Lesson Plan 6.1 – Fiscal Period Activities
Course Title – Accounting I
Session Title – Fiscal Period Activities
Lesson Purpose – Demonstrate skill in analyzing, journalizing and posting
transactions for a merchandising business organized as a partnership..
Behavioral Objectives





Research similar businesses.
Create a chart of accounts for a merchandising business.
Analyze, journalize and post transactions relating to a merchandising
business.
Journalize and post transactions using computerized methods.
Complete payroll and record transactions relating to payroll in a
journal.
Preparation
2010 TEKS Correlations:
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.b. analyze transactions relating to
purchase and sale of merchandise;
2.c. record transactions in special
journals;
3.a. compute gross pay
3.b. compute net pay;
3.c. compute employee-paid
withholdings;
3.d. - compute and complete payroll
tax expense forms;
3.e. compute salary expenses
3.f. prepare payroll registers;
3.g. - record payroll transactions in
journals;
7.a. - follow oral and written
instructions;
7.b. - develop time management skills
Lesson 6.1 – Fiscal Period Activities
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.
5. The student performs accounting
functions specific for a merchandising
business. The student is expected to
explain the nature of special journals
and recording transactions in special
journals.
9.c. – calculate employee earnings
such as gross earnings and net pay;
9.d. – calculate employee-paid
withholdings;
9.e. – prepare a payroll register;
9.f. – record the payroll in the general
journal;
9.g. – complete payroll tax expense
forms;
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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
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
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
Payroll register
Spreadsheet software
Teaching Strategies:

Observation
Lesson Content:
This lesson gives brief instructions for a merchandising business formed as a
partnership. Students work independently as much as possible, completing the
activities for the fiscal period.
Assessment:


Observation
Graded Assignments
Lesson 6.1 – Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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.
Websites:
Baskin-Robbins. Baskin Robbins, Incorporated, 2003. .
http://www.baskinrobbins.com/
Lesson 6.1 – Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 6.1.1 – Researching the Business
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose – Demonstrate skill in researching a type of business and analyze
the success of the business.
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
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;
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.
Materials, Equipment and Resources:



Textbook
Internet
Multimedia presentation software
Teaching Strategies:


Observation
Facilitation
Activity Outline:
Have your students choose at least two successful ice cream businesses to research
using the Internet. (See web sites listed in the Lesson.) Ask them to specifically read
about the business and make notes of anything cited as part of their success. Discuss
their success and a brief part of their history that contributed to that success. Include
any interesting corporate news in a presentation.
Activity 6.1.1 – Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Presentation includes requested information about the
success of the business
Presentation design appropriate
Two businesses used
No errors in the presentation
Completes in a timely manner
Activity 6.1.1 – Fiscal Period Activities
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 6.1.2 – Chart of Accounts
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose – Demonstrate skill in creating a chart of accounts using
accounting software.
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
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;
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:
N/A
Materials, Equipment and Resources:


Textbook
Accounting software
Teaching Strategies:


Observation
Facilitation
Activity Outline:
Have your students set up their business using their accounting software. Ask them to
create this chart of accounts.
The Kewl Shoppe
Chart of Accounts
(1000) Assets
(4000) Revenue
1110
1120
1130
Cash in Bank
Petty Cash
Accounts Receivable
4110
4120
1140
1150
1160
Merchandise Inventory
Office Supplies
Store Supplies
5110
Purchases
6110
Advertising Expense
Activity 6.1.2 – Chart of Accounts
Ice Cream Sales
Game Fees
(5000)
Cost of Merchandise
(6000) Expenses
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
1170
Prepaid Insurance
2110
2120
Accounts Payable
Employee Income Tax
Payable
FICA Tax Payable
Sales Tax Payable
Fed. Unemployment. Tax
Payable
State Unemployment. Tax
Payable
(2000) Liabilities
2130
2140
2150
2160
(3000) Owner’s Equity
3110
3120
3130
3140
3150
6120
6130
6140
6150
Credit Card Fee Expense
Insurance Expense
Miscellaneous Expense
Payroll Taxes Expense
6160
6170
6180
Rent Expense
Salary Expense
Office Supplies Expense
6190
Store Supplies Expense
6195
Utilities Expense
Derek Dodson, Capital
Derek Dodson, Drawing
Jennifer Dodson, Capital
Jennifer Dodson, Drawing
Income Summary
Accounts Receivable
Ledger
110 ANG
120 BAB
130 DUR
140 SAM
150 GER
Abbey Angel
Bridgett Babbs
Jon Durant
Sam Samson
Gertrude Gertrudis
Accounts Payable Ledger
210 ICE
220 TOM
230 URI
240 VAL
250 WYA
260 YOU
270 XYZ
Ice Cream
Tom’s Wholesale
UR Ice Cream
Val’s Wholesale, Inc.
Wyatt’s Creamery
Your Favorite Place
XYZ Office Supply
.
Assessment:


Observation
Graded Assignment
Quality Feature
Chart of accounts entered in the accounting software without
error
Business set up appropriately in the accounting software
Completes in a timely manner
Activity 6.1.2 – Chart of Accounts
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 6.1.3 – Journalizing Transactions
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose – Demonstrate skill in analyzing and journalizing transactions for
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
2.b. analyze transactions relating to
purchase and sale of merchandise;
2.c. record transactions in special
journals;
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;
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.f. – record transactions in a general
journal;
5. The student performs accounting
functions specific for a merchandising
business. The student is expected to
explain the nature of special journals and
recording transactions in special journals.
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
Accounting software
Teaching Strategies:


Observation
Facilitation
Activity 6.1.3 – Journalizing Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Journalize these transactions for the fiscal period:
Date Transaction
Mar
1 Received cash from Derek Dodson for an investment in
the business, $20,000, R1
1 Received cash from Jennifer Dodson for an investment in
the business, $20,000, R2
2 Paid cash for rent, $1,200, C1
2 Wrote a check to petty cash to open the fund, $100, C2
3 Purchased merchandise on account from Tom’s
3
3
4
4
5
6
6
7
7
7
7
9
9
10
10
11
11
11
12
13
14
14
16
17
17
Wholesale, $1,300, P1
Purchased merchandise on account from Ice Cream
Wholesale, $550. P2
Purchased merchandise on account from Wyatt’s
Creamery, $700, P3
Paid cash for Office Supplies, $500, C3
Paid cash for Store Supplies, $700. C4
Paid cash for insurance, $600. C5
Sold on account to Abbey Angel, $300 plus sales tax $27,
S1
Sold on account to Jon Durant, $225 plus sales tax $20,
S2
Recorded cash and credit card ice cream sales for the
week, $727 plus sales tax $65, T7
Recorded game room fees for the week, $147, T7
Derek Dodson withdrew merchandise for personal use,
$95, M1
Sold on account to Gertrude Gertrudis, $32 plus sales tax
$3, S3
Received cash on account from Abbey Angel, $327, R3
Received cash on account from Jon Durant, $345, R4
Paid cash on account to Tom’s Wholesale, $1,300, C6
Paid cash on account to Ice Cream Wholesale, $550, C7
Purchased merchandise on account from Your Favorite
Place, $627, P4
Purchased merchandise on account from UR Ice Cream,
$599, P5
Purchased merchandise on account from Val’s Wholesale,
Inc., $779, P6
Purchased merchandise by paying cash, $125, C8
Paid cash for advertising, $223, C9
Recorded cash and credit card sales $2,125 plus sales tax
191, T14
Recorded game room fees for the week, $522, T14
Recorded bank service charge $15, M2
Recorded credit card fees from bank, $106, M3
Sold on account to Sam Samson, $450 plus sales tax $40,
Activity 6.1.3 – Journalizing Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
S4
18 Sold on account to Bridgett Babbs, $140 plus sales tax
$12, S5
18 Bought office supplies on account from XYZ Office
Supply, $215, M4
19 Bought store supplies on account from XYZ Office Supply,
$445, M5
20 Purchased a computer from Bell Computers, Inc., $2,413,
21
21
22
23
23
24
24
25
26
26
27
27
28
28
29
30
30
C10 (You need to add this account to your chart of
accounts.)
Recorded cash and credit card sales for the week, $3,900
plus sales $391, T21
Recorded game room fees for the week, $400, T21
Paid cash for rental of game machines, $675, C11
(Realized that you probably need a separate expense
account for this item. The game room is mostly to
encourage students to come in and buy ice cream, but
you don’t want to lose money on the game room. Add an
expense account titled Game Rental Expense.)
Paid cash for utilities, $450, C12
Paid cash for advertising, $444, C13
Purchased merchandise on account from UR Ice Cream,
$1,500, P7
Purchased merchandise on account from Wyatt’s
Creamery, $727, P8
Purchased merchandise by paying cash, $125, C14
Discovered an error in the accounting records on March
12. Purchased merchandise was actually purchasing
office supplies. Make the correcting entry. M6
Paid cash for miscellaneous expense, $55, C15
Recorded cash and credit card sales for the week, $1,334
plus sales tax $120, T27
Recorded game room fees for the week, $627, T27
Sold on account to Sam Samson, $422 plus sales tax $38,
S6
Paid cash to Print It! for printing of flyers, $246, C16
Supplied ice cream to Byrland High School’s Career Fair,
$346 (Debit Advertising Expense and credit Purchases),
M7
Derek Dodson withdrew cash for personal use, $2,000,
C17
Jennifer Dodson withdrew cash for personal use, $2,000,
C18
Activity 6.1.3 – Journalizing Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Chart of accounts updated as needed
Correct journal input form used for each transaction
Correct amounts and accounts debited and credited for each
transaction
Entries in accounting software accurate
Completes in a timely manner
Activity 6.1.3 – Journalizing Transactions
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 6.1.4 – Calculating and Journalizing Payroll
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose – Demonstrate skill calculating and journalizing payroll 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
2.b. analyze transactions relating to
purchase and sale of merchandise;
2.c. record transactions in special
journals;
3.a. compute gross pay
3.b. compute net pay;
3.c. compute employee-paid
withholdings;
3.d. compute and complete payroll tax
expense forms;
3.e. compute salary expenses
3.f. prepare payroll registers;
3.g. record payroll transactions in
journals;
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.
5. The student performs accounting
functions specific for a merchandising
business. The student is expected to
explain the nature of special journals and
recording transactions in special journals.
9.c. – calculate employee earnings such
as gross earnings and net pay;
9.d. – calculate employee-paid
withholdings;
9.e. – prepare a payroll register;
9.f. – record the payroll in the general
journal;
9.g. – complete payroll tax expense
forms;
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
Accounting software
Activity 6.1.4 – Calculating and Journalizing Payroll
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Teaching Strategies:


Observation
Facilitation
Activity Outline:
Have your students create and use a Payroll Register spreadsheet to calculate the
employees’ pay. The two student employees are paid on the last day of the month.
Employee
Name
Joshua
Mercer
Marital
Status
Allowances
Pay
Rate
S
1
$6.00
S
1
$6.50
Karen Luna
Hours
Worked
80 (20 hours
per week so
there is no
overtime)
80 (20 hours
per week so
there is no
overtime)
Current rates for taxes: FICA 9%, Federal Unemployment .8%, State Unemployment
2.8%. Use the FIT tax chart in your textbook to look up FIT taxes. There are no other
deductions.
Record the payment of cash for salaries on the last day of this fiscal period. The
source document is check number 19.
Record the employer’s payroll taxes on the above payroll. The source document is
Memorandum 8. This is the last entry of the fiscal period.
Assessment:


Observation
Graded Assignment
Quality Feature
Payroll register accurate
Both entries analyzed accurately
Entries in accounting software accurate
Completes in a timely manner
Activity 6.1.4 – Calculating and Journalizing Payroll
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1