at the bottom of each Journal Sheet to prove and rule (total the columns) before starting a new page. Remember to write
the page number at the top of each Journal Sheet.Use C for Check, R for Receipt, M for Memo.

Rules:

  1. Each player starts with $2000 in his/her checking account (this is the $2000 you journalized in Step 2).
  2. Property may be purchased on the first trip around the board.
  3. All payments will go directly to the bank unless otherwise instructed.
  4. When you land on another person's property, pay rent with a check or on account, but you must have both parties’ consent to pay on account.
  5. You do not need to own three of the same property group to buy houses and hotels. You may buy them at any time that you have the property and cash available. You may also buy properties from other players for cash or on account.
  6. The banker will give you $200 cash when you pass GO.
  7. Any time you pay to get out of jail, pay personal fines or anything else that looks like a personal expense, Debit Drawing instead of a business expense.
  8. The player(s) with the most cash and largest capital (properties) balanceat the end of the game wins.

Step 5: Prove and rule the last Journal page. Make sure Debits and Credits Equal.

Step 6: Prove cash. You will need to total your cash on hand and fill in
the form below.

Proving Cash

1. Cash on hand at the beginning of the game $______-0-______

2. Plus total cash received during the game______

3. Subtotal$______

4. Less total cash paid during the month ______

5. Equals total cash on hand$______

Chart of Accounts

Starting Balance

ClassificationAccountAccount No.Amounts

AssetsCash110$2000

Properties120$0

LiabilitiesEHS Bank210$1500

CapitalYour Name, Capital310$500

Your Name, Drawing320$0

Revenues"Go" Revenue410$0

Rent Revenue420$0

Misc. Revenue430$0

ExpensesRent Expense510$0

Misc. Expense520$0

Utilities Expense530

Notes on Posting Transactions

Transaction / Doc. No / DEBIT / CREDIT
Get money to start the game / Receipt (Ex: R1) / Cash / Capital
Buy Property / Check (Ex: C1) / Property / Cash
Pay Bills i.e. interest expense / Check / Related expense acct / Cash
Receive rental income / Receipt / Cash / Rent Revenue
Receive other income / Receipt / Cash / Misc. Revenue
Buy House or Hotel / Check (or memo if it’s on account) / House or Hotel / Cash or Liability Acct

Also, remember to write the date one time for each Journal transaction, even if it takes up 2 lines like buying Supplies on Account.

Student name: ______

Accounting Monopoly

Getting Started:

You are going to practice journalizing and proving cash using the game of Monopoly. You are also going to post your transactions to the General Ledger after you prove and rule your Journal sheets.You may want to customize and print a Journal sheet to record transactions.

Step 1: Create a company name ______

Step 2: Choose a banker for your group. The banker provides the starting funds for your company ($500 cash).

  • Instruct the banker what denominations you would like for your cash.
  • You will also record a starting balance of $1000 in your checking account.

Step 3: Play the game.

Journalize each transaction making sure you have at least one DEBIT and one CREDIT for each transaction. Prove and rule eachJournal Sheet before starting a page. Remember to write the page number at the top of each Journal Sheet, and write the date one time for each transaction.

Rules

  1. Each player starts with $1500.
  2. Property may be purchased on the first trip around the board.
  3. When you pay fines, taxes, or to the Community Chess, assume a check is made out to the EHS Bank except when it goes into the middle for Free Parking.
  4. When you land on another person's property you pay them rent; record a check transaction.
  5. You do not need three of the same property to buy houses and hotels. You may buy them at any time that you have the property.
  6. The banker will give you $200 cash when you pass GO.
  7. Anytime you receive money assume a receipt was prepared (you WILL need to track receipt numbers for the Journal transactions, but you don’t have to write them out).
  8. Anytime you pay to get out of jail, pay fines, & other personal expenses it needs to come out of withdrawals instead of business expenses.
  9. The player with the greatest net income and largest capital account wins the game.

Step 5: Prove and rule the last Journal page and post all journal entries to the General Ledger.

Step 6: Prove cash. You will need to total your cash on hand and fill in the form below.

Proving Cash

1. Cash on hand at the beginning of the game $______

2. Plus total cash received during the game______

3. Subtotal$______

4. Less total cash paid during the month ______

5. Equals total cash on hand$______

Chart of Accounts

Starting Balance

ClassificationAccountAccount No.Amounts

AssetsCash110$2000

Properties120$0

LiabilitiesEHS Bank210$1500

CapitalYour Name, Capital310$500

Your Name, Drawing320$0

Revenues"Go" Revenue410$0

Rent Revenue420$0

Misc. Revenue430$0

ExpensesRent Expense510$0

Misc. Expense520$0

Utilities Expense530

Note on Posting Transactions

Transaction / Doc. No / DEBIT / CREDIT
Get money to start the game (assume it is from the owner) / Receipt (Ex: R1) / Cash / Capital
Buy Property / Check (Ex: C1) / Property / Cash
Pay Bills i.e. interest expense / Check / Proper expense acct / Cash
Receive rental income / Receipt / Cash / Rent Income
Receive other income / Receipt / Cash / Other Income
Buy House or Hotel / Check (or memo if it’s a loan) / House or Hotel / Cash or Liability Acct+