Digital Splash. Keystone One. Problem 8. Manizette Bookkeeping. Algorithmic Problems and Simulations. 1 st Web- Based Edition

Size: px
Start display at page:

Download "Digital Splash. Keystone One. Problem 8. Manizette Bookkeeping. Algorithmic Problems and Simulations. 1 st Web- Based Edition"

Transcription

1 Algorithmic Problems and Simulations 1 st Web- Based Edition Keystone One Manizette Bookkeeping CCTE Model Curriculum Standard: A1.2 Examine, analyze, and categorize financial transactions; A2.3 - Understand the processes involved in revenue recognition and in matching of income and expenses; A1.3 Complete the accounting cycles for a service business and a merchandise business; A2.5 Use basic concepts of financial analysis to interpret financial statements. NBEA Achievement Standard: Demonstrate the skills and competencies required to be successful in the accounting profession. Page 1

2 Introduction Janette Manizette purchased a bookkeeping service business from a close friend, in late December of last year. Janette plans to expand the business and has hired you, on a part- time basis, to assist her with the bookkeeping procedures of her business. Your duties will include completing the accounting cycle for the month of January: 1. Recording daily transactions 2. Preparing end- of- week trial balances 3. Recording adjusting entries 4. Preparing an adjusted trial balance 5. Preparing financial statements 6. Closing the temporary accounts 7. Preparing a post- closing trial balance 8. Analyzing the results of operations for the month of January (examination) Documentation One of the major accounting principles is objectivity. When applied to recording transactions, it means that there must be objective evidence that the transaction between the company and an outsider took place. Examples of objective evidence are sales invoices, checks, and bank memorandums. In Keystone One, you will be entering objective evidence with each daily transaction. After you have clicked on the Verify Journal button, the pointer will automatically go to the correct document text box. If you have made a credit to the Cash account, the pointer will appear in the Check Number text box. If you have not credited the Cash account, the pointer will automatically appear in the Invoice Number text box. There must always be an invoice number. 1. At the Check Number text box, enter the 5 digit check number and Tab (or Enter). 2. At the Invoice Number text box, enter the 5 digit invoice number. The program will convert lower- case alphabetic digits to upper case letters. Page 2

3 Reminder: You can use the D key to enter the transaction date if the transaction date is the same as the date of the previous transaction you recorded. CHART OF ACCOUNTS MANIZETTE BOOKKEEPING Assets 101 Cash 105 Accounts Receivable 123 Office Supplies 125 Prepaid Insurance 127 Prepaid Rent 134 Office Equipment 135 Accumulated Depreciation Office Equipment Liabilities 201 Accounts Payable 209 Salaries and Wages Payable 301 Manizette, Capital 302 Manizette, Drawing 320 Income Summary Capital Revenue 401 Bookkeeping Fees Earned 405 Service Fees Earned Page 3

4 Operating Expenses 601 Salaries and Wages Expense 602 Insurance Expense 603 Rent Expense 607 Office Supplies Expense 608 Advertising Expense 609 Delivery Expense 610 Depreciation Expense - Office Equipment 625 Utilities Expense 626 Telephone Expense 650 Miscellaneous Expense Special Considerations 401 Bookkeeping Fees Earned is used to record bookkeeping services provided by Manizette Bookkeeping. 405 Service Fees Earned is used to record training services provided by Manizette Bookkeeping. 602 Insurance Expense is used to record the adjusting entry for prepaid insurance that expired during the accounting period. 603 Rent Expense is used to record the rent expense for the current period. 607 Office Supplies Expense is used to record the adjusting entry for office supplies consumed during the accounting period. 610 Depreciation Expense Office Equipment is used to record the depreciation expense of the office equipment at the end of the accounting period. If you have a good understanding of how the accounts are used, and the procedures for recording transactions, you are ready to complete Module One. Page 4

5 Module One Begin the Problem After logging in to, complete the following steps: 1. From the Menu Bar of the Data Entry page, move the pointer to Problems, then down to Keystone One, and click. 2. Move the pointer to Journal/Ledgers/Statements on the Menu Bar, move the pointer down to General Ledger, and print the Trial Balance of January Move the pointer to Data Entry, click on Daily JE, click on OK, and then enter the transactions for January 4 to January 10. The Clear Screen 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 erase this entry from the screen. This feature allows you to view the last entry you made prior to logging off the program or moving from other selection options on the Data Entry page. This will not erase the entry from the general ledger or the general journal. Transactions of January 4 to January 10 January 4: Issued a check for rent A check was issued for $ as payment of the office rent for the month of January. At the check number prompt, enter At the invoice prompt, enter RENTS. Post the entry. When you click on Post, the program will automatically record the entry in the General Journal and post it to the General Ledger. January 4: Purchased supplies for cash Office Supplies were purchased for $ cash. Check Number: Invoice Number: OS123. Page 5

6 January 5: Purchased equipment for cash and credit Purchased a new computer system and software from Campbell Computer, Incorporated. The system cost $1, A check was issued for $500.00, and the remaining cost should be credited to Accounts Payable. The Check Number is Invoice Number: CC458. January 5: Issued a check for insurance A check for $ was issued to Riley Insurance Company for a 6- month insurance policy. The Check Number: Invoice Number: INSUR. January 6: Issued a check for advertising A check was issued for $ to the local newspaper for advertisement announcing the grand opening of Manizette Bookkeeping. Check Number: Invoice Number: A5689. January 7: Provided instruction services on credit A new client, ZBD Hardware, received two hours of instruction on the accounting system provided by Manizette Bookkeeping. ZBD Hardware was billed $ for this service. Invoice Number: MB001. Non- bookkeeping services, such as training, are credited to the Service Fees Earned, account number 405. January 8: Purchased supplies on credit Office Supplies, costing $137.50, were purchased on credit from Wagner Office Supplies. Invoice number: W2445. January 9: Discovered and corrected an error An error was made on the journal entry for the Wagner Supplies account. The correct amount should have been for $ For all entry corrections, you must back out the original entry using the original entry date. Then record the correct entry. Note: Two journal entries are required for every error correction. See ERROR CORRECTION PROCEDURES at the end of this module. Page 6

7 January 10: Received cash for services Completed the bookkeeping work for a client and received a check for $ Invoice Number: MB002. Bookkeeping services are credited to the Bookkeeping Fees Earned, account number 401. End of Week One Procedures 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 2. Move the pointer to General Journal, and print the General Journal. (Note the documentation in the General Journal) 3. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 4. Move the pointer to General Ledger and click. 5. Print a copy of the January 10 Trial Balance. 6. Move the pointer to Check Figures on the Menu Bar. 7. Click on Problem Check Figures. 8. Print the Check Figures for Keystone One Week One If Your Balances match the Correct Balances for the selected account totals in the Check Figures for Keystone One Week One, continue to Back Up Data Files. If Your Balances do not match the Correct Balances of the selected account totals in the Check Figures for Week 1, you must correct the unmatched balances before continuing to Module 2. The most efficient method of locating and correcting the error(s) is to compare the journal entries to the transactions in the module. 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 described on the last page of this module. Page 7

8 Option Two: If you find that you have several errors, you may wish to reset to the beginning of this module and record the transactions again. To reset back to the beginning of this module, move the pointer to Support and down to Files: Reset and Backup, select Reset Problem, and click. Select the problem you wish to reset, and then click on Reset Selected Problems. Your data files will be set back to the beginning of the problem. This option is only available for Module One. Back up Data Files Before continuing to Module 2, you need to backup your work (data files) to this point in the practice set. 1. Go to Support on the Menu Bar. 2. Scroll down to Files: Reset and Backup, select Backup Data Files. 3. Click on Start Backup, and 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 January Exiting the software If you have completed your work for this session, click on Log Out and return to the PKL Home Page. In this problem, you can exit the program at any point and return to that point at a later time. Page 8

9 Error Correction Procedures It is recommended that you do not make a correction to an incorrectly entered date. Make a note of the error for future reference. If you have omitted a journal entry, record the entry using the date of the transaction. Make note of the error for future reference. When you complete each module, carefully examine all entries recorded for that accounting period, and when an error is found use the correction procedure: 1. Reverse the original transaction using the date of the incorrect entry. 2. Enter the correct transaction using the correct date of the original entry. If, for example, you find that a purchase of Office Supplies for cash on January 9 was entered as a debit to Office Equipment (instead of Office Supplies) and a credit to Cash. Reverse the error entry as follows: January 9 Cash Office Equipment In any text box, enter ERROR. When the entry has been verified and posted, the accounts will now show the original balances prior to the incorrect entry. Using the same January 9 date, record the correct entry January 9 Office Supplies Cash In the text box, again enter ERROR. The incorrect entry, the reversing entry, and the correction entry will appear in the accounting records leaving a clear, easy- to- follow audit trail. Module Two Transactions of January 11 to January 17 Page 9

10 A Few Reminders from Module One Remember, that after you have clicked on the Verify Journal button, the pointer will automatically go to the correct document text box. If you have made a credit to the Cash account, the pointer will appear in the Check Number text box. If you have not credited the Cash account, the pointer will automatically appear in the Invoice Number text box. There must always be an invoice number. 1. At the Check Number text box, type the 5 digit check number and Tab (or Enter). 2. At the Invoice Number text box, type the invoice number. The program will convert lower- case alphabetic digits to upper case letters. 3. You can use the D key to enter the transactions date if the transaction date is the same as the date of the previous transaction you recorded. 4. Be sure you have printed the Trial Balance for January 10. After recording any transactions beyond January 10, you will not be able to recover a Trial Balance for January 10. The Clear Screen 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 erase this entry from the screen. This feature allows you to view the last entry you made prior to logging off the program or moving from other selection options on the Data Entry page. This will not erase the entry from the general ledger or the general journal. January 11: Purchased additional office equipment Office desks and chairs were purchased on credit for $ from Robinson Equipment Company. Invoice Number: R3222. January 12: Completed a bookkeeping job Quarterly reports were completed for Armstrong Lumber and the company was billed a total of $1, for this job. Invoice Number: MB103. Page 10

11 January 14: Installed new equipment A new phone system costing was installed in the office. Check Number: Invoice Number: T1122. January 15: Completed instruction sessions Five and one- half hours of instruction services were performed today for the new employees of Throssel Incorporated. A check for $ was received and deposited into the business checking account. Invoice number: MB104. January 15: Received an invoice A billing statement was received from Acme Delivery service for documents delivered to clients so far this month. The $65.00 invoice is due and payable in 10 days. Invoice Number: A0045. January 16: Issued a payroll check A check was issued to Mary Sue Jenkins for 12 hours of part- time work setting up the office and running errands. Mary Sue works after school and is paid $9.50 per hour. Check Number: Invoice Number: PAYRL. January 17: Completed a year- end report for a client A year- end financial report was prepared, and a check totaling $ was received from the client for this Accounting work. Invoice Number: MB005. January 17: Returned Office Supplies Thirty dollars ($30.00) worth of Office supplies, purchased on credit from Wagner Office Supplies on January 8 th, were returned. The stationary listed an incorrect address and telephone number for Manizette Bookkeeping. Invoice Number: W2445. Page 11

12 End of Week Two Procedures 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 2. Move the pointer to General Journal, and print the General Journal. 3. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 4. Move the pointer to General Ledger and click. 5. Print a copy of the January 17 Trial Balance. 6. Move the pointer to Check Figures on the Menu Bar. 7. Click on Problem Check Figures. 8. Print the Check Figures for Keystone One Week Two If Your Balances match the Correct Balances for the selected account totals in the Check Figures for Keystone One Week Two, follow the instructions on the following page. If Your Balances do not match the Correct Balances of the selected account totals in the Check Figures for Week 2, you must correct the unmatched balances before continuing to Module 3. 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 described in Module 1 for accuracy, efficiency, and a clear audit trail. Complete the Mid- Project Evaluation In addition to the General Journal and the January 17 Trial Balance you have printed, print the following documents needed to answer the Mid- Point questions. 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar, then down to General Ledger, click on Ledger Card, and print the Cash account. 2. Move the pointer to the down- arrow key on the pull- down menu, and select 105 Accounts Receivable. Click on Show Ledger Card, and then print the account. 3. Continue by printing the following ledger cards: a. 123 Office Supplies Page 12

13 b. 134 Office Equipment c. 201 Accounts Payable d. 401 Bookkeeping Fees Earned e. 405 Service Fees Earned Using the printouts of the documents as a resource, answer the questions in the Mid- Project Evaluation found at the end of this module. After completing the written evaluation, your instructor will provide instructions as to the time schedule for the electronic examination and the number of times you will be allowed to take the examination. When this is assigned: 1. Move the pointer to Evaluations on the Menu Bar, move the pointer down to : Keystone One - Mid- Project Evaluation, and click. 2. Follow the instructions on the screen and answer the questions in the Mid- Project Evaluation, as you did on the printed version at the end of this module. 3. After you have completed and scored your Mid- Project Evaluation, complete the backup instructions that follow. Back Data Files Before continuing to Module 3, you need to backup your work (data files) to this point in the practice set. 1. Go to Support on the Menu Bar, scroll down to Files: Reset and Backup 2. Select Backup Data Files, and click on Start Back, and then click on OK. You now have a copy of all of your work to the end of Module 2. This file will allow you to return to the end of Module 2 even after entering transactions beyond Module 2. Continue to Module 3 When you have printed all the required documents, completed the on- line evaluation, and you have backed up your data files, you are ready to begin the data entry for Module 3 (Week 3) which includes the transactions for January Page 13

14 Exiting the Software If you have completed your work for this session, click on Log Out and return to the PKL Home Page. In this problem, you can exit the program at any point and return to that point at a later time. Page 14

15 DIGITAL SPLASH - KEYSTONE ONE MID- PROJECT EVALUATION NAME DAY AND TIME DATE 1. What is the total of the January 17 Trial Balance? $ 2. What is the balance of the Cash account? $ 3. What was the balance of the Cash account at the close of business on January 10? $ 4. What is the balance of the Accounts Receivable account? $ 5. What has been the amount of increase in the Accounts Payable account? 6. What was the invoice number for the credit charges for delivery expense on January 15? 7. What was the dollar amount of the office supplies returned to the vendor on January 17? $ $ 8. What is the balance of the Office Equipment account? $ 9. What was the invoice number for the purchase of office equipment on January 11? 10. What is the balance of the Bookkeeping Fees Earned account? $ 11. What was the invoice number for the bookkeeping fees earned on January 12? 12. What is the current balance of the Salaries and Wages Expense account? $ 13. What is the total of all revenue accounts? $ 14. What is the total of all expense accounts? $ 15. Assuming January 17 is the end of the accounting period, what is the net income? Page 15

16 Module Three Transactions of January 18 to January 24 The Clear Screen 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 erase this entry from the screen. This feature allows you to view the last entry you made prior to logging off the program or moving from other selection options on the Data Entry page. This will not erase the entry from the general ledger or the general journal. In this session, on January 24, you will be required to review a transaction from the previous week, and record a compound journal entry. January 18: Issued a check A check was issued to Wagner Office Supplies in payment of the current account balance of $ Check Number: Invoice Number: W2445. January 18: Received a payment on accounts receivable A check for $ was received from ZBD Hardware as payment in full on their charge account. Invoice Number: MB102. January 19: Billed client for service fees Completed setting up a new computerized bookkeeping system and provided 6 hours of group instruction (Service Fees) to the staff of Robinson Equipment Company. Billed the company $ for services provided. Invoice Number: MB106. January 21: Purchased office supplies on account Four cases of computer paper and two ink cartridges were purchased, on account, from Price Office Supplies for $ Invoice Number: P4444. Page 16

17 January 22: Paid an account payable A check was issued for $ to Campbell Computer, Incorporated, for its accounts payable balance. Check Number: Invoice Number: CC562. January 24: Paid an account payable A check was issued to Acme Delivery Service as payment in full for an invoice dated January 15 th. Check your previous entries to Delivery Expense to determine the amount due and payable. Check Number: Invoice Number: A0045. January 24: Billed a client for bookkeeping and services A customer, Robert Foster, was billed $850.00, which included two hours of instruction billed at $100 per hour. Invoice number MB107. Note: this is a compound journal entry involving three accounts: Accounts Receivable, Bookkeeping Fees Earned, and Service Fees Earned End of Week Three Procedures 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 2. Move the pointer to General Journal, and print the General Journal. 3. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 4. Move the pointer to General Ledger and click. 5. Print a copy of the January 24 Trial Balance. 6. Move the cursor to Check Figures on the Menu Bar. 7. Click on Problem Check Figures. 8. Print the Check Figures for Keystone One Week Three Page 17

18 If Your Balances match the Correct Balances for the selected account totals in the Check Figures for Keystone One Week Three, go to Back Up Data Files. If Your Balances do not match the Correct Balances of the selected account totals in the Check Figures for Week 3, you must correct the unmatched balances before continuing to Module 4. 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 described in Module 1 for accuracy, efficiency, and a clear audit trail. Back Data Files Before continuing to Module 4, you need to backup your work (data files) to this point in the practice set. Go to Support on the Menu Bar, scroll down to Files: Reset and Backup, select Backup Data Files, and click on Start Backup, and then click on OK. You now have a copy of all of your work to the end of Module 3. This file will allow you to return to the end of Module 3 even after entering transactions beyond Module 3. Continue to Module 4 When you have printed all of the required documents, and have backed up your data files, you are ready to begin the data entry for Module 4 (Week 4) which includes the transactions for January Page 18

19 Module Four Transactions of January 25 to January 31 In this session, you will be required to record a donation and a withdrawal of cash by the owner. January 25: Received a check for bookkeeping fees A check for $ was received from a new client, Joann Personi, as payment in full for bookkeeping fees. Invoice Number: MB108. January 26: Cash donation to local charity A check was issued for $50.00 as a donation (Miscellaneous Expense) to the local kids Sports for All campaign. Check Number: Invoice Number: DONAT. January 28: Owner withdrew cash for personal use A check for $ was issued from the business checking account to the owner, Janette Manizette. Check Number: Invoice Number: DRAWS. January 30: Paid a utility invoice A check was issued for $ as payment in full of the monthly gas and electric bill received today. Check Number: Invoice Number: EE983. January 30: Paid telephone invoice A check was issued for $ as payment in full of the monthly telephone bill. Check Number: Invoice Number: T5231. Page 19

20 January 31: Paid the part- time employee A check was issued to Mary Sue Jenkins for 15.5 hours of part- time office work for the last two weeks of the month. Mary Sue is paid $9.50 per hour. Check Number: Invoice Number: PAYRL. January 31: Received a billing invoice An invoice for $85.00 was received from Acme Delivery service for documents delivered to clients this past two weeks. The billing invoice is due and payable in 10 days. Invoice Number: A0247. End of Week Four Procedures 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 2. Move the pointer to General Journal, and print the General Journal. 3. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 4. Move the pointer to General Ledger and click. 5. Print a copy of the January 31 Trial Balance. 6. Move the pointer to Check Figures on the Menu Bar. 7. Click on Problem Check Figures. 8. Print the Check Figures for Keystone One Week Four If Your Balances match the Correct Balances for the selected account totals in the Check Figures for Keystone One Week Four, skip to Back Up Data Files. Page 20

21 If Your Balances do not match the Correct Balances of the selected account totals in the Check Figures for Week 4 you must correct the unmatched balances before continuing to Module 5. 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 described in Module 1 for accuracy, efficiency, and a clear audit trail. Back Up Data Files Before continuing to Module 5, you need to backup your work (data files) to this point in the practice set. Go to Support on the Menu Bar, scroll down to Files: Reset and Backup, select Backup Data Files, and click on Start Backup, and then click on OK. You now have a copy of all of your work to the end of Module 4. This file will allow you to return to the end of Module 4 even after entering transactions beyond Module 4. Continue to Module 5 If you have printed all the required documents, completed the on- line Mid- Point evaluation, and you have backed up your data files, you are ready to begin the data entry for Module 5 (which includes the adjusting and closing transactions). Page 21

22 Module Five Adjusting and Closing Entries and Financial Statements 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar, move the pointer down to General Ledger, and print the Trial Balance of January Move the pointer to Data Entry, click on Adjusting JE, click on OK, then click on Clear Screen, and then enter the following adjusting entries. The Clear Screen 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 erase this entry from the screen. This feature allows you to view the last entry you made prior to logging off the program or moving from other selection options on the Data Entry page. This will not erase the entry from the general ledger or the general journal. Be sure you are in the Adjusting JE mode, and then enter the following adjusting entries. The transaction date must be January 31. Adjusting entries do not require documentation (invoices and check numbers). Adjusting Entries for the Month Ended, January 31 A. A count of the office supplies determined that $ of office supplies are on hand. Use the Office Supplies balance on the January 31 Trial Balance to determine the dollar amount of office supplies used in January. Record the adjustment for offices supplies expense. B. The Prepaid Insurance beginning balance represents an insurance policy which is amortized (expensed) at $37.50 per month. The six- month insurance policy purchased at the beginning of the month, for $660.00, is to be amortized, also, on a monthly basis. Record a single adjusting entry covering the two policies. C. The monthly depreciation on office equipment is $ Record this adjustment with a debit to account 610 Depreciation Expense, Office Equipment, and a credit to account 135 Accumulated Depreciation, Office Equipment. Page 22

23 End of Adjusting Entries 1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 2. Move the pointer to General Journal, and print the General Journal. 3. Move the pointer to Journal/Ledgers/Statements on the Menu Bar. 4. Move the pointer to General Ledger and click. 5. Print a copy of the January 31 Adjusted Trial Balance. 6. Move the pointer to Check Figures on the Menu Bar. 7. Click on Problem Check Figures. 8. Print the Check Figures for Keystone One After Adjustment. If Your Balances match the Correct Balances for the selected account totals in the Check Figures for Keystone One After Adjustment, continue to the Instructions for Completing Module 5 at the bottom of this page. If Your Balances do not match the Correct Balances of the selected account totals in the Check Figures for After Adjustment, you must correct the unmatched balances before completing the Final Evaluation The most efficient method of locating and correcting the error(s) is to compare the journal entries to the transactions in the module. Page 23

24 Instructions for Completing Module 5 A. Move the pointer to Journal/Ledgers/Statements, select Financial Statements, and then select Income Statement. Print the Income Statement. B. Move the pointer to Journal/Ledgers/Statements, select Financial Statements, and then select Balance Sheet. Print the Balance Sheet. C. Move the pointer to Data Entry and click. Click again on Closing JE. This will automatically close the temporary accounts. D. Print the Post- Closing Trial Balance. E. Complete the Final Evaluation at the end of this manual. F. Move the pointer to Evaluations, select : - Keystone One Final Project Evaluation, and complete the online evaluation. Page 24

25 DIGITAL SPLASH - KEYSTONE ONE FINAL PROJECT EVALUATION NAME DAY AND TIME DATE 1. What is the total of the Adjusted Trial Balance on January 31? $ 2. What was the amount of the Total Revenue reported on the Income Statement? 3. What is the amount of the Total Operating Expenses reported on the Income Statement? 4. What is the total of the Net Income From Operations reported on the Income Statement? $ $ $ 5. What is the balance of the largest expense account? $ 6. What is the total of Total Assets reported on the Balance Sheet? $ 7. What is the net increase in the Manizette, Capital account reported on the Balance Sheet? 8. What is the total of Total Liabilities reported on the Balance Sheet? 9. Does Manizette Bookkeeping have enough cash to pay its liabilities? A. Yes B. No 10. Total Capital is what percent of Total Assets? Round your answer to the nearest hundredth. $ $ % 11. What is the total of the Post- Closing Trial Balance? $ 12. What is the post- closing balance of the Manizette, Capital account? 13. Are any temporary accounts reported on the Post- Closing Trial Balance? A. Yes B. No $ Page 25

26 14. What is the post- closing balance of the Office Supplies account? 15. What is the book value of the Office Equipment? Book value is equal to the balance of the asset account minus the balance in its accumulated depreciation account. $ Page 26