Lesson Plan 3.2 – End-of-Fiscal Period Activities
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Lesson Purpose – Demonstrate skill in completing the accounting cycle for a
service business organized as a sole proprietorship.
Behavioral Objectives






Analyze inventories and prepaid accounts for adjusting entries.
Sort accounts by balance sheet or income statement accounts.
Calculate net income or net loss.
Calculate component percents.
Journalize and post adjusting and closing entries.
Prepare a post-closing Trial Balance.
Preparation
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents;
1.h. calculate and record end-ofperiod adjustments;
1.i. update accounts through
adjusting and closing entries;
1.j. prepare a post-closing Trial
Balance;
1.k. 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.f. complete the accounting cycle
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.c.demonstrate the effects of
transactions on the accounting
equation;
3.e. use T accounts
3.i. – journalize and post adjusting
and closing entries;
3.j. – prepare a post-closing trial
balance;
3.o. – calculate business profitability;
3.q. – prepare a statement of equity
and retained earnings;
Lesson 3.2 Overview – End-Of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
within an assigned time frame;
7.g. demonstrate use of the numeric
keypad by touch.
TAKS Correlation:
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Lesson Content:
Review of accounting cycle for end-of-fiscal period work.
Assessment:


Observation
Graded Assignments
Additional Resources:
Textbooks:
Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting RealWorld 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. SouthWestern 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. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43529-1.
Lesson 3.2 Overview – End-Of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Lesson 3.2 Overview – End-Of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.1 – Analyzing Adjusting Entries
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill in completing the accounting cycle for a
service business organized as a sole proprietorship.
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Activity 3.2.1 – Analyzing Adjusting Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students use the third and fourth columns in the worksheet,
Adjustment columns, to analyze into debit and credit parts the adjusting entries.
Supplies and Prepaid Insurance need to be adjusted. An inventory count of
supplies shows that there is still $200.00 worth of supplies available. The
insurance value is now at $500.00.
Assessment:


Observation
Graded Assignments
Quality Feature
Amounts for adjusting entries correct
Correct accounts debited and credited
Total for adjustments correct
Writing legible
Completes in a timely manner
Activity 3.2.1 – Analyzing Adjusting Entries
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.2 – Sorting Income Statement and Balance
Sheet Accounts
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill in sorting accounts into income
statement or balance sheet.
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
Activity 3.2.2 – Sorting Income Statement
and Balance Sheet Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students extend the balance sheet accounts to the Balance Sheet
columns of the worksheet and the income statement accounts to the Income
Statement columns of the worksheet. Remind students to calculate in the
adjustment columns before extending those accounts.
Assessment:


Observation
Graded Assignments
Quality Feature
Balance Sheet accounts extends to correct columns
Income Statement accounts extends to correct columns
Four column totals accurate
Writing legible
Completes in a timely manner
Activity 3.2.2 – Sorting Income Statement
and Balance Sheet Accounts
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.3 – Calculating Net Income or Net Loss
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill in calculating net income or net loss.
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts
3.o. – calculate business profitability
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:
Activity 3.2.3 – Calculating Net Income or Net Loss
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students calculate the net income or net loss for this fiscal period.
Have them include simple math proofs on the worksheet with appropriate single
or double ruled lines used.
Assessment:


Observation
Graded Assignments
Quality Feature
Net income or net loss accurate.
Amount for net income or loss placed in the appropriate
columns.
Math proofs done.
Single and double ruled lines used correctly.
Line for net income or loss labeled.
Writing legible.
Completes in a timely manner.
Activity 3.2.3 – Calculating Net Income or Net Loss
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.3 – Calculating Net Income or Net Loss
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.4 –Preparing Financial Statements
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill in preparing financial statements and
calculating ending capital of a business.
OLD EKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
1.k. 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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts
3.o. – calculate business profitability;
3.q. – prepare a statement of equity
and retained earnings
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
Activity 3.2.4 – Preparing Financial Statements
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students prepare three financial statements: Statement of Owner’s
Equity, Income Statement, and Balance Sheet. On the Income Statement your
students should figure the component percents for Total Expenses and Net
Income to Total Sales.
Assessment:


Observation
Graded Assignments
Quality Feature
Statement of Owner’s Equity:
Correct three-line heading
Correct total for ending capital
Formula shown
Correct indentions and line rulings
Income Statement:
Correct three-line heading
All revenue and expense accounts shown with correct
totals
Component percents accurate to the nearest tenth
Indentions and line rulings correct
Balance Sheet:
Correct three-line heading
Assets, liabilities and ending capital accurate
Left side equals the right side
Indentions and line rulings correct
Writing legible
Completes in a timely manner
Activity 3.2.4 – Preparing Financial Statements
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.5 – Journalizing and Posting Adjusting and
Closing Entries
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill in journalizing and posting adjusting
and closing entries.
OLD TEKS Correlations:
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.
120.42.C.1.b. apply information from
source documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
1.i. update accounts through
adjusting and closing entries;
1.k. 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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts
3.i. – journalize and post adjusting
and closing entries;
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Activity 3.2.5 – Journalizing and Posting
Adjusting and Closing Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students journalize adjusting entries from the worksheet and post
them to the general ledger. Ask your students to journalize closing entries for the
fiscal period so all temporary capital accounts are closed, and post them to the
general ledger.
Assessment:


Observation
Graded Assignments
Quality Feature
Score
Adjusting entries journalized with date, debit, credit and source
document or explanation
Adjusting entries posted accurately to the general ledger with
a correct balance
Post references included on the journal and the ledger for
adjusting entries
Closing entries journalized with date, debit, credit and an
explanation
Closing entries posted accurately to the general ledger with a
correct balance
Post references included on the journal and the ledger for
closing entries
Writing legible
Completes in a timely manner
Activity 3.2.5 – Journalizing and Posting
Adjusting and Closing Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.6 – Preparing a Post-Closing Trial Balance
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate skill preparing a Post-Closing Trial Balance.
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
1.c. demonstrate the effects of
transactions on the accounting
equation, for example, T accounts;
1.j. prepare a post-closing Trial
Balance;
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.
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.c. – demonstrate the effects of
transactions on the accounting
equation;
3.j. – prepare a post-closing trial
balance
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
Activity 3.2.6 – Preparing a Post-Closing Trial Balance
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students prepare a post-closing Trial Balance from their general
ledger account balances. They should only include accounts with balances.
Assessment:


Observation
Graded Assignments
Quality Feature
Correct three-line heading
Correct accounts listed
Balances correct
Balances in correct column
Totals accurate
Single and double ruled lines used as needed
Writing legible
Completes in a timely manner
Activity 3.2.6 – Preparing a Post-Closing Trial Balance
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 3.2.7 – Analyzing the Business Status
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose – Demonstrate critical thinking ability and decision-making
skills in preparing a business report on the status of the business at the end of
the fiscal period.
OLD TEKS Correlations:
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.
120.42.C
1.b. apply information from source
documents
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.
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:
READING
Objective 1: The student will demonstrate a basic understanding of culturally
diverse written texts.
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
command of the conventions of spelling, capitalization, punctuation grammar,
and usage and sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
Activity 3.2.7 – Analyzing the Business Status
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:

Observation
Activity Outline:
Have your students prepare a written summary of the fiscal period with at least
one chart as a visual that is approximately one to two pages in length and typed.
In the summary have them:




Evaluate the Statement of Stockholder’s Equity. State the difference
from beginning to end and what caused that difference. Is it good or
bad? Why?
Evaluate the income statement. What expenses are too high? What
can be done to reduce them? What can be done to increase net
income, if needed? What do the future projections for this company
look like if the current trend continues? Create a pie chart for a visual
of the total expenses.
Evaluate the balance sheet. If you were a banker, would you loan
money to this business? Why or why not?
Discuss at least five accounting assumptions that were used in the
accounting cycle. Explain where and how they were used.
Assessment:


Observation
Graded Assignments
Quality Feature
Each financial statement evaluated
Most observations correct
Summary well-written
An appropriate chart visual included
No errors in the document
Report in correct format and typed
Completes in a timely manner
Activity 3.2.7 – Analyzing the Business Status
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1