Accounting Cycle Monopoly: record each of your rolls (turns) as a journal entry transaction. 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.Purpose: You are a corporation in business to accomplish two things: a) buy property and build houses (thereby earning Rent Revenue when others land on the corporations property); and b) manage properties for others (receiving Management Fee Revenue when you pass go). You are expected to play the game planning to maximize net income and will be penalized if you make decisions that are only intended to minimize accounting and reporting requirements. Your grade will suffer, as did Enrons employees and shareholders, if you let accounting issues drive your business decisions!

Mechanics and Assumptions: Each player taking one turn (excluding doubles) constitutes one week. All transactions occur on Monday of each week. One quarter is 13 weeks.

1. 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.
2. 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 $200 to the bank and record it as Legal Fees Expense. Your turn is now complete.
3. Record all entries using proper general journal format, dated by week. Adjusting entries must include explanations and supporting calculations.
4. 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).
5. 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.

Investing in Property: Property: If your token lands on property not owned by others, you may purchase the property. Property ownership leads to rent revenue and expense transactions.

Everyone must own at least five properties, including at least one railroad or utility. When recording railroad or utility properties, the total purchase price

should be split between Land (20% ) and Equipment (80% ).

Houses: You may buy a house to place on any of your land properties at any time during your turn. However, no more than 1 house can be purchased in a single turn. You do NOT need to own all colors of a group to buy houses. Note that a house on a property increases the amount of rent revenue you earn.

During the first quarter (first 13 weeks), everyone must purchase at least four, but no more than 8 houses. We will not be using hotels. Again, no more than 1 house at a time.

With every house purchased, you must also purchase a one-year hazard insurance policy for $52 cash.

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

Cash: During the actual game playing, cash must be reconciled at the end of the first month (4th week) and at the end of the game (13th week). Follow the following procedure:

1. Post all cash journal entries for that period into a cash general ledger T account.
2. Calculate the balance per books for cash (T account balance).
3. Count your actual cash.
4. If there is a difference, try to figure out why. Check with other players to see if they have entries for that specific dollar amount. For instance, perhaps you received rent, but forgot to record it.
5. If you find the error, correct it. If you cant find the difference, make a journal entry to adjust your cash per books to your actual cash. Use a cash short/over account.
6. At the end of the 4^th week only, pay 10% of your cash on hand to the bank and record this as a dividend to your stockholders.

Jail: Remove the Get out of Jail Free card from the game. The first time you are sent to jail, immediately pay $100 to the bank for your lawyers fees (Legal Fees Expense) and stay on your current spotdo NOT go to jail. The second and successive times you are sent to jail, pay $200 to the bank for lawyers fees and stay on your current spotdo NOT go to jail.

Free Parking: if you land on Free Parking, collect $250 cash from the bank due to Gain on Lawsuit.

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.

1. The banker will distribute $3,000 to each player in mixed denominations. Consider this your contribution to the corporation and record the proper journal entry.
2. The deed holder should randomly deal out two land properties and one RR or utility to everyone. You must pay for these properties out of your initial funds. Remember to record each property as a separate transaction and include the property name for identification.
3. Remove the Get out of Jail Free card from the game.
4. The first player declares it is Week 1 and rolls the dice and takes his/her turn. Each player follows for a turn. When play returns to the first player, that player declares Week 2 and the game proceeds accordingly.

At the end of the game: a) Make sure you finish at the end of a week (so that everyone has had the same number of turns). You must complete one quarter (13 weeks).

2. Count and reconcile your cash.
3. Make sure that you have kept detailed explanations of which properties you own and which properties have houses.

Week 1 - Cash 3,000

Common Stock 3,000 (Contribution to the corporation)

Land (Tennesse Avenue) 180

Cash 180 (Paid cash for land)

Land (Mediterranean Avenue) 60

Cash 60 (Paid cash for land)

Railroad Land B&O 40

Railroad Equipment 160

Cash 200 (Purchased Land and Equipment with cash)

House (Tennesse Avenue) 100

Cash 100 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 2 - House (Tennesse Avenue) 100

Cash 100 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 3 - Rent expense (Illinois) 100

Cash 100 (Paid cash expenses)

House (Mediterranean Avenue) 50

Cash 50 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 4 - Rent expense (Pacific Avenue) 26

Cash 26 (Paid cash expenses)

Dividends 203

Cash 203 (Paid dividends)

Week 5 - Rent expense (Boardwalk) 200

Cash 200 (Paid cash expenses)

Cash 25

Rent revenue (B&O Railroad) 25 (Collected cash for rent )

Week 6 - Cash 10

Rent revenue ( Mediterranean Avenue) $10 (Collected cash for rent)

Cash 650

Note payable 650 (Loan from the bank)

Cash 150

Gain from lawsuit 150 (Received cash from lawsuit)

House (Tennesse Avenue) 100

Cash 100 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 7 - No journal entry required

Week 8 - Cash 550

Management Fee Revenue (Tennesse) $ 550 (Collected fee)

Rent expense (Kentucky) 28

Cash 28 (Paid cash expenses)

Cash 25

Management Fee Revenue (B&O) 25 (Collected fee)

Week 9 -Rent expense (North Caroline) 900

Cash 900 (Paid cash expenses)

House (Mediterranean Avenue) 50

Cash 50 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Cash 30

Management Fee Revenue (Mediterranean Av.) 30 (Collected fee)

Week 10 - Land ( Short Line) 200

Cash 200 (Paid cash for land)

House (Tennesse Avenue) 100

Cash 100 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 11 - Miscellaneous Expense 50

Cash 50 (Paid cash expenses)

Cash 650

Unearned Management Fee Revenue 650 (Collected cash for future fees)

Week 12 - Land (Vernmont Avenue) 100

Cash 100 (Paid cash for land)

House (Vernmont Avenue) 50

Cash 50 (Purchased House with cash)

Prepaid Insurance 52

Cash 52 (Paid insurance in advance)

Week 13 - Utilities expense 16

Cash 16 (Paid cash expenses)

Cash 50

Management Fee Revenue (Short Line)50 (Collected fee)