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The game of Monopoly should be played on with a board, two dice, tokens, $32$ houses, $12$ hotels, chance cards, community chest cards, play money, and title deed for each property. The game should follow the standard rules, with the exception of free parking. The bank places $$250$ in free parking before the game begins, replenishing it with $$250$ if someone lands on it$.$ Cash payments for fines or luxury tax are placed in free parking. Other cash payments go to the bank, and cash receipts are used for property purchases, chance or community chest payments, and get out of jail $$50$ payments. Miscellaneous revenue is used for cash payments required by Change or Community Chest, get out of jail payments, luxury tax, prepaid income tax accounts, and interest expense accounts.

A company should maintain a transaction log during the game, recording all events that occur during their turn, omitting dates but using transaction numbers. If a company experiences financial distress or bankruptcy, they can auction properties to competitors, mortgage properties, or sell back houses and hotels to the bank. They cannot quit due to bankruptcy.

The player is playing a two$-$year game with $24$ transactions each year. In year $1,$ they distribute $$1,500$ cash and one property deed to each player, choosing a token. They record $24$ transactions and receive a $$200$ long$-$term loan from the bank. The player owes $$70$ in income taxes for year $1,$ which will be paid next year unless they reach a $10\%$ or $$200$ income tax payment threshold.

To prepare journal entries, record the initial cash investment of $$1,500$ and property at cost$.$ Create T$-$accounts with the ending cash balance matching the cash on hand. Prepare a worksheet with Trial Balance, Adjusting Entries, Income Statement, and Balance Sheet to determine net income or net loss. Adjust for depreciation in buildings and railroads or utilities using a $5-$year straight$-$line method. For each railroad or utility owned take $$20$ annual depreciation expense. Close all temporary accounts and carry forward all Asset, Liability, and Equity balances to next year's T$-$accounts. Create formal financial statements, Income Statement, Owner's Equity, and Balance Sheet for year $1.$

In year $2,$ pay year $1$ income taxes if applicable. In year $2,$ inherit a house and move it to your property. Record $24$ transactions, including cash transactions, and journal the house received at cost$.$ Prepare T$-$accounts and create a worksheet with Trial Balance, Adjusting Entries, Income Statement, and Balance Sheet. You will have $10\%$ interest on mortgage loans. You will have $15\%$ interest on other loans. You owe $$150$ in income taxes. Determine net income or net loss, calculate $5-$year straight line depreciation on buildings, and add $$20$ annual depreciation expense for each railroad or utility owned. Journal closing entries and record net income or net loss into Owner's Capital. Close all temporary accounts and carry forward all Asset, Liability, and Equity balances to next year's T$-$accounts. Create formal financial statements, Income Statement, Owner's Equity, and Balance Sheet for year $2.$

Chart of Accounts

Assets

Cash

Accounts Receivables

Get out of jail receivable

Land

Investments $$ Railroad

Investments $$ Utilities

Buildings

Accumulated Depreciation$-$Building

Accumulated Depreciation$-$Railroad

Accumulated Depreciation$-$Utilities

Other assets as needed.

Liabilities

Taxes Payable

Interest Payable

Mortgage Payable

Owner$$s Equity

Your Name, Capital

Revenue

Professional Fee Revenue

Rent Revenue

Investment Revenue$-$Railroad

Investment Revenue$-$Utilities

Miscellaneous Revenue

Gain on Disposal of Property

Expenses

Rent Expense

Interest Expense

Tax Expense

Depreciation Expense

Miscellaneous Expense

Loss on Disposal of Property

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