Question
MONOPOLY ACCT 210 During this week we are going to play Monopoly . Hopefully most of you are familiar with the game of Monopoly but
MONOPOLY
ACCT 210
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 directionsthey 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 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 needassume 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. Owners 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
Utilities Expense
Income Tax Expense
Utilities 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 doctors fee.
12) Passed Go and collected $200.
13) Paid $10 rent.
14) Received $20 rent
15) Paid $15 rent.
Ending cash = $295.
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