Lesson Plan 8.4 - End-of-Fiscal Period Activities
Course Title – Accounting I
Session Title –End-of-Fiscal Period Activities
Lesson Purpose – Demonstrate skill in completing the accounting
procedures for end-of-the fiscal period for a corporation.
Behavioral Objectives





Analyze and journalize adjusting entries for a merchandising business
formed as a corporation.
Calculate net income or net loss.
Prepare financial statements for a corporation.
Perform period-end closing for a fiscal period.
Journalize reversing entries if needed.
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.a. calculate and record depreciation
of plant assets;
4.b. prepare depreciation schedules;
4.c. determine and record uncollected
accounts receivable;
4.e. calculate and record notes
payable and notes receivable;
4.f. open and replenish a petty cash
fund and journalize transactions;
4.g. calculate interest due and
payable and journalize transactions
involving notes payable and
receivable;
4.h. calculate bad debts expense and
journalize transactions involving
uncollected 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;
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;
6.c. – post to an accounts payable
subsidiary ledger;
7.d. – post to an accounts receivable
subsidiary ledger;
7.h. – prepare an accounts receivable
schedule
7.i. – determine uncollectible accounts
receivable;
10.b. – determine the book value of a
plant asset;
10.c. – prepare depreciation
schedules
Lesson Plan 8.4 – End-of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
7.e. perform accounting procedures
using manual and automated
methods;
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.
Lesson Plan 8.4 – End-of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Materials, Equipment and Resources:




Textbook
Accounting Software
Journal Input Forms
Spreadsheet Software
Teaching Strategies:

Observation
Lesson Content:
Students work independently to complete the end-of-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 8.4 – End-of-Fiscal Period Activities
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 8.4.1 – Analyzing and Journalizing Adjusting
Entries
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose - Demonstrate skill in analyzing and journalizing adjusting
entries for 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.a. calculate and record depreciation
of plant assets;
4.b. prepare depreciation schedules;
4.c. determine and record
uncollected accounts receivable;
4.e. calculate and record notes
payable and notes receivable;
4.f. open and replenish a petty cash
fund and journalize transactions;
4.g. calculate interest due and
payable and journalize transactions
involving notes payable and
receivable;
4.h. calculate bad debts expense and
journalize transactions involving
uncollected accounts.
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;
6.c. – post to an accounts payable
subsidiary ledger;
6.d. – process invoices for payment
and accounts payable;
7.d. – post to an accounts receivable
subsidiary ledger;
7.i. – determine uncollectible
accounts receivable;
10.b. – determine the book value of a
plant asset;
10.c. – prepare depreciation
schedules
Activity 8.4.1 – Analyzing and Journalizing
Adjusting Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
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
Activity Outline:
1
Analyze adjusting entries given this information:
a. Uncollectible Accounts Expense is estimated at 0.5% of Sales.
b. FIFO method is used for calculating cost of merchandise inventory. Using
the following information, calculate the ending inventory value on 196
items. Please note: under normal circumstances, you would calculate
inventory on each type of item with a SKU number (inventory number), but
for this exercise, you only need to demonstrate your skill in calculating
cost of inventory.
Date
1-01-03
1-02-03
1-09-03
1-11-03
1-15-03
1-23-03
1-30-03
Number Purchased
200
100
150
100
100
150
25
Cost of each unit
$12
$10
$11
$8
$9
$14
$7
c. Ending Supplies Inventory is $131.50.
d. Value of Prepaid Insurance is $500.00.
e. Calculate the Depreciation Expense on the Delivery Truck for this fiscal
period. Use the stock record to get the information needed.
f. Interest Expense accrued on Note Payable 1. (Refer back to the
transaction for needed information.)
2
Enter adjusting entries.
Activity 8.4.1 – Analyzing and Journalizing
Adjusting Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Accurate amounts for adjusting entries
Accounts analyzed accurately
Completes in a timely manner
Activity 8.4.1 – Analyzing and Journalizing
Adjusting Entries
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 8.4.2 – Preparing Financial Statements
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose - Demonstrate skill in preparing financial statements for 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
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
N/A
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
Activity 8.4.2 – Preparing Financial Statements
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
1
Have your students print these financial statements:
a. Income Statement
b. Statement of Stockholder’s Equity
c. Balance Sheet
2
Ask your students to answer these questions:
a. What is the net income or net loss for the fiscal period?
b. What are the total operating expenses?
c. What is the component percentage for net income before Federal Income
Tax?
d. What is the net increase to retained earnings?
e. What is the total stockholder’s equity?
f. What is the proving total on the balance sheet?
g. What was the highest operating expense?
h. What suggestions would you make to this company to improve net income
for the next fiscal period?
Assessment:


Observation
Graded Assignment
Quality Feature
Score
Amounts on all financial statements accurate
No grammar or typing errors
Questions answered accurately
Logical suggestions that demonstrate thought given on the last
question
Completes in a timely manner
Activity 8.4.2 – Preparing Financial Statements
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 8.4.3 – Performing Period-End Closing
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose - Demonstrate skill and understanding in performing
period-end closing for 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
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
3.j. – prepare a post-closing trial
balance
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.
Materials, Equipment and Resources:


Textbook
Accounting Software
Teaching Strategies:

Observation
Activity 8.4.3 – Performing Period-End Closing
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Have your students:
1. Work independently to perform period-end closing for a corporation.
2. Print a Post-Closing Trial Balance.
3. Answer these questions about period-end closing:
a.
b.
c.
d.
What are the proving totals on the Post-Closing Trial Balance?
List the accounts with a zero balance.
List the accounts that were affected by the closing entries
Write a brief explanation of the procedures that take place in
closing entries. Include what is debited and credited and why.
Assessment:


Observation
Graded Assignment
Quality Feature
Performs Period-end closing effectively
Post-Closing Trial Balance accurate
Summary well-written
Summary thorough
No errors in summary
Completes in a timely manner
Activity 8.4.3 – Performing Period-End Closing
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 8.4.4– Reversing Entries
Course Title – Accounting I
Session Title – End-of-Fiscal Period Activities
Activity Purpose - Demonstrate skill in journalizing reversing entries at the
beginning of a new 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
N/A
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
Journal Input Form
Teaching Strategies:

Observation
Activity Outline:
Have your students:
1. Determine if there are any accounts that need a reversing entry.
Activity 8.4.2 – Reversing Entries
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
2. Using an input form, journalize the entry for any of these accounts.
Assessment:


Observation
Graded Assignment
Quality Feature
Reversing entry or entries accurate in amount and accounts.
Completes in a timely manner.
Activity 8.4.2 – Reversing Entries
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1