Accounting - Lesson Plan (Art Lightstone)

Lesson: 11

Topic: The Trial Balance

Objective:

During this class students will examine the function and structure of the Trial Balance. Students will come to appreciate the fact that, even though a Trial Balance will not always agree with a Balance Sheet, it must nonetheless always balance. Thus, it will illustrate the fundamental accounting equation within the form of a statement.

At the conclusion of the class, students will be able to prepare a Trial Balance from the final balances found within T-Accounts.

Rice Dance Academy

Trial Balance Stock: Value as at a point in time.

For the month Ended September 30, 2005 Flow: Change in value over a period of time.

Account Debit Credit Stock Date: As at …

Cash $ 5,600.00 Flow Date: For the ___ ended …

Accounts Receivable      1,800.00

Equipment      1,400.00

Fixtures      2,000.00

Bank Loan Payable $ 5,000.00

Accounts Payable / Bell         100.00

Capital      3,000.00

Drawings         200.00

Fees Earned      4,200.00

Rent Expense      1,200.00

Phone Expense         100.00

$12,300.00 $12,300.00

Method of Instruction and Evaluation:

Students will complete Exercise #2 on page 102.

Expectations Addressed:

The "Fundamental Accounting Practices" strand of the BAF3M Ministry of Education Curriculum Guidelines outlines all of the following specific expectations. The expectations addressed by this lesson have been highlighted below.

Introduction to Accounting as a Discipline:
- explain the purpose of accounting;
- explain the difference between accounting and bookkeeping;
- identify the users and uses of accounting;
- identify the Generally Accepted Accounting Principles (GAAP) and explain their importance.
Business Structures:
- describe the characteristics of different forms of business organization, including sole proprietorship, partnership, and corporation;
- describe the advantages and disadvantages of different forms of business organization, including sole proprietorship, partnership, and corporation;
- explain the differences among the equity sections of different forms of business organization, including sole proprietorship, partnership, and corporation (e.g., capital account in a sole proprietorship versus common stock in shareholders’ equity in a corporation).
The Accounting Cycle for a Service Business:
- assess the effects that transactions have on the accounts and financial statements of a service business;
- record transactions using the journals and ledgers of a service business;
- prepare a trial balance and the financial statements for a service business;
- record adjusting and closing entries for a service business (e.g., prepaid expenses, amortization, accruals);
- describe the impact of year-end procedures, including adjusting and closing entries, on the financial statements of a service business;
- apply the Generally Accepted Accounting Principles (GAAP) at each stage of the accounting cycle for a service business.

References:

text, chapter #4, pages 98-101

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Rice Dance Academy
Trial Balance			Stock:	Value as at a point in time.
For the month Ended September 30, 2005			Flow:	Change in value over a period of time.
Account	Debit	Credit	Stock Date:	As at …
Cash	$ 5,600.00		Flow Date:	For the ___ ended …
Accounts Receivable	1,800.00
Equipment	1,400.00
Fixtures	2,000.00
Bank Loan Payable		$ 5,000.00
Accounts Payable / Bell		100.00
Capital		3,000.00
Drawings	200.00
Fees Earned		4,200.00
Rent Expense	1,200.00
Phone Expense	100.00
	$12,300.00	$12,300.00