Accounting Cycle Monopoly Project If you know nothing about the board game of Monopoly, please familiarize yourself with the basic aspects of the game before going further. For purposes of this project, you should assume that someone played the game for you. While playing, the person assumed they were a corporation in business to accomplish two things: a) buy property and build houses (earning Rent Revenue when others land on the corporation's property); and b) manage properties for others (earning Management Fee Revenue). By now you have either already received or will be receiving soon, a list of transactions from someone who played an actual game for you. Every student will have their own unique set of transactions. INSTRUCTIONS: l the data within the file is up to you. However, the rules for using Excel that we discussed for the budgeting project must be followed. Keep in mind that part of your grade will be based upon your presentation of the material according to the rubric, as well as the proper use of Excel. For instance, the grading rubric states that you need to prepare a complete set of financial statements. You need to know, or find out, which financial statements you should prepare and where in the accounting cycle that step should occur! Therefore, you will not be receiving any step by step instructions from us; however, feel free to ask for clarification of any information on this project handout or on the grading rubric. You are also encouraged to use your Connect and ALEKS resources as needed, including previous and current assignments. ASSSUMPTIONS Mechanics: a) All transactions occur on Monday of each week. One quarter is 13 weeks. b) Cash must be reconciled at the end of week 4 and 13. If your cash on hand at the end of both of these weeks does not equal your cash per books, make entries to adjust your book balance to your actual cash balance. Use a cash short/over account. The project must be completed individually using your unique set of data. Working together is prohibited and is considered academic dishonesty. This project is intended to simulate a real life work place environment and as such, it is up to you to analyze the instructions and grading rubric, evaluate what is needed, and synthesize your knowledge to successfully meet the requirements of the project. Everyone's first step is to record your transactional journal entries into an Excel spreadsheet. After that, your assignment is to complete an entire accounting cycle FOR THE QUARTER ENDED WEEK 13 using your unique set of journal entries. (If you do not remember the steps in the accounting cycle, please refer to your text or any financial accounting text!). The project must be completed using Excel. THE GRADING RUBRIC INDICATES ALL REQUIRED COMPONENTS OF THE FINAL PROJECTPLEASE READ IT. How you choose to present, arrange, and labe re c) At the end of the 4th week only, pay and record a dividend to your stockholders of 10% of your cash on hand. d) Record ALL entries using proper general journal format, dated by week. Adjusting entries MUST include supporting calculations. Remember that you are using ACCRUAL ACCOUNTING and must make adjustments for certain items. (Also remember that adjusting entries never include an entry to cash.) Each time you have a transaction that included passing GO, you received $650 cash. a) Cash received the first time you passed GO should be considered a loan from the bank and be recorded as a Note Payable. The loan is a 6 month, 5% loan. Interest accrues starting with the week you received the loan. Note: Any interest due on loans will be paid in cash on the first day of the NEXT quarter (the quarter following the end of your 13-week quarter). b) Cash received any other time that you passed GO should be recorded as Unearned Management Fee Revenue. Fees are earned evenly over a 13 week period, starting with the week(s) you passed GO and received them. Investing in Property: Property: Property ownership usually leads to rent revenue. Landing on someone else's property leads to rent expense transactions. When recording railroad or utility properties, the total purchase price should be split between "Land" (20%) and "Equipment" (80%). Houses: Note that a house on a property increases the amount of rent revenue you earn. With every house that was purchased a one-year hazard insurance policy was also purchased. The cost of each policy was $52 for one year (52 weeks). 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 4 yr 5 yr 7 yr Straight-line Double declining balance Double declining balance 20% of cost 10% of cost 10% of cost Jail: If a transaction was recorded that would have sent you to jail, a $100 fee was paid to the bank. Record this as "Legal Fee Expense." Free Parking: If a transaction landed you on "Free Parking", $250 cash was collected from the bank. Record this as "Gain on Lawsuit". Taxes: During the 13 weeks of game play, if a transactional entry requires any type of tax payment, record it as "Miscellaneous Expense". At the end of the 13 weeks, calculate and accrue corporate income tax expense assuming the corporate tax rate is 25%. Hint: This should be your final adjusting journal entry. (If you have a net loss, calculate a tax credit and record it as a Deferred Tax Asset.)

Transactions

Week 1 Received $3,100 as contribution to the corporation Paid $180 to purchase Tennessee Avenue Paid $220 to purchase Kentucky Avenue Paid $150 to purchase the Electric Company Purchased house for $150 for Kentucky Avenue and paid $52 for insurance.

Week 2

Collected $36 rent for the Electric Company Purchased house for $100 for Tennessee Avenue and paid $52 for insurance. Purchased house for $150 for Kentucky Avenue and paid $52 for insurance.

Week 3

Purchased house for $100 for Tennessee Avenue and paid $52 for insurance.

Week 4

Paid $300 for Pacific Avenue Purchased house for $200 for Pacific Avenue and paid $52 for insurance. Cash on hand before dividend payment is $1,376 Paid required dividend to stockholders

Week 5

Collected $650 from passing GO the first time. Paid $2 rent for Mediterrean Avenue Purchased house for $200 for Pacific Avenue and paid $52 for insurance. Collected $70 rent for Tennessee Avenue

Week 6

Purchased house for $100 for Tennessee Avenue and paid $52 for insurance.

Week 7

Collected $250 rent for Kentucky Avenue

Week 8

Paid $110 rent for Ventor Avenue

Week 9

Collected $50 gain from lawsuit Paid $300 for North Carolina Avenue Purchased house for $200 for North Carolina Avenue and paid $52 for insurance.

Week 10

Collected $390 rent for Pacific Avenue Collected $28 rent for the Electric Company Paid $600 rent for Boardwalk

Week 11

Collected $200 rent for Tennessee Avenue Collected $650 from passing GO the second time. Paid $2 rent for Mediterrean Avenue

Week 12

Collected $16 rent for the Electric Company Collected $200 rent for Tennessee Avenue

Week 13

Collected $130 rent on North Carolina Avenue Paid $220 rent for New York Avenue Cash on hand at end of game $1,892