Accounting 100

Ms. Brenda Gindt

Chapter 10 Journalizing Purchases and Cash Payments

Five-Day Lesson Plan: 50-Minute Class Periods

Objectives for Chapter 10

At the end of Chapter 10 students will be able to:

1.      Recognize and Define the terminology related to Chapter 10.

2.      Comprehend and apply the accounting concepts and practices related to purchases and cash payments for a merchandising business.

3.      Journalize purchases of merchandise for cash.

4.      Journalize purchases of merchandise and supplies on account.

5.      Journalize cash payments and other related transactions.

Weekly Overview:

Day One:                                                                                Day Four:

Review Chapter 9 test                                                               Group Review Project

Identify terms                                                                            Homework Study Guide

Journalize Purchases of merchandise for cash

Homework problems 1-5 page 232

Day Two:                                                                                Day Five:

Review Material from Day one                                               Test

Identify terms                                                                            Homework:  Look over chapter 11

Journalize purchases of merchandise on account

Journalize purchases of supplies on account

Homework problems 1-4 Page 237

Day Three:

Review Previous material

Identify terms

Journalize cash payments and other transactions

Homework problems 1-6 page 243

Day One:

Objectives:

Define new terminology related to a merchandising business

Identify concepts and practices related to purchases for a merchandising business

Journalize purchases of merchandise for cash

Materials Needed:

Attendance Sheet, Grade Book, Seating Chart, Overhead projector, Overhead markers, Dry Erase Markers/Eraser, Damp Sponge, Student Handouts, Overheads for day, teachers text book, introduction activity, two bags of candy, lesson plan, chapter nine tests

Prior to Class:

Write Assignment on Board

Distribute Handouts, Tests, Homework Sheet

Put Grading Scale on Board

Procedure:

1. Take Attendance: (2 min)            Explain to students that while I take attendance they are to look over their tests.  If they have any questions they should write them down, we will go over them in a few minutes.  Point out grading scale on board.  Take attendance.

2. Go Over Test: (4 min)            Put up overhead of problems I think need to be looked at, go through them, and ask if there are any other questions.  If not, collect tests.

3. Overview of Chapter 10: (2 min)            Instruct students to open their books to chapter 10.  Go over what we will be learning from this chapter.  Read terminology and what is to come for this week.

4. Begin Intro of Merchandise Bus. (15 min) 4A. Introduction Merchandise Activity (see handout for procedures and preparation)

                                                                        4B. Merchandise/Service Business: Have students come up with different types of businesses in your area.  Record their responses on overhead a. As they do this have them decide if they are a merchandise Business or a Service Business. (Refer to the definitions if needed)  Help students to decipher the difference between each one.

4C. Go over the switch to Omni Import. Open book to page 228.  We will be using this now instead of Encore Music in our book.  Omni Import is both a partnership and a Merchandising Business.

5. Introduce Expanded Special Journal (7 min)       5A. Review Five Column Journal with students.  Ask them for reasons why we switched to the five-column journal. ( Answer: to reduce entries in special accounts with frequent transactions.  5B. Show students what an 11-column journal looks like.

                                                                              5C. Walk through creating an 11 column journal with the students.  Overhead B. Show students how all columns from 5-column journal are in 11-column journal.

6. Introduce Purchasing of Merchandise (10 min) Explain the concept of a business selling goods. In a merchandising business they buy the goods from a wholesaler.  This is a purchase of goods, which can be done by cash or on account.  Go through Wholesale Example. (Handout A, Overhead R)  Go through Example Problem, (Overhead J.) Refer students to the Green Steps Handout for completing Chapter 10 problems. (Handout B) Make sure to point out that purchases has a normal debit balance.  Therefore, when they say, “purchase merchandise” it gets recorded in the purchases column.  Remind students that when they purchase supplies for use in the store they are not recorded in the purchases journal.

6.      Go over assigned Homework (5 Min)             Do Problems 1-5 page 232

Evaluation:

Did I meet the objectives for the day?

How was I on the time allowed for each activity?

Did I bore or load down the students with too much information?

What could I do differently next time?

What went really well?

Day Two:

Objectives:

Define new and old terminology related to purchases for a merchandising business.

Identify concepts and practices related to a merchandising business.

Journalize purchase of merchandise on account and buying supplies.

Materials Needed:

Attendance Sheet, Grade Book, Seating Chart, Overhead projector, Overhead markers, Dry Erase Markers/Eraser, Damp Sponge, Student Handouts, Overheads for day, teachers text book, lesson plan

Prior to Class:

Write Assignment on Board

Distribute handouts and homework sheet

Procedure:

1. Take Attendance: (2-3 Min)               Have students complete terminology criss cross puzzle.  While doing this take attendance. Instruct them to take out their homework and their green handout from yesterday.

2. Review Materials: (5 Min)            Put up answers to Criss Cross and go over terms.  Put up overhead of Example problem J from yesterday and have students work through as a class again.  Go over anything confusing to them.

3. Review Homework: (3 Min)             Put up answer to homework assignment.  Ask students if there are any questions.   Once they are clear, have them pass their homework up to collect.

4. Introduce Purchase Invoices: (8 min)            Refer students to the Pink handout, (handout E).  Ask the students what they can identify from the sample invoice.  Go through each area with them.  Special notes: Every purchase on account has an invoice, Merchandise will be paid for by the terms of sale, vendor’s purchase number is a different number from the companies.  Make sure that you give it the right invoice number so that if one is missing it can be tracked down.  Refer students to the green handout from yesterday for the steps for checking in an invoice.

 5. Intro Journalizing Purchase on Acct. (8 m) Ask students what type of account this type of      transaction would affect?  ( Accounts Payable-because it is something they still need to pay) 

                                                                        Go through Example problem,(overhead K). Read problem, draw t accounts, and ask how do we record this in our new journal? Refer to green sheet for steps.

6. Buying Supplies with cash: (5 min)           review with students how to record paying cash for office supplies. Put up Example Problem, (overhead L) read through problem, draw t accounts, ask what accounts are affected, ask how can I record this in my new journal? Record on new journal

7. Buying Supplies on Account (10 min)     Ask: what would happen if I would buy these items on account?  Check for understanding of previous purchases on account.  Explain that you will receive an invoice from your vendor, as you do with purchases.  The difference is that you need to attach a memorandum to Supplies invoices so that you can tell the difference.  Put up Example of a Memorandum (Overhead S)  then ask what else changes when I am buying supplies on account? Put up Example problem (Overhead M) read through problem, draw t accounts, ask what accounts are affected, how do I record this in my new journal? Make the transaction in the journal.  Refer students to green help sheet.

8. Journal (5 Min)            Reflect in your journal to the question on the overhead. ( Put up Journal Entry 10-1 Overhead T)

9. Explain Homework            Do problems 1-4 on page 237.

Evaluation:

Did I meet the objectives for the day?

How was I on the time allowed for each activity?

Did I bore or load down the students with too much information?

What could I do differently?

What went really well?

Day Three:

Objectives:

Identify concepts and practices related to a merchandising business.

Journalize cash payments and other transactions.

Materials Needed:

Attendance Sheet, Grade Book, Seating Chart, Overhead projector, Overhead markers, Dry Erase Markers/Eraser, Damp Sponge, Student Handouts, Overheads for day, teachers text book, lesson plan

Prior to Class:

Write Assignment on Board

Distribute handouts and homework sheet

Procedure:

1. Attendance (2 min)            Put up answers to homework (overhead C) Instruct students to look over their answers and decide if they have any questions.

2. Review (5 min)             Address any homework questions. Put up blank expanded Journal and have students identify the areas.  Then discuss with them the need for an invoice and ask when they need to use a memorandum with the invoice.  Ask them why?

3. Introduce cash payments (5 min)            Instruct students to go back to their pink handout from yesterday.  Recall the terms section of the invoice.  So, now it is time for us to pay back our vendors for the merchandise we have received.  Put up Example problem (overhead, N) Read problem, Ask students, What accounts are going to be affected?  Draw T- accounts, How do we record this in our new journal? ( Remind them to see their green handout for steps) Record it on overhead.

4. Cash Payment of an Expense ( 7 min)            Ask students if they can think of another time when we need to pay people money? ( Expenses) When we make a payment of an expense it is usually at the time it occurs.  A cash payment of an expense results in an increase in the expense and a decrease in cash. Put up Example Problem( overhead o).  Read Problem, ask students what accounts are affected, Draw t-accounts, how do we record this? Record it on the overhead.  Remind students to see steps sheet.

5. Cash withdrawal by Partner ( 7 min)             Explain that like a sole- proprietorship, a partner can withdrawal money from the business.  Explain that the difference is 1. Each partner has own drawing account 2. Partners drawing increases and cash decreases. Put up example problem, (overhead P) Ask what accounts will be affected, draw t-accounts, How should we record this in our journal? Record in Journal.

6.Merchandise withdrawal by Partner (5 min) Affects the drawing account in the same way as a cash withdrawal.  Ask: What merchandise could have been withdrawn? (anything sold in the business)  Then ask what account did we record that merchandise in when we originally purchased it? (purchases) Then, this is where we need to take it out of.  Put up sample problem (overhead Q) Read through the problem, ask what accounts will be affected by it, draw t-accounts, How do we record in our new journal.  Make sure that students are making a new row for the purchases entry because it is a credit and there is no column for it in our new journal. Refer students to green help sheet.

7. Replenishing Petty Cash ( 8 min)             Ask: Does anyone remember what Petty Cash is?  Explain that it is used for small transactions within the business.  Ask: Can you give me any examples? (Stamps, cash drawer change, etc.)  The petty cash drawer has a set amount of money and when it is low, it needs to be replenished. Put up Example Problem (Overhead U).  Read problem, Ask what accounts are going to be affected, draw t-accounts, ask for debit and credit balances, How will this be entered into our special journal? Refer students to the green help sheet.

8.Homework (10 min)                                               Problems 1-6, page 243

Evaluation:

Did I meet my objectives for the day?

How Was I on the time allowed for each activity?

Did I bore or overload the students with to much information?

Day Four:

Objectives:

Review Chapter 10 for test

Materials Needed:

Attendance Sheet, Grade Book, Seating Chart, Overhead projector, Overhead markers, Dry Erase Markers/Eraser, Damp Sponge, Student Handouts, Overheads for day, teachers text book, lesson plan

Prior to Class:

Write Assignment on Board

Distribute handouts and homework sheet

Procedure:

1. Attendance (2 min)            Put up answers to homework assignment on board.  Instruct students to look it over and find any mistakes.  Take attendance.

2. Chapter 10 review packet (20 min)            Have students get into groups of two or three and work on their review packet (one per person) If they have any questions they should see me, when they are done I will check it off and they will get a treat and the study guide for the test tomorrow.

3. Walk around classroom            Make sure that students are working hard and if they have any questions help them to figure it out.

4. Homework (20 min)            Have students work on the Study Guide, when completed with review packet.

5. Journal (8 min)            Students should reflect in their journal what they understand about the chapter and what they think they need to go over for the test tomarrow.

Evaluation:

Did the students enjoy the review exercise?

Was it a valuable tool for them to review?

Did any students waste time?

What can I do better for next time?

Comments:

Day Five:

Objectives:

Students will master chapter 10

Materials Needed:

Attendance sheet, Grade Book, Seating Chart, Chapter 10 tests, extra pencils, erasers, extra calculators

Prior to Class:

Make sure there are enough copies for all students

Procedure:

1. Attendance (2-3 min)            Take attendance, put up the answers to the study guide and have students check their work.

2. Study Guide ( 10 min)            Go over study guide and make sure there are no questions

3. Test (25-30 min)            Distribute test and make sure I am available to clear up any questions.  Go through test so students will understand directions clearly. Monitor students.

4. Homework (Extra time)            If students finish early they can start to read chapter 11 or work on their computer simulation.

Evaluation:

Did students understand the study guide?

Was there enough time to finish the test?

Comments:

Chapter 10 Helper Handout

Purchasing Merchandise for Cash:

1.      Date

2.      Check Mark (shows no account title needs to be written)

3.      Check number

4.      Check mark in post reference line

5.      Debit

6.      Credit

Invoice

1.      Stamp date received and purchase invoice number

2.      Place a check mark by each number

3.      Initials at bottom

4.      Review vendor’s terms

Merchandise on Account

1.      Date

2.      Vendor Name

3.      Purchase Invoice #

4.      Credit

5.      Debit

Supplies for Cash

1.      Date

2.      Account Title

3.      Check Number

4.      Debit

5.      Credit

Supplies on Account

1.      Date

2.      Account title

3.      Memo Number

4.      Debit

5.      Vendor Name

6.      Credit

Cash Payment on Account

1.      Date

2.      Vendor Name

3.      Check number

4.      Debit

5.      Credit

Cash Payment of Expense, Cash Withdrawal by Partner, Replenish Petty Cash

1.      Date

2.      Account Title

3.      Check number

4.      Debit

5.      Credit

Merchandise Withdrawal by Partner

1.      Date

2.      Account Title

3.      Memo Number

4.      Debit

5.      Purchase Account ( new line)

6.      Credit

Purchases of Merchandise for Cash:

On April 2, Sara purchased merchandise for $6,200.00 Check Number 1001

Purchases of Merchandise on Account:

On April 9^th Weston purchased merchandise on account form Harrisville, Inc., for $5,900.00. Purchase invoice number 83

Buying Supplies for Cash:

On May 2, Jack paid cash for office supplies, $96.00. Check number 263.

Buying Supplies on Account:

On May 10, Susie bought store supplies on account from Ellen’s Outlet for $3,800.00.  Memorandum Number 43.

Cash Payment on Account:

On June 4, Mary paid cash on account to McGill Imports for $8900.00.  Covering purchase invoice number 87.  Check number 347

Cash Payment of an Expense Account:

On June 18, Leroy paid cash for advertising expenses, $560.00.  Check number 350.

Cash Withdrawal by Partners:

On June 25, Amy withdrew cash for personal use, $2900.00 Check number 360.

Merchandise Withdrawals by Partners:

On July 1, Chris, partner, withdrew merchandise for personal use, $59.00.  Memorandum Number 48

Cash Payment to Replenish Petty Cash:

On July 14, Paid cash to replenish the petty cash fund, $205.00: office supplies, $35.00; Store supplies, $47.00; advertising, $92.00; Miscellaneous, $31.00. Check number 297

Service                                            Merchandising