ACCOUNTING CYCLE MONOPOLY

Complete accounting cycle include ten columns trial balances using data from journal entries

Mechanics and Assumptions:

1. Each player taking one turn (excluding doubles) constitutes one week. All transactions occur on Monday of each week. One quarter is 13 weeks.
2. The person that takes the first turn of the new week should loudly and clearly announce which week it is, reminding all players to change the week in their accounting records.
3. If you roll doubles, you should move and roll again. If you roll doubles three times, do NOT go to jailinstead pay a fine of $100 to the bank and record it as Legal Fees Expense. Your turn is now complete.
4. Record all entries using proper general journal format, dated by week. Adjusting entries must include explanations and supporting calculations.
5. You may NOT declare bankruptcy. If you cannot pay bills or simply wish additional funds, you may borrow in $1000 increments at 15% interest. All such loans are one year in length and may not be paid off early. Any interest due on loans will be paid in cash on the first day of next quarter (the quarter following the game play).
6. Cash must be reconciled periodically. See more info below.

Passing GO:

Each time you pass GO, you will receive $650 cash. Cash received the first time you pass GO should be considered a loan from the bank and be recorded as a Note Payable. The loan is a 6 month, 5% loan. Loans may not be paid off early. See item (e) above for information regarding interest.

The second time and anytime thereafter that you pass GO and receive $650, it should be recorded as Unearned Management Fee Revenue. Fees are earned evenly over a 13 week period, starting with the week you received it. By the end of the game, if anyone has not passed GO a second time, immediately advance to GO and collect the $650.

Depreciation Information:

Depreciation must be calculated to the nearest week. In other words, if you buy a house in week 5 and you are recording depreciation for the quarter, you would record 9 weeks of depreciation (week 5,6,7,8,9,10,11,12,13). Assume 52 weeks in a year. Use the following information to calculate depreciation:

Asset	Life	Depreciation Method	Salvage
House RR Equip Utility Equip	yr yr 7 yr	Straight-line Double declining balance Double declining balance	20% of cost 10% of cost 10% of cost

Taxes:

Whenever a square or community chest or chance card requires payment of any type of

tax , increase the Property Tax Expense ac count. If you land on the In co me Tax Square, do not take the time to calculate your net worth; simply pay $200 and record it as Property Tax Expense.

Calculate and accrue corporate income tax expense at the end of the 13 weeks. The corporate tax rate is 25%. If you have a net loss, calculate a tax credit and record it as a Deferred Tax Asset. Hint: This should be your final adjusting journal entry.

General Journal Debit Credit General Journal Debit Credit No Date No Date Cash 11-Nov Cash 1 7-Oct 3,000 14 10 Common Stock 3,000 Rent Revenue 10 11-Nov Cash 15 650 Land Mediterranean Ave Note payable 650 2 7-Oct 60 Cash 11-Nov Cash 100 60 16 Gain from Lawsuit 100 18-Nov Rent Expense 25 Land Ventnor Ave 260 3 7-Oct 17 Cash Cash 260 25 25-Nov Cash 10 18 B.&O. Railroad 4 7-Oct 40 Rent Revenue 10 25-Nov Rent Expense Equipment 160 19 100 Cash 200 Cash 100 Loss from Lawsuit 20 2-Dec 50 Property Tax Expense Cash 5 7-Oct 200 50 Cash Land Tennessee 200 21 2-Dec 180 Cash 180 House Ventor Ave House Tennessee 100 6 7-Oct 150 2-Dec Prepaid Insurance Prepaid Insurance 52 52. Cash Cash 202 152 Land Illinois 14-Oct Rent Expense 7 40 23 9-Dec 240 240 Cash Cash 21-Oct Repair Expense 40 150 House Illinois 9-Dec Prepaid Insurance Cash 40 52 Cash 202 House Ventnor 16-Dec Cash 21-Oct 150 25 70 Prepaid Insurance 52 Rent Revenue 70 16-Dec Legal Fee Expense Cash 202 100 Rent Expense Cash 100 10 28-Oct 250 Cash 23-Dec Cash 650 250 27 Unearned Management Fee R House Mediterranean 11 28-Oct 50 650 Prepaid Insurance 23-Dec House Tennessee 52 100 Prepaid Insurance Cash 102 52 28-Oct Dividend Cash 12. 144 152 Property Tax Expens Cash 144 29 30-Dec 200 Rent Expense Cash 13 4-Nov 26 200 Cash 26 22 26 28 40 General Journal Debit Credit General Journal Debit Credit No Date No Date Cash 11-Nov Cash 1 7-Oct 3,000 14 10 Common Stock 3,000 Rent Revenue 10 11-Nov Cash 15 650 Land Mediterranean Ave Note payable 650 2 7-Oct 60 Cash 11-Nov Cash 100 60 16 Gain from Lawsuit 100 18-Nov Rent Expense 25 Land Ventnor Ave 260 3 7-Oct 17 Cash Cash 260 25 25-Nov Cash 10 18 B.&O. Railroad 4 7-Oct 40 Rent Revenue 10 25-Nov Rent Expense Equipment 160 19 100 Cash 200 Cash 100 Loss from Lawsuit 20 2-Dec 50 Property Tax Expense Cash 5 7-Oct 200 50 Cash Land Tennessee 200 21 2-Dec 180 Cash 180 House Ventor Ave House Tennessee 100 6 7-Oct 150 2-Dec Prepaid Insurance Prepaid Insurance 52 52. Cash Cash 202 152 Land Illinois 14-Oct Rent Expense 7 40 23 9-Dec 240 240 Cash Cash 21-Oct Repair Expense 40 150 House Illinois 9-Dec Prepaid Insurance Cash 40 52 Cash 202 House Ventnor 16-Dec Cash 21-Oct 150 25 70 Prepaid Insurance 52 Rent Revenue 70 16-Dec Legal Fee Expense Cash 202 100 Rent Expense Cash 100 10 28-Oct 250 Cash 23-Dec Cash 650 250 27 Unearned Management Fee R House Mediterranean 11 28-Oct 50 650 Prepaid Insurance 23-Dec House Tennessee 52 100 Prepaid Insurance Cash 102 52 28-Oct Dividend Cash 12. 144 152 Property Tax Expens Cash 144 29 30-Dec 200 Rent Expense Cash 13 4-Nov 26 200 Cash 26 22 26 28 40