Complete Steps 1-3 in Accounting Cycle Principles of Cost Analysis and Management Show Slide #1: Complete Steps 1-3 in Accounting Cycle Title: Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance) References: FM 1-06 Financial Management Operations, Lesson Created Handout, Notes and Template. Section I. Administrative Data Academic Hours/Methods 01 hrs. / 20 min. DSL (large or small group discussion) 00 hrs. / 30 min. PE (practical exercise (Hands On) 00 hrs. / 00 min. Test 00 hrs. / 00 min. Test Review 00 hrs. / 00 min. Total Hours Section II. Introduction: Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 1:25 Time of Instruction: 00 hrs. / 05 min. Media: PowerPoint Presentation Motivator (Concrete Experience 5 minutes): Discuss with Learners about the following Scenario. Ask Learners; “What is the Accounting Cycle”?   This is a good chance to find out what learners understand about the “Accounting Cycle”. Let them give their suggestions and write them up on the board. Depending upon the learners’ level of sophistication and knowledge, you should get a variety of answers. For example: The Accounting Cycle is the systematic process by which accounting information is recorded, compiled, and reported to users. Facilitator’s Material: Each primary Facilitator's should possess a lesson plan, slide deck, course handouts, practical exercise with answer key, excel template, case studies and summary sheet containing FM 1-06. Learner’s Material: Learners should possess course handouts, practical exercises, summary sheet containing FM 1-06, case studies, excel template with access to Bb and standard classroom supplies,. Note: "All required references and technical manuals will be provided by the School House“ Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29.

Terminal Learning Objective Action: Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance). Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international Learners): Identify Steps in the Accounting Cycle Translate Terminology (journal, ledger, debit, credit) Record Transactions in Tabular Format under the Accrual Basis Show Slide #2: Terminal Learning Objective Facilitator’s Note: Read TLO Action: Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance). Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international Learners): Identify Steps in the Accounting Cycle Translate Terminology (journal, ledger, debit, credit) Record Transactions in Tabular Format under the Accrual Basis Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29. Risk Assessment Level: Low. Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. Evaluation: Learners will take the Principles of Cost Analysis and Management 1 Exam at the end of Week One. Learners must score 80% or higher and International officers must score 70% or higher. Instructional Lead in: Once again with the same question, what is the Accounting Cycle? The Accounting Cycle is the systematic process by which accounting information is recorded, compiled, and reported to users. The basic cycle is standardized and ensures that the information is prepared the same way every time, for consistency. Having a systematic process also helps to prevent errors.

Post-Closing Trial Balance The Accounting Cycle Record Transactions Post-Closing Trial Balance Post to Ledger Close Accounts Prepare Trial Balance Show Slide #3: The Accounting Cycle Learning Step Activity 1: Identify Steps in the Accounting Cycle Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 2:25 Time of Instruction: 00 hrs. / 20 min. Media: Power Point, Printed Reference Material, Excel spreadsheet(s) 21st Century Soldier Competencies: The 21st Century Soldier Competencies are essential to ensure Soldiers and leaders are fully prepared to prevail in complex, uncertain environments. Throughout the lesson discussions, seek opportunities to link the competencies with the lesson content through the Learner’s experiences. Facilitator's Note: The Accounting Cycle is the systematic process by which accounting information is recorded, compiled, and reported to users. Before facilitating this lesson, ask the Learners which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the Learners still believe their choice are the same. Note: For this lesson these competencies should be talked about. #6. Communication and engagement (oral, written, and negotiation) #7. Critical thinking and problem solving #8. Cultural and joint, interagency, intergovernmental, and multinational competence #9. Tactical and technical competence (full spectrum capable) Facilitator's Note: This is an animated slide, click on mouse or space bar to transition through each of the steps having discussions with the learners about the accounting cycle. The first step is to record transactions. Remember that a transaction is an exchange of resources that affects two or more accounts. You can think of transactions as the building blocks of the accounting information. Transactions will be recorded according to the appropriate set of accounting rules for the entity: cash basis, budgetary basis, or accrual basis. Then they will be compiled and reported for users.   1st Mouse Click View: The second step is to post transactions to the ledger. This is an essential part of the compilation process, summarizing the transactions by account. In theory posting comes near the end of the cycle after all transactions have been recorded. In practice posting can come at any time in the accounting cycle. Entities can post transactions at the end of each day, week, or month. GFEBS uses “real-time” posting, which means that the transaction is posted as soon as it is recorded in the system. This assures that the account balances are continually updated with the latest information. 2nd Mouse Click View: The third step is to prepare the trial balance. The trial balance is a means of identifying errors that may have occurred in the recording and posting process. In this lesson we will demonstrate steps 1-3. 3rd Mouse Click View: After the trial balance has been prepared and verified, Step 4 is adjusting transactions. Adjusting transactions are necessary to make sure that the information follows the appropriate timing rules for revenues and expenses or expenditures. Most of the year-end activity known as “Closing” is really the adjustment process: making sure that all of the information is properly recorded before generating reports. 4th Mouse Click View: After recording adjusting transactions, another trial balance is prepared to identify any errors that might have occurred in recording and posting adjusting transactions. 5th Mouse Click View: Once the adjusted trial balance is complete, then financial statements and reports can be prepared with confidence. 6th Mouse Click View: This step is to close the accounts in preparation for the next cycle. Closing zeroes out the revenue and expense accounts so that they can start with a clean slate in the next cycle. 7th Mouse Click View: This step is to prepare a final Trial balance, called the post-closing or after-closing trial balance, to ensure that the accounts are in balance before starting the next cycle. Prepare Statements Adjust Accounts Adjusted Trial Balance

LSA #1 Check on Learning Q1. What is the first step in the Accounting Cycle? A1. Record Transactions Q2. What is the purpose of the Trial Balance? A2. To identify any errors that might have occurred in the recording or posting process Show Slide #4: LSA #1 Check on Learning Facilitator's Note: Ask check on learning question, facilitate discussion on answers given. Q1. What is the first step in the Accounting Cycle? A1. Record Transactions Q2. What is the purpose of the Trial Balance? A2. To identify any errors that might have occurred in the recording or posting process

LSA #1 Summary During this block, we went over the eight accounting cycles, which are: Record Transactions Post to Ledger Prepare Trial Balance Adjust Accounts Adjusted Trial Balance Prepare Statements Close Accounts Post-Closing Trial Balance Show Slide #5: LSA#1 Summary Facilitator's Note: During this block, we went over the eight accounting cycles, which are: Record transactions exchanges of resources that affects two or more accounts. Post transactions to ledger, essential part for compilation and summarizing transactions account. Prepare trial balance a means of identifying errors. Adjusting transactions to ensure information follows appropriate timing rules for expenses or expenditures. Trial balance to identify any errors. Prepared statements adjusted trial balance is complete for reports. Close accounts for the next cycle. Post-Closing Trial balance to ensure accounts are in balance before next cycle

The Journal Accounting events are recorded in the Journal The Journal is a chronological record of all transactions Each transaction requires a journal entry Each journal entry consists of at least one Debit and one Credit: “Double Entry” Accounting Debit amounts must equal Credit amounts Debit: an entry on the left-hand side of the account Credit: an entry on the right-hand side of the account Show Slide #6: The Journal 2. Learning Step Activity 2: Translate Terminology (journal, ledger, debit, credit) Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 2:25 Time of Instruction: 00 hrs. / 15 min. Media: Power Point, Printed Reference Material, Excel spreadsheet(s) Facilitator's Note: Read and explain to the learners that “Accounting” events are recorded in the “Journal”. What constitutes an accounting event depends upon the appropriate accounting rules for the entity (cash basis, budgetary basis, or accrual basis). The Journal is a chronological record of all transactions. (Just like a personal journal is a chronological record of personal activities.) Translate Terminology (journal, ledger, debit, credit) Each transaction requires a journal entry Each journal entry consists of at least one Debit and one Credit: “Double Entry” Accounting Debit amounts must equal Credit amounts Debit: an entry on the left-hand side of the account Credit: an entry on the right-hand side of the account

Regarding Debits and Credits Debits and credits are neutral Debit ≠ decrease Credit ≠ increase It depends on the type of account Some accounts types record increases with a debit, some record increases with a credit. The side of the account which records an increase is the account’s NORMAL BALANCE. Show Slide #7: Regarding Debits and Credits Translate Terminology (journal, ledger, debit, credit) (Cont.) Most people have some preconceived idea about what debits and credits mean. This usually comes from experience with their bank accounts. In fact, Debits and credits are neutral. Debit DOES NOT MEAN a decrease Credit DOES NOT MEAN an increase Debit and credit only have meaning in context. Note: The meaning depends on the type of account in question. Some accounts types record increases with a debit, some record increases with a credit. The side of the account which records an increase is the account’s NORMAL BALANCE

“Normal” Account Balances Assets = Liab + FinPosition ± Net Change Net Change = Revenue – Expense, so: Assets = Liab + FinPosition + Rev – Expense + Expense = + Expense (Add Expense to both sides) Assets + Expense = Liab + FinPosition + Rev Everything on the LEFT side of the equation increases with an entry to the LEFT side of the account Show Slide #8: “Normal” Account Balances Translate Terminology (journal, ledger, debit, credit) (Cont.) Facilitator's Note: This is an animated slide, click on mouse or space bar for transition and explanations for each segment. Regarding Debits and Credits 1st Mouse Click View: Facilitator's Note: This slide reviews how the Statement of Financial position and the Statement of Activities can be combined into one accounting equation. The Normal account balances (the side of the account on which you would record an increase to that account) are based on this equation. 2nd Mouse Click View: Facilitator's Note: If we want an equation that has no negative values in it, we must add Expense to both sides of the equation. 3rd Mouse Click View: Facilitator's Note: This yields another view of the same equation: Assets + Expense = Liabilities + Financial Position + Revenue

“Normal” Account Balances (Cont.) Assets = Liab + FinPosition + Rev – Expense + Expense = + Expense (Add Expense to both sides) Assets + Expense = Liab + FinPosition + Rev Everything on the side of the equation increases with an entry to the side of the account RIGHT LEFT Show Slide #9: “Normal” Account Balances (Cont.) Translate Terminology (journal, ledger, debit, credit) (Cont.) Facilitator's Note: Continuation of animated slide. 1st Mouse Click View: Facilitator's Note: Everything on the LEFT side of the equation increases with an entry to the LEFT side of the account. Or, we would say that Assets and Expenses have a NORMAL DEBIT balance. Conversely, a decrease to an asset or expense account would be recorded with an entry on the right or credit side. 2nd Mouse Click View: Facilitator's Note: Everything on the RIGHT side of the equation increases with an entry to the RIGHT side of the account. We would say that Liabilities, Financial Position, and Revenues have a NORMAL CREDIT balance. Conversely, a decrease to a liability, financial position or revenue account would be recorded with an entry on the left or debit side. RIGHT LEFT

“Normal” Account Balances (Cont.) Assets + Expense = Liab + FinPosition+ Rev + – + – – + – + – + debit credit Show Slide #10: “Normal” Account Balances (Cont.) Translate Terminology (journal, ledger, debit, credit) (Cont.) Facilitator's Note The accounts are shown here in T-Account form. The left or debit side of the account is used to reflect increases in assets and expenses. The right or credit side of the account is used to reflect increases in liabilities, financial position, and revenues.

LSA #2 Check on Learning Q1. What does “credit” mean? A1. An entry on the right hand side of the account Q2. An increase to an expense is reflected with an entry on which side of the account? A2. Left hand or debit side. Show Slide #11: LSA #2 Check on Learning Facilitator's Note: Ask the following Questions; Q1. What does “credit” mean? A1. An entry on the right hand side of the account Q2. An increase to an expense is reflected with an entry on which side of the account? A2. Left hand or debit side.

LSA #2 Summary During the facilitation of this block of instruction we covered on accounting events are recorded in the Journal, that Debits and Credits being neutral and review examples of normal account balances. Show Slide #12: LSA#2 Summary Facilitator's Note: During the facilitation of this block of instruction we covered on accounting events are recorded in the Journal, that Debits and Credits being neutral and review examples of normal account balances.

Anatomy of a Journal Entry Date of Transaction Amount Debited Account Debited Amount Credited Show Slide #13: Anatomy of a Journal Entry 3. Learning Step Activity 3: Record Transactions in Tabular Format under the Accrual Basis Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 2:25 Time of Instruction: 00 hrs. / 25 min Media: Power Point, Printed Reference Material, Excel spreadsheet(s) Facilitator's Note: This is an animated slide which will demonstrate the parts of the journal entry. The journal is a chronological record of transactions, so each entry starts with a date. Click on mouse or space bar for transition and explanations for each segment.   1st Mouse Click View: Facilitator's Note: The account to be debited is listed first, left justified to indicate that it is associated with the amount in the left or debit column. Note: Merchandise inventory is an asset, so the debit to merchandise inventory indicates an increase. 2nd Mouse Click View: Facilitator's Note: The amount that the merchandise inventory account is debited is written in the left-hand or debit column 3rd Mouse Click View: Facilitator's Note: The Account to be credited is listed, indented to the right to show that it is associated with the amount in the right-hand column. Note: Accounts Payable is a liability, so the credit indicates an increase. 4th Mouse Click View: Facilitator's Note: The amount that the Accounts Payable account is to be credited is written in the right-hand column. 5th Mouse Click View: Facilitator's Note: Lastly, and explanation of the transaction is given. 6th Mouse Click View: Facilitator's Note: The posting reference column is left blank when the transaction is recorded. It will only be used when the transactions are posted. 7th Mouse Click View: Facilitator's Note: Becoming fluent in Debits and Credits takes practice beyond the scope of this course. Note: We will demonstrate a few journal entries to give you the flavor, and then proceed to Step 2. Posting Reference (Leave Blank) Becoming fluent in Debits and Credits takes practice beyond the scope of this course. We will demonstrate a few journal entries to give you the flavor, and then proceed to Step 2. Account Credited Explanation of Transaction

Lacy’s Journal Transaction Description Cash + Other Assets = Liab Financial Position Rev – Exp Purchased Supplies -65 +65 Transaction Description Cash + Other Assets = Liab Financial Position Rev – Exp Purchased Supplies -65 +65 Transaction Description Cash + Other Assets = Liab Financial Position Rev – Exp Receives $200 Equity Transfer +200 Transaction Description Cash + Other Assets = Liab Financial Position Rev – Exp Receives $200 Equity Transfer +200 Show Slide #14: Lacy’s Journal Record Transactions in Tabular Format under the Accrual Basis (Cont.) Facilitator's Note: This is an animated slide which will demonstrate the general journal entry to record Lacy’s receipt of the cash transfer from the family general fund. Note: The debit or left side entry to cash (which is an asset on the left side of the equation) reflects the increase to Lacy’s cash balance.   1st Mouse Click View: Facilitator's Note: The credit or right side entry to Financial Position (which is on the right side of the equation) represents an increase to Lacy’s financial position. 2nd Mouse Click View: Facilitator's Note: The transaction shown here records Lacy’s purchase of supplies with cash. The increase to Other Assets (on the left side of the equation) is reflected with an entry on the debit or left side of the account. 3rd Mouse Click View: Facilitator's Note: The decrease to cash (on the left side of the equation) is reflected with a credit or an entry to the right side of the account. Credit to Cash reflects a decrease in the Cash account. Credit to Financial Position (right side) reflects an increase in the financial position account. Debit to Other Assets (left side) reflects an increase in the Other Assets account. Debit to Cash (left side) reflects an increase in the cash account.

The Ledger The LEDGER is a Summary of all Transactions By Account We will represent each Ledger Account with a T-Account A debit entry from the Journal is posted on the left side of the T-Account A credit entry from the Journal is posted on the right side of the T-Account The balance of an account is its excess of debits over credits (or vice versa) Show Slide #15: The Ledger Record Transactions in Tabular Format under the Accrual Basis (Cont.) Facilitator's Note: Inform Learners that Step 2 is posting to the ledger. The LEDGER is a Summary of all Transactions By Account. We will represent each Ledger Account with a T-Account A debit entry from the Journal is posted on the left side of the T-Account A credit entry from the Journal is posted on the right side of the T-Account The balance of an account is its excess of debits over credits (or vice versa) Facilitator's Note: Inform learners that posting is the process where you are most likely to make a mistake. Note: Ask them to see if they can come up with some mistakes they feel would occur. After they have given their responds, see if they came up with some common mistakes such as: Omitting a posting Posting a debit entry on the right side of the account (and vice versa) Transposing numbers

Transaction Description Lacy’s Ledger Cash Cash Cash Cash Other Assets Other Assets Other Assets Other Assets Liabilities Liabilities Liabilities Liabilities (+) 200 15 5 50 -------------- 130 (+) 200 (+) 200 (+) (-) 20 10 5 65 40 ---------------- (-) (-) (-) (+) 20 65 40 -------------- 140 (+) 20 65 40 -------------- 140 (+) 20 65 40 -------------- 140 (+) (-) 5 --------------- (-) 5 --------------- (-) 5 --------------- (-) (-) 40 ---------------- (-) 40 ---------------- (-) 40 ---------------- (-) (+) 40 --------------- (+) 40 --------------- (+) 40 --------------- (+) Financial Position Financial Position Financial Position Financial Position Revenues Revenues Revenues Revenues Expenses Expenses Expenses Expenses (-) (-) (-) (-) (+) 200 (+) 200 (+) (+) (-) (-) (-) (-) (+) 15 20 50 --------------- 85 (+) (+) (+) (+) 10 5 --------------- 15 (+) (+) (+) (-) (-) (-) (-) Show Slide #16: Lacy’s Ledger Record Transactions in Tabular Format under the Accrual Basis (Cont.) 1st Mouse Click View:   Facilitator's Note: This is an animated slide which will represents the blank ledger for Lacy’s Lemonade stand, before posting any entries.    2nd Mouse Click View: Facilitator's Note: The entry for Cash in the left hand or debit column of the journal is posted to the left side of the Cash T-account. When posting by hand you would also put a check mark or other indicator in the Posting Reference column of the journal to indicate that this entry has been posted. This is to prevent omitting a posting (or posting the same entry twice). 3rd Mouse Click View: Facilitator's Note: The entry for financial position in the right hand or credit column of the journal is posted to the right side of the financial position account. 4th Mouse Click View: Facilitator's Note: After all transactions are posted, then the account balances are calculated. The cash account has debits (or increases) of 270 and credits (or decreases) of 140, leaving a balance of 130. For other assets, add the entries on the debit side (145) and subtract the 5 on the credit side to get the balance of 140. For Liabilities the balance is zero: the credit of 40 (when Lacy charged the amount at the grocery store) is offset by a debit of 40 (when she paid the bill). The ending balances in each account are color coded to correspond with the same values in the equation at the bottom of the slide. After all transactions are posted, the Ledger Balances agree with our equation Transaction Description Cash + Other Assets = Liabilities Financial Position Revenues – Expenses Ending Balance 130 140 200 85 - 15

The Trial Balance Lists all accounts and their balances in two-column format Proves that Debits equal Credits - Forces accountant to find errors before preparing statements Provides a starting point for adjustments, statements and closing entries Show Slide #17: The Trial Balance Record Transactions in Tabular Format under the Accrual Basis (Cont.) Facilitator's Note: Step 3 is the Trial balance. Lists All Accounts and Their Balances in Two-Column Format Proves that Debits Equal Credits. Forces Accountant to Find Errors Before Preparing Statements Provides a Starting Point for Adjustments, Statements and Closing Entries

Transaction Description Lacy‘s Trial Balance Account Title dr. cr.  Cash $130     Other Assets 140   Liabilities $ ---  Financial Position 200   Revenues  85  Expenses  15 Totals  $285 $285  Show Slide #18: Lacy’s Trial Balance Record Transactions in Tabular Format under the Accrual Basis (Cont.) Facilitator's Note: The trial balance proves that our debits equal our credits. Or, the equation is in balance. It is a different way of presenting the same information as the equation at the bottom of the page. Our equation essentially show the same information as the Trial Balance: Transaction Description Cash + Other Assets = Liabilities Financial Position Revenues – Expenses Ending Balance 130 140 200 85 - 15

Debits and Credits Debits and credits are used in accounting systems to reflect changes in accounts It’s not necessary to memorize debits and credits to understand the effects of transactions We will rely on the equation and T-Accounts to illustrate transactions Show Slide #19: Debits and Credits Facilitator’s Note: Conclude this lesson with the explanation of Debts and Credits. Debits and credits are used in accounting systems to reflect changes in accounts. It’s not necessary to memorize debits and credits to understand the effects of transactions. We will rely on the equation and T-Accounts to illustrate transactions.

Accounting Cycle Spreadsheet Journal entries may be entered by hand (this step is optional) Show Slide #20: Accounting Cycle Spreadsheet Practical Exercise Prep: Facilitator's Note: This is a crawl / walk exercise. You will use the spreadsheets to complete your practical exercises in this segment. You will enter data to record transactions for: Journal Entry Post to Ledger Prepare Trial Balance

Accounting Cycle Spreadsheet (Cont.) Post transactions to T-Accounts Balances calculate automatically Show Slide #21: Accounting Cycle Spreadsheet (Cont.) Practical Exercise Prep (Cont.) Facilitator's Note: Post transactions to T-Accounts Balances calculate automatically

Accounting Cycle Spreadsheet (Cont.) The Trial Balance is generated automatically from the T-Accounts. Note that debits = credits Show Slide #22: Accounting Cycle Spreadsheet (Cont.) Practical Exercise Prep (Cont.) Facilitator's Note: The Trial Balance is generated automatically from the T-Accounts. Note that debits = credits

Practical Exercise / Review Show Slide #23: Practical Exercise / Review Practical Exercise / Review: 3.2 Practical Exercise Complete Steps 1-3 in the Accounting Cycle Facilitator’s Note: This begins the Run phase. Learners on their own at this point. Method of Instruction: Practical Exercise Facilitator's to Learner Ratio: 2:25 Time of Instruction: 00 hrs. / 30 min. Media: Handouts Facilitator’s Note: This is a run exercise. You will use the spreadsheets to complete your practical exercises in this segment. You will enter data to complete steps 1-3 in the accounting cycle. Special Instructions: Ensure Learners have access to PE for Complete Steps 1-3 in Accounting Cycle and all related material to complete the exercises. Objectives: With at least 80% accuracy (70% for international Learners): Learners will complete steps 1-3 in the accounting cycle, journal, ledger, debit, and credit. Record transactions in tabular format under the accrual basis. (using macros provided in an Excel template). Facilitator’s Material: Each primary Facilitator's should possess a lesson plan, slide deck, course handouts, practical exercise with answer key, summary worksheet containing FM 1-06 (Financial Management Operations), Excel spread worksheet and lesson created notes. Learner’s Material: Learners should possess course handouts, practical exercise titled PE Complete Steps 1-3 in Accounting Cycle, summary worksheet containing FM 1-06 (Financial Management Operations), Excel spread worksheet, and standard classroom supplies.  Materials Needed: HO Complete Steps 1-3 in Accounting Cycle Practical Exercise titled: PE Complete Steps 1-3 in Accounting Cycle *Pen Or Pencil *Blank Paper Note: (* Learner responsibility) Procedures/Instructions: All situations have one correct answer. You will complete this PE immediately following the class on Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance). You will have 15 minutes for completion of this practical exercise, and 15 minutes for a review. Be prepared to go over the entries and individual solutions for each scenario. General Information: This practical exercise simulates the transactions that relate to a garrison’s vehicle repair shop that provides services to other governmental departments. You will have time to complete this practical exercise, followed by a review at the completion of the PE. Instructional Lead-in: Given this particular situation, you will need to calculate the answers to the situation by recording the transactions in the six-column format, and use the Accounting Cycle spreadsheet to post the transactions to t-accounts and prepare a trial balance. Feedback: AAR will be conducted after the PE, along with a Learner end of course critique will be conducted at the end of the course. Facilitator’s Note: If you experience difficulties, ask the Facilitator‘s or assistant Facilitator's for immediate assistance or help. Requirements: Complete Steps 1-3 in the Accounting Cycle Enter relevant report data to solve position equation using macros provided in an Excel template Practical Exercise AJCPC100.1 Repair Shop that Provides Services Practical Exercise AJCPC100.2 Repair Shop that Operates as a Revolving Fund Evaluation: To obtain a "Go" in this PE, you must: Properly determine and complete all applicable excel templates. Calculate and compute the answers to the situation. Facilitator’s Note: Commence Practical Exercise PE Solutions Complete Steps 1-3 in Accounting Cycle Solution #1: AJCPC100.1 Solution The following transactions relate to the garrison’s vehicle repair shop that provides services to other governmental departments. The repair shop operates as a revolving fund.   Receives transfer from General Fund $500 Takes out long term loan for the purchase of equipment 1200 Purchases supplies on account 200 Provides services to other governmental departments on account 650 Provides repair services in exchange for cash 300 Pays salaries and rent for the current period 600 Receives payment on account from other governmental departments 250 Pays for supplies purchased on account 200 Record the transactions in the six-column format. (All amounts are in thousands) Other assets consist of: Equipment 1200 Supplies 200 Accounts Receivable 400 Total 1800 Solution #2: AJCPC100.2 Solution Step 1: General Journal Date / Accounts and Description / P.R. Debit / Credit Step 2: Ledger Cash / Other Assets / Liabilities / Financial Position / Revenues / Expenses Step 3: Trial Balance Account Title / Debit / Credit

LSA #3 Check on Learning Q1. A decrease to Cash is recorded on which side of the Cash account? A1. Right side or credit side Q2. The summary of transactions by account is called the…? A2. Ledger (represented here by T-accounts) Show Slide #24: LSA #3 Check on Learning Facilitator's Note: Ask the following Questions; Q1. A decrease to Cash is recorded on which side of the Cash account? A1. Right side or credit side Q2. The summary of transactions by account is called the…? A2. Ledger (represented here by T-accounts)

LSA #3 Summary During this lesson, we discussed the 8 steps of the accounting cycle (AC) and gave an in-depth description of each. Various terminologies associated with the AC were defined and explained. Finally, several account balance formulas were viewed using T-accounts, and the transactions recorded as a Journal Voucher Entry. Show Slide #25: LSA #3 Summary Facilitator's Note: During this lesson, we discussed the 8 steps of the accounting cycle (AC) and gave an in-depth description of each. Various terminologies associated with the AC were defined and explained. Finally, several account balance formulas were viewed using T-accounts, and the transactions recorded as a Journal Voucher Entry.

TLO Summary Action: Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance). Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international Learners): Identify Steps in the Accounting Cycle Translate Terminology (journal, ledger, debit, credit) Record Transactions in Tabular Format under the Accrual Basis Show Slide #26: TLO Summary Facilitator’s Note: Read TLO Action: Complete Steps 1-3 in the Accounting Cycle (Journalize, Post, Trial Balance). Condition: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international Learners): Identify Steps in the Accounting Cycle Translate Terminology (journal, ledger, debit, credit) Record Transactions in Tabular Format under the Accrual Basis “Or” Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.