Do you know…

Who lives in this fabulous house??

Do you know…

Who drives this stunning vehicle??

“Eli Manning was awarded the MVP honors and the keys to a 2012 Corvette Grand Sport convertible”. Does he own this?

Do you know…

Who fly’s in this private jet?

Do you know…

Who owns this NFL stud?

The Jets will reimburse the Broncos for half of the $5 million salary advance the Broncos paid under Tebow’s contract…

OWNERSHIP AND THE ACCOUNTING

EQUATIONBy: Jessica Cardillo and Jamie

GilbertApril 3rd, 2012

Ownership: What does it really mean?

What is ownership? Do these money making individuals really own these luxuries?

Does your family own your house? Car? If you don’t own it, who does? How do you think these ideas connect

into a business?

Assets: Show me the Money!

Assets are resources with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefits.

Balance sheet item representing what a firm essentially owns. (Ex: cash, accounts receivable, inventory)

Liabilities: Got Debt??

Current liabilities are those that are due within the present accounting year; credit cards, payments due on a long term year loan, accounts payable, taxes payable

Non current liabilities are those that are not due in the present accounting year. Such things like long- term borrowings, lease obligations and bonds payable.

Equity/Net Worth: What’s all yours?

Equity/ Net Worth is ownership is any asset after all debts associated with that asset are paid off. Example: A car or house with no outstanding debt is considered the owners equity because he or she can sell it for cash.

Stocks can also be represented as equity because it shows ownership in a company.

Standards

Describe and explain conceptual framework of accounting principles

Define assets, liabilities and equity Prepare financial statements

Misconceptions

Definition of ownership If you have it, you “own” it. But do you

really own it?? Ownership vs. liabilities; assets can be a

liability and vice-versa. (ex. student loans)

Big Ideas of the Unit

Money Balance Debits/Credits Ownership and title Assets= liabilities + Equity

Essential Questions

Why is it essential that assets MUST equal liabilities plus equity? Bottom line: Why does the money going in

have to have equal money going out?? What can it mean if the accounting

equation does now balance? What responsibilities go along with being

an accountant in a corporation? How do you essentially own something?

Enduring Understandings

ENRON: The Smartest Guys in the Room

http://www.youtube.com/watch?v=0zMakN-EMLg

GRASPS: Option A

You have been hired from an outside company to assess the books of a company that has some sketchy activity in their accounts. Your task is to analyze the journals, balance sheet, and different accounts to see where the company may have gone wrong and assist them in fixing it. Take your knowledge of general accounting principles and knowledge of Enron and their faulty accounting and correct the ledge for this business. You will need to create a clean journal for the company to operate by and explain the impact an unbalance in the books can have on a business.

GRASPS: Option A (cont’d)

Goal: Identify incorrect operations in a general journal and a balance sheet and assess how to fix them.

Role: You will act as an outside source to a company to help assess their accounting books.

Audience: Company that you are auditing (doing the books for) Situation: The challenge is going through the books of a

company and figuring out how and where they went wrong. Product: You will need to develop the correct journal entries

with a brief explanation as to where they went wrong. Standards: Your journals must have completed entries for the

accounts, labeling each account as an asset, liability and equity. The proper accounts must be used for each transaction. Your balance must PROVE the Assets= Liabilities + Equity.

GOODLUCK!!

GRASPS: Option B

You have been hired by a local business as a new accountant to keep track of daily operations. As the accountant, you will be expected to keep track of the general journal, making note of the individual transactions and how they impact different accounts on the balance sheet. In addition, you will have to keep rack of the balance sheet to ensure that the assets consistently equal the liabilities and equity of the business. You will journal the transactions of the business for a month and assess how the business stands financially based on your knowledge of assets, liabilities and equity.

GRASPS: Option B (cont’d)

Goal: As a new accountant for this business, you will need to record the daily transactions into the journal for a quarter and create a balance sheet.

Role: You have been hired as a new accountant Audience: Your employer Situation: A new business needs a new accountant to keep track

of their finances Product: You will need to create a general journal displaying the

transactions of the business, how each transactions impacts the assets, liabilities and equity, and then create a balance sheet that reflects the essential accounting equations

Standards: Your journals must have completed entries for the accounts, labeling each account as an asset, liability and equity. The proper accounts must be used for each transaction. Your balance must PROVE the Assets= Liabilities + Equity

HAVE FUN!!

WHERETO…

Where and Why We are going to make a K-W-L chart with the

class; K- What the students know about ownership W- What the students want to know about ownership

in regards to business and their personal finances L- What the students are gong to learn about

ownership and how this effects a business on a daily basis

Zoom- In project will assist the students with the understanding of ownership

WHERETO…

Hook and hold Zoom- In project will grab their attention

because it involves subjects of interest and is also in their age demographic

Hold- Constant reflection as to how it impacts their lives. Relating new material to their own personal lives

WHERETO…

Explore, experience and enable Viewing the movie Enron will give them a

realistic view of accounting and ownership and what really can go on in some unethical companies

By completing the GRASPS projects, students will get a glimpse of first hand accounting and a realization of how important that accounting equation is.

WHERETO…

Reflect, rethink, revise Students will reflect and rethink on the

meaning of ownership after viewing the movie and learning about the real meaning of ownership.

As a class, we will ask the students their meaning of ownership and have a discussion on what it means to really own something.

WHERETO…

Evaluate work and progress At the end of the lesson, each student will be

asked to write down one thing they learned about the lesson and where they could use this in real life.

Then as a class we will discuss for the last 5 minutes so the teacher gets a sense of what needs to be reiterated tomorrow or if it is safe to begin a new lesson.

WHERETO…

Taylor and personalize work Naturally we are going to have many different

learning styles in the a class. As a teacher, we are going to have a variety

of teaching styles that we will hopefully reach all of the students needs PowerPoint lectures Videos Zoom-IN Grasps projects Assessments

WHERE TO…MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

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4 5 6 7 8

K-W-L Chart

Introduction to Accounting

Continue intro to accounting terms and important accounts/equation

Zoom- In presentation

Introduce “ownership”

Continue discussion on ownership

Start journal entries and T- accounts

Continue discussion on ownership

Continue journal entries

   

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10 11 12 13 14 15

GRASPS Project

“The smartest guys in the room: ENRON”

Continue with Film

Have students keep a log throughout the movie

Discussion about the film

Introduction to Financial Statements

QUIZ

Present the balance sheet and its accounts

Continue with balance sheet; Practice problems in groups

   

16 17 18 19 20 21 22Introduce the income statement

Continue with Income Statement

Review for exam on Friday

Review for exam on Friday

EXAM    

23 24 25 26 27 28 29Introduce accounting cycle

Continue with cycle;

The journal

Continue with cycle;

Posting

Continue with cycle;

Closing entries

Last of the cycle;

The Trial Balance

   

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