Lesson Topic:

Accounting Chart of Accounts Activity

Lesson Description:

This lesson will provide students the opportunity to reinforce the organization of a chart of accounts with students creating a chart of accounts for a sole proprietorship service business of their choice.

Learning Goals/Outcomes:

• Construct a chart of accounts for a service business organized as a proprietorship
• Demonstrate correct principles for numbering accounts
• Apply file maintenance principles to update a chart of accounts

Nebraska Standards:

NE.BMM.HS.5.21.E

Teacher Planning:

Equipment/Materials/Software Needed:

Device/Excel

Time Required for Lesson:

This short activity can be completed in class or as homework and would take students approximately 15-20 minutes to complete.

Diagram/Setup:

Technology Use:

Software:

Excel 

Hardware:

Computer

Instructional Plan:

Anticipatory Set/Pre-Activity:

Instructor should show the account form and explain the need for account numbers. Instructor can also show an existing chart of accounts (typically illustrated in the accounting textbook). An explanation of the organization should be made with an explanation of account numbers (3-digit).

Benefits/Explanation/Real-World Connection:

By completing this short and very basic activity, students can personally choose a type of business to choose account titles with corresponding account numbers with the correct organization, according to textbook guidelines.

Activities (i.e. instructions, warm-up, lesson, cool-down):

Make the attached Excel Chart of Accounts sheet available to students. Step-by-step directions are provided on the Excel sheet. 

Closure:

Once students have had the time to complete the Chart of Accounts for their business of choice, have students display their chart of accounts on their computer screens and have students walk around to see other students' business chart of accounts. The instructor could assign a specific task for different groups of students to review, i.e. Group 1--Balance Sheet Accounts vs. Income Statement Accounts; Group 2-- Correct Classifications (Assets, Liabilities, Owner's Equity, Revenue, Expenses); Group 3--Account Numbers (in correct order): Group 4--New Account information

If time allows, students can share observations from completing the activity and/or reviewing other students' Chart of Accounts.

Assessment:

Formative verbal check for understanding at the conclusion of the activity

Supplemental Information:

Modifications:

Instructors could adapt any aspect of this lesson.

Safety Precautions:

NA

Comments (adaptations for various grades/ages, teaching styles, etc.)

NA

Resources:

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