Petunia Patch Level 1 1 st Web-Based Edition Module 1 Transactions for June 3-9 Page 1
BEGIN THE PROGRAM AND RECORD THE TRANSACTIONS When you have: (1) carefully read the Introduction, (2) a good understanding of the accounts used by Petunia Patch, and how those accounts are used, begin the journalizing process. The transactions for your first work week in June (3rd through 9th) begin on page 4. 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 and vendor list to 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 www.pklsoftware.com 2. To access the Petunia Patch program, click on the Petunia Patch log in button. 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 many special features of Petunia Patch accounting system are introduced, explained, and demonstrated in this module. Page 2
NOTE: Remember to disable any Pop-up Blocker installed on your computer. Disabling Pop-up Blockers allows you to print documents without complications caused by the Pop-up Blockers. This will not disable your Pop-up Blocker for any other programs that you wish to run. To disable Internet Explorer s Pop-up Blocker, perform the following: 1. Launch Internet Explorer. 2. In the Tools drop down menu, click on Internet Options. 3. Click the Privacy tab and click on the Settings button under the Pop-up Blocker section at the bottom of the window. 4. Enter http://www.pklsoftware.com in the space below Address of Web site to allow and then click the Add button. 5. Click on the Close button to close the Pop-up Blocker Settings window and Click on the OK button to close the Internet Options window. Disabling third-party Pop-up Blocking software installed on your computer may be necessary to allow successful printing. Consult the Pop-up Blocking software manufacturer on how to temporarily disable the Pop-up Blocker without uninstalling the software. Additional help in disabling Pop-up Blockers can be found on the PKL Software home page by clicking on the Customer Support link. You are now ready to begin the Data Entry process! Page 3
Move the pointer to Journal/Ledgers/Statements. Click and select Chart of Accounts. Click on the Print button and print a Chart of Accounts for a reference to recording transactions. Click on Data Entry then click on Daily JE and begin recording the transactions for June 3 to June 9. _ June 3: Record an expense A check was written for $1,000.00 to the owner of the store occupied by Petunia Patch. The check is for rent for the month of June. Check Number: 35001. Vendor Invoice Number: RN640 June 3 621 Rent Expense 1,000.00 101 Cash 1,000.00 INSTRUCTIONS: 1. At the date prompt enter 03 for 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 621 and press the Tab key. Tab to the Debit column and enter 1000.00. 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 101 and press the Tab key. Move to the Credit column and enter 1000.00. 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 Check Number prompt type 35001 and tab to the next position. 5. At the Invoice Number prompt enter RN640 The alphabet letters may be entered in upper or lower case for all documents (Invoices, Debit Memos, and Credit Memos) 6. 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. 7. Click on the Post Entry button. The entry will be recorded in the General Journal and posted to the General Ledger. Page 4
June 3: Record a cash sale A cash sale of $480.00, plus 7% sales tax, was made. Sales Invoice Number: PP569 June 3 101 Cash 513.60 401 Sales 480.00 205 Sales Tax Payable 33.60 INSTRUCTIONS: 1. At the date prompt enter 03 for the day and press the Tab key. 2. At the account prompt enter 101, press the Tab key and tab to the Debit column and enter 513.50. Tab to the next position. 3. At the account prompt enter 401, press the Tab key and move to the Credit column and enter 480.00. Tab to the next position 4. At the account prompt enter 205, press the Tab key, tab to the Credit Column, and enter 33.60. 5. 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. 6. At the Invoice Number prompt enter PP569. 7. 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. Verification is required before the entry can be posted. 8. Click on the Post Entry button. The entry will be recorded in the General Journal and posted to the General Ledger Page 5
June 4: Record a credit sale A credit customer LPT Grocery purchased floral arrangements for $560.00, plus 7% sales tax. Sales Invoice Number: PP570. Customer Number: 10511. June 4 105 Accounts Receivable 599.20 401 Sales 560.00 205 Sales Tax Payable 39.20 INSTRUCTIONS: 1. At the date prompt enter 04 for the day and press the Tab key. 2. At the account prompt type 105 and press the Tab key. Tab to the Debit column and enter 599.20. Tab to the next position. 3. At the account prompt type 401, press the Tab key and move to the Credit column. Enter 560.00 and tab to the next position. 4. At the account prompt type 205, press the Tab key and tab to the Credit Column. 5. Do not click on the Verify Journal button. At the Credit column prompt type cv or CV. The equality of debits and credits will be automatically verified and the pointer will automatically move to the correct document prompt. 6. At the Invoice Number prompt type PP570 and Tab. 7. At the Customer/Vendor prompt type 10511. The vendor number and name will appear in the dropdown box. 8. 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. Verification is required before the entry can be posted. 9. Click on the Post Entry button. The entry will be recorded in the General Journal and posted to the General Ledger The CV key combination can be used for a two-account journal entry or a compound entry as a time-saving step that by-passes clicking on the Verify Journal button. Page 6
June 4: Record a cash purchase of office supplies Office supplies of $360.00 were purchased for cash. Check Number: 35002. Vendor Invoice Number: 03434. June 4 127 Office Supplies 360.00 101 Cash 360.00 June 4: Record an error correction It was discovered that the invoice for the office supplies purchased in the previous transaction should have totaled $369.00 Errors must be corrected using the following procedure: A. Reverse (back out) the original error entry B. Record the entry correctly. INSTRUCTIONS: 1. Reverse the Error entry: a. enter the date of the original entry, and Tab. b. at the account prompt enter 101, tab to the Debit column and enter 360.00. c. at the account prompt enter 127, tab to the Credit column and type CV. d. at the Invoice Number prompt enter 03434. e. click on Verify Documents then click on Post Entry. 2. Record the correct entry: a. enter the date of the original entry, and tab b. at the account prompt enter 127, tab to the Debit column and enter 369.00. c. at the account prompt enter 101, tab to the Credit column and enter CV. d. at the Check Number prompt enter ERROR, and Tab to the invoice number. e. at the Invoice Number prompt enter 03434. f. click on Verify Documents, then click on Post Entry. NOTE: This error correction procedure must be followed. It leaves a clear audit trail of all corrections and is to be used 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, then 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, click on Daily JE, click on OK, then click on Clear Screen. Page 7
June 6: Record a credit purchase of merchandise inventory Merchandise inventory of $1,650.00 was purchased from Laptop Town Nursery. Vendor Invoice Number: AV389. Vendor Number: 20111 June 6 501 Purchases 1,650.00 201 Accounts Payable 1,650.00 INSTRUCTIONS: 1. Enter 06 at the date prompt. 2. At the account prompt, move the pointer to the down arrow in the dropdown box and select 501 Purchases, then tab to the Debit column and enter 1650.00. Tab to the next column. 3. At the account prompt, move the pointer to the down arrow in the dropdown box and select 201, then tab to the Credit column and type CV. 4. At the invoice prompt enter AV389, and Tab. 5. At the Customer/Vendor prompt enter 20111. 6. Click on Verify Document, then Post. Note: The following time-saving options may be used when journalizing transactions! A. USE THE CHART OF ACCOUNTS FOR REFERENCE WHEN JOURNALIZING B. USE THE CV KEYS FOR BALANCING THE JOURNAL ENTRY June 8: Record the payment of a vendor account, discount earned A check was written to Floe s Florist Supplies which offers credit terms of 2/10, n/30. The invoice date was May 28. Check Number: 35003. Vendor Invoice Number: F3110. Vendor Number: 20122. June 8 201 Accounts Payable 2520.00 101 Cash 2469.60 503 Purchases Discount 50.40 Page 8
STOP! When you enter the next transaction, type D in the date column. You can use this feature when the date of the next entry is the same as the previous entry. The repeated date will appear in the posted journal entry. June 8: Record the receipt of an account receivable, no discount Hilda Steinberg paid her account of $1,320.00. No discount was earned. Sales Invoice Number: PP478. Customer Number: 10566 June 9: Record the payment of a vendor account, discount lost A check for $5,360.00 was written to Yamamoto Nursery which offers credit terms of 2/10, n/30. The invoice date was May 27. Check Number: 35004. Vendor Invoice Number: Y3009. Vendor Number: 20155. June 9: Record a cash drawing by the owner The owner of Petunia Patch, Victoria Vincent took a $3,000.00 draw for personal expenses. Check Number: 35005. Invoice Number: DRAWS (for drawings). June 9: Record the receipt of an account receivable, discount taken Lorenzo s Mexican Food paid its account. A 1% discount was earned. To determine the amount owed and the discount allowed, do the following: 1) Move the pointer to Journal/Ledgers/Statements. 2) Select Subsidiary Ledgers. 3) Select Accounts Receivable. 4) Click on All Customers. 5) Scroll down to the Lorenzo s Mexican Food account (10555) and determine the amount due and the discount allowed on Sales Invoice number PP567 6) Click on Data Entry, select Daily Entries, click on OK, Clear the screen and enter the transaction. Sales Invoice Number: PP567. Customer Number: 10555. The compound journal entry requires a debit to 101 - Cash, a debit to 402 - Sales Discount, and a credit to 105 - Accounts Receivable. This concludes the journal entries for June 3 to June 9. Page 9
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 Check Figures on the Menu Bar. 3. Click on Weekly Check Figures. 4. Select Week 1. 5. Print the Check Figures for Week 1. 6. Check the balances of your June 9 Trial Balance against the totals shown in the printout of Check Figures for Week 1. 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 10 to June 16. 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 should be reviewed. The most efficient method of locating and correcting the error/s is to compare the journal entries to the transactions in the module. Use the correction system designed specifically for the Petunia Patch 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 on the Menu Bar and space down to Restore To Beginning Balances and click. Click on Start Copy and your data files will be set back to June 2, the beginning of the project. Page 10
BACKUP YOUR DATA FILES Before continuing to Module 2, you need to backup your work (data files) to this point in the practice set. Go to Administration on the Menu Bar, scroll down to Files: Reset and Backup, select Backup Data Files, and click on Start Back, then click on OK. 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, and you have backed up your data files, you are ready to begin the data entry for Module 2 (Week 2), which includes the transactions for June 10-16. 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 10-16 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 11