Eric Radomski

Ch.18, 5-day lesson plan

Accounting I

March 15, 2000

Objectives for Chapter 18

-Define accounting terms related to purchases and cash payments

-Identify accounting concepts and practices related to purchases and cash payments

-Record purchases on account and post using a purchases journal

-Record expenses and purchases using a cash payments journal

-Record petty cash and post using a cash payments journal

-Record transactions and post using a general journal

-Identify why a business might organize as a corporation

-Identify the characteristics of a corporation, and how a corporation differs from a

  proprietorship and partnership

-Identify similarities and differences in journalizing a cash payment using an expanded 

  journal and a cash payments journal

-Identify the differences in the column titles of the above two journals

-Identify what kind of cash payments should be made using a petty cash fund

Terms from Chapter 18

Corporation                  Cash payments journal  Contra account            Purchases

Share of stock              List Price                            Cash short                 allowances

Capital stock                Trade discount                                    Cash over

Special journal            Cash discount                                    General journal  Debit

Purchases journal            Purchases discount                   Purchases return            memorandum

Assumptions:  50 minute class meeting each day; students have their own working papers, calculators, and textbooks; students were to have read Ch.18 prior to day 1 class meeting

Transparencies are denoted in each day’s lesson plan by a “T” and a corresponding number (Working together problems=WP, Homework=HMK).  Each copy is located at the back of that day’s plan with the respective letter and number in an appropriate location on the copy.

Day 1 (Intro & 18-1)

Objectives

-Explain characteristics of a corporation, and how a corporation differs from a proprietorship and partnership

-Identify why a business might organize as a corporation

-Decipher similarities/differences between cycle 2 and 3 chart of accounts(T3,4)

-Define accounting terms related to purchases: from corporation through purchases journal above(T1)

-Identify accounting concepts and practices related to purchases.

-Record purchases on account and post using a purchases journal

Materials Needed

Class list, attendance sheet, gradebook, overhead projector, transparency for chapter 18 terms (part 1), working papers - Work Together transparencies for 18-1(T13), transparencies of chart of accounts for cycle 2 and 3, chapter 17 graded tests, extra-fine point transparency pens, wet erasing cloth, chalk, erasers, pens and pencils, Text book (Wrap-around), transparencies of blank forms (purchases journal, general ledger, accounts payable ledger), copy of lesson plan, ruler. 

Class Procedure

1.  Take attendance (2 minutes)

2.  Hand back Chapter 17 test and review briefly (7 minutes)

3.  Introduce new chapter and cycle 3 (10 minutes)

-Display chart of accounts for cycle 2 and corporation(T3,4).  Explain differences and similarities between this chart and that of previous cycles.  (note capital accounts)

-Display terms from corporation to purchases journal from terms (part 1)(T1)

-Go over terms and point out corporation characteristics (own property, incur liabilities, enter into contracts, etc.), and why a business would organize as such

-Ask students to name some corporations they know of

-Introduce Winning Edge, Inc.

4.      Purchases journal introduction (7 minutes)

-Display a blank purchase journal(T5)

-Explain why a corporation uses this special journal (recording similar transactions together = accounting personnel more efficient and accurate)

-Ask students what transactions recorded in this journal

-Relate similarities/differences to expanded journal previously covered (p.455)

-Ask students what two accounts impacted (purchases, accounts payable)

5.      Journalizing purchases on account (7 minutes)

-Ask students what other items a business might buy not recorded in this journal (supplies, equipment, services)

-Explain source document (invoice)

-Reinforce only purchases on account are recorded here

-Read transaction statement from p.456, explain & record the entry

-Ask students to analyze transaction using T accounts

-Emphasize a single amount entered = both debit and credit portion of entry

6.      Posting from purchases journal to accounts payable ledger and general ledger (7 minutes)

-Display blank accounts payable, general ledger transparency(T6)

-Direct students to p.457

-Demonstrate how each item is entered in the accounts payable ledger

-Describe the posting process steps (same as from A/P credit column, CH. 12)

-Direct students to p.458

-Describe how each item is recorded in A/P and purchases accounts

-Demonstrate posting process steps

-Demonstrate how to total and rule purchases journal (p.458)

7.      Work together (10 minutes)

-Ask for a volunteer to read the 18-1 Working Together problem on p.459

-Display a blank purchases journal transparency to begin problem and have students work together in their working papers(T5)

-Guide students through the problem, eliciting participation at each step

Assignment (write on board)

-Application problem 18-1, p.477. (handed in)(HMK1)

-On Your Own, p.459. (not mandatory-for extra practice-not to be handed in)

Evaluation

-Did I make a good transition from cycle 2 to 3?

-Was I clear about the characteristics of corporations, and the similarities and differences between them and previously discussed business entities?

-Were students involved enough in the class?

-Did students understand the similarities and relate what we did today to previous chapters?  Reinforce, if not.

Comments

Day 2 (18-2 & 18-3)

Objectives

-Review for understanding of Ch.18, part 1 (yesterday’s material)

-Define accounting terms related to cash payments: from cash payments journal to cash over above)

-Identify accounting concepts and practices related to cash payments.

-Record expenses and purchases using a cash payments journal

-Record petty cash and post using a cash payments journal

Materials Needed

Class list, attendance sheet, gradebook, overhead projector, transparency for chapter 18 terms (parts1&2), working papers - Work Together transparencies for 18-2&3(T13,14), extra-fine point transparency pens, wet erasing cloth, chalk, erasers, pens and pencils, Text book (Wrap-around), transparencies of blank forms (cash payments journal, petty cash report, general ledger, accounts payable ledger), copy of lesson plan, graded homework. 

Class Procedure

1.      Take attendance (2 minutes)

2.      Exchange homework assignment, return previous day’s assignment, and answer questions briefly(4 minutes)

3.      Quick review of purchases (5 minutes)

-Ask students the kinds of information needed to record a purchases on account transaction

-Ask students to name the column titles in purchase journal and what is recorded there

-Ask students to name the column titles in the accounts payable ledgers and what is recorded there

4.      Define terms (5 minutes)

-Display and go over bottom half of part 1 terms and first 2 of part 2 terms(T1,2)

-Ask students if they have ever made a mistake counting cash in their own jobs.    

Ask them how the business should account for these mistakes to explain the meaning of cash shorts/overs.

5.      Record expenses and purchases using the cash payments journal (12 minutes)

-Display blank cash payments journal transparency(T7) and direct students to illustration on p. 460

-Identify similarities/differences in journalizing a cash payment using an expanded journal and a cash payments journal, eliciting student participation

-Ask students to identify the differences in the column titles

-Ask a student to read the transaction statement on p.460 and demonstrate how to record the transaction in the cash payments journal

-Ask students why a vendor might not extend credit to a customer and why a vendor might offer its customers a purchase discount – explain why if necessary

-Explain the calculation of a trade discount and purchases discount

-Read transaction statements from p.461, 462, & 463, and demonstrate how each is recorded in the cash payment journal on overhead.

-Demonstrate how to calculate trade discount using T accounts

6.      Journalize petty cash and post using a cash payments journal (12 minutes)

-Point out that this lesson illustrates how to record mistakes made in working with the cash in a petty cash fund

-Ask students what kind of cash payments should be made using a petty cash fund

-Ask students why a business is more likely to have a cash short than over-explain

-Direct students to p.466 and ask a student to read the transaction statement

-Display blank cash payments journal/petty cash report transparency (T7,8) and demonstrate how to record the transaction

-Ask students how a petty cash report showing cash short would be recorded in a cash payments journal (cash short and over would be debited)

-Point out to students that they have already learned how to post individual amounts from other journals and that the steps involved in posting from the cash payments journal are the same

-Also point out they have learned how to post special column totals of a journal to general ledger accounts

-Refer students to illustration on p.467 and explain the posting procedure of individual amounts from a cash payments journal to the accounts payable ledger and general ledger

-Refer students to p.468 and explain the posting procedure here.

7.      Work together (10 minutes)

-Ask for a volunteer to read the 18-2 Working Together problem(T13) on p.464

-Display a blank cash payments journal transparency on overhead

-Read the first transaction and guide the students through the recording with students working along in working papers

-Take volunteers to read and explain the recording for the last two transactions

-Ask students to explain why trade discounts were not recorded in the cash payments journal

-Ask a student to describe the calculation of each amount

Assignment (write on board)

-On Your Own, p.464 (for extra practice-not handed in)

-Working Together 18-3, p.469 (handed in)(HMK 2)

-Applications problem 18-2, p.477 (for extra practice-not handed in)

Evaluation

-Did students seem to understand the new terms introduced?

-Did I get everyone involved in the class today?

-Were students able to analyze and explain the transactions effectively?

Comments

Day 3 (18-4)

Objectives

-Define accounting terms related to purchases: from corporation through purchases journal above

-Identify accounting concepts and practices related to purchases

-Record transactions and post using a general journal

Materials Needed

Class list, attendance sheet, gradebook, overhead projector, transparency for chapter 18 terms (parts 2), working papers - Work Together transparencies for 18-4, extra-fine point transparency pens, wet erasing cloth, chalk, erasers, pens and pencils, Text book (Wrap-around), transparencies of blank forms (general journal, general ledger, accounts payable ledger), copy of lesson plan, graded homework.

Class Procedure

1.      Take attendance (2 minutes)

2.      Exchange homework assignments, hand back previous day’s assignment, and answer

questions briefly (4 minutes)

3        Quick review of cash payments and petty cash (7 minutes)

-Ask students to briefly summarize the procedure for journalizing and posting cash payments for cash purchases, and for purchases on account with and without a discount

-Ask students to identify how cash short (debit) and cash over (credit) are recorded in the cash payments journal

-Ask a student to explain why cash short and over is classified as an expense. (because cash short situations are more common than cash over situations, the account will usually have a debit balance)

-Ask students to identify the two ways transactions in a cash payments journal are posted to the general ledger (individual or special column totals)

4.       Define terms (4 minutes)

-Display and go over bottom half of part 2 terms(T2).  (general journal to debit memorandum)

-To explain the terms better, ask students how many times they have returned items to a store.  In the same way, many merchandising businesses return items to their vendors for credit on their account.

-Explain to students that the general journal is identical to first six columns of the expanded journal

-Tell them that transactions for which there is not a special journal are journalized in the general journal

-Explain difference between purchases return and purchases allowance

5.      Journalize purchases returns and allowances (5 minutes)

-Ask students to identify a transaction that they learned to record in both the General Debit and General Credit columns of an expanded journal (buying supplies on account)

-Explain that the diagonal line in the Post. Ref. Column allows for recording the posting reference to the accounts payable ledger on the left and the general ledger on the right.

-Draw a T account for Purchases Returns and Allowances and label the increase/decrease, debit/credit, and normal balance sides.

-Display blank general journal transparency(T9) on overhead

-Direct students to p.472 and ask volunteer to read the transaction statement and use T accounts to analyze

-Record each transaction in the general journal on the overhead, and explain step by step

-Emphasize that the slash in the Post. Ref. Column is important because it indicates that the line must be posted to two accounts

6.  Journalize buying supplies on account (4 minutes)

-Direct students to p.473 and ask for volunteer to read the transaction statement

-Explain that the credit portion of the entry will affect both the accounts payable ledger and the general ledger.  Therefore, a diagonal line is drawn in the Post. Ref. Column of the credit portion of the entry

-record each item in the general journal, and explain step by step

-Emphasize why items are recorded in the general journal

7.  Post from a general journal (5 minutes)

-Display the accounts payable ledger/general ledger transparency(T6) and direct students to p.474

-Point out that this transaction has three items to post; debit to general ledger, credit to accounts payable ledger, and credit entry to general ledger

-Point out that the posting reference to the accounts payable ledger is recorded to the right of the diagonal line in the Post. Ref. Column of the general journal

-Point out that the posting reference to the general ledger is recorded to the left of the diagonal line in the Post. Ref. Column of the general journal

-Explain each step of posting from a general journal, asking students to follow along on p.474 of the text and stop me with any questions

8.       Independent review (19 minutes, or remainder of class time)

-On Your own, p. 475

-Review terms

-If time remains, begin work on tonight’s homework

Assignment (write on board)

            -Work together problem 18-4, p.475 (HMK 3)

-Application Problem 18-5, p.479 (not handed in)

            -Begin review for test on Friday using publisher-provided study guides

Evaluation

            -Did students understand the concept of purchases returns and allowances?

            -Did I do a good enough job explaining these concepts and debit memos?

-Did they understand the concept and process of posting from a general journal

            -Did I explain “the why” enough?

Comments

Day 4

Objectives

-Summarize the chapter

-Review terms related to purchases and cash payments

-Work together to wrap-up understanding of chapter concepts

Materials Needed

Class list, attendance sheet, gradebook, overhead projector, transparency for chapter 18 terms (parts 1 & 2), working papers - Work Together transparencies for 18 1-4, extra-fine point transparency pens, wet erasing cloth, chalk, erasers, pens and pencils, Text book (Wrap-around), transparencies of blank forms (all), copy of lesson plan, copy of study guide for all students, transparency of study guide, graded homework.

Class Procedure

1.       Take attendance (2 minutes)

2.      Exchange homework assignments, hand back previous day’s assignment, and answer

any questions in detail (8 minutes)

3.       Quick review of previous day material (5 minutes)

-Ask students to briefly summarize the procedure for journalizing purchases returns and

-Ask students to identify why a transaction would be recorded in a general journal

-Ask students to briefly summarize the posting of the general journal to the accounts payable ledger and general

4.       Overall review of chapter (35 minutes)

-Place transparency of study guide (T10)on overhead (without answers and with questions covered for now

-Break students up into four groups (trying to make them equal in ability) and explain we are going to play a form of jeopardy for review today

-Explain briefly the rules: 1)Assign a group spokesman, 2)one group at a time will be called on at a time to answer the question I give them, 3)a group may consult with other members of the group very briefly, but I must have an answer within 10 seconds, 4)if the group answers correctly in the allotted time, they will receive 1 pt, 5)if they answer incorrectly, the next group in line will have a chance to steal the answer in 10 seconds, 6)if they get it right, they will receive a point and their own question, with a chance to earn another point by answering that question correctly, 7)if group 2 gets the 1^st question wrong, it will go on to the next group in the same fashion 8) if none of the 4 groups gets the question correct, I will give the correct answer and we will move on to the next question for the next group in line.

-Go over each part of the study guide in the above fashion

-For part one of the study guide, read column II, covering the answers and following questions.  Students must match the term to the corresponding definition.

-For part two of the study guide, cover the answers and following questions, read the statement and have students tell me whether the answer is true or false.  Explain that the group will earn an extra point if they can tell me why the statement is true or false

-For part three of the study guide, repeat the above procedure and explain that one point each will be given for naming the correct journal, and the correct accounts to be credited and debited.

-For part four of the study guide, repeat the procedure for part 2.

5.  Hand each student a copy of the study guide for review tonight

Assignment (write on board)

                -Review the study guide and chapter for the test tomorrow

            -Remind students to bring their calculators, two pencils, an eraser, and sharpener   

            with them for the test tomorrow

Evaluation

            -Did students perform as I expected on the review session?

            -Was this a productive way to spend a review session?

            -Would I consider reviewing this way again?

Comments

Day 5

Objectives

-Take exam of chapter

Materials Needed

Class list, attendance sheet, gradebook, Text book (Wrap-around), copy of lesson plan, copy of chapter 18 test and key, pens, pencils, chalk, erasers, calculators.

Class Procedure

1.       Take attendance (2 minutes)

2.       Briefly answer any questions regarding chapter or test. (4 minutes)

3.       Hand out and take(T11) test (44 minutes)

-Briefly go over the instructions for the test and inform students they will have 40 minutes to complete it

-Answer any questions about the instructions

-Explain to students if they have a question during the test to raise their hand and I will come over to assist them if I can

-Explain to students if they get done with the test early, to sit quietly until everyone has finished or the class has ended

-Instruct students to take everything off their desk except for their calculator, 2 pencils, an eraser, and sharpener

-Hand out the exam face down and tell them to begin working only after I tell them to

-Begin the exam

4.      (During the exam)

-Be sure to take time to observe students and walk around frequently

5.      Collect the exam

Assignment (write on board)

            -Read chapter 19 for Monday

Evaluation

            -Were my instructions clear?

            -Did students have ample time to complete the exam?

            -Was the exam at the correct difficulty level?

            -Did I do a good job of conveying the material of chapter 18?

Comments