You will play a total of two years; each year will consist of $24$ transactions.

Year $1$

$$ Distribute $$1,500$ cash to each player.

$$ Distribute one property deed to each player.

$$ Choose token.

$$ Play game as normal.

$$ Record $24$ transactions.

$$ On the last day of the year $1,$ the bank agrees to loan you $$200.$ This is a long$-$term note and should remain outstanding throughout the rest of the game.

$$ For year $1,$ you owe $$70$ in income taxes that will be paid next year, unless you have already landed on $$INCOME TAX PAY $10\%$ OR $$200.$

$$ Prepare journal entries from your transaction list that involve cash transactions.

o Remember to journalize your initial cash investment of $$1,500$ and record your property $($land$)$ at cost$.($Use the value given on the monopoly board$).$

$$ Prepare T$-$accounts. $($Your ending cash balance should match your cash on hand$).$

$$ Prepare a worksheet with Trial Balance, Adjusting Entries, Income Statement, and Balance Sheet. Determine your net income or net loss.

$$ Adjusting entry $$ Depreciation: Buildings

o Use $5-$year straight$-$line method.

o Accumulated depreciation contra account. $($To balance, accumulated depreciation must be subtracted from the assets total$).$

$$ Adjusting entry $$ Depreciation: Railroads or utilities if owned

o For each railroad or utility owned take $$20$ annual depreciation expense.

$$ Closing entries

o Journalize your closing entries. Record the net income or net loss amount $($revenues minus expenses$)$ into Owner$$s Capital.

o Close all temporary accounts.

o Carry forward all Asset, Liability, and Equity balances to next year$$s T$-$accounts.

$$ Create your formal financial statements, Income Statement, Owner$$s Equity, and Balance Sheet for year $1.$

$$ You are now ready for year $2.$

Year $2$

$$ Pay year $1$ income taxes if applicable.

$$ At the beginning of year $2,$ you inherit a house. Relocate the house to the property of your choice.

$$ Play the game until you reach $24$ transactions.

$$ Prepare journal entries from your transaction list that involve cash transactions.

o Do not forget to journalize the house received at cost$.$

$$ Prepare T$-$accounts. $($Your ending cash balance should match your cash on hand$).$

$$ Prepare a worksheet with Trial Balance, Adjusting Entries, Income Statement, and Balance Sheet. Determine your net income or net loss.

$$ Adjusting Entry

o You will have $10\%$ interest on mortgage loans.

o You will have $15\%$ interest on other loans.

o You owe $$150$ in income taxes.

o Calculate $5-$year straight line depreciation on buildings owned.

o For each railroad or utility owned take $$20$ annual depreciation expense.

$$ Closing entries

o Journalize your closing entries. Record the net income or net loss amount $($revenues minus expenses$)$ into Owner$$s Capital.

o Close all temporary accounts.

o Carry forward all Asset, Liability, and Equity balances to next year$$s T$-$accounts.

$$ Create your formal financial statements, Income Statement, Owner$$s Equity, and Balance Sheet for year $2.$

Chart of Accounts

Assets

Cash

Accounts Receivables

Get out of jail receivable

Land

Investments $$ Railroad

Investments $$ Utilities

Buildings

Accumulated Depreciation$-$Building

Accumulated Depreciation$-$Railroad

Accumulated Depreciation$-$Utilities

Other assets as needed.

Liabilities

Taxes Payable

Interest Payable

Mortgage Payable

Owner$$s Equity

Your Name, Capital

Revenue

Professional Fee Revenue

Rent Revenue

Investment Revenue$-$Railroad

Investment Revenue$-$Utilities

Miscellaneous Revenue

Gain on Disposal of Property

Expenses

Rent Expense

Interest Expense

Tax Expense

Depreciation Expense

Miscellaneous Expense

Loss on Disposal of Property