Todd Anderson

Five-Day Lesson Plan

Accounting Methods

Chapter Four: Five-Column Journal

Chapter Objectives:

1. Students will know and understand the various types of business forms used when journalizing transactions.
2. Students will describe the uses and reasons for using a special journal.
3. Students will be able to show and produce all of the parts of a five-column journal.
4. Students will be able to demonstrate how to perform numerous types of transactions in a five-column journal.
5. Students will understand how to rule a journal and show how to prove that the journal is in balance.

Day-by-Day Schedule For the Week

Day One

1. Discuss Chapter Terms
2. Introduce Business Forms
3. Introduction to a Five-Column Journal
4. Review of Day One

Day Two

1. Review of Day One
2. Introduce New Transactions for Five-Column Journal
3. Discuss Ruling/Proving a Journal
4. Applications
5. Review of Day Two

Day Three

1. Quiz on Terms
2. Review Applications
3. Start Problems
4. Review of Day Three

Day Four

1. Work on Study Guide
2. Quiz Game
3. Questions Before Final    
4. Review of Day 5

Day Five

1. Answer a Few Last Questions
2. Test
3. Read the Next Chapter

Day One

Today’s Objectives:

1.      Students will know and understand the various types of business forms used when journalizing transactions.

2.      Students will describe the uses and reasons for using a special journal.

3.      Students will be able to show and produce all of the parts of a five-column journal.

Ma      terials Needed:  Attendance sheet, grade book, pencil, overhead projector, overhead pens, wet cloth, copies of crossword puzzle, transparency of crossword puzzle, different types of source documents, journal transparency, key.

Classroom Activities:

1. Take attendance. (2 minutes)
2. Crossword puzzle of chapter terms.  (10 minutes)

A.    Students will be given a copy of crossword puzzle.

B.     Students will be given five minutes to work on the puzzle.

C.    After the five minutes, will use a transparency copy on the overhead and have students provide the answers.  Will fill in the answers as students provide them.

D.    Let students know that they will be quizzed on the terms at the beginning of class on Wednesday.

3. Examples of all types of business forms.  (5 minutes)

A.    Explain that business forms are called source documents and are used to record entries in journals.  The source documents prove that transactions occurred.

B.     Introduce different types of source documents and show examples of each.

1.      Check – source document of a cash payment.  When a check is received you will be making a credit to cash.

2.      Sales invoice – source document that records the sale of goods or services.  This will require a credit to sales.  The invoice is printed in duplicates.  The original copy is given to the customer and the company keeps the copy as a source document.

3.      Receipt – source document that records when cash is received except sales.  This will require a debit to cash.

4.      Memorandum – source document that is prepared when no other type of document is used or an explanation is need.  Most memorandums include an explanation describing the transaction.

3. Show the different aspects of the source documents.

1.      Date of transaction.

2.      Amount of transaction.

3.      Who sent the document?

4.      Who received the document?

5.      Document number.

4. Introduce the concept of a five-column journal. (5 minutes)
1. Instead of using a general journal to record transactions, a five-column journal ensures an orderly record of transactions, reduces the amount of paper used, provides transactions in chronological order, and creates a permanent log of all transactions.
2. The individual account titles can vary depending on the needs of the type of business.  The example we will be using in class will be based on a company that has a lot of sales and a lot of money coming in and out of the company.  There for the journal will have a special column for all credits to Sales. 
5. Provide an overhead copy of a five-column journal. (10 minutes)
1. Describe and point out all of the different parts of a journal.

1.      Date – The year is only on the first transaction of each page of the journal.  The month is only used once and doesn’t change until the next page of the journal or until a new month starts.  The only number needed for each transaction is the day.  Demonstrate placement of the date on the overhead.

2.      Account Title – This column is used to write down the general account title that is being debited or credited. 

3.      Document Number – This is used as a reference to the source document that the transaction originated from.  To record the document number, you use the initial and the number of the source document.  For example, Check 101, would be recorded as C101.

4.      Post Reference – This section will not be used until the next step in the accounting cycle and is not important yet.

5.      General Debt/Credit Columns – These columns are used to record the amount of the general account that is being debited or credited. 

6.      Sales Credit – This column is used to record a credit to the Sales account.  If you are crediting Sales, then you don’t have to write the account name in the Account Title column.  All you have to do is place the amount of the transaction in the Sales Credit column.

7.      Cash Debit/Credit – This column is used to record a debit or credit to cash.  If you are debiting or crediting cash, then you simply record the debit or credit amount in these columns.  Once again, you don’t write Cash in the account title column.

6. Go over transactions.  (Journal transparency) (Pages 69-70 of the textbook). (10 minutes)  For all transactions: analyze the transaction, T accounts, journalize.
1. Receive cash from owner as an investment. P.69

1.      Date.  First you write the date.  You include the year, month, and date because it is the first entry of the journal page.  This will be the only entry on the page that you include the year and month.

2.      Debit.  The debit is to cash.   The five-column journal has a special column, Cash Debit, for debiting to Cash.  Therefore you place the dollar amount in this column.

3.      Credit.  The credit is to the owner’s capital account.  There is no special amount column for this account, therefore you write in the account name in the Account Title column.  You then place the dollar amount in the General Credit column.  (All amounts recorded in the General Debit or General Credit columns must have an account title written in the Account Title column.

4.      Source Document.  Write the source document initial and number in the Document Number column.  The source document is Receipt No. 1, therefore you place R1 in the column.  This serves as a reference to the document that the transaction came from.

2. Paid cash for supplies.

1.      Date.  Insert the date.  You only put the day down because it is not the first entry on this page.

2.      Debit.  The debit is to Supplies.  Once again, there is no special amount column for this account, therefore you write in the account name in the Account Title column.  You then place the dollar amount in the General Debit column. 

3.      Credit.  The credit is to cash.   The five-column journal has a special column, Cash Credit, for crediting to Cash.  Therefore you place the dollar amount in this column.

4.      Source Document.  Write the source document initial and number in the Document Number column.  The source document is check 1, therefore the document number would be C1.

7. For the remainder of the class period, complete Application Problem 4-1.  This will be due at the beginning of class tomorrow.
1. Use the working papers to complete the assignment.
2. Follow the directions in the textbook.
3. Use examples in book only if you can’t do it on your own.
4. Remember the terms quiz on Wednesday.
8. Assignment – Finish 4-1 in not completed in class.
9. Reflection.

Day Two

Objectives:

1. Students will know and understand the various types of business forms used when journalizing transactions.
2. Students will describe the uses and reasons for using a special journal.
3. Students will be able to show and produce all of the parts of a five-column journal.
4. Students will be able to demonstrate how to perform numerous types of transactions in a five-column journal.

Materials Needed:  Attendance book, pen/pencil, journal transparency, overhead projector, overhead pens, wet cloth, cash proof transparency, grade book, key, ruler, assignment answers.

Classroom Activities:

1. Take attendance.  (2 minutes)
2. Go over 4-1.
3. Refresh journal info. (4 min)
1. Ask students the following questions:

1.      In what order are transactions recorded in a journal?

2.      Why are source documents important?

3.      List the four parts of a journal entry?

4. Work on new types of transactions on journal transparency. (Have students provide parts of transactions before providing them.)  Pages 72-80 of the textbook. (16 minutes)  Use a transparency that has transaction, T accounts, and journal for all the transactions.
1. Paid cash for insurance.

1.      Date.  Insert the day of the transaction.

2.      Debit.   Since there is no special column, write Prepaid Insurance in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since the credit is to cash, you simply write the credit amount in the Cash Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

2. Bought supplies on account.

1.      Date.  Insert the date of the transaction.

2.      Debit.  Since there is no special column, write Supplies in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since there is no special column, write Accounts Payable in the Account Title column and the credit amount in the General Credit column.  This transaction goes on the line after the debit to Supplies with NO indent.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.  The document number only goes on the first line of the transaction.

3. Paid cash on account.

1.      Date.  Insert the day of the transaction.

2.      Debit.  Since there is no special column, write Accounts Payable in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since the credit is to cash, you simply write the credit amount in the Cash Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column. 

4. Received cash from sales.

1.      Date.  Insert the day of the transaction.

2.      Debit.  Since the debit is to cash, you simply write the debit amount in the Cash Debit column.

3.      Credit.  Since the credit is to Sales and the journal already has a special column for credits to the Sales account all you do is put the dollar amount in the Sales Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

5. Sold services on account.

1.      Date.  Insert the date of the transaction.

2.      Debit.  Since there is no special column, write Accounts Receivable in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since the credit is to Sales and the journal already has a special column for credits to the Sales account all you do is put the dollar amount in the Sales Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

6. Paid cash for rent.

1.      Date.  Insert the date of the transaction.

2.      Debit.  Since there is no special column, write Rent Expense in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since the credit is to cash, you simply write the credit amount in the Cash Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

7. Received cash on account. 

1.      Date.  Insert the date of the transaction.

2.      Debit.  Since the debit is to cash, you simply write the debit amount in the Cash debit column.

3.      Credit.  The credit is to accounts receivable.  There is no special amount column for this account, therefore you write in the account name in the Account Title column.  You then place the dollar amount in the General Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

8. Paid cash to owner for personal use.

1.      Date.  Insert the date of the transaction.

2.      Debit.  Since there is no special column, write Drawing in the Account Title column and the debit amount in the General Debit column.

3.      Credit.  Since the credit is to cash, you simply write the credit amount in the Cash Credit column.

4.      Source Document.  Place the initial and number of the source document in the Document Number column.

5. Complete Application Problem 4-2 in class by yourself.  (10 minutes)
1. Use the workbook to complete this assignment.
2. Follow the directions in the textbook.
3. Walk around to make sure students are completing the assignment correctly.
6. Proving a journal.  (Show on journal transparency)  (2 minutes)
1. Add each of the amount columns.
2. Add the debit column totals and then add the credit column totals. 
3. Verify that the total debits equal the total credits.  If debits equal the credits then the journal is proved.
7. Ruling a journal. (Show on journal transparency)  (3 minutes)
1. Rule a single line across all amount columns directly below the last entry.
2. On the next line, write the date in the date column.
3. Write the words “Carried Forward” in the Account Title column. 
4. Write each column total below the single line.
5. Rule double lines below the column totals across the amount columns.
8. Starting a new journal page (Show on the journal transparency)  (3 minutes)
1. Insert the page number in the upper right corner.
2. Insert the year and month in the first date column.
3. In the Account Title column, write the words: “Brought Forward.”
4. Record the column totals from the bottom of the last page.
9. Cash proof. (show on the overhead.)  (3 minutes)
1. Insert the cash at the beginning of the month.
2. Plus total cash received during the month. 

1.      This amount is the total of the journal’s Cash Debit column.

2.      Insert a single black line under this number.

3. Equals total.

1.      Add A and B.

4. Less total cash paid during the month.

1.      This amount in the total of the journal’s Cash Credit column.

2.      Insert a single black line after this number.

5. Equals cash balance

1.       Subtract D from C.

6. Checkbook balance on the next unused check stub.

1.      If E and F are equal insert double lines under both numbers.

10. Ruling a journal at the end of the month.  (show on journal transparency) (4 minutes)
1. Insert a line across all amount columns directly below the last entry to indicate that the columns need to be added.
2. In the next column insert the date in the Date column.
3. Insert the word, Totals, in the Account Title column.
4. Write the column totals below the single line.
5. Verify that your debits equal your credits and then insert double lines below the amount columns.
11. Application Problem 4-3.
1. Students will be given the remainder of the class period to work on this problem.
2. If they don’t finish it will be due at the beginning of the next class period.
3. Students complete the problem in the workbook.
4. Follow the directions in the textbook.
5. Remind students of the Terms Quiz at the beginning of class tomorrow.
12. Finish 4-3.
13. Reflection.

Day Three

Objectives:

1.      Students will know and understand the various types of business forms used when journalizing transactions.

2.      Students will describe the uses and reasons for using a special journal.

3.      Students will be able to show and produce all of the parts of a five-column journal.

4.      Students will be able to demonstrate how to perform numerous types of transactions in a five-column journal.

5.      Students will understand how to rule a journal and show how to prove that the journal is in balance.

Materials Needed:  Attendance book, pen/pencil, copies of quiz, textbook, answers to 4-3, key, working papers, journal transparency, ruler, grade book.

Classroom Activities:

1.      Take attendance.

2.      Quiz on terms. (10 minutes)

A.    Students will take a short matching quiz on the chapter terms.

B.     Once all quizzes are turned in, go over the answers with the class.

3.      Go over Application Problem 4-3.  (5 minutes)

A.    Go through the transactions and have students orally supply the answers.

B.     See if anyone had problems on certain transactions and recover that material.

4.      Application Problem 4-4.  (25 minutes)

A.    Students will continue their work in the working papers.

B.     Follow the directions in the book.

C.    Students will complete this problem on their own.

D.    Walk around the classroom as this activity is being completed and check to make sure students are completing the assignment correctly.

E.     Answer any individual questions.  If it is an important question than inform the entire classroom.

F.     After twenty-minutes go over the problem together. 

1.      Stress the proving and ruling part of the exercise.

2.      If students finish early they can start on the Application Problem 4-5.

5.      Application Problem 4-5.

A.    Students will be given the remainder of the class period to work on this problem.

B.     If they don’t finish it will be due at the beginning of the next class period.

C.    Students complete the problem in the workbook. 

D.    Follow the directions in the textbook.

6.      Assignment – Finish 4-5.

7.      Reflection

Day Four

Objectives:

1. Students will know and understand the various types of business forms used when journalizing transactions.
2. Students will describe the uses and reasons for using a special journal.

3.      Students will be able to show and produce all of the parts of a five-column journal.

4.      Students will be able to demonstrate how to perform numerous types of transactions in a five-column journal.

5.      Students will understand how to rule a journal and show how to prove that the journal is in balance.

Materials Needed:  Attendance book, textbook, working book, jeopardy board, buzzer system for quiz game, pen/pencil, grade book, key.

Classroom Activities:

1. Go over the Application Problem 4-5.  (5 minutes)
1. Have the students give the answers orally.
2. Recover any information that students don’t understand.
2. Application Problem 4-6.  (20 minutes)
1. Students will be given the first part of the class period to work on Application Problem 4-6. 
2. Students will continue their work in the working papers.
3. Follow the directions in the book.
4. Students will complete this problem on their own.
5. Walk around the classroom as this activity is being completed and check to make sure students are completing the assignment correctly.
6. Answer any individual questions.  If it is an important question inform the entire classroom.
7. Provide the correct column totals to make sure students mastered the problem.
8. If students still had problems, then see me after class or after school.
3. Journalizing Jeopardy  (25 minutes)
1. Students divided into two teams and grouped together.
2. Any student may answer, but if they are wrong their group loses the points.  If they are correct, then their team gets the points.
3. Three different categories.

1.      Definitions.

A.     100 points – A form describing the goods or services sold, the quantity, and the price – invoice.

B.     200 points – Information for each transaction recording in a journal – entry.

C.     300 points – A business form ordering a bank to pay cash from a bank account – check.

D.     400 points – A business paper from which information is obtained for a journal entry – source document.

E.      500 points – A form on which a brief message is written describing a transaction – memorandum.

2.      Parts of a Journal

A.     100 points – Column used to record the day, month, or year that a transaction occurred on – Date.

B.     200 points – Column used as a reference from the journal to the source document – Document Number.

C.     300 points – If no specific amount column is provided, then this is the column you would enter the account title – Account Title.

D.     400 points – Amount column used to record an increase in Sales – Sales Credit.

E.      500 points - Amount column used if you were increasing Supplies – General Debit.

3.      Transactions (must provide the debit amount column and credit amount column)

A.      100 points – Received cash from owner as an investment – Cash Debit, General Credit.

B.     200 points – Paid cash for supplies – General Debit, Cash Credit.

C.     300 points – Paid cash for rent – General Debit, Cash Credit.

D.     400 points - Bought supplies on account – General Debit, General Credit.

E.      500 points – Received cash from sales – Cash Debit, Sales Credit.

4. Team with the most points wins and receives two bonus points on tomorrow’s test.

1.      Remind students of the test tomorrow.

2.      Study notes, textbook, and working papers.

3.      Available for questions after class, after school, before school, or during 4^th and 6^th hours.

4.      Assignment – Study for test.

5.      Reflection.

Day Five

Objectives:

1. Students will know and understand the various types of business forms used when journalizing transactions.
2. Students will describe the uses and reasons for using a special journal.
3. Students will be able to show and produce all of the parts of a five-column journal.

4.      Students will be able to demonstrate how to perform numerous types of transactions in a five-column journal.

5.      Students will understand how to rule a journal and show how to prove that the journal is in balance.

Materials Needed:  Attendance book, daily attendance sheet, grade book, pens/pencils, calculators, Chapter 4 tests. 

Classroom Activities:

1. Take attendance. (2 minutes)
2. Answer any last second questions. (5 minutes)
3. Chapter Test.
1. Read and follow the directions.
2. This is an individual test, anyone caught cheating will receive a zero.
3. Once you have completed the test bring it up to my desk.
4. If you finish early, start reading Chapter 5.
4. Assignment – Read Chapter 5.
5. Reflection.