Monopoly Rules For Accounting
Page 1 Of 17
FOR CORPORATIONS .
Adapted from Susan Crosson, Santa Fe Community College, used with permission
Also adapted from Kathy Steine, Bellevue Community College, used with permission
The purpose of playing Monopoly is to provide a series of transactions for your
newly formed real estate investment company. You are expected to record all
transactions affecting your company, post to T-accounts, prepare a trial balance,
and construct financial statements. Before class, please be thinking about the
types of transactions involved, and the types of accounts needed to record these
various transactions. Your real estate investment company is organized as a
Corporation and the name of the company must include your last name.
To receive credit for the project, you must submit the following:
(All work must be legible and neat; this file is online under Monopoly, if you need
additional copies)
1. Chart of accounts
2. Monopoly worksheet
3. General Journal—print more copies as needed from the Handouts page
4. T-accounts
5. Trial Balance
6. Income Statement
7. Statement of Retained Earnings
8. Balance Sheet
9. What is your current ratio? ______________________
10. What is your net income percentage? ______________________
11. Closing entries
12. Post closing trial balance
Prior to playing, you will need to:
 Agree, as a class, on the Criteria for Winning the game.
 Review the Chart of Accounts.
During the game, you will ONLY:
 Record 25 transactions on the Monopoly Worksheet.
 Count and record your cash, after you have recorded 25 transactions.
 Count and record your properties, after you have recorded 25 transactions.
After the game, you will complete # 3-12 above.
Monopoly Rules For Accounting
Page 2 Of 17
On the day of our Monopoly Marathon, you will form groups of four (4) students
each for the purpose of playing a game of Monopoly. One student shall volunteer to
be the Banker, in addition to playing the game along with the rest of the group. The
Banker will handle all bank transactions, but will not record the transactions of the
bank. The banker is, however, responsible for recording his/her own individual
transactions just like the other players.
While playing, use the Monopoly Worksheet to record your 25 transactions. NO
MORE. After you have recorded 25 transactions, STOP
AND COUNT YOUR CASH. List the cash balance. Note: a
transaction can result from your individual play or from the
play of others that affect your company accounts. After
playing, prepare Journal Entries for each of your 25
transactions.
Each player must play until he/she has recorded a total of
25 transactions. You will need to play quickly!
The $1,500, which you receive at the beginning of the game, will be considered the
original financing obtained from the investors in your real estate company and must
be the first transaction recorded. The additional transactions recorded will
depend upon your individual play as the game progresses.
The game will be played with some slight
modifications to the official game rules:
 The players may immediately begin
purchasing property on their first turn
around the board.
 Houses and hotels may be purchased when
you own a single piece of property – you do not need to own all the properties in
a series to purchase buildings.
 No one is allowed “out” of the game. If you lack cash - make use of accounts
payable and accounts receivable. If you land on a property and do have not
money to pay the rent, record an accounts payable and the land owner will
record a receivable.
Monopoly Rules For Accounting
Page 3 Of 17
 Each time you pass GO the $200 you collect will be income you earn along with
your other sources of revenue.
 If you land on Water Works or Utilities they should be recorded as utility
expense.
 Record luxury tax or a tax paid because of a Chance or Community Chest card,
as tax expense.
 Paying to get out of jail is a fine expense
 Paying rent on a railroad will be transportation expense
 Any other income you earn that is not rental income should go to miscellaneous
income.
 Any other expense not itemized above can be put to miscellaneous expense
On _____________, before coming to class, review the Chart of Accounts for
your individual real estate investment company. Leave space in this chart to add
additional accounts as needed based on your individual circumstances.
You will discuss your Chart of Accounts in your class room teams. You will
revise/correct/update your chart of accounts with all the account titles after you
complete your play as you may need accounts you did not anticipate. Be sure your
Chart of Accounts includes retained earnings and is in the proper order!
Monopoly Rules For Accounting
Page 4 Of 17
Winning the game. The company (person) with the best performance in the
most categories is the winner. As a class we will define the criteria for winning the
game before play begins. (We will name and vote on at least two criteria, e.g.,
Highest Revenue, Highest profit, Highest Assets, Highest Net Worth, Best
Current Ratio, Best Working Capital, etc…..).
Criteria To Determine The “Winner:
1.
2.
3.
4.
As you play the game, record your 25 transactions on the Monopoly Worksheet. Be
sure to plan your strategy so as to maximize your chances of achieving dominance
in the class-selected criteria.
Cash. At the conclusion of the game, count your cash and make note of the total
amount in the space provided below. Later, when you have concluded your project,
compare the actual cash count with the balance in your Cash T-account. Does it
agree?
Cash count at the end of the game
$____________
Does the cash count agree with your cash T-account?___________
See steps #3-10 above. After the game, prepare Journal Entries (in good
form), Post from your journal to T-accounts, prepare a Trial Balance in good form,
and from the trial balance, prepare the required financial statements for your real
estate investment company in good form. Calculate selected ratios.
Finally, #11-12 above. Book the Closing Journal Entries (in good form), Post
from your journal to T-accounts, prepare a Post Closing Trial Balance in good form.
Monopoly Rules For Accounting
Page 5 Of 17
_______________________
CHART OF ACCOUNTS (see text pg. ______)
_______________________
Account
Type
Asset
Cash
Asset
Accounts Receivable
Asset
Land
Asset
Building
Asset
Equipment
Asset
Rolling Stock (railroads)
Liabilities
Accounts Payable
Equity
Common Stock
Equity
Retained Earnings
Revenue
Rent Revenue
Revenue
“Go” Revenue
Revenue
Miscellaneous Revenue
Expense
Rent Expense
Expense
Utility Expense
Expense
Tax Expense
Expense
Fine Expense
Expense
Transportation Expense
Expense
Miscellaneous Expense
Account Title
Monopoly Rules For Accounting
Page 6 Of 17
SUMMARY OF TRANSACTIONS - BLANK WORKSHEET - MONOPOLY
trxn
CASH
Notes - what other account(s) involved, what property involved, write
down EVERYTHING!!!
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Count YOUR CASH AFTER #25!!!: $_________________________
Monopoly Rules For Accounting
Page 7 Of 17
GENERAL JOURNAL
Date
Accounts
Page 1
Debit
Credit
Monopoly Rules For Accounting
Page 8 Of 17
GENERAL JOURNAL
Date
Accounts
Page 2
Post
Ref
Debit
Credit
Monopoly Rules For Accounting
Page 9 Of 17
GENERAL JOURNAL
Date
Accounts
Page 3
Post
Ref
Debit
Credit
Monopoly Rules For Accounting
GENERAL LEDGER
CASH
Page 10 Of 17
Accts Receivable
Building
Monopoly Rules For Accounting
Page 11 Of 17
Land
Equipment
Rolling Stock
Accounts Payable
Common Stock
Retained Earnings
Rent Revenue
Monopoly Rules For Accounting
Page 12 Of 17
Go Revenue
Miscellaneous Revenue
Rent Expense
Utility Expense
Fine Expense
Miscellaneous Expense
Tax Expense
Transportation Expense
Monopoly Rules For Accounting
Page 13 Of 17
____________________
Trial Balance
__________________
Account
Number
Account Title
TOTAL
Debit
Credit
Monopoly Rules For Accounting
Page 14 Of 17
_______________________
INCOME STATEMENT
_______________________
_______________________
STATEMENT OF RETAINED EARNINGS
_______________________
Monopoly Rules For Accounting
Page 15 Of 17
_______________________
BALANCE SHEET
_______________________
Answer
Working Capital
Current Ratio
Calculations
Monopoly Rules For Accounting
Page 16 Of 17
CLOSING JOURNAL ENTRIES
Date
Accounts
Page 3
Post
Ref
Debit
Credit
Monopoly Rules For Accounting
Page 17 Of 17
____________________
Post Closing Trial Balance
__________________
Account
Number
Account Title
TOTAL
Debit
Credit