Accounting for a Service Proprietorship‐Stage 2 Virtual Business Business Management & Administration Lesson Plan
Performance Objective The student will be able to apply fundamental bookkeeping skills for a virtual business office. Specific Objectives The student will be able to understand how business activities change the accounting equation. The student will be able to report financial information on a balance sheet. The student will be able to determine the normal balance for a simple chart of accounts. The student will be able to analyze transactions into debit and credit parts by using T‐Accounts. The student will be able to analyze how transactions affect accounts. The student will be able to analyze how transactions affect owner’s equity. Terms  Balance Sheet‐A financial statement that reports assets, liabilities, and owner’s equity based on a certain date.  Revenue‐An increase in the owner’s equity resulting from the operation of a business.  Sale on Account‐A sale for which cash will be received at a later date.  Expense‐A decrease in the owner’s equity resulting from the operation of a business.  Withdrawals‐Assets taken out of a business for the owner’s personal use.  T Account‐An accounting device used to analyze transactions.  Debit‐An amount recorded on the left side of the t‐account is a debit. Credit‐An amount recorded on the right side of the t‐account is a credit. Normal Balance‐The side of the account (either debit or credit) that is increased. Time When taught as written, this lesson should take approximately 250 minutes to teach. Preparation
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. 130.120. (c) Knowledge and Skills (4) The student establishes pricing, billing, and collections procedures. The student is expected to: (C) apply fundamental bookkeeping skills for a virtual business office Interdisciplinary Correlations: English‐English IV  110.34(b)(1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading and writing. Copyright © Texas Education Agency, 2013. All rights reserved.
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110.34(b)(17) Students understand the function of and use the conventions of academic language when speaking and writing. Students will continue to apply earlier standards with greater complexity. 110.34(b)(18) Students will write legibly and use appropriate capitalization and punctuation conventions in their compositions. Students are expected to correctly and consistently use conventions of punctuation and capitalization. 110.34(b)(19) Students are expected to spell correctly, including using various resources to determine and check correct spellings. 110.34(b)(12) Students use comprehension skills to analyze how words, images, graphics, and sounds work together to impact meaning. 110.34(b)(23) Students organize and present their ideas and information according to the purpose and research and their audience. Occupational Correlation (O*Net – www.onetonline.org/): Job Title: Bookkeeping, Accounting, and Auditing Clerks O*Net Number: 43‐3031.00 Reported Job Titles: Accounting Clerk, Accounting Assistant, Accounts Receivable/Payable Clerk Tasks: Operate computers programmed with accounting software to record, store, and analyze information. Check figures, postings, and documents for correct entry, mathematical accuracy, and proper codes. Comply with federal, state, and company policies, procedures, and regulations. Soft Skills: Oral Comprehension, Written Comprehension, Mathematical Reasoning Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Review and familiarize yourself with the terminology, any and all website links, and any resource materials required  Prepare materials and websites prior to the start of the lesson References Southwestern 21st Century Accounting General Journal (Texas Edition) Teacher’s Edition, Ross, Gilbertson, Lehman, Hanson. Instructional Aids  Lesson 4.3 Presentation  Instructor Computer/Projection Unit Copyright © Texas Education Agency, 2013. All rights reserved.
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Introduction
The main purposes of this lesson are to help students learn how to apply fundamental bookkeeping skills for a virtual business office. When doing this lesson, you may want to let students know about the Accounting course, if it is offered at your school. Ask Do you think keeping up with a business’ earnings (credits) and expenditures (debits) would be difficult? Ask What do you think the most difficult part would be? Ask Why do you think it’s important that a business keep accurate track of its earnings and expenditures? Ask Do you think there is only one way to keep track of the money? Say Keeping accurate records of money coming in (earnings, credit) and money going out (expenditures, debit), is arguably the single most important function of any business. Just like any skill, you have to know what to do and how to do it in order for everything to work as it should. In this lesson, we’re going to go through some of the basic concepts and skills it takes to accurately record a business’ earnings and expenditures. We’re going to learn what happens to the owner’s equity every time a transaction occurs. We’re going to learn how to analyze transactions by using a method called T‐accounts. We’re going to learn how to report information on a balance sheet. And finally, if there is time, we’re going to learn to how record transactions in a General Journal. When we get through with this lesson, you will hopefully be able to keep records for a service proprietorship. If you enjoy what we do in this lesson, I would encourage you to take Accounting I! Copyright © Texas Education Agency, 2013. All rights reserved.
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Outline
I. Vocabulary/Personal Word Walls
II. Introduction (Ask and Say)
III. Discovery Activity
Financially Stable Quotations
Specifics are listed in both this
document and the presentation
slides.
IV. Information
Accounting Equation
Students use a search engine of
choice to find and record five
quotations that represent their
understanding/mindset of what it
means to be financially stable.
V. Assignment
Accounting Equation
During the 1st week of school,
students will have created personal,
possibly electronic, Word Walls..
The method and location will be
established by you, the teacher.
VI. Information
Chart of Accounts
VII. Assignment
Chart of Accounts
VI. Review and Evaluation
VII. Extensions
Share the information in the
presentation slides with students.
Have students complete the
Accounting Equation assignment
provided in both the presentation
slides and a handout.
Share with students the information
in the presentation.
Have students complete the Chart
of Accounts assignment provided in
both the presentation slides and a
handout. Answers are provided in
the slide notes.
Questions are provided in the
presentation slide notes.
Activities are provided in the
presentation slide notes
Multiple Intelligences Guide Kinesthetic/ Logical/ ialist Interpersonal Intrapersonal Bodily Mathematical Musical/Rhythmic Naturalist Verbal/Linguistic Visual
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Application
Discovery Activity Have students find and report answers to questions about the accounting profession by using the ONet Online website, www.onetonline.org. Information‐Accounting Equation Share this information with your students. Information‐Background Information Share this information with your students. Assignment‐How Business Activities Affect the Accounting Equation Have students do this assignment. There is a Student File (multiple tabs) and a Teacher File (multiple tabs). There is a sample and a practice tab. You may want to go through this with all students, or they can look at the sample and complete on own. Information‐Balance Sheet Have students do this assignment. There is a Student File (multiple tabs) and a Teacher File (multiple tabs). There is a guided practice and an independent practice. Assignment‐T Accounts Have students do this assignment. There is a Student File (multiple tabs) and a Teacher File (multiple tabs). There is a sample, a guided practice, an independent practice, and an assessment. Summary
Review and Lesson Evaluation Review the lesson’s purpose and evaluate its effectiveness. Evaluation
Informal Assessment Any and all of the following can be used as informal assessments  Need to Know Terms  Any notes taken  How Business Activities Change the Accounting Equation  T‐Accounts Independent Practice Formal Assessment Lesson 4.03 Assessment‐T Accounts
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Enrichment
Extensions Extensions Have students use the Onet Online website (onetonline.org) and find the answers to the same questions in the discovery activity, but do this for three professions that are of interest to him/her. Have students take a foam ball and dress is it up like an accountant to be displayed in your classroom. Copyright © Texas Education Agency, 2013. All rights reserved.
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Lesson 4.02 Assessment Virtual Business 1. Select 5 of the “need to know” terms we covered in this lesson and provide a definition, in your own words, and a graphical representation of the term. (sample provided) Term Definition Graphical Representation Companies handle their own billing and receiving and do not hire a company to handle it for them. In‐House Billing 2. Choose three of the 13 account concepts that were introduced and explain each concept in your own words. Concept Name Own Words 3. The accounting equation must always remain ________________ (high, stable, balanced, or visible). Which word most correctly fits in the blank? 4. Correctly set up a chart of accounts for a new company based on the given account titles. Every other one is in blue to help identify the account titles. Cash Owner’s Capital Rent Expense Sales Owner’s Drawing Supplies Accounts Payable‐XYZ Company Accounts Receivable‐Northern Press Advertising Expense
Prepaid Insurance Accounts Receivable‐Yellowbox Accounts Payable‐Shirts A GoGo Utilities Expense Asset # Liability # Owner’s # Revenue # Expense # Equity #=Account Number Copyright © Texas Education Agency, 2013. All rights reserved.
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Lesson 4.02 Assessment Key Virtual Business 1. Select 5 of the “need to know” terms we covered in this lesson and provide a definition, in your own words, and a graphical representation of the term. (sample provided) Answers will vary. Term Definition Graphical Representation Companies handle their own billing and receiving and do not hire a company to handle it for them. In‐House Billing 2. Choose three of the 13 account concepts that were introduced and explain each concept in your own words. Answers will vary. Concept Name Own Words 3. The accounting equation must always remain ________________ (high, stable, balanced, or visible). Which word most correctly fits in the blank? 4. Correctly set up a chart of accounts for a new company based on the given account titles. Every other one is in blue to help identify the account titles. Cash Owner’s Capital Rent Expense Sales Owner’s Drawing Supplies Accounts Payable‐XYZ Company Accounts Receivable‐Northern Press Advertising Expense
Prepaid Insurance Accounts Receivable‐Yellowbox Accounts Payable‐Shirts A GoGo Utilities Expense Asset # Liability # Owner’s # Revenue # Expense # Equity Cash 110 Accounts 210 Owner’s 310 Sales 410 Advertising 510
Payable‐Shirts Capital Expense A Gogo Accounts 120 Accounts 220 Owner’s 320 Rent Expense 520
Receivable‐
Payable‐ Drawing Northern Press XYZ Company Accounts 130 Utilities Expense 530
Receivable‐
Yellowbox Prepaid 140 Insurance Copyright © Texas Education Agency, 2013. All rights reserved.
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Supplies 150 #=Account Number Copyright © Texas Education Agency, 2013. All rights reserved.
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