Lesson Plan 5.1– Work Sheets with Adjustments
Course Title: Accounting II
Lesson Title: Work Sheets with Adjustments
Specific Objective: Understand concepts, procedures, and applications
related to preparing a work sheet with adjustments.
Performance Objectives:
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Determine which general ledger accounts are adjusted;
Calculate federal income tax for a corporation;
Prepare a work sheet for a merchandising corporation;
Journalize adjusting entries;
Define accounting terms related to the lesson.
TEKS: 130.67.c.2:
A – discuss the nature of a consolidated financial statement;
G – complete a work sheet for a corporation.
TAKS: R1, M10
Preparation
Materials Needed:
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Overhead projector
Glencoe’s Textbook, Chapter 11, Section 1, (pp. 332-342), and
Demonstration Problems
Century 21’s Textbook, Chapter 13, Section 1, (pp. 348-354).
Accounting software and spreadsheet software
Sponge/Focus Activity:
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Ask your students to examine several annual reports for corporations and list
amounts paid for federal income tax.
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Exploring the Real World of Business, in Glencoe’s Textbook
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A possible end of class activity is to give each student a 3 x 5 card and give
them several minutes to answer the following question:
o “What is the most important item you learned today?” Have them
turn in the 3 x 5 card before they leave class. (You can use this
activity whenever you want feedback on what your students
learned.)
Lesson Content:
See Glencoe’s Textbook, Chapter 11, Section 1, or Century 21’s Textbook,
Chapter 13, Section 1. Here is an outline:
I.
The Eight-Column work sheet
A. The trial balance section
Lesson Plan 5.1 –
Work Sheet and Adjustments
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II
B. The adjustments section
1.
Adjustment for accrued interest income
2.
Adjustment for estimated uncollectible accounts expense
3.
Adjustments for depreciation
4.
Adjustment for prepaid interest expense
5.
Adjustment for accrued interest expense
6.
Adjustment for accrued salaries
7.
Adjustment for unearned rental Income
8.
Adjustment for federal corporate income taxes (see figure 1316 on p. 367 in Century 21’s textbook for a picture of a U.S.
Corporation Income Tax Return)
9.
Completing the adjustments section
C. Completing the work sheet
Teaching Strategies:
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Glencoe’s Demonstration Problems
With the Century 21 textbook, do the Work Together problems together, and
then with On Your Own give your students time to do the problem and then
go over the problem with the class.
Assessment:
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For problems you can use Peachtree Accounting from Glencoe, Glencoe
Accounting Software, Century 21 Accounting Software, or a spreadsheet.
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From Glencoe’s Textbook Problems
o Guided Practice
 11-1 Recording Adjustments on the Work Sheet
 11-2 Analyzing a Source Document
o Independent Practice
 11-4 Entering Adjustments on the Work Sheet
 11-5 Preparing a Work Sheet
 11-8 Preparing a Work Sheet
 11-9 Analyzing Errors on the Work Sheet
o Additional Activities:
 Using Key Terms: accrual, deferral;
 Understanding Accounting Concepts and Procedures, #1-5;

Case Study, Conducting an Audit with Alex, Internet
Connection, and Workplace Skills
From Century 21’s Textbook
o Guided Practice
 Work Together: Calculating federal income tax expense,
recording the adjustment and completing a work sheet
 On Your Own: Calculating federal income tax expense,
recording the adjustment and completing a work sheet
o Independent Practice
 11-1 Preparing a work sheet for a corporation
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Lesson Plan 5.1 –
Work Sheet and Adjustments
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II
 11-2 Calculating federal income taxes
o Additional Activities: Applied Communication
Additional Resources:
Textbooks:
Guerrieri, Donald J., F. Barry Haber, William B. Hoyt, and Robert E. Turner,
Glencoe Accounting Real-World Applications & Connections, Advanced
Course, Fourth Edition, Glencoe McGraw-Hill: New York, New York.
Ross, Kenton E., CPA, Mark W. Lehman, CPA, Claudia Bienias Gilbertson, CPA,
Robert D. Hanson, Century 21 Accounting Advanced, Anniversary Edition,
Thomson South-Western: Mason, OH, 2003.
Multimedia:
Century 21’s Teacher Resource CD
Websites:
http://accounting.swpco.com
Lesson Plan 5.1 –
Work Sheet and Adjustments
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING II