Lesson 1
Lesson Plan Title: Accounting – The Accounting Cycle & Source Documents
Materials: Text, notebook, pencils, paper, handouts
Class: 10-12 Grades
Students with special needs will be addressed as needed and according to their IEP’s.
State of Connecticut CTE Performance Standards 2007
Business and Finance Technology
CONTENT AREA—
Accounting
Content Measure – Thirty-five percent of concentrators assessed will achieve 65 percent
proficiency.
PERFORMANCE STANDARDS AND COMPETENCIES
A. Accounting Cycle: Complete the various steps of the accounting cycle and explain the
purpose of each step.
1. Describe the effects of the revenue, expense, and drawing accounts on the owner’s equity.
2. Analyze business transactions using source documents.
3. Describe the effects of business transactions on the accounting equation.
4. Define the purpose of a journal and its relationship to the ledger.
5. Journalize business transactions using various journal formats.
6. Prepare and analyze a trial balance to determine the necessary adjustments
(accruals and deferrals) to prepare financial statements.
7. Prepare financial statements.
8. Journalize and post-closing entries and prepare a post-closing trial balance
Opening of the Lesson:
The Accounting Cycle is like making a pizza. I will write on the board the process to making a
pizza (crust, pizza sauce, toppings, cheese) explain to the class that it is important for this to
happen in this order otherwise the pizza will not turn out right. This is a cycle that can be
repeated over and over again and you will get the same results. This is similar to the accounting
cycle. Everything in the accounting cycle must be done in order for it to be complete the process.
If things get out of order nothing will get done right it is like a pizza with the cheese being put on
before the sauce.
My objectives for this lesson are:
Students will understand how and why the accounting cycle must be completed in a specific
order.
Students will demonstrate what source documents are and describe the parts of the source
documents through the use of examples.
Pre-Assessment/ Do-Now Activity:
The students will attempt to define the key vocabulary terms that are listed below. Review the
accounting cycle – Administer a pre-test to check students’ understanding of the accounting
cycle and vocabulary. An additional pre-test should be a problem that is for a proprietorship and
only uses the general journal. Students may work in pairs or groups with teacher circulating to
check individual student understanding. Review the accounting cycle using the PowerPoint
provided. Refer to student text for additional review and problems.
Pre-Test online:
http://highered.mcgraw-hill.com/sites/0073526819/student_view0/chapter3/pre-test.html
Vocabulary:
Write on the Board:
1. Accounting Cycle
2. source documents
3. analyze each transaction
4. journalize each transaction
5. post to ledger
6. prepare trial balance
7. prepare a work sheet
8. prepare financial statements
9. journalize and post-closing entries
10. prepare a post-closing trial balance.
The class will discuss the vocabulary terms and the students will self-assess their answers and
take notes on the terms.
The students will then create sentences for at least 5 of the vocabulary terms. Students that are
working at a higher level will create sentences for the terms for all of the terms.
I will explain to the students that just like making a pizza these steps need to be done in a cycle
they can be repeated over and over again to get the finished products, but if they are not done in
this order complications can occur. I will then tell the students that we will be studying this
cycle, but we will work on them in order so they understand the process. In today’s class we are
going to study step one: source documents.
Vocabulary:
Source Documents – is a paper document that records money transactions that happen in the
office.
Collect all of the source data that you have for the time period you are documenting.
Verify that the sources are correct check the math on each document.
Show invoice example to the class.
Explain to the class the important parts of the invoice.
1. What company sent the invoice?
2. Who was the invoice sent to?
3. What is the invoice #?
4. What date was the invoice sent?
5. What was the order #?
6. How was the order shipped?
7. What are the terms of payment?
8. What item was ordered?
9. How many of the item was ordered?
10. What was the cost of the item?
11. What was the total cost of the items?
Check for understanding
After explaining these show the class another invoice and ask the class the above questions to see
if they know the proper answers.
Show example of receipt
1. Explain to the class the important parts of the receipt
2. Who paid the bill
3. What business received payment
4. How much was payment
5. What was the receipt #
6. On what day was the bill paid
7. Who received the payment
8. What was the payment for
Check for understanding
After explaining these show the class another receipt and ask the class the above questions to see
if they know the proper answers.
Show class an example of a memorandum
Explain to the class the important parts of a memorandum
1. What company is the memorandum from?
2. Who sent the memorandum?
3. Who is receiving the memorandum?
4. What day was the memorandum sent?
5. What is the memorandum number?
6. Why was the memorandum sent?
Check for understanding
After explaining these show the class another memorandum and ask the class the above
questions to see if they know the proper answers
I will show the class and example of a check stub.
Explain to the class the important parts of a check stub
1. What was the check #
2. When was the check written
3. How much was the check for
4. Who was the check written to
5. What was the check written for
6. What was your balance before you wrote the check
7. What was your balance after the check
Check for understanding
After explaining these show the class another memorandum and ask the class the above
questions to see if they know the proper answers.
Practice Activity
I will hand out another example to the students of an invoice, receipt, memorandum, and check
stub and have them answer the questions that I asked in class. This will demonstrate to me if they
know the material. The students will label the parts of each of the documents. The students will
then exchange their work with another student in the class, peer review.
Closure
I will have the students come up in front of the class and explain what they have learned about
the first step of the process and how they can use this knowledge going forward to the next step
in the process. If they have any questions with the material they should come to me and I will
help them. Use exit slips to gather feedback from the students.
Homework:
I will hand out information about a business, in paragraph form, and then give the students a
blank invoice, receipt, memorandum, and check stub and have them fill in the information before
the next class.
Resources:
Pre-Test
http://highered.mcgraw-hill.com/sites/0073526819/student_view0/chapter3/pre-test.html