I’m working on an accounting project and need the explanation and answer to help me learn.

1.Because the number of files to upload is limited, I could not attach all the required files. When you accept to help me, I will send the other files. It’s a project and it needs a lot of work. I have already completed the first part and you must complete the second and third parts.

2. In this project, you need to fill out the documents (it is pdf). It does not matter if it is manual, or you have another way to fill them out.

Document No. 1
Transactions List
December 16-31, 2022
Complete each of the following transactions in accordance with the seven-step process on pages 11-12 of
the Instructions and Flowcharts book (step 5). Remember the importance of the flowcharts on pages 18-24
for details as to (a) documents to prepare, (b) approvals and other internal control procedures, (c) accounting entries, and (d) filing. You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Flowchart
page references are included in the third column of the transactions list where appropriate.
Some of the following events require the preparation or modification of documents and some do not.
Although documents accompany most business transactions, you are asked to prepare and work with
only a representativ e sample in this project. Each event on the transactions list includes one of two symbols, which determine whether documents from the loose document set in this project must be prepared
or used:
You are required to prepare or modify documents from the loose document set for this
event. An accounting entry may or may not be required.
EJ
You are not required to prepare or modify documents from the loose document set
because documents would not normally be prepared or modified for this type of event.
An accounting entry is required, with one exception: the annual change in employee pay rates.
•
Hints are provided in boxed areas like this.
Document?
Trans.
#
Dec.
1
16th
Flowchart
Received customer purchase order No. 53426 (Doc. No. 4) from Rosemont University,
approved their credit and shipped the goods. All goods ordered were shipped,
except that only 45 shoulder pad sets were available for shipment.
Carrier & number:
Freight charges:
Route:
Truck & driver:
Freight rate:
Shipment:
.
.
.
Allied Trucking; Carrier number 2154
FOB shipping point (i.e., will be paid by Rosemont)
Express
Truck 2961 XZ, John Arens
$37.00 per 100 lbs.
5 cartons/goal and rim sets@ 42 lbs./carton
2 cartons/backboards @123 lbs./carton
9 cartons/shoulder pad sets@ 30 lbs./carton
4 cartons/football helmets @32 lbs./carton
Rosemont’s credit limit is documented in their subsidiary ledger
account.
You will use several documents and record an entry in the sales journal
and the accounts receivable subsidiary ledger for this transaction.
For guidance in preparing the bill of lading, see pages 35-36 of the
Reference book.
1
Tra’1s
Document?
11
#
Dec.
2
16th
Flowchar.t
0
3
Description
Received an email notification from First American Bank and Trust for an ACH
payment from Branch College. ACH payment received was S1,622.88 for
payment in full of charge sale invoice No. 730.
.
Because Branch College paid within ten days of the original sale, be sure
to record the applicable discount.
Ordered the following inventory on account from Velocity Sporting Goods,
using purchase order No. 328 (Doc. No. 16).
16th
Units
115
125
75
50
100
0
Description
Basketball pole pad
Basketball bag
Whistle and lanyard – set of 6
Basketball net
Shoulder pad set (to cover back order and inventory restock)
Item#
BB-019
BB-538
BB-431
BB-399
FB-027
Vendor address:
Freight carrier:
Freight charges:
Allowances:
•
•
•
•
4
19th
0
5
19th
Borrowed $90,000 from First American Bank and Trust by issuing a two-year note
payable (Doc. No. 14) with a stated annual interest rate of 5.5%. Received an email
notification from the bank that the $90,000 proceeds were electronically deposited
into Waren’s checking account. Reviewed the terms and conditions of the note and
signed it (Ray Kramer) as the borrower.
19th
0
20th
Follow the ACH deposit procedures in the flowchart.
File the note in the Shipping/Banking file tab.
Received sales return request No. R8034 (Doc. No. 12) from Eastern Wisconsin
University (EWU). The request was approved, and the acknowledgment copy
mailed to EWU.
•
7
Use purchase order No. 325 (Doc. No. 16) as a guide.
Use the price list (Doc. No. 3).
No receiving or recording occurs at this point for this transaction.
Tear document apart and file, following the flowchart guidance.
Received office supplies from Chicago Office Supply as listed on purchase order
No. 327 (Doc. No. 16), a copy of which is being held in accounting. Chicago Office
Supply’s vendor invoice No. 2378 (Doc. No. 18) was received with the goods. All
supplies ordered were received in good condition and taken directly to the office,
but the invoice was not paid.
•
•
6
1285 Colgrove Ave., Pierre, SD 57501
Interstate Motor Freight
FOB shipping point (i.e., will be paid later by Waren)
None
G
You can’t record the sales return yet because the goods have not yet
been received from Eastern Wisconsin University.
Received vendor invoice No. 105963 (Doc. No. 18) from First Security Insurance for
the fourth quarter’s health insurance coverage for employees and immediately
issued a check (Doc. No. 20) for payment in full.
•
Purchase orders are not issued for services that Waren purchases.
2
.,
Document 7··
Dec.
8
EJ
8
21st
EJ
8
New Pay Rate
•
EJ
8
12
23rd
EJ
0
No accounting entries are necessary, but you must update the pay rate
history information in the Employee Earnings Subsidiary Ledger.
You can’t record a purchase yet because the invoice hasn’t been received.
Filled the backorder quantity of 30 shoulder pad sets for Rosemont University’s
customer purchase order No. 53426 (Doc. No. 4). Approved Rosemont’s credit and
shipped the back ordered shoulder pad sets. Prepared a new charge sale invoice
(Doc. No. 6) for the sale to Rosemont.
Carrier & number:
Freight charges:
Route:
Truck & driver:
Freight rate:
Shipment:
•
22nd
$3,650 semimonthly
$21.80 per hour
$18.30 per hour
Received merchandise from Velocity Sporting Goods as listed on purchase
order No. 328. All merchandise listed on the purchase order was delivered in good
condition and in the quantities ordered, except that only 85 basketball pole pads
(Item No. BB-019) were received. The goods were placed immediately in the
inventory warehouse.
•
•
11
h;
Ray Kramer
Jim Adams
Nancy Ford
•
10
Allied Trucking; Carrier number 2154
FOB shipping point (i.e., will be paid by Rosemont)
Express
Truck 2988XZ, Jennifer Hansen
$37.00 per 100 lbs.
6 cartons/shoulder pad sets@ 30 lbs./carton
Rosemont’s credit limit is documented in their subsidiary ledger account.
You will use several documents and record an entry in the sales journal
and the accounts receivable subsidiary ledger for this transaction.
For guidance in preparing the bill of lading, see pages 35-36 of the
Reference book.
Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for
goods ordered December 16th and received December 20th.
•
Upon receiving the invoice, you can now record the purchase using the
date on which Waren incurred the liability for the goods, December 20th.
Received legal notification from Benson, Rosenbrook, and Martinson, P.C.,
attorneys at law, that Stevenson College had filed bankruptcy and will most
likely be unable to pay any of its outstanding debts to its suppliers. Write off the
account as a bad debt.
•
Remember t~at Waren Sports Supply uses the “Allowance” method rather
than “Direct write-off,”for accounting for bad debts.
,’
0
.•
r·
nt Y
·
•••
Increased employee pay rates effective for the December 16th-31st semi mo
pay period. There were no changes in filing status or withholding allowances.
20th
20th
.’
i;iowchart~ ,lDftcr:ll)tlon
0
9
.
–
3
–
\. , I
.,
Docum~nt
1
.·,
Trans.
ft
13
. _Dl!c. it Flowchart Description
Received all goods that Waren had authorized Eastern Wisconsin University
(EWU) to return on EWU’s return request No. RB034 for credit against their
23rd
account balance.
•
14
27th
EJ
G
Process and record the sales return now. For guidance on completing
the sales return request, see page 42 of the Reference book.
Received check No. 49326 (Doc. No. 8) for $12,000 from Eastern Wisconsin University
in partial payment of the remaining amount (after sales return) on charge sale
invoice No. 729.
•
Restrictively endorse means to write the following on the back of the
check: “For deposit only. Waren Sports Supply:’
•
Cash receipts prelist is Doc. No. 9.
-Do not finalize a deposit slip (Doc. No. 1O) until you determine whether
•
there are other cash receipts in the form of checks on the same day.
15
27th
EJ
G
Received check No. 47852 (Doc. No. 8) for $5,835 and customer purchase order No.
H8241 (Doc. No. 4) in the mail from Hawkins College for a cash sale. All goods
ordered were shipped and the cash sale was processed and recorded. Made a bank
deposit for this cash sale plus today’s collection from Eastern Wisconsin University.
Received validated deposit receipt (Doc. No. 11) from the bank after deposit was
made.
Carrier & number:
Freight charges:
Route:
Truck & driver:
Freight rate:
Shipment:
•
•
16
28th
28th
EJ
EJ
Received freight bi/126245 (Document No. 19) from Interstate Motor Freight for
the Velocity Sporting Goods shipment received December 20th. Issued check
(Doc. No. 20) to Interstate Motor Freight for the full amount of the freight bill.
EJ
Issued an electronic payment to Velocity Sporting Goods using ACH Payment
Authorization No. E-53431 (Doc. No. 21) for payment in full of their invoice
No. 34719 (Doc. No. 18) for goods received December 20th.
0
18
29th
0
0
Record this cash receipt and process the bank deposit for the day.
File Doc. No. 9 and Doc. No. 11 in the Temporary file tab.
Received vendor invoice No. 72654 (Doc. No. 18) from University Athletic News for
advertisements Waren ran during the Christmas season and immediately issued
a check (Doc. No. 20) for payment in full.
0
17
Interstate Motor Freight; Carrier number 62XY404
FOB shipping point (i.e., will be paid by Hawkins College)
Direct
Truck 64, Regina Rexrode
$37.00 per 100 lbs.
3 cartons/basketballs@ 14 lbs./carton
15 cartons/hip, tail, and arm pad sets@ 32 lbs./carton
5 cartons/footballs@ 24 lbs./carton
•
Consider the credit terms before determining the amount of the electronic
payment.
.
4
–
•·
–
•–
–
Document?
flowchart_
19
Received the standing workstations ordered on Waren’s purchase ~rder
No. 325 (Doc. No. 16) and vendor invoice No. 2423 (Doc. No. 18) from Chi~~go Office
29th
0
20
30th
Supply. The workstations were received in new and undamaged_condition and
taken directly to the office. The estimated useful life is 5 years with no salvage
value.
Printed and reviewed payroll time record reports (Doc. No. 22) for Ford and Adams
for the time period ended December 31st and prepared the payroll for all three
employees, including paychecks. Federal and state withholding amounts for each
employee are as follows:
Income Tax Withholding Amounts
Federal
$321.00
$205.00
$ 78.00
Ray Kramer
Jim Adams
Nancy Ford
State of Illinois
$171.29
$100.63
$ 74.74
•
Paychecks are considered “Mailed/Given to Outsiders:’
•
Time record reports are filed in the “Accounting” file tab.
MONTH-END PROCEDURES – After you have recorded all the transactions, go to page 12 of the Instructions
and Flowcharts book and complete all the month-end procedures. An additional month-end requirement
for this project is:
EJ
Monthly Statement –
Prepare a monthly statement (Doc. No. 15) for Rosemont University.
YEAR-END PROCEDURES – After completing all the month-end procedures, go to page 14 of the Instructions
and Flowcharts book and complete all the year-end procedures. Additional information for the year-end
procedures is:
Ending Inventory –
A physical inventory was taken 1/1 /23, before business began for the
new year. Merchandise on hand cost $202,920.00.
Bad Debt Expense –
The expense for bad debts is estimated at the end of the year as onehalf of one percent (0.005) of net sales.
Marketable Securities – At December 31, 2022, the market value of marketable securities held
by Waren approximated the cost of the securities.
The project is now complete. Good work! Review your materials to make certain
everything is finalized. Complete the filing of documents, records, and working
papers using the file tabs and the envelope in which the Aid is packaged. File all
materials as indicated in the flowcharts.
0
5
l
Flowcharts
•Visualizations of business processes
•Tools for the documentation of accounting systems
• A description of the system
• A documentation of the system
•Key Elements
• The origin and disposition of every document and record in the system, except for detailed journals and
ledgers, must be shown explicitly.
• All processes that takes place, such as attaching a purchase order to a copy of sales invoice, should be stated
in the flowchart.
• The department or person performing each processing step or action
• Existing internal controls, grouped into three categories
• Separation of duties
• Authorizations and approvals
• Independent checks
Flowcharting Techniques
•Use symbols to represent documents, records, and processing actions
•Use flowlines to connect documents and processing actions
• Usually from top to bottom, from left to right
• Cross as infrequently as possible
• Solid lines – the flow of physical document or record
• Dotted lines – the flow of information but not the physical document
Doc
preparation
needed
It’s a process.
You need to
take proper
actions
Nothing
needed for
assignment
Nothing
needed for
assignment
Need to
record in
journals
or
ledgers
Follow
decisions
Take
appropria
te actions
Go with
the flow
Cash
sale
process
Always refer to
flowcharts for your SUA 1
assignments!
SUA 1 – Transaction Table -Transaction List A_Alt Purple cells are given and black cells are things they need to fill in.
The table below lists what you need to do for each transaction. Please assume the employee role of Waren Sports and fill in each missing cell
with appropriate actions. If no action is needed for that transaction, type in “NA” in the corresponding cell.
For each transaction, I have completed some tasks. You only need to fill in the blank cells. Note that for Transaction #1, 8, and 20, I have filled in
all cells. However you still need to record these transactions in your workbook if applicable.
Instructions:
1. Source Documents – Fill in documents you need to prepare for this transaction. Clearly write out Document #, and name, and the
specific number of that particular document because some documents have multiple copies.
2. Journals
– Fill in the name of special journals you use to record this transaction.
– Specify what accounts to debit and credit and the dollar amount.
– When the transaction needs to be recorded under “Other G/L”, write out the account number based on Chart of Accounts. You do
not need to put the customer account number or vendor account number in the table. But you need to specify the customers or
vendors’ names.
– Record the transaction in corresponding journals in the workbook.
3. Ledgers
– Fill in the name of the subsidiary ledger to record the transaction.
– Also specify the names of customer or vendor
– Show debits or credits and the dollar amount
– Record the transaction in the subsidiary ledgers in the workbook
4. JE
– Write out the complete journal entries for this transaction.
– Nothing to do in workbook regarding this column
Tran# Source Documents
1
-Doc #5: Bill of lading 6890BR
-#6: Sale invoice # 731
Journals (Fill in here and
workbook)
Sales Journal:
12/16 Rosemount U:
Dr. AR G/L $15,490
Ledgers (Fill in here and
in the workbook)
AR subsidiary ledge:
(Rosemont) Dr. 15490
JE
Dr. AR_Rosemount 15490
CR. Sale 15490
Cr: sales $15,490
2
3
4
#9 cash receipts prelist
#16 purchase order No.328
#17 no.73 receiving report
5
#9 cash receipts prelist
6
7
#12 return request (sign)
#20 checks#1152
Need to write “paid” on vendor
invoice (Doc #18, first security
insurance)
N/A
8
9
10
#17 receiving report NO.74 (note
everything is received except only
71 (not the 115) basketball pole
pads received
-#6 Sales invoice No.732, JA needs
to initial the invoice;
Cash receipts journal:
Dr: 1622.88
Dr. Sales Disc. 33.12
Cr. A/R
1656
AR subsidiary ledge:
(Branch College)cr. 1656
NA
Purchases Journal:
Other G/L 40300: Dr. 830.25
Cr. AP G/L $830.25
Cash receipts journal:
Dr: 90000 ;
Cr. Other GL (21100): 90,000
NA
Cash Disbursements Journal:
Cr. $1710
Dr. Other GL (41000) : $1710
N/A
NA
SJ
12/21: Rosemount U, cr $3960
Dr. AR GL $3960
Cash:
1622.88
Sales discount $33.12
AR_Branch College
$1656
NA
Ap subsidiary (Chicago
office): cr 830.25
NA
Office supplies 830.25
AP_Chicago Office
830.25
NA
Cash 90000
N/P 90000
NA
NA
NA
Other Op. Exp (acc# 41000) $1710
Cash
$1710
Update the pay rate for
each employee (in the
“Pay Rate History” tab in
your workbook. In your
hard copy SUA packet,
the pay rate history is on
the page of Employee
Earnings Sub ledger.
NA
N/A
AR subsidiary ledger:
(Rosemont) : Dr. 3960
Dr. AR_Rosemount 3960
CR. Sale 3960
NA
11
12
13
14
15
16
17
18
-#5 bill of lading No.6891BR, NF
signs
Use FC p22 (Accounting):
-#18 Vendor invoice from Velocity
(adjust the differences in
quantities and prices, JA initial the
adjusted vendor invoice)
N/A
-#12 return request (complete the
last 4 columns)
-#17 receiving report No.75
-#13 Credit memo No.42
-#8 Restrictively endorse the
check Doc#8
-# 9 Cash receipt prelist (Look for
the original sales amt in SJ)
1) FC p21 “receipt of cash”:
– #9 Cash receipt prelist
2) FC p18 “Shipping and Billing”
-#5 bill of lading #6892R
-#7 Invoice C-30
3) Flowchat p21 “Deposit”
-#10 deposit ticket, front and back
FC p23:
-#20 Check#1153, sign, write
“paid” on vendor invoice
FC p23:
-#20 Check#1154, sign, write
“paid” on vendor invoice
FC p23
Purchases journal:
Dr. Purchase GL $22515
Cr. AP GL $22515
AP sub ledger:
Velocity: Cr: 22515
Dr. Purchase 22515
Cr: AP_Velocity 22515
GJ
ADA (10300) dr: $2900
Cr. AR GL (10200) $2900
SJ:
Dr. Sales returns GL (30200)
$4550
Cr. AR GL $4550
Cash receipts Journal:
dr. $12,000
cr. AR GL $12000
AR_sub ledger:
Stevenson, cr, $2900
Dr. ADA $2900
CR. AR_Stevenson $2900
AR_sub ledger:
Eastern Wisconxin U, cr.
$4550
Dr. Sales returns $4550
Cr. AR_EWU $4550
AR sub ledger
EWU cr. $12000
Dr. Cash 12,000
Cr. AR_ewu $12000
Cash receipts Journal
dr. $5835
cr. Sales G/L $5835
NA
Dr. Cash $5835
Cr. Sales: $5835
Cash Disbursements Journal:
Cr. $1590
Dr. Other G/L (40200) $1590
Cash Disbursements:
Cr. $738.15
Dr. Freight-in $738.15
Cash Disbursements Journal:
Cr. 22064.70
NA
Dr. Advertising expense (other G/L
40200) $1590
Cr. Cash
$1590
Dr. Freight-in G/L 30800 $738.15
Cr. Cash
$738.15
NA
AP sub ledger
Velocity dr. 22515
Dr. AP_Velocity 22515
Cr. Pur. Disc. 450.30
19
201
1
-#21 ACH payment auth. write
“paid” on vendor invoice
FCp22 receiving:
-#17 receiving report No.76, note
No quantity differences between
receiving report and vendor
invoice
Cr. Purchase discount 450.3
Dr. AP G/L $22515
Purchase Journal:
dr. Other G/L (10800)
$1256.10
cr. AP G/L $1256.10
FC P21:
#22 RK approves and initial
the time record report
– #20 Checks# 1155-1157
Payroll Journal:
– Fill in the three section of
earnings, deductions,
payment for each
employee
Cr. Cash
-Fixed Asset Sub Ledger:
Establish a new one for
standing workstations
Dr $1256.10
-AP sub ledger
AP_Chicago Office
Supply : cr. $1256.10
Employee sub ledger, one
for each person
22064.70
Dr. Fixed assets (10800) $1256.10
Cr. AP_Chicago Office:
$1256.10
Dr. wages and salaries expense
7666.83
Cr. FICA 586.51
Cr. Fed income taxes w/h
604
Cr. State income taxes
w/h 346.67
Cr. Cash (net pay)
6129.65
Need to use the information in p.8 of Instr. & FC book to get the SS tax rate of 6.2% and medicare 1.45%. Total of SS tax + Medicare is FICA.