During this week we are going to “play Monopoly”

Hopefully, most of you are familiar with the game of Monopoly but if not that is ok. You will be given a list of transactions below and you then need to follow the directions step by step and use the forms that are provided to you to complete your project. There is a copy of a Monopoly board at the end of this document for you to reference if necessary.

Also included for you to use:

List of account names

Journal paper for journal entries, adjusting entries, and closing entries

Sample ledger format

Depreciation schedule

The journal paper and the sample ledger format are in a separate document. Both a PDF and a Word document have been provided for you to use. Use whichever one is easiest to access. Copy these formats as necessary.

Directions: Follow the steps below to guide you in completing this project. You should use either a word processor or a spreadsheet to complete this work. Be sure your work is in good format. You will then “drop” your results in the D2L dropbox by the designated due date.

1) Prepare journal entries for all of your transactions. Choose account titles from the list provided Use the general journal paper that has been provided. Copy this format as required. The transactions are listed at the end of these directions–they are transactions that have occurred while playing the game.

a. Your first journal entry is to start your business:

Debit CASH............................1500

Credit YOUR NAME, CAPITAL.............1500

2)Prepare a general ledger. This is where you post all of your journal entries to the ledger and calculate balances for each of your accounts.

3) Prepare a trial balance. Be sure it balances. Be sure you have the correct heading on your statement. Make up a company name.

4) Prepare any adjusting entries that you might need–assume that the game time you played is equal to one year. Reference the depreciation schedule below:

a. Depreciation is required for Railroads and Utilities. Assume the following useful lives:

i. Railroads = 25 years

ii. Utilities = 10 years

b. Land is NOT DEPRECIATED.

5) Update your general ledger accounts to get your new balances by posting the adjusting entries.

6) Prepare an adjusted trial balance. Be sure it balances. Be sure you have the correct heading on your statement.

7) Prepare your financial statements. You are required to prepare the following in good format with headings and proper dates. (You can make up the date to use but the format needs to be correct.)

a. Income Statement

b. Owner’s Equity Statement

c. Balance Sheet

8) Prepare closing entries.

9) Post the closing entries to the ledger accounts and update your balances.

10) Prepare a post-closing trial balance. Be sure it balances. Be sure you have the correct heading on your statement.

11) Make sure everything is in good format and “drop” your document (s) in the D2L dropbox.

Account Names:

Accounts Receivable

Property Tax Expense

Accounts Payable

Railroads

Accumulated Depreciation, Hotels

Rental Houses

Accumulated Depreciation, Rental Houses

Rent Expense

Accumulated Depreciation, Railroads

Rent Revenue

Accumulated Depreciation, Utilities

Service Revenue, use when you pass go

Cash

Transportation Revenue

Depreciation Expense

Transportation Expense

Gain on Sale of Property

Utility Company

Hotels

Utility Expense

Income Tax Expense

Utility Revenue

Interest Expense

Your name, Capital

Interest Payable

Land

Legal

Expenses

Loss on Sale of Property

Luxury Tax Expense

Miscellaneous Expense

Miscellaneous Revenue

Mortgage Notes Payable

Monopoly Transactions

These are the transactions that occurred when you “played” Monopoly. Use these transactions to complete the requirements noted above.

1) Started the business by investing $1,500 into the business.

2) Purchased Electric Company for $150.

3) Purchased Illinois for $240.

4) Purchased North Carolina for $300.

5) Purchased Short Line Railroad for $200.

6) Purchased Boardwalk for $400.

7) Passed Go and collected $200 (Hint.... SERVICE REVENUE).

8) Purchased Baltic for $60.

9) Purchased St. James for $180.

10) Paid $20 rent.

11) Paid $50 doctor’s fee.

12) Passed Go and collected $200.

13) Paid $10 rent.

14) Received $20 rent

15) Paid $15 rent.

Ending cash = $295.