Physical Model of the Accounting Cycle- Basics of Accounting

Introduction

Physical Model of the Accounting Cycle

Welcome my whizzes!

As we approach the end of another lesson, I want to see what you have learnt. So attempt this task with the best of your abilities. Get your thinking caps on, and get your creative tools ready! This is about to get exciting.

The goal of this assignment is to develop an interactive model that simulates the complete accounting cycle, from analyzing transactions to generating financial statements. This model should allow users to engage in each step of the cycle, reinforcing their understanding of accounting principles through hands-on practice.

Task

Instruction: In groups of three, create a physical working model of the accounting cycle that demonstrates your understanding of the process.

The items that should be submitted are as listed:

1. Model: A physical working model of the accounting cycle that demonstrates the required functionality

2. Written Description: A written description of the accounting cycle and your model (approx. 2-3 pages)

3. Visual Aids: Visual aids, such as diagrams or flowcharts, to illustrate the accounting cycle

4. Demonstration: A demonstration of your model's functionality

Submission Guidelines:

Deadline: Monday September 30, 2024
Models will be presented in class. Students should prepare a 2-minute presentation to demonstrate and explain their model.
Submit the written description on the day of the presentation.

Process

Assistive Tools:

https://youtu.be/SHUoFkXhwe4?si=8bWEDNb-XebPWiWe

The 8 Accounting Cycle Steps Explained

https://tipalti.com/resources/learn/accounting-cycle/

1. Model Design:

Design a physical model of the accounting cycle, including the following components:

1. Transactions

2. Journal entries

3. Ledger accounts

4. Trial balance

5. Financial statements (Balance Sheet, Income Statement, Cash Flow Statement)

Materials Needed (Based on your choice):

1. Cardboard

2. Display Labels

3. Markers

4. Hardboard

5. Digital Integration

2. Your interactive model must include the following key features:

Step-by-Step Guidance:
- The model should guide the user through each step of the accounting cycle. For each step, provide a brief description, an example scenario, and interactive tasks for the user to complete.
- The model should provide immediate feedback if a user makes an error or incorrect entry, with helpful explanations to guide them to the correct answer.
Transaction Scenarios:
- Provide at least 5 different transactions (examples: sales, expenses, asset purchases, etc.). Each transaction should be presented to the user, who will then analyze it and record it correctly in the journal.
Journal Entries and Posting:
- Users should record journal entries based on the analyzed transactions.
- After entering journal entries, users should be able to post these entries to T-accounts (ledgers).
Trial Balance:
- Once journal entries are posted, allow users to prepare a trial balance. The model should ensure that the trial balance is balanced (i.e., the total debits equal the total credits).
Adjusting Entries:
- Present at least 2 adjusting entry scenarios (e.g., accrual of expenses, depreciation) and ask users to adjust the accounts accordingly.
Adjusted Trial Balance:
- Users should update the trial balance after making the adjusting entries and check if the adjusted trial balance is still balanced.
Financial Statements:
- Using the adjusted trial balance, generate at least two of the following financial statements:
  - Income Statement
  - Balance Sheet
  - Cash Flow Statement
- Allow the user to drag and drop amounts from the trial balance into the correct sections of the financial statements.
Closing Entries:
- Provide the user with the opportunity to perform closing entries for temporary accounts (revenues, expenses, dividends).
Post-Closing Trial Balance:
- After closing entries are made, guide the user to prepare a post-closing trial balance, ensuring that only permanent accounts remain.

3. Model Presentation: Present your model in a clear and concise manner, including:

1. A written description of the accounting cycle and your model

2. Visual aids, such as diagrams or flowcharts, to illustrate the accounting cycle

3. A demonstration of your model's functionality

Evaluation

Rubric

Criteria	Exemplary (10 points)	Proficient (8 points)	Developing (5 points)	Beginning (2 points)	Score
Accuracy (10 points)	All 8 steps of the accounting cycle are correctly represented and logically sequenced.	Most steps are correctly represented, with minor errors or omissions in detail or sequence.	Several steps are missing or inaccurately represented, causing confusion in the sequence.	Few or no steps are accurately represented or sequenced.
Clarity (10 points)	Steps and transitions are exceptionally clear and easy to follow. Labels and connections are well-defined.	Steps and transitions are clear, but some labels or connections could be improved for better understanding.	Steps or transitions are somewhat unclear, with multiple confusing or missing labels/connections.	Steps are unclear, with labels or transitions missing or poorly presented.
Creativity (10 points)	The model is highly creative, using unique and engaging materials or features that captivate attention.	The model is creative and engaging but could use more unique or innovative elements.	Some creativity is evident, but the design is simple or lacks engaging elements.	The model shows little to no creativity, appearing rushed or uninspired.
Interactivity (10 points)	The model is highly interactive, with multiple working/movable parts or components that clearly demonstrate transitions.	The model is interactive, with at least one or two movable or working parts, though more could be added.	Limited interactivity; few or no working parts included, or functionality is unclear.	No interactivity is included, and the model is entirely static.
Presentation Quality (10 points)	The model is exceptionally neat, professional, and visually appealing.	The model is neat and visually appealing, with minor areas for improvement.	The model is somewhat neat, but the overall presentation is not very appealing.	The model is messy, poorly constructed, and lacks visual appeal.
Written Report (10 points)	The report is thorough, well-written, and explains each step of the accounting cycle with clear examples and connections to the model.	The report is clear and accurate, but some steps lack depth or examples are minimal.	The report is incomplete or lacks clear explanations of steps or connections to the model.	The report is missing or fails to explain the accounting cycle or model.
Oral Presentation (10 points)	Presentation is well-organized, confident, and effectively explains the model and the accounting cycle in the allotted time.	Presentation is organized and clear but lacks confidence or full coverage of the model.	Presentation is somewhat disorganized or unclear, and time is poorly managed.	Presentation is disorganized, unclear, or missing entirely.

Conclusion

Completing this assignment will provide you with practical experience in understanding the accounting cycle and how transactions impact financial statements. This project will also help you improve your problem-solving and technical skills by creating an interactive tool to reinforce the principles covered in class.

Tips for Success:

Plan your design before building. Sketch out your model and decide on materials.
Think of ways to make your model interactive and engaging.
Collaborate with peers for ideas but ensure your work is original.
Review the accounting cycle thoroughly to ensure your model is accurate.

All the best students. Please feel free to contact me and inform me of any difficulties prior the submission date.

Teacher Page

I am Ms. Charmaine Thomas, B.Sc. I am your teacher for the first semester in September- December 2024. I am currently studying at the College of Agriculture, Science and Education. For this semester I want you students to take an open mind approach. Be confident, be resilient and always wear a positive attitude.