Brandon s Cabinet Shop

Transcription

1 Brandon s Cabinet Shop Module 1 Transactions For June 3-9 Page 1

2 Begin Brandon s Cabinet Shop Record the transactions When you have: (1) carefully read the Introduction, (2) a good understanding of the accounts used by Brandon s Cabinet Shop, and how those accounts are used, begin the journalizing process. The transactions for your first work week in June (3rd through 9th) follow, and you are encouraged to prepare your account entry information before sitting down at the computer. This procedure will speed up your data entry time. An example of a written analysis before the data entry is shown on page 4 with the first June 3 transaction. You may prefer to analyze each entry and record the transaction on the computer at the same time. You will be able to access the chart of accounts, customer list, vendor list, and inventory list on the screen during the data entry process. This makes the recording of transactions and related information a very quick, easy, and efficient procedure. 1. Go to and click on Log In. 2. From the menu, select and click on Brandon s Cabinet Shop. 3. At the log in page, enter your User ID and Password and click on Log In. 4. Click on Daily JE (Daily Journal Entries). 5. Click OK if there are no previous journal entries. When the Data Entry page appears on the screen, click on the Daily JE button. When accessing the Data Entry page, if there are journal entries already recorded in an earlier session, the last entry recorded will appear in the data entry form. Click on the Clear Screen button to clear the entry from the screen. This feature allows you to view the last journal entry recorded prior to logging off the program or moving from other selection options on the Data Entry page. The special features of the Brandon s Cabinet Shop accounting system are demonstrated in this module. Page 2

3 To Disable Internet Explorer s Pop-up Blockers Disabling Pop-up Blockers is essential for printing any documents required by the program. However, while eliminating any unnecessary complications caused by the Pop-up Blockers for PKL Software environment, the following procedures will not remove Pop-up Blockers for any other programs you wish to run. To disable Internet Explorer s Pop-up Blocker, perform the following steps: 1. Launch Internet Explorer. 2. From the Tools drop down menu select Internet Options. 3. Click first on the Privacy tab and then the Settings button under the Pop-up Blocker section near the bottom of the window. 4. Enter in the space below the Address of web site to allow and click on the Add button. 5. Close the Pop-up Blocker Settings window and click on the OK button to close the Internet Options window. If you still experience difficulties printing your documents you may need to remove the Popup Blockers as a step in the printing process. All documents will print if Pop-up Blockers or firewall barriers are removed entirely for PKL Software programs. To Disable Google Toolbar s Pop-up Blockers To disable Google Toolbar's Pop-up Blockers, perform the following instructions: 1. To completely disable Google Toolbar s Pop-up Blocker, open the Toolbar Options window and clear the checkbox next to Pop-up Blocker in the Accessories section. To let a Pop-up through on a one time basis, press and hold the CTRL key as you click on a link to navigate to the new page. Page 3

4 Begin the Journal Entry Procedure Move the pointer to Journal/Ledgers/Statements. Click and select Chart of Accounts. Click on the Print button and print the Chart of Accounts for a reference to recording transactions. Move the pointer to Journal/Ledgers/Statements on the Menu Bar and select General Ledger. Click on Print and print the Trial Balance for June 3. Move the pointer to Data Entry. Click on Daily JE. Click on OK and begin recording transactions. June 3: Record a cabinet installation A cabinet component was installed for a cash customer. The installment fee was for 3 hours at $ per hour. Sales tax is not charged on installation fees. Invoice Number: B3450. June Cash Installation Revenue FOLLOW THESE INSTRUCTIONS: 1. At the date prompt enter 03 for the day and press the Tab key (do not use the Enter key). If the date has been entered incorrectly, use the backspace key and reenter the date. 2. At the account prompt type 101 and press the Tab key. To record the debit to Cash enter in the debit amount column. Do not use dollar signs or commas. If the account or amount is incorrect, click on the appropriate item and reenter. Tab to the next position. 3. At the account prompt type 405 and press the Tab key. Move to the credit column and enter as the credit to Installation Revenue. Click on the Verify Journal button. The equality of debits and credits will be automatically verified. If any part of the journal entry is incorrect at this point, click on the Clear Screen button and reenter the transaction. 4. At the invoice prompt enter B3450 as the sales invoice number. The alphabet letters may be entered in upper or lower case for all documents (Invoices, Debit Memos, and Credit Memos). 5. Check the entry carefully. If you wish to make a correction to any document, click on the document box and enter the correct number. If the entry is correct, click on the Verify Documents button. The verification checks for 5-character entries and does not guarantee the correctness of the numbers entered. Verification is required before the entry can be posted. 6. Click on the Post Ledger button. The entry will be recorded in the General Journal and posted to the General Ledger. Page 4

5 Heads Up: In this module you will be required to record: (1) a correcting entry, and (2) the declaration of a cash dividend. June 3: Record a correcting entry It has been discovered that an entry on June 1 for $35.45 was debited in error to the Miscellaneous Expense account rather than to the correct account of Advertising Expense. The date of the original cash transaction entry is June 1. Invoice Number: AD The entry correction procedure for the Brandon s Cabinet Shop accounting system requires that an error entry be backed out (reversed) and reentered correctly. Using the June 1 date, debit the Cash (101) account and credit the Miscellaneous Expense (629) account for the Click on the Verify Journal button. 2. At the invoice prompt enter AD006 as the invoice number. Click on the Verify Documents button. Click on Post Ledger to post the entry. 3. Enter the transaction correctly with a June 1 date, a debit to Advertising Expense (605), and a credit to Cash (101) for Click on the Verify Journal button. 4. When the check number prompt appears enter ERROR to indicate that this is an error correction entry and a new check is not being issued. 5. Enter the AD006 invoice number at the invoice number prompt. Click on the Verify Documents button. Click on Post Ledger to post the entry. NOTE: This error correction procedure must be followed. It leaves a clear audit trail of all corrections and is to be followed throughout this business simulation. NOTE: If at any time you wish to view the journal entries that you have entered, click on Journal/Ledgers/Statements, and select General Journal. You may scroll through the journal entries or print a copy of the journal. To exit the General Journal, click on Data Entry. Page 5

6 USE THE CHART OF ACCOUNTS FOR REFERENCE WHEN JOURNALIZING June 3: Record a purchase of equipment and supplies on credit Shop equipment listed at $1, and shop supplies listed at $ were purchased on account from Albert Machinery. Sales taxes are included in the listed prices of these assets. Albert Machinery offers net 10 credit terms. Invoice number: A9850. Vendor Number: At the date prompt, enter 03 for the day and press the Tab key. 2. Click on the down arrow at the end of the Account Numbers and Titles row. 3. Select account number 135, Shop Equipment, and the account number and title will automatically be entered in the account title column of the general journal. Tab to the Debit column and enter Tab to the next row. 4. Click on the down arrow at the end of the Account Number and Titles row. Now select account number 603, Shop Supplies Expense. Enter the second debit amount of Tab to the next row. 5. Click on the down arrow at the end of the Account Number and Titles row and select account number 201, Accounts Payable. Tab to the credit amount column and enter 1, At the invoice prompt enter A9850 as the invoice number and press the Tab key. 7. At the Vendor Number prompt click on the down arrow and select Albert Machinery, the first vendor on the list. On future entries involving Accounts Payable or Accounts Receivable, use the scroll bar to select the correct vendor or customer. Vendor and customer numbers can also be entered directly. Click on Verify Documents. When all of the data displayed is correct click on Post Ledger. Page 6

7 June 4: Record the sale of a cabinet component for cash Cabinet components were sold for $3, plus sales tax of 7%. Invoice Number: B3451. June Cash Cabinet Sales Sales Tax Payable After you have recorded this sale, the program will automatically record and post a debit to the Cost of Goods Sold and a credit to Merchandise Inventory for $2,571.43, which is the cost of the cabinet components. The markup on cabinet components is 40% on cost or 28.6% on selling price. June 4: Record the payment of an expense A check was issued for $ to a freight company for special delivery of cabinet components from a vendor to Brandon s Cabinet Shop. (This is not a delivery expense!) Enter the date as 04. After the check number and invoice number have been entered, click on the Verify Documents button. If the transaction is complete and correct, click on the Post Ledger button. Check Number: Invoice Number: F1069. June 6: Record the collection of an account receivable A check was received from Brown s Custom Cabinet as payment in full for sales invoice B3448. Move the pointer to Journal/Ledgers/Statements, select Subsidiary Ledgers, and select Accounts Receivable Ledger. Click on Customer, from the textbox select account 10450, and then click on Show AR Ledger. Examine the account to determine the amount due from Brown s Custom Cabinet. Return to Data Entry. Click on the Daily JE button. Invoice Number: B3448. Customer Number: Note that the last journal entry of June 4 is shown on the screen. Click on OK then click on Clear Screen. Record the receipt of cash from customer Brown s Custom Cabinet. Page 7

8 Move the pointer to Journal/Ledgers/Statements and select General Journal. Click on the Print button and print the General Journal. Take a moment to compare the General Journal to the transactions recorded from June 3 to June 6. Note the document detail provided with each entry. If there are any errors, follow the correcting entry procedures. Do not make correcting entries for incorrect check or invoice numbers. For those types of errors, simply make note of them on the printout. Click on the X in the upper right hand corner to close print screens. Move the pointer to Data Entry and click. Click on the Daily JE button. June 6: Record a cabinet installment on credit Cabinets were installed for credit customer Charles Hook. The installation work took 2.5 hours. Sales tax is not charged on installation fees. Invoice Number: B3452. Customer Number: June 6: Record the payment of an account payable A check was issued to Connor Plywood for payment of the May 28 invoice for $9, The credit terms are 2/10, n/30. Check Number: Invoice Number: CP754. Vendor Number: At the date prompt type D, instead of 06. When a transaction has the same date as the previous transaction, use of the D key will automatically record the date of the previous transaction. June Accounts Payable Cash Merchandise Inventory Discounts earned for paying within discount periods of vendor credit terms are credited to the Merchandise Inventory account. June 8: Record the credit purchase of merchandise inventory Record the purchase of precut and unassembled cabinet components from Bright-Way Cabinets The list price of the components is $9, Purchased unassembled cabinet components are classified as merchandise inventory. Invoice Number: BW250. Vendor Number: Page 8

9 June 9: Record a declared cash dividend The board of directors of Brandon s Cabinet Shop declared a cash dividend of $5, to be paid on June 25. Invoice Number: DIVDC (dividend declared). This concludes the transactions for June 3 to June 9. Remember these short-cut features: A. Use the general ledger account number to enter the account number and title. B. Use the vendor/customer numbers to enter vendor/customer accounts. C. Use the D key to repeat a date. End of Week One Procedures 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar and select General Ledger. Click on Print and print the Trial Balance for June 9. Click on the X in the upper right hand corner to close print screens. 2. Move the pointer to Journal/Ledgers/Statements on the Menu Bar and select General Journal. Click on Print and print the General Journal. 3. Move the pointer to Check Figures in the Menu Bar, select Weekly Check Figures and click. The Week 1 Check Figures will be displayed on the screen. Print the Week 1 Check Figures. 4. Check the balances of the trial balance against the totals shown in the Week 1 Check Figures. If the account balances in the trial balance match the selected account totals in the Check Figures for Week 1, and you have printed all documents required by your instructor, you are ready to begin the data entry for Module 2, which includes the transactions for June If any of the account balances in your trial balance do not match the selected account totals in the Check Figures for Week 1, you must correct the unmatched balances before continuing to Module 2 (Week 2). Any account that does not match provides a clue to the transaction/s that you need to review. An efficient method of locating and correcting the error/s is to compare the journal entries to the transactions in the module. Page 9

10 Use the correction system designed specifically for the Brandon s Cabinet Shop accounting system for accuracy, efficiency, and a clear audit trail. You have two options available to you for handling unmatched balances. Option One: Examine your documents, locate the error/s, and return to Data Entry and record the required correction entries using the correction system that has been described. Option Two: If you find that you have several errors, you may wish to reset to the beginning of the practice set and record the transactions again. This reset option can be used only up to the end of Module 1, (June 9). You cannot reset back to the beginning of the set if you have entered journal entries for Module 2 or June 10 th or later. To reset back to the beginning of the practice set, move the pointer to Support and down to Restore To Beginning Balances and click. Click on Start Copy and the files will be set back to June 2, the beginning of the project. BACKUP YOUR DATA FILES Go to Administration on the Menu Bar, scroll down to Files: Rest and Backup, select Backup Data Files, and click. You now have a copy of all of your work to the end of Module 1. This file will allow you to return to the end of Module 1, even after entering transactions beyond Module 1. CONTINUE TO MODULE 2 If you have printed all the required documents, you are ready to begin the data entry for Module 2 (Week 2), which includes the transactions for June To begin you must first print a copy of the Module 2 manual. Move the pointer to Support on the Menu Bar and select Download Student Manual. Select Module 2: Transactions for June and print the manual for Module 2. EXITING THE SYSTEM If you have completed your work for this session, click on Home Page and exit the program. You can exit the program at any point and return to that point at a later time. Page 10