Using a Spreadsheet Project to Teach the Integrative Nature of the Accounting Cycle

• In Event: Reception with Effective Learning Strategies Displays
  In Poster Session: Poster 2

Abstract

This project allows students to use multiple spreadsheets, linked together by formulas, cell references, and the IF function, to learn and practice the articulating properties of the accounting cycle for a sample business. Students are given an alphabetized list (PDF file) of account names and corresponding account numbers and balances (all normal). The input sheet also includes the data needed for year-end adjustments and cash flows. Finally, students are given check figures to help them determine the accuracy of their project calculations.

The project directs students to create a spreadsheet workbook and enter the input data from the pdf file into the first sheet (“Input”). Only on this sheet may students manually enter numerical values into cells. Students then create a second sheet (“Worksheet”) and design a worksheet by referencing the accounts and balances from the Input sheet. The students may format and label the Worksheet by manually typing column and row titles (e.g., “Net Income” and “Total”), but all account names and values must be generated using either cell referencing, formulas (e.g., sum of a column), or the IF function (e.g., blank out cells without a balance). After completing the Worksheet, students create a third sheet (“IS & RE”) to prepare a well-formatted Income Statement and Statement of Retained Earnings for the business; account names and values must again be generated using formulas and cell references. Finally, students prepare a fourth sheet (“Balance Sheet”) and a fifth sheet (“Cash Flows”), using cell references and formulas to populate the values of each. Once their spreadsheet totals are identical to the check figures, the last step of the project is to input a new set of account balances on the first sheet. If the project has been completed correctly, sheets two through five should update correctly based on the new data.

This project can be used to give students in Accounting Principles, AIS, and Intermediate Accounting a practical demonstration of the integrative nature of the accounting cycle.

Author

• Penelope M. Lyman, University of North Georgia