Define next room (room 4)

[fenwickjb]

Here are the ideas for content on the wall panels in the journal.js room teaching about accounting step 2: Journalize.

@upchurchzb, maybe begin by "storyboarding" each panel: how many separate screens for each panel, what exact wording, and what if any images are there. Can hand draw or just type in this issue as comments. Or can put into a new AppTAG.docx file for this room (notice we have a new one for each room now!!). Use the BALSAMIQ.pdf page numbers as guiding content for the panels.

![Stolberg journal room ideas] (http://cs.appstate.edu/~jbf/AppTAG_journal_room.png)

[fenwickjb]

• [ ] find a new "floor" image to use
• [ ] build "empty" room with floor walls, return door (showing), next room hole (hiding)
• [ ] define wall panel 1
• [ ] define wall panel 2
• [ ] define wall panel 3
• [ ] define wall panel 4
• [ ] define wall panel 5
• [ ] define wall panel 6
• [ ] determine activity (but it will be another "room")

[fenwickjb]

Panel 1: 3 screens

Screen 1: page 52 of BALSAMIQ pdf doc in master branch in docs/ folder. Basically this. The opening couple sentences and the circular figure.

Screen 2: Reminder of $300 allowance "receipt" and it's double entries into revenue and assets building blocks of accounting equation. Maybe with snippets of the financial statements for those too. Pics of the receipt and financial statements (from earlier room) with words: "Remember our allowance 'receipt' document? We ANALYZED this to impact the REVENUE and ASSETS building blocks of the accounting equation."

Screen 3: sets up how to actually "record" these two entries with these words: "But that just tells us 'where' the two entries for our double-entry system are going. What we don't know is precisely 'how' to make those entries. As you might guess, Accounting defines a uniform and precise way to record this information."

[fenwickjb]

Panel 2:

Screen 1: page 58 of BALSAMIQ doc.

Screen 2: page 59 of the BALSAMIQ doc.

Screen 3: "Let's quickly review: you know that each financial transaction will impact two parts of the accounting equation. And now we've introduced two new vocabulary terms: debit and credit. So, here's the crucial connection: One of the two "double-entry" impacts MUST BE a debit entry and the other MUST BE a credit entry." So, we really need to understand these debits and credits. All the rest sits atop this foundation."

[fenwickjb]

Panel 3:

Screen 1: "Accacio is already used to seeing debit and credit on his personal bank account statements. When he puts money in the bank it is a credit and when he spends money from his account it is a debit. Unfortunately, the use of debit and credit here is from the BANK perspective. Accacio must re-learn these terms for HIS perspective."

Screen 2: "Let's take a financial transaction example: Accacio walks into the bank and deposits $300 in cold hard cash bills into his checking account. The bank will record this transaction with two entries in THEIR accounting system: a 'credit' in the account payable liability associated with Accacio's account, and a 'debit' in their own cash assets in their vault. The bank statement that Accacio gets next month will only show him that credit entry.

Similarly, when Accacio goes to the ATM and withdraws some money, the bank will record this new transaction with two entries: a 'debit' to Accacio's account payable liability and a credit to their own vault cash asset. And, again, Accacio's monthly statement will only show him the debit entry."

Screen 3: Can you believe it? All this time his bank statement credit and debit entries were only showing Accacio HALF of the accounting picture! Let's re-examine these transactions from Accacio's new-found personal accounting perspective. He receives $300 from his parents as allowance. This is a 'credit' to his revenue and a 'debit' in his checking account asset. Notice that his increase in his assets is a DEBIT just like the bank's increase in their vault asset was!

Screen 4: So this one transaction can be seen from 3 different accounting perspectives and each of them must (a) have at least two impacts on the accounting equation, (b) keep the accounting equation balanced, (c) have at least one debit impact, and (d) have at least one credit impact.

[Some figure representations] mabye Accacio text is blue, bank is red and account is purple ____ (1) Accacio (2) Checking Account __(3) Bank ____ Deposit of $300 allowance income credit revenue / debit checking asset credit Accacio checking / debit vault asset

Withdrawal of $300 from ATM debit pocket cash asset / credit cking asset debit Accacio checking / credit vault asset ................................................................................................ ^ ................................................................................................ | ................................................................................................ +-- Accacio's view of his bank stmt

[fenwickjb]

Panel 4

Screen 1: So, basically debit and credit are fancy accounting terms tracking increases and decreases to various accounts.

And at first, they might seem a bit "backwards" from our past experience of those terms because our past experience is based on a single entry from the bank perspective.

Did you ever wonder why credit cards were called credit cards? A credit card (from the cardholder perspective) normally contains a 'credit' balance. You borrow money to make a purchase (credit your liability). Then later a different kind of card was introduced. A debit card normally contains a 'debit' balance; the debit balance is your own funds. (Remember from the bank perspective their cash vault asset was a debit balance and Accacio's pocket cash asset was a debit balance.)

Screen 2: Like Accacio, you might find it hard to adjust your long-standing, prior mental model of what debits and credits mean. So, we will try another approach. And then do some example problems.

Remember the accounting equation: Assets = Liabilities + Equity + Revenue - Expenses - Dividends

Remember from algebra class that an equation has both sides equal. It's like a balance scale or a playground see-saw. If you increase one side, you have to increase the other.

So let's increase both sides by adding the amount of Expenses Assets + Expenses = Liabilities + Equity + Revenue - Expenses - Dividends + Expenses And on the right side, the Expenses cancel each other out leaving just this Assets + Expenses = Liabilities + Equity + Revenue - Dividends

Basically, we moved Expenses to other side. But it's algebraically valid. Let's do it again with the Dividends. Assets + Expenses + Dividends = Liabilities + Equity + Revenue

Screen 3: Assets + Expenses + Dividends = Liabilities + Equity + Revenue

Same accounting equation, just algebraically reorganized. But this is really important because now we can talk about the 'left side' (assets, expenses, dividends) and the 'right side' (liabilities, equity, revenue).

Debits increase the the left side building blocks. Credits decrease the left side building blocks. Credits increase the right side building blocks. Credits decrease the left side building blocks.

Accacio might notice the letter R in credit and use that clue to think 'right side.' He might also remember this mnemonic: Dead Curls. Debits increase Expenses, Assets, Dividends. Credits increase eqUity, Revenue, Liabilities.

Screen 4: Congratulations, you've earned a tip sheet to help remember the Debit (Dr, the abbreviation comes from the Latin form of the word) and Credit (Cr) impacts. Dead Curls BuildingBlock Dr. Cr. Assets + - Expenses + - Dividends + - Equity - + Revenue - + Liability - +

Let's use it to try out an example. Remember the $300 allowance? For Accacio that increased (+) his allowance revenue, revenue is on the right side, so it 'credits' his revenue. That is the first entry.

For the second entry, we notice it also increased (+) the money in his checking account, checking account asset is on the left side, so it 'debits' his checking account.

This is great, because remember that we need at least one debit and at least one credit for every transaction journal entry.

[fenwickjb]

Panel 5:

Screen 1: Cut/paste/recreate BALSAMIQ slide 68

Screen 2: [Grab receipt image from AccountEqn room] Let's do one more together. You spent $100 for food on Jan 24th. The date and explanation parts are straightforward, but we need help with the debit and credit parts.

[Partially filled in journal entry]

Remember from the analyze work we did earlier, that our cash decreased by $100. So the account is cash assets and the amount is $100. But is it a debit or a credit?

Screen 3: Asset is on the left (remember: Dead Curls). The asset is decreasing. Your tip sheet reminds you that decreases to left side items are credits.

[Partially filled in journal entry]

What about the second entry? We need something to debit...

Screen 4: The transaction of paying for food is increasing your monthly food expenses. So the building block impacted is Expenses, which is also on the left side of the adjusted accounting equation.

And the tip sheet reminds you that increases to items on the left side, like Expenses, are debits.

[Completed journal entry]

[fenwickjb]

Okay, I've created wall images. Trying to get Accacio to move now and then interact with things... Done for now. Please do a pull first and then a push when you are done... Sorry, took 3 days to realize that I didn't "push" from my local to the remote repo. :(

[fenwickjb]

Okay, wall panels are working now. Movement is working. Still need to:

• [ ] get return/exit door working
• [ ] get cracked hole working (go into a new activity room that is basically empty but sets your roomProgress like you did it!)
• [ ] get next room hole working when come out of activity room successfully
• [ ] have accountEqn "Next hole" go here.