Author

Andrew Francis - CCRSB

Title

Lemonade Stand – Preparing Worksheets and Supporting Financial Documents

Grade Level

11

Subject Area

Accounting

Overview of unit/lessons/activities (assumptions of prior knowledge/learning)

Students will play the classic online game, "Lemonade Stand" and create a set of financial statements from their fictional businesses.

Students should have already been exposed to creating the following financial statements:

1. Opening Balance Sheet
2. General Ledger
3. T-Accounts
4. Combination Journal
5. Worksheet

Lemonade Stand is a simple supply/demand economics game but can be used for a variety of business-based instruction. Players make forecasts on how much lemonade they will be able to sell based on a number of factors including: weather and prices. Students work within their monetary constraints and (hopefully) slowly grow their business into a profitable entity. There is a significant cross-curriculum opportunity with this game if used in conjunction with either Business Management or Economics classes.

Correlations to ICT and curriculum outcomes

ICT Outcomes

PTS 12.2 (relates to 9.2, 9.6) evaluate, select, and use the following to learn and to represent curriculum concepts under study: specialized software, including computer-based simulations; and measuring, sampling and recording devices, including complex calculators

Accounting outcomes as they relate to worksheets and documents

Projected timeline for preparation and for carrying out activities

2 - 3 hours
Playing the game and recording data – 30 minutes
Preparing financial statements 1.5 – 2.5 hours

Equipment Requirements: (computers, software, etc)

Computer for each student with internet access
Microsoft Excel
Online version of "Lemonade Stand" – (e.g. http://www.ae4rv.com/games/lemonade.htm)

Teaching materials provided (Blacklines, worksheets, templates, teacher materials)

Student instructions (Word format) - lemonade_instructions.rtf

Resources available for teacher/student use (websites, references, etc)

See above for website

Detailed instructions for each activity or lesson (teacher notes, activity information, learning strategies, teacher role, student roles)

Methodology:

1. Students should first read through the instructions contained on the Lemonade Stand game website.
2. The goal is to make as much money for your company as possible in a 30-day period.
3. Before starting the game, students will create the following documents
1. Beginning Balance Sheet (assume opening $3 is money borrowed from an outside source)
2. Chart of Accounts
3. General Ledger with all accounts
4. At the beginning of each day of the game, students will record the following on the day-sheet provided:
1. How much they are spending on supplies
2. How much they are spending on advertising
5. After the day is completed, students will record the following on the day-sheet provided:
1. Glasses made
2. Glasses sold
3. Gross Profit
4. Net Profit
6. Students will continue this process for all 30 days of the game.
7. When the game is completed, students will use their day-sheet to prepare a combination journal.
8. Students will then use their combination journal to post the new information to their general ledger
9. From the general ledger, student can compile their formal worksheets (including making "supplies adjustments")
   
   

Samples (include teacher notes, assessment information, student work if available)

Logistics (organization, grouping, management issues, access to technology)

1. Students should not work in groups for this project.
2. Teacher might have a reward for the student that makes the most money in a 30 day period.
3. Teacher may allow students to practice playing the game before starting the formal accounting recording. This should prevent students from losing money over the 30-day term.
   
   

Assessment information (e.g., rubrics for products and/or process)

Assessment can be completed in a variety of ways. A rubric can be developed. Personally, in accounting, due to the professional nature of the products, I weight documents based on their importance to the overall financial picture and deduct points for each mistake. A sample of how the assessment could look is included.

Possible extensions

Students who finish early could be asked to extend their worksheet work to complete an income statement and closing balance sheet.

Adaptations for students requiring additional support

Certain elements of the methodology could be ignored for students that work less quickly. For example, the student could play the game without making an opening balance sheet and ledger, and then complete the combination journal.