Brandon s Cabinet Shop 1 st Web-Based Edition Module 2 Transactions For June 10-16 Page 1
Heads Up: In this module you will be required to record: (1) unearned revenue and (2) a sales return of merchandise by a customer. June 10: Record a bank credit card sale Cabinet components were sold for $3,600.00 plus 7% sales tax. The customer paid for the cabinet components with a bank credit card. When a customer uses a bank credit card to purchase cabinet components, the sale is recorded as a cash sale. Invoice Number: B3453. The program will automatically record and post a debit to the Cost of Goods Sold and a credit to Merchandise Inventory for the cost of the cabinet components. June 11: Record the collection of an account receivable A check was received from Lakespur Homes for payment of sales invoice B3422. Examine the Lakespur Homes Cabinet account to determine the amount owed to Brandon s Cabinet Shop. Record the receipt of the check. Invoice Number: B3422. Customer Number: 11375 June 11: Record the sale of merchandise and installation service on credit Record the sale of cabinet components with a list price of $4,200.00, plus 7% sales tax, and 4 hours of installation fees to customer Ralph Morehead. Invoice Number: B3454. Customer Number: 11625. June 11: Record the payment for an advertisement A check was issued to Better Abodes for an advertisement in its June 17 th weekly edition. The invoice from Better Abodes was for $314.00. Check Number: 45003. Invoice Number: BA699 June 13: Record the sale of cabinet components A customer purchased $1,200.00 of cabinet components, plus sales tax. The sales invoice was paid with cash. Invoice Number: B3455. June 13: Record installation fees paid in advance Installation of the cabinets purchased in the previous transaction was estimated at 3 hours and was paid in advance by the customer who used a bank credit card. Installation fees paid in advance are credited to Unearned Revenue. Invoice Number: B3456. Page 2
June 14: Record the maintenance of a delivery vehicle A check for $234.70 was issued to a local automobile dealer for periodic maintenance of a Brandon s Cabinet Shop delivery vehicle. Check Number: 45004. Invoice Number: D3499. June 15: Record a sales return and allowance One of the cabinets delivered by Brandon s Cabinet Shop to Ralph Morehead on June 11 was slightly damaged. A credit memo for $214.00, which included 7% sales tax, was issued to the customer, who refused to accept the cabinet. Invoice Number: B3454. Credit Memo: CM006. Vendor Number: 11625. (To determine the selling price of the cabinet, divide the total of the credit memo by 1.07.) June 16: Record salaries and wages expense A check was issued for $935.67 for salaries and wages expenses for the two-week period of June 3 to June 16. Check Number: 45005. Invoice Number: PAYRL (payroll). June 16: Record the purchase of shop supplies on credit Brandon s Cabinet Shop purchased a supply of varnishes, on credit, from Visionary Finishes. The invoice totaled $650.00 and will be charged as Shop Supplies Expense. Invoice Number: VF806. Vendor Number: 28500. This concludes the transactions for June 10-16. End of Week Two Procedures 1. Print the Trial Balance for June 16. 2. Print the General Journal entries for week 2 (June 10-16). 3. Print the Week 2 Check Figures. 4. Print the Schedule of Accounts Receivable 5. Print the Schedule of Accounts Payable 6. Check the balances of the trial balance and schedules of the subsidiary ledgers against the totals shown in the Week 2 Check Figures. Page 3
If the account balances in the trial balance match the selected account totals in the Check Figures for Week 2, and you have printed all documents required by your instructor, you are ready to complete the Mid-Point Evaluation. If any of the account balances in your trial balance do not match the selected account totals in the Check Figures for Week 2, you must correct the unmatched balances before continuing to Module 3 (Week 3). 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 with the transactions in the module. Use the correction system designed specifically for the Brandon s Cabinet Shop accounting system for accuracy, efficiency, and a clear audit trail. MID-PROJECT EVALUATION Before continuing to Module 3 complete the Mid-Project Evaluation at the end of this Module. Answer the questions directly on the printed Mid-Project Evaluation before entering your answers in the on-line version of the Mid-Project Evaluation. Use your current printouts as a reference, and you may also find it necessary to log into Brandon s Cabinet Shop and look up general ledger and subsidiary ledger activities. Complete the on-line version of the Mid-Project Evaluation by logging into Brandon s Cabinet Shop, selecting Evaluations on the Menu Bar, and clicking on Mid-Project Evaluation. Buttons on Heading of Mid-Project Evaluation: Recall Save Score Display Email Print Recall: Retrieves answers previously entered Save: Stores the current answers Score: Grades the recorded answers Display: View and print the examination if maximum attempts have been made. Email: Send a copy of the examination to your Instructor/Professor Print: Print a hard copy of the examination and answers. Note: You cannot Score the evaluation until you Save your answers. Make sure your browser is set to allow pop-ups. Page 4
BACKUP YOUR DATA FILES Go to Administration on the Menu Bar, scroll down to Files: Reset and Backup, select Backup Data Files, and click. 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 If you have completed the Mid-Project Evaluation, you are ready to begin the data entry for Module 3 (Week 3), which includes the transactions for June 17-23. To begin you must first print a copy of the Module 3 manual. Move the pointer to Support on the Menu Bar and select Download Student Manual. Select Module 3: Transactions for June 17-23 and print the manual for Module 3. EXITING THE SYSTEM If you have completed your work for this session, click on the Logout button and exit the program. You can exit the program at any point and return to that point at a later time. Page 5
MID-PROJECT EVALUATION BRANDON S CABINET SHOP NAME CLASS DAY AND TIME DATE 1. What is the current balance of John s Cabinets account? 2. What is the last date of the discount period for invoice BW250 from Bright-Way Cabinets? A. June 5 B. June 18 C. June 25 D. July 18 3. What is the current balance of the Bright-Way Cabinets account? 4. What will be the cost of failing to pay the Bright-Way Cabinets account invoice BW110 within the discount period? 5. What has been the total amount of increase in the Accounts Payable account since June 2? 6. What was the balance of the Accounts Receivable account at the end of the work day on June 11? 7. What is the current balance of the Cabinet Sales account? 8. What is the current balance of the Store Fixtures account? 9. What was the balance of the Cash account on June 14? 10. At the end of the workday, June 6, what was the correct balance of the Cash account? 11. What is the current balance of the Delivery Expense account? 12. What is the current balance of the Sales Tax Payable account? 13. What was the correct balance of the Merchandise Inventory account on June 10? Page 6
14. What was the cost of the merchandise inventory purchased on June 8? 15. What was the amount charged to the Cost of Goods Sold account for sales invoice B3455? 16. What was the balance of the Advertising Expense account on June 11? 17. What is the current balance of the Miscellaneous Expense account? 18. If a check received from a customer for services to be completed after the end of the current accounting period is credited to the Installment Revenue account, net income for the current period will be: A. overstated B. understated C. correct 19. If a sale of merchandise on account is incorrectly debited to Accounts Payable rather than to Accounts Receivable, will the Trial Balance be out of balance? A. Yes B. No 20. If the assets of the business increase $4,000 and the owner's equity decreases $7,000, then the liabilities must have: A. increased by $11,000 B. increased by $7,000 C. decreased by $9,000 D. remained at $3,000 Page 7