Lesson Plan 8.3 - 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 corporation.
Behavioral Objectives



Analyze, journalize and post transactions relating to a corporation.
Journalize and post transactions using computerized methods.
Complete payroll and record transactions relating to payroll in a
journal.
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
4.e. calculate and record notes
payable and notes receivable;
4.f. open and replenish a petty cash
fund and journalize transactions;
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
4.c. – journalize and post entries to
establish and replenish petty cash;
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.
6.c. – post to an accounts payable
subsidiary ledger;
7.d. – post to an accounts receivable
subsidiary ledger;
TAKS Correlation:
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Lesson Plan 8.3 – Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Materials, Equipment and Resources:





Textbook
Accounting Software
Journal Input Forms
Payroll Register
Spreadsheet Software
Teaching Strategies:

Observation
Lesson Content:
Students work independently to complete the fiscal period activities for a
corporation.
Assessment:


Observation
Graded Assignment
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 Plan 8.3 – Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 8.3.1 – Analyzing Transactions
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose - Demonstrate skill in analyzing transactions related to a
merchandising business formed as a corporation.
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
4.f. open and replenish a petty cash
fund and journalize transactions;
7.a. follow oral and written
instructions;
7.b. develop time management skills
by setting priorities for completing
work as scheduled;
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
4.c. – journalize and post entries to
establish and replenish petty cash;
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
Input Forms
Teaching Strategies:

Observation
Activity Outline:
Analyze the transactions by writing them in journal input forms. Terms for
discounts on sales transactions only are 2/10, n/30. Sales Tax is 8%. The date
is January 1, 2003.
Activity 8.3.1 – Analyzing Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Date
Jan
1
1
1
2
2
2
3
3
3
4
4
4
5
8
8
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10
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15
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Transaction
Sold shares of stock to incorporate the business at $2.00 a share, 30,000
shares, M1.
Paid cash for rent, $1,250.00, C1.
Purchased merchandise on account from Tom’s Wholesale, $3,500.00 P1.
Issued Note Payable 1 to Walls National Bank for $32,000 at 8% interest
rate for a period of 4 years, NP1.
Paid cash for Delivery Truck, $32,000. C2.
(Set up a stock record for this plant asset. Estimated useful life is 10 years
and salvage value is $1,500.00.)
Purchased merchandise on account from Ice Cream, $595.00, P2.
Purchased merchandise on account from Wyatt’s Creamery, $1,205.00, P3.
Sold merchandise on account to Abbey Angel, $59.00, S1 (Don’t forget to
add sales tax and total the sale.)
Paid cash for advertising, $500.00, C3.
Sold merchandise on account to Jon Durant, $59.00, S2.
Granted credit to Abbey Angel for merchandise returned, $9.00 (Calculate
8% sales tax and then total for the full amount of the return.), CM2.
Paid cash for merchandise, $450.00, C4.
Recorded cash and credit card sales for the week, $1,950.00. (Add sales
tax and calculate the total.), T5.
Paid cash for miscellaneous expense, $22.50, C5.
Paid cash for supplies, $533.00, C6.
Purchased merchandise on account from Your Favorite Place, $999.50, P4.
Received cash on account from Abbey Angel, $54.00. Original Sale was
$59.00 plus sales tax, but part of the merchandise was returned. R1
Paid cash for utilities, $176.00, C7.
Purchased merchandise on account from Val’s Wholesale, Inc., $888.00,
P5.
Paid cash for salaries, C8.
(Prepare a payroll register to calculate the salary expense for this entry. All
three employees are single with one exemption. The only deductions are
FIT and FICA. Joshua Mercer worked 40 hours during the last two weeks.
He gets paid $6.25 an hour. Karen Luna worked 42 hours during the last
two weeks. She gets paid $6.50 an hour. Jim Ledbetter drives the ice
cream truck. He began work this week so he only worked 24 hours and
gets paid $6.00 an hour.)
Recorded employer payroll taxes expense. Calculate on the above entry.
Match FICA Tax and calculate Federal Unemployment using .7% and State
Unemployment using 2.7%, M2.
Recorded cash and credit card sales for the week, $1,776.00, T12.
Purchased gas on account from Gas It-Up, Inc. for Delivery Truck, $32.00,
M3.
Bought supplies on account from XYZ Office Supply, $399.00, M3.
Purchased merchandise on account from UR Ice Cream, $1,205.00, P7.
Sold merchandise on account to Bridget Babbs, $300.00, S3.
Had flyers printed to place on cars at the high school, $125.00, C9.
Paid cash for credit card fees, $198.00, C10.
Recorded bank service charge, $10.00, M4.
Sold merchandise on account to Jon Durant, $300.00, S4.
Received cash on account from Jon Durant, $63.72 ($59 plus sales tax),
R2.
Wrote a check to establish a petty cash fund of $200.00, C11.
Recorded cash and credit card sales for the week, $2,982.00 plus sales tax,
T19.
Activity 8.3.1 – Analyzing Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
19
22
22
23
23
23
24
24
24
24
25
25
25
25
28
29
29
29
29
30
31
31
31
Purchased gas on account from Gas It-Up, Inc. for Delivery Truck, $32.00,
M5
Paid cash for a 6-month insurance policy, $600.00, C12.
Bought supplies on account XYZ Office Supply, $22.50, M6
Purchased merchandise on account from Tom’s Wholesale, $1,400.00, P8.
Paid cash on account to Tom’s Wholesale, $3,500, C13.
Paid cash on account to Ice Cream, $595.00, C14.
Paid cash on account to Wyatt’s Creamery, $1,205.00, C15.
Purchased gas on account from Gas It-Up, Inc. for Delivery Truck, $32.00,
M7
Paid cash for advertising spot on the radio, $900.00, C16.
Sold merchandise on account to Sam Samson, $300.00, S4.
Sold merchandise on account to Bridget Babbs, $300.00, S5.
Paid cash for salaries, C17. (Josh worked 44 hours, Karen worked 38 hours
and Jim worked 47 hours. For the next payroll, Jim will be earning a 1%
commission on sales as well.)
Recorded payroll taxes expense on the above transaction, M8.
Recorded cash and credit card sales for the week, $3,917.00, T25.
Paid for newspaper advertising, $49.00, C18.
Paid to have the store cleaned, $250.00, C19.
Purchased gas on account from Gas It-Up, Inc. for Delivery Truck, $32.00,
M9.
Sold merchandise on account to Gertrude Gertrudis, $50.00, S6.
Sold merchandise on account to Jon Durant, $50.00, S7.
Purchased merchandise for cash, $55.50, C20.
Recorded cash and credit card sales for the week, $554.50, T31.
Declared a dividend of $10,000, M10. Dividend will be paid February 15,
2003.
Replenished the petty cash fund, $45. Petty cash slips were as follows:
Supplies $15, Miscellaneous Expense $10, Miscellaneous Expense $15,
Supplies $5, C21
Assessment:


Observation
Graded Assignment
Quality Feature
Analyzes all transactions accurately
Amounts accurate
Entries in journal entry form correct
Totals for journal entry forms accurate
Completes in a timely manner
Activity 8.3.1 – Analyzing Transactions
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 8.3.2 – Journalizing and Posting Transactions
Course Title – Accounting I
Session Title – Fiscal Period Activities
Activity Purpose - Demonstrate skill in journalizing and posting transactions
for a 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
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.g. – post journal entries to general
3.h. – prepare a trial balance
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
Spreadsheet Software
Teaching Strategies:

Observation
Activity Outline:
1. Have your students journalize and post the transactions from Activity 1
using accounting software.
2. Ask your students to print a Trial Balance after posting the entries.
Activity 8.3.2 – Journalizing and Posting Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Journal entries accurate with the debits and credits balancing
No errors in posting amounts
Trial balance accounts listed
Trial balance totals accurate
Completes in a timely manner
Activity 8.3.2 – Journalizing and Posting Transactions
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1