High Country Snowmobile

Transcription

1 High Country Snowmobile Level I 1 st Web Based Edition Transactions For December 4-10 Page 1

2 BEGIN THE HIGH COUNTRY SNOWMOBILE PROGRAM When you have: 1. Printed and carefully read Getting Started With High Country Snowmobile, and Registered as a user of this website. 2. Carefully read pages 2-9 of An Introduction To High Country Snowmobile. 3. A good understanding of the accounts used by High Country Snowmobile. you are ready to begin the journalizing process. The transactions for your first work week in December (4th through 10th) follow, and you are encouraged to prepare your account entry information before sitting down at the computer. This procedure may speed up your data entry time. An example of a written analysis before the data entry is shown on page 4 with the first December 4 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. If you are not currently logged on to Internet Explorer, log on to PKLSoftware.com. 1. To access the High Country Snowmobile program, click on the High Country Snowmobile log in button on the home page. 2. At the log in page, enter your User ID/Name and Password. Then click on Log In. 3. On the Data Entry page, move the pointer to Data Entry, and click. 4. Click on Daily JE (Daily Journal Entries). 5. Click OK again if there are no current journal 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. NOTE: Remember to disable any Pop- up Blocker installed on your computer. Disabling Pop- up Blockers allows you to print documents in any PKL Software program without complications caused by the Pop- up Blockers. To disable Internet Explorer s Pop- up Blocker, perform the following directions: 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 at 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 Pop- up 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 the 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 TRANSACTIONS FOR DECEMBER 4-10 December 4 Performed service and adjustment work on a snowmobile and the customer paid cash for the work completed. The bill included $ for 1.5 hours of labor ($80.00 per hour) plus sales tax (8%) of $9.60. The sales invoice number for this transaction is H4131. No parts were needed to complete this job. 101 Cash $ Service Fees Earned $ Sales Taxes Payable $ At the date prompt, for December 4, enter 04 for day and press the Tab key. When entering any part of the transaction, you may back up and reenter the information by using the Backspace key. If you have already pressed the Tab key after entering the date and wish to change it, click in the date prompt and backspace or delete the incorrect date, then enter the correct date. 2. To debit Cash, at the account prompt, enter 101 (the Cash account number) and press the Tab key. In the debit amount column type without the $ and press the Tab key. If the account or amount is incorrect, click on the appropriate item and reenter. Tab to the next position. 3. At the account prompt, enter 411. Tab to the credit column, enter as the credit to Service Fees Earned, and press the Tab key. 4. Enter 205 to record the credit to Sales Tax Payable. Tab to the credit column and enter 9.60 (do not press the Enter key or the Tab key). Press the Verify Journal button. If the date, entry account number, or amounts are not properly entered, you will be given an error message with the appropriate details. If the entry is correct, the pointer will appear in the Invoice Number text box. If any part of the journal entry is incorrect, click on the date, account, or amount location and reenter the correct information. 5. At the invoice number text box, enter H4131 as the sales invoice number. Document letters may be entered in upper or lower case. 6. After entering the correct invoice number, press the Verify Documents button. If all of the document entries are correct, press the Post Entry button. Your data entry will be automatically recorded in the General Journal and posted to the General Ledger. Page 4

5 If after verifying the entry, you realize that an account number or entry is not correct, you may click on Clear Screen from the Menu Bar and reenter, verify, enter any additional required data, and then post the correct entry. Continue recording and posting the transactions that follow. Continue entering the transactions for the first week. If you discover that a transaction entered into the system at an earlier time needs to be corrected, simply reverse or back out the error transaction and then enter the data correctly. More detailed instructions on error correction procedures follow in the next transactions. December 4 Received a $48.60 billing for miscellaneous items and paid invoice X3400 with check number Debit the invoice total to Miscellaneous Expense, account number Since this entry is the same date as the first entry, instead of entering 04 again, enter the letter D (or d ) (for date) in the date column and press the Tab key. The letter D will remain in the date text box until you verify the entry (see instruction 4). 2. At the account prompt, enter account number 629 for Miscellaneous Expense, and press the Tab key. Enter $48.60 in the debit amount column (no dollar signs or commas) and press the Tab Key. 3. At the account prompt, enter account number 101 for Cash, and tab to the credit column. Instead of entering $48.60 (no dollar signs or commas) press the C key. One key stroke of C copies the amount of the debit into the credit column. Using the C key (for copy) eliminates entering the credit amount with 5 keystrokes. The C key can be used for simple debit and credit journal entries or for the last credit entry of a compound journal entry. 4. Verify the date and journal entry by clicking on the Verify Journal button. If you used the D key function (Instruction 1) the date of the previous entry will appear in the date entry text box. Remember, if the date, entry or account numbers, and amounts are not entered or are not in balance, an error message will appear with appropriate error details. 5. When the errors are corrected and the entry is verified, at the check number prompt, enter Page 5

6 6. At the invoice prompt, enter X3400 as the invoice number. 7. Check the entry carefully. If you wish to make a correction to the check number or invoice number, click on the entry box and enter the correct number. If the entry is correct, click on the Post button. If after verifying an entry and entering the additional required information, but before posting, you realize that the entry is not correct, click on the Clear Screen button on the Menu Bar, and reenter, verify, check, and post the correct entry. A complete summary of the error correction process is presented at the end of this problem on page 16. December 5 Discovered that the December 4 entry for $48.60 for advertising printing charges had been recorded in error to the Miscellaneous Expense account rather than the Advertising Expense account. The date on the original cash transaction entry is December 4 and the invoice number X The entry correction procedure for the High Country Snowmobile accounting system requires that each error entry be backed out and then reentered correctly. Using the December 4 date (the date of the error entry), debit the Cash (101) account and credit the Miscellaneous Expense (629) account for $ At the invoice prompt, enter X3400 as the invoice number. When all of the data is correct, click on the Post button. 3. Since the date of the second transaction is also December 4, enter D for date. When you verify the transaction, the correct date will appear in the date box. This saves data entry time when several transactions are recorded on the same date. 4. AFTER THE ERROR ENTRY HAS BEEN BACKED OUT, enter the transaction correctly with a debit to Advertising Expense (604) and a credit to Cash (101). Verify the transaction and 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. Page 6

7 5. Enter the X3400 invoice number as requested and when the data shown is correct, click on the Post button. If needed additional error correction instructions can be found at the end of this module on page 16. NOTE: This error correction procedure leaves a clear audit trail of all corrections and is to be followed throughout this accounting simulation. NOTE: If at any time you wish to view the journal entries that you have entered, click on Journal/Ledgers/Statements on the Menu Bar. Move the pointer down to General Journal and click. The complete general journal will appear on the screen. You may scroll through the journal entries. When you are ready to enter additional journal entries, move the pointer to Data Entry on the Menu Bar and click. December 5 Purchased on account from Ace Business Supply, store equipment listed at $ and shop supplies listed at $ Sales taxes are included in the listed prices of these assets. The invoice number for this transaction is AB200 and Ace Business Supply offers net 10 credit terms. Remember to use the D key when repeating the previous date, and the C key when entering the credit amount of the journal entry. For compound entries the credit amount of the last credited account can be entered automatically using the C key. 1. At the date prompt, enter 05 for December Debit account 131, Store Equipment and Fixtures. You can select the account to debit rather than enter the account number by clicking on the account location and the pull- down chart of accounts will appear. Click on account 131, press the tab key, and enter $ as the debit amount. 3. You may debit account 127, Store and Shop Supplies by clicking on the account location again, and then selecting 127 from the pull- down chart. Tab to the debit amount column and enter $38.40 as the debit amount. 4. Use the pull- down chart again or manually enter account 201, Accounts Payable and press the Tab key. Tab to the credit column and press the C key. Page 7

8 5. Instead of moving the pointer to the Verify Journal button, you can save a few seconds of data entry time on each entry, by pressing the V key right after pressing the C (for copy) key. When the C key and then the V key (for verify transaction) are entered, the credit balance is copied and the date, accounts entered, and in balance amounts are verified. 6. At the invoice prompt, enter AB200 as the invoice number. 7. At the vendor number prompt, click on the first vendor, Ace Business Supply or enter as the vendor number. 8. Check the data for accuracy by pressing the Verify Documents button and then post the entry. The journal entry is transferred to the General Journal, posted to the General ledger, and posted to the Accounts Receivable Subsidiary ledger account of Ace Business Supply. On future entries involving Accounts Payable or Accounts Receivable, use may use the scroll bar to select the correct vendor or customer or enter the vendor or customer number. December 5 Purchased four Blaze snowmobiles from Timberline Snowmobile (28900). The list price of the snowmobiles is $3, each with a trade discount of 26%. The invoice number is TL688, credit terms are net 30, and the merchandise is shipped FOB destination. 1. Enter D for date or click on the repeat date button to enter the same December 5 date. 2. Click on account number 501, Purchases of Merchandise and the account name will automatically be entered in the account title column of the general journal. The account number will appear in the account number column. 3. Tab to the debit amount column and enter the correct amount. 4. Enter account 201, Accounts Payable. 5. Tab to the credit amount column and press the C key to enter the credit amount. Then press V to verify the transaction. 6. At the invoice prompt, enter TT688 as the invoice number. Page 8

9 7. At the vendor number prompt, click on the down arrow, scroll down to Timberline Snowmobile, and select this vendor. 8. When all of the data displayed is correct, click on the Post button. The data entry is transferred to the General Journal, posted to the General ledger, and posted to the Accounts Payable Subsidiary ledger account of Timberline Snowmobile. Using the data entry techniques demonstrated in the previous transactions, complete the remaining journal entries for the December 4-10 accounting period. December 5 Received $ cash from customer Alice Burger as payment in full on her account (invoice H4067). Enter D for date to repeat the December 5 date. Enter C for copy and V for verify. December 5 Received a bill from the Alpine Bulletin for an advertisement in the sports section of the paper this past weekend. Issued check for $ as payment in full for this expense (invoice number AP656). December 6 Billed the Sierra Trackers (11710) for $780.00, plus sales tax of $62.40, for accessories installed for no- charge on their racing craft (sales invoice number H4132). December 6 Issued check number for $ as payment in full of the November 26 invoice (number AB123) from Ace Business Supply. Ace Business Supply offers net 10 credit terms. Page 9

10 December 7 Owner Glenn Weeks paid his personal television repair bill by writing a $ High Country Snowmobile business check (check number 90123) to the Rocky Mountain TV Hospital. At the invoice prompt enter WDRAW for withdrawal. December 8 Purchased eight snowmobiles for inventory from Trail- Tracker. Purchase price for the merchandise totaled $39, The invoice number is TT481, the terms of the purchase are 2/10, n/30, and the goods were shipped FOB destination. December 8 Received a check for $ from a customer for storage fees on his snowmobile equipment, and issued sales invoice number H4133. This check prepays the customer s storage fees for December, January, and February. Review Unearned Storage fees on page 4 of the Introduction module. December 9 Issued check number and established a $ Petty Cash fund as a control method for small expenditures. In the past the business has handled most small expenditures as "paid outs" from the cash register or as miscellaneous expense items. At the invoice prompt type PCASH. December 9 Completed service work on a customer s snowmobile and the customer paid for the work in full. Sales invoice number H4134 lists $200 for 2.5 hours of labor, $ for parts and accessories, and 8% sales tax (round the sales tax to the nearest cent). December 9 Purchased snowmobile accessories and parts from a new supplier, Ice Mountain Equipment Supply (invoice IM140). Issued check for $1, as payment in full. The goods were delivered by the vendor. Page 10

11 December 9 Sold for cash, three snowmobiles for $4, each plus sales tax (sales invoice number H4135). December 10 Purchased store and shop supplies on account from Dustin Supply for $ (invoice D2367). Dustin Supply extends net 30 terms. December 10 Purchased $2, in parts and merchandise accessories from Star Bright Sports. The invoice number is S2236, credit terms are 1/10, n/30, and the goods are shipped FOB shipping point via a separate carrier. The transportation costs will be paid later upon receipt of the invoice from the freight company. December 10 Sold two snowmobiles for cash. Each snowmobile with added accessories retails for $4, plus sales tax. The sales invoice number is H4136. December 10 Issued check number to Star Bright Sports as payment in full for the invoice of November 30 (invoice number S1240). Star Bright Sports extends credit terms of 1/10, n/30. Check the Accounts Payable Subsidiary Ledger for the exact amount due on this Star Bright Sports invoice. Move the pointer to Journals/Ledgers/Statements on the Menu Bar and then down to Subsidiary Ledgers and click. Move to the right and click on Accounts Payable and the Schedule of Accounts Payable Subsidiary Ledger will appear on the screen. Click on Vendors and then move the pointer down to Star Bright Sports and click. After checking the amount of the invoice (note that two invoices are owed but only one is currently due), move the pointer to Data Entry and click. Enter the payment and post the entry. Page 11

12 Now that you have completed entering the transactions for the first seven days of the internship program, December 4-10, it is time to check the accuracy of your work. In the "Check It Out" box below are the correct balances of key accounts that you have been working with this period. 1. Move the pointer to Journals/Ledgers/Statements in the Menu Bar, move down to the General Ledger selection and click. The completed Trial Balance will appear on the screen. 2. Check your balances against the totals shown in the Check It Out box below. If all of your check figures match the Check It Out box totals, print a Trial Balance for further reference or any other documents required by your instructor. CHECK IT OUT 101 Cash $35, Petty Cash Accounts Receivable 21, Store and Shop Supplies 3, Store Equipment and Fixtures 56, Accounts Payable 56, Sales Taxes Payable 2, Unearned Storage Fees 9, Glenn Weeks, Withdrawals 13, Sales 170, Service Fees Earned 8, Purchases 123, Purchases Discounts Advertising Expense 1, Miscellaneous Expense TRIAL BALANCE TOTAL $472, If all of your totals match the check figures, 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 December To begin, you must first print a copy of the Module 2, manuscript. Move the pointer to Support on the Menu Bar and select Download High Country Manual. Select Part 2: Transactions for December 11-17, and print a copy. Page 12

13 If any of your account balances DO NOT MATCH THE CHECK FIGURES in the Check It Out box, you must correct the unmatched balances before continuing to Module 2. The most efficient method of locating and correcting the error/s is to a print copy of the Trial Balance and a copy of the General Journal. For accuracy, efficiency, and a clear audit trail, use ONLY the correction system designed for the High Country Snowmobile accounting system. Any account that is not correct is a MAJOR CLUE for you to check out. How to Handle Unmatched Check Figures You have two options available for handling unmatched balances at the end of Module 1. Examine your documents, locate the error/s, and return to the General Journal and record the required correction entries. Detailed error correction procedures for High Country are found below and are outlined on page 16. _ OPTION ONE: Find and Correct the Errors 1. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to General Ledger and click. Print a copy of the High Country Snowmobile Trial Balance. 2. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to General Journal and click. Print a copy of the General Journal. 3. From the accounts on the Trial Balance that do not match the check figures, check your journal entries for errors. Make sure the journal entries from your manual match the journal entries in the general journal. Make the necessary corrections by backing out each error entry and then reentering it correctly. (See page 16.) 4. When your balances match the Check It Out box figures, you are ready to begin entering the transactions for Module 2, December To begin Module 2, you must first print a copy of the Module 2 manuscript. Move the pointer to Support on the Menu Bar and select Download High Country Manual. Select Module 2 and print a copy. Although no printed documents are required for December 10, if you wish any printed documents for December 10, they must be printed now before entries for the second accounting period of December are recorded. Additional entries will change the account balances. Your instructor may ask for a printed Trial Balance or specific documents. If you have completed your work for this session, click on Home Page, then click on Close and exit the program. Page 13

14 _ OPTION TWO: Starting Over Reset to the Beginning of the set. If you find that you have several errors, you may wish to reset to the beginning of the practice set and start again. The reset option can be used only up to the end of Module 1, (December 10). You cannot reset back to the beginning of the set if you have entered journal entries after December 10, the end of Module 1. 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 Copy and the files will be set back to December 3, the beginning of the project. Page 14

15 JOURNAL ENTRY CORRECTION ERROR CORRECTION PROCEDURES For the High Country Snowmobile Accounting System Carefully examine all entries recorded for each period and when an error is found use the following correction procedure: 1. Back the transaction out using the date used in the error entry. 2. Enter the correct transaction using the correct date of the original entry. If, for example, you find that the transaction for December 4 was entered without recording the 8% sales tax, simply back out (reverse) the error as follows: Dec. 3 Service Fees Earned Cash Enter ERROR at the check number prompt since this is a correction to cash and does not involve the issuance of another check. When the entry has been verified, the accounts will now show the original balances in place before the error entry. Using the same December 3 date, record the correct entry. Dec. 3 Cash Service Fees Earned Sales Tax Payable 9.60 The error entry, the back- out entry, and the correction entry will appear in the accounting records in the order that they have been recorded, leaving a clear, easy- to- follow audit trail. Page 15