Accounting Information Systems (ACCT341)
Practice Set - Cleaners
By Bruce Toews
NOTE: This document has been created in landscape orientation. If you choose to print this document, it should be printed landscape
SCHEDULE
The following schedule is meant to help you pace yourself through this material. Final due dates are shown below in blue color.
Day 1: Skim through the background and general information. Then complete steps 1-7.
Days 2-4: Complete steps 8-13.
Day 5: Complete steps 14-20. Days 1-5 or a-e (Steps 1-20) are due no later than Thursday, Feb. 4 (midnight).
Days 6-7: Complete steps 21-26.
Days 8-10: Complete steps 27-37. Days 6-10 or f-j (Steps 21-36) are due no later than Monday, Feb. 22 (midnight).
You should submit work in the order listed in the grade grid at the end this document. All work should be submitted via email to
acct341@wallawallal.edu. Please attach the files in the order specified in the grade grid. The final exam will cover concepts in this practice set.
Note: in all instances where it suggests you save a QuickBooks output using PDF Writer, you may also do so using Excel by clicking on the Excel export
icon at the top of a report. Note: if you want a copy of this document in Word, see the K:drive.
BACKGROUND & GENERAL INFORMATION
This practice set involves a laundry and dry-cleaning business in Walla Walla which you purchased on July 1, 2015. The business has three sources of
income: (1) it washes the uniforms and linens for a number of local organizations such as the State Penitentiary and St. Mary’s Hospital; (2) it dry-cleans
suits, coats, quilts, curtains, etc.; and (3) it sells items such as lint remover, garment bags, hangers, and traveling irons. When you purchased the
business on July 1, there were no employees so just you and your family did all the work until Oct. 1, when one employee was hired to ease the load.
You kept the books by hand from July to September. On Oct. 1, you started to use QuickBooks, which you believe will be a great improvement.
Revenue/Receipts Cycle
The business washes bedding & uniforms for the three hospitals in the valley, for the WA State Pen, and for a number of other businesses. A statement
is sent at the end of every month to each customer who owes money. Credit customers send their checks in the mail which must be post-marked no later
than the 15th of the following month. Payments for all cash sales of inventory items are made by check at the time of purchase. All collections received
during the week are deposited at Baker Boyer Bank.
Petty Cash
A petty cash drawer is kept for making misc. purchases and giving change to customers (which rarely happens since customers usually pay with checks).
Initially only $100 was topped off in the drawer each morning, but because you occasionally ran out of change you upped the amount to $500 during
October.
Prepaid Insurance
At 9/30/15, there was a balance of $723.00 in prepaid property insurance, which represented a six-month policy prepaid through 3/31/15.
Long-Term Notes Payable
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The original mortgage balance to Baker Boyer Bank for the building was $88,000 on July 1, 2015. The first payment was made on August 1, 2015. The
mortgage balance is to be paid in equal monthly payments, including principal and interest at the fixed annual rate of 9.5% over 30 years. The mortgage
payment is due at the beginning of every month but there’s a fifteen day grace period until the middle of the month. The payment is made by automatic
payment from the BBB checking account.
To get capital for the business purchase, you also borrowed $20,000 from your Uncle George on July 1, 2015. The principal is due in one balloon
payment on July 1, 2024. Interest is payable every 6 months at a fixed rate of 9% APR. The note is unsecured.
Line of Credit
You have established a line-of-credit with Baker Boyer Bank with a credit limit of $10,000. If you need an infusion of cash, you can draw on the credit
line. Payments are due the 15th of every month and include a portion of the principal (15%) of the previous month-end balance plus interest at a rate of
12% APR on the previous month-end balance.
Payroll
There is only one employee, Shirley Scrubber, who was hired on Oct. 1 to answer the telephone, be a sales clerk, and also help with the laundry/drycleaning work. With your assistance, she completed forms I-9 and W-4 before starting work as required by law. Shirley is paid monthly on the last
business day of each month. After completing high school, Shirley worked as manager at Dairy Queen for a few years. She hopes one day to be able to
go to college. She is a single mother of one, three-year old child and files as Head of Household on her tax return. Her SS# is 467-52-3492 and her
address is 324 Stahl St., Walla Walla, WA 99362.
Unfortunately, the payroll feature in QB works best if you purchase Intuit’s update package (which includes the most recent tax withholding tables,
etc.). Because this update service is fairly expensive, you have decided that it is not worth subscribing to this service for one employee. Rather, you will
do the payroll calculations in Excel instead. You will enter the totals from the Excel worksheet into QB. See the end of this document for an example of
the worksheet.
Shirley is paid $14 per hour for regular hours and is paid time-and-a-half for overtime hours, as required by law. Overtime hours are defined as
hours worked in excess of 40 per week. Because she is paid a good wage for her level of education and has a flexible work schedule (comes in to do
laundry in the evenings, etc.), she has agreed to accept no benefits (no retirement or healthcare benefits).
The following amounts are withheld from Shirley’s pay:
 Social Security (SS) tax at a rate of 6.2%.
 Medicare (MC) tax at the rate of 1.45%.
 Federal income tax (FIT) withholding is determined using the number of withholding allowances claimed on Form W-4 and tables in IRS
Publication 15. Use the 2015 Pub. 15, Tables for Wage Bracket Method. See table of contents in the front for pages numbers. For
withholding purposes on these tables, Shirley is considered single and she is paid monthly.
 Shirley has asked that $100 be withheld from each paycheck and sent to Blue Mountain Credit Union. This works as a type of forced-savings
plan for her.
The following amounts are paid by the employer:
 The employer matches the SS and MC contributions made by the employee. The total of SS, MC and FIT is submitted to the IRS once a
month by the 15th day of the following month. Once a quarter, Form 941 must be filed with the IRS to report these amounts.
 The employer pays Federal Unemployment Tax (FUTA) of 0.6% on the first $7,000 of each employee’s gross pay. FUTA is usually paid to
the IRS once a quarter by the end of the month following each quarter. FUTA is reported once a year on Form 940.
 The employer also pays State Unemployment Tax (SUTA) of 1.5% of each employee’s gross pay. The SUTA rate is dependent on the layoff
history of the employer as well as some other factors. SUTA is paid once a quarter to the Wash. Employment Security Dept. and is
submitted along with the quarterly report, due by the end of the month following each quarter.
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 Workers Compensation Insurance (WCI) is a mandatory industrial insurance program run by the state to provide disability compensation if
hurt on the job. In the Washington State, it is operated by the Dept. of Labor & Industries and is thus also called L&I insurance. The rate
for laundry & dry-cleaning services of 0.03825 is multiplied by the total number of hours in the payroll to get the total amount of insurance
premium due. Basing the tax on total hours worked makes sense because if you were out on sick leave or on vacation, you obviously
couldn’t be injured on the job. An employer may choose to pass on a small portion of the cost to the employee. You have chosen however
to pay all of the insurance and pass on none of the cost to Shirley. The premiums for WCI are submitted once a quarter to the Wash. Dept.
of Labor and Industries, due by the end of the month following the quarter.
Sales Tax and B&O Tax
Some states primarily raise money through an income tax, such as Oregon. Other states primarily raise money through sales tax, such as
Washington. Still other states raise money by a combination of income and sales tax, such as California. In Washington State, there is a state-wide
sales tax of 6.5%. In addition, Walla Walla County/City add another 2.4%. Therefore, assume the total rate for taxpayers in Walla Walla County is 8.9%.
The cleaning business must collect this tax from all customers at the point of sale and submit the tax to the state by the 25th of the following month. Both
cash sales (inventory, etc.) and credit sale customers (cleaning, etc.) are subject to the full sales tax.
For businesses there is also a special income tax in Wash. State called a Business & Occupation tax (B&O tax), which is based on the gross income of
the business. For personal services, such as laundry and dry-cleaning, assume a rate of 1.5% of gross income. If a business earns less than $12,000
gross per year, the business is not subject to B&O tax. B&O tax is submitted once a month, due the 25 th of the following month, to the Wash. Dept. of
Revenue, which is paid along with the sales tax.
INSTRUCTIONS & TRANSACTIONS
Days 1-2 (2PS#1, 2PS#2) Steps 1-7 below
In order to get the software setup, complete the following steps:
1.
Starting the Program. In any of the WWU computer labs, access QuickBooks from the programs listed via the Start Button. If new updates have
been issued, a message may pop up. If you wish, you can update the software; but this step is usually unnecessary and you can skip it.
2.
Create a new company file and set-up company information and preferences. Use the Detailed Start or Advanced Setup to create a new
company and proceed through the advanced setup process. Note the following information. Please read carefully because an improper setup
configuration can cause headaches for you down the road.
For company and legal name, enter your own initials followed by the word Cleaners (e.g. BJT Cleaners). This would also be the legal name.
Address is 125 South 2nd Street, Walla Walla, WA 99362. The federal employer identification number (EIN) is 91-0586010. You can leave the
other fields blank. Skip the type of industry by clicking Next. The business is a sole proprietorship (tax form 1040). The first month of the fiscal and
tax year is January, as is the first month of the income tax year. Do NOT set up an administrator password. When it prompts you to save the file,
name it whatever you want, but you should save it to your USB drive -- not to a local hard drive (e.g. C:\). Creating a new file will take a minute or
two so be patient.
Next, you want customize QuickBooks. Your business offers both services and products. Creating a file may take a minute or two so be patient
as the little wheel spins. You do NOT sell products online and are not interested in doing so. You DO charge sales tax, at a rate of 8.9%, to a
single tax agency called the Wash. Dept. of Revenue (for name and description use WA Sales Tax). You do NOT want to create estimates. You do
NOT want to track customers but you DO want to use Statement to Customers and Sales Receipts. You do NOT want to use progress invoicing.
You DO want to manage bills you owe. You do NOT currently print checks and you do not plan to. You DO want to track inventory. You will sell
both products and services. If the question comes up, you do NOT currently accept credit cards. You DO want to track time. You do NOT have
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any employees (note: even though you have one employee, you do not want to use the QB Payroll module because Intuit charges an arm/leg for
the withholding table updates, so the answer here is NO). You DO have 1099 contractors. Your start date will be September 30, 2015.
Next, you want to review income/expense accounts. If any accounts have checkmarks next to them, remove the checkmarks. Your goal is to
create a chart of accounts that matches the one below. Go to Setup.
Note: To make your life easier in the future (so that annoying windows don’t keep popping up), you may want to go the Edit on the top menu,
Preferences, Accounting, Company Preferences, and remove the Date Warnings.
3.
Creating a Chart of Accounts. Go to Lists on the top menu, Chart of Accounts, Account tab in bottom-left corner, and New. Create new accounts
as shown below. To delete account, hit Control-D. Later on, more accounts will be created on the run but below are the accounts that should be
created at this point. Print/Save a chart of accounts using PDFWriter.
Type
Name
Sub Account of
Opening
Balance
Date
Bank
Checking Account –BBB
N/A
3011.60
9/30/15
Other Current
Asset
D/C Inventory
N/A
0.00
9/30/15
Other Current
Asset
Petty Cash
N/A
100.00
9/30/15
Other Current
Asset
Prepaid Insurance
N/A
723.00
9/30/15
Fixed Asset
Building
N/A
0.00
9/30/15
Fixed Asset
Bldg Original Cost
Building
72000.00
9/30/15
Fixed Asset
Bldg Accum Depr
Building
0.00
9/30/15
Fixed Asset
Equipment
N/A
0.00
9/30/15
Fixed Asset
Equip Original Cost
Equipment
42900.00
9/30/15
Fixed Asset
Equip Accum Depr
Equipment
0.00
9/30/15
Fixed Asset
Land
N/A
20000.00
9/30/15
Long Term Liab
N/P Baker Boyer Bank
N/A
87913.09
9/30/15
Long Term Liab
N/P Uncle George
N/A
20000.00
9/30/15
Equity
Withdrawals by Owner
N/A
0.00
9/30/15
Page 4
4.
Equity
Contributions by Owner
N/A
0.00
9/30/15
Income
Sales of Inventory
N/A
N/A
N/A
Income
Laundry Service Income
N/A
N/A
N/A
Income
Dry Cleaning Income
N/A
N/A
N/A
Cost of Goods
Sold
D/C Solution Expense
N/A
N/A
N/A
Creating Items. Go to Lists on the top menu, Items, Item tab, and New. The fields listed below are the ones that you need to change. When you
are done, print/save the item lists using PDF Writer.
Purchase/Sale
Description
Cost
Cost
Acct.
Sales
Price/Rate
Income
Account
Min.
Reorder
Point
Quantity
on Hand
As of
Date
Type
Item Name
Invent
part
Lint
Remover
Lint Remover
3.00
COGS
4.00
Sale of
Invent
4
5
9/30/15
Invent
part
Wrinkle
Spray
Wrinkle Guard
Spray
3.75
COGS
5.00
Sale of
Invent
6
20
9/30/15
Invent
part
Garment
Bag
Garment Bag
7.50
COGS
10.00
Sale of
Invent
5
10
9/30/15
Invent
part
Reg
Hangers
50-pack Regular
Hangers
3.75
COGS
5.00
Sale of
Invent
5
15
9/30/15
Invent
part
Spec
Hangers
50-pack
Specialty
Hangers
7.50
COGS
10.00
Sale of
Invent
5
14
9/30/15
Invent
part
Trav Iron
Traveling Iron
15.00
COGS
20.00
Sale of
Invent
2
7
9/30/15
Invent
part
*D/C
Solution
*Gallons of D/C
Solution
25.20
**
0.00
D/C
Income
50
83
9/30/15
*Note: in this item window, change COGS Acct to D/C Solution Expense & Asset Account to D/C Inventory.
Noninvent
part
D/C QuiltCurtain
Dry Clean
Quilts-Curtains
Page 5
N/A
N/A
20.00
D/C
Income
N/A
N/A
N/A
5.
6.
Noninvent
part
D/C CoatSuit
Dry Clean CoatSuit
N/A
N/A
15.00
D/C
Income
N/A
N/A
N/A
Noninvent
part
D/C P-S-DS
Dry Clean
Pants-ShirtDress-Skirt
N/A
N/A
8.00
D/C
Income
N/A
N/A
N/A
Service
Wash P-SD-S
Wash PantsShirt-Dress-Skirt
N/A
N/A
3.00
Laundry
Serv Inc
N/A
N/A
N/A
Service
Wash
Uniforms
Wash Uniforms
N/A
N/A
2.00
Laundry
Serv Inc
N/A
N/A
N/A
Service
Wash
Linens
Wash Linens
N/A
N/A
2.00
Laundry
Serv Inc
N/A
N/A
N/A
Item
Type
Item Name
Description
Rate
Sales
Tax Item
WA Sales
Tax
WA Sales Tax
8.9%
Tax Agency
N/A
WA Dept of Revenue
Creating Vendors. Go to Vendors on the top menu and under the Vendor tab click on New Vendor. Create new vendors as shown below. Put the
vendor name also in the address tab but you ignore the rest of the address. When you’re done, print/save a list of vendors using PDF Writer. One
way to do this is to go to Reports on top menu and then to Vendors & Payables and then to phone or address list.
Company Name
9/30/15 Balance
Chemco Distributors Inc.
2236.63
H&F Industrial Supplies Inc.
889.62
Creating Customers. Go to Customers on the top menu, Customers & Jobs tab, and New Customer. Create new customers as shown below.
Put the company name also in the address tab but leave the other address data blank. Note that governmental and nonprofit organizations are
generally not exempt from paying sales taxes as an end user of the product or service. When you are done, print/save a customer list using PDF
Writer. You can go to Reports on the top menu and then to Customers to print a phone or address list.
Company Name
9/30/15 Balance
American Janitorial Service
321.06
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7.
City of College Place
255.67
City of Walla Walla
478.98
Doyle Electric
86.25
Grassi Refrigeration
56.25
St. Mary Medical Center
923.63
VA Medical Center
805.04
Walla Walla General Hospital
580.40
Wash. State Penitentiary
3,622.13
Whitman College Plant Service
166.45
Correcting Beginning Vendor/Customer Balances:
(A) QB has a really annoying habit whenever beginning balances are recorded. In order to enter beginning balances for customers or vendors, QB
creates an invoice or bill (respectively). In the case of customers, QB knows to debit accounts receivable but it doesn’t know what to credit, so it
credits an account called uncategorized income. In the case of vendors, QB knows to credit accounts payable, but it doesn’t know what to debit, so
it debits an account called uncategorized expense. The balances in uncategorized income and expense really belong in opening balance equity, so
they need to be reversed against opening balance equity. To do this, you need to prepare a general journal entry (see Company menu, Make
Journal Entry) dated 9/30/15 which debits Uncategorized Income for the balance in the account, credits Uncategorized Expenses for the balance in
this account, and credits Opening Bal Equity for the difference between the two. This will zero out balances in uncategorized income/expense.
(B) Sales tax of $583.84 is owed for September’s sales. Because the sale tax is included in the customer balances above, you need to prepare a
general journal entry dated 9/30/15 to record the sales tax payable separately. Debit Opening Balance Equity and credit Sales Tax Payable for
$583.84. The vendor is WA Dept. of Revenue.
Days 3-4 (2PS#3, 2PS#4) Steps 8-13 below.
You should have already completed the company and account set up on the previous assignment (Steps 1-7). Complete the steps below for the next two
days.
8.
There is only one employee, Shirley Scrubber, who was hired on Oct. 1 to answer the telephone and run the till during the day and also help with
the laundry/dry-cleaning work. Every new employee must complete a Form I-9 and a Form W-4. The forms can be obtained by Googling them.
Use fill-in forms and save them using PDF Writer. [Note: if a form does not allow you to save your fill-in work, take a screen shot of the form and
paste it into a Word file.] Shirley knows nothing about these forms so you help her complete both of them by following the instructions (only do
Page 1 of W-4). Shirley is a single mother of one, 3-year-old child and she files Head of Household for income tax purposes. She has essentially
no dependent care expense because her mother babysits the child while she works. Her SS# is 467-52-3492 and her address is 324 Stahl St.,
Walla Walla, WA 99362. Shirley has a WA driver’s license (No. SCRUBSS343QZ, exp. 9/1/17) and a Social Security Card (no expiration) that she
shows to you. Her birthday is 10-10-85. Her maiden name is Johnson. She is a US citizen and has a Certificate of US Citizenship, issued by the
Dept. of Homeland Security, Document # 560-A3297, no expiration date. Print/save the forms using PDF Writer or screen shots.
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9.
Enter transactions for the month of October using the rules shown below. Transactions are listed at the end of this document. NOTE: Enter
transactions chronologically. You should not go more than a week without entering ALL transactions for the week, including invoices,
cash receipts & disbursements, etc.
RULES FOR ENTERING TRANSACTIONS:
 For sales on credit, use Customers, Invoices.
 For cash sales, use Customers, Create Sales Receipts
 To record payments received from customers, use Customers, Receive Payments
 To record deposit at bank, use Banking, Record Deposits
 To record payment of all bills (except inventory and sales tax, see below), use Banking, Write Checks
 To record an order of inventory, use Vendors, Purchase Order
 To record receipt of inventory shipment, use Vendors, Receive Inventory (with bill)
 To record payment of inventory bill, use Vendors, Pay Bills
 To record the payment of sales tax, use Vendors, Manage Sales Tax
 To record non-routine transactions not involving cash (depreciation, interest, etc.), use Make Journal Entry (under Company menu)
 To record adjustment of inventory quantities, use Company, Adjust Qty on Hand
10.
(A) As part of October’s transactions (Step #9), you should have already prepared an amortization table in Excel for at least the first 12 monthly
payments of the mortgage. Make sure to save it for later submission.
(B) QuickBooks has a Loan Manager (under the Banking menu) that creates amortization tables and even automates loan payment splits between
interest and principal. In other words, you can set up an automatic loan payment to occur every month, and the entry will pull the correct interest
and principal split, thereby doing all the work for you. Unfortunately, QuickBooks has synced this function with MS Explorer, a browser that, as you
know, is on its way out. Therefore, it is doubtful that you’ll be able to get this function to work. So . . . you’re in luck – you get points for doing
absolutely nothing for this question. If only I could make money by doing nothing, I’d be rich.
11.
Create a statement for just one customer, WA State Penitentiary, and save it using PDF Writer. Write a response in a Word file to this question:
What is the difference between a statement and an invoice? (Note: accumulate answer to all open-ended questions together in one Word file).
12.
Create an Inventory Valuation Summary as of Oct. 31 and save it using PDF Writer. Record in a Word document the method used by QB for
valuing inventories (e.g. FIFO, LIFO, weighted average, etc.). Hint: use the search feature in the Help function to find “How QuickBooks tracks
inventory assets and Cost of Goods Sold.” Note that most other accounting packages (e.g. Sage50/Peachtree) allow the small business to choose
its inventory method.
13.
Create a standard balance sheet as of Oct. 31 and a standard P&L for Oct. and save them using PDF Writer. In a Word document, write a
response to the following questions:
(A) In your opinion, how did the business do in Oct.? Provide specific analysis.
(B) What steps do you think could be taken to improve the operating results of this business? Be specific.
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Day 5 (2PS#5) Steps 14-20 below.
Because we are usually in the hurry to get assignments done, it is easy to overlook the accounting that QB does behind the scenes. After all, QB is
known as the accounting program for dummy’s (those who don’t know a debit from a credit). Create a table in MS Word and complete the right two
columns in a table similar to below.
14. List the accounts that QB automatically created by default. Look at your chart of accounts. Which accounts did you not create? Also, go to the
help index and search for “Accounts that QuickBooks Sets Up for you”.
15.
Determine what accounts are automatically debited and/or credited for each function listed below. For example, in the Checks window, the
checking account is automatically credited and the debit is to various accounts. In order to answer the questions, you may have to actually enter
fictitious transactions, view the registers, and then later void or delete the transactions. On the other hand, if you understand basic accounting, the
answers are mostly common sense. Account options to select from: Checking, A/R, Inventory Asset, Undeposited Funds, A/P, Sales Tax Payable,
Credit Card Liability, Sales or Service Income, Cost of Goods Sold, Various.
ACCTS DEBITED ACCTS CREDITED
1.
Customers: Invoices
A. Assume non-sales-tax service provided (Which account is debited? Which is
credited?)
B. Assume inventory is sold subject to sales tax (two accounts debited, three
credited)
2.
Customers: Receive Payments (two options for debits, one for credits)
3.
Banking: Record Deposits (various debit accounts possible, one credit)
4.
Customers: Create Sales Receipts
A. Assume non-sales-tax service provided (two options for debits, one for
credits)
B. Assume inventory is sold subject to sales tax (two options for debits, one
specific debit, three specific accounts credited)
5.
Customers: Refunds and Credits
A. Assume credit memo for non-sales-tax service provided (one account
debited, one credited)
B. Assume credit memo for return of inventory subject to sales-tax. (three
debits, two credits)
C. Assume check refund for non-sales-tax service provided (one account debited,
one credited)
D. Assume check refund for return of inventory subject to sales-tax. (three debits,
two credits)
6.
Vendors: Purchase Orders (this one is tricky)
7.
Vendors: Receive Inventory With Bill (one type of account debited, one credited)
8.
Vendors: Enter Bills (various debits, one account credited)
9.
Vendors: Pay Bills (one account debited, one account credited)
10. Vendors: Manage/ Pay Sales Tax (one account debited, one account credited)
11. Company: Adjust Quantity on Hand (assume the adjustment is to decrease inventory:
various options debited, one account credited)
12. Banking: Write Checks (one credit, various debits)
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16. (A) Why did we not use the payroll function within QB? (B) Explain the purpose of Form I-9 and determine whether the following statement is true
or false: If every business properly completed Form I-9, no illegal workers would be hired in the U.S. (C) Explain the purpose of Form W-4 and
determine whether the following statement is true or false: It is the employer’s fault if too much or too little income tax is withheld from an
employee’s check (and s/he ends up getting a big refund or owing Uncle Sam big bucks). (D) Explain how the employer using a complete Form W4 to determine how much income tax to withhold. Be specific.
17. When you write a check by mistake (and then rip up the check), would you be better off deleting or voiding the check entry in QB? Why? How do
you void a check entry in QB?
18. (A) Can you delete an account in QB that has transactions posted to it? (B) Can you rename an account at any time?
19. What does it mean to make an account inactive? Is this the same as deleting an account? Why might you want to make an account inactive?
20. (A) Does QB allow the use of account numbers in its chart of accounts? (B) What advantages might exist for using account numbers instead of
merely account names?
NOTE: Make sure that all reports for Steps 1-20 are in the order of the list at the end of this document. Submit these reports via email to
acct341@wallawalla.edu.
Days 6-7 (2PS#6, 2PS#7) Steps 21-26 below.
You should have already completed steps 1-20 before the mid-term exam. Over the next few days, complete the steps below.
21. Enter transactions for the month of November in the same manner you did for October. Transactions are listed at the end of this document. Enter
transactions chronologically. You should not go more than a week without entering ALL transactions for the week, including invoices, cash receipts
& disbursements, etc.
22. (A) Keeping track of time spent on customer jobs can be burdensome. Fortunately, QuickBooks has a nifty feature that can track time. Go to
Customers, Time/Enter Single Activity. Note how you can choose a customer, start the clock running, and QuickBooks will automatically add the
time the customer’s bill. The feature is especially handy for professional service firms, such as accounting and law firms, that bill hourly. In your
Word file, record your best guess of the typical rate a top CPA and lawyer in Walla Walla might bill per hour. [I will tell you what it is if you ask.]
(B) Many small businesses today email their invoices to their customers in order to save paper, postage, and time. Select one of the invoices that
you created for credit customers. Notice at the top of the invoice the envelope icon, which is an auto-email icon. Unfortunately, in order for this
feature to work, QB needs to be synced with MS Outlook, which has not been done on the lab computers. Therefore, the invoice email function will
not work. So . . . to get around this, convert the invoice into a PDF file and “pretend” that you emailed to yourself. Save the PDF file.
(C) Note the format of the invoice you “emailed” to yourself in the previous step. This is a classic QB invoice and many of the invoices used by
small business look just like this. It is ugly- go ahead and admit it! You can spot a standard ugly QB invoice a mile away. Fortunately, QB allows
you to customize invoices, which we will now do. With the invoice window open, click on Formatting and Customize Design. Change the
background to something other than blank. Add a logo by uploading a .jpg or .bitmap file you create using Microsoft Paint or any graphic program
(Note: If QB does not allow you to upload your logo, email your logo in separately). Add whatever other customizations you want. Keep clicking
Next until you apply the design. Note that QB will take a while to think about this because it is accessing the Internet. Finally, save the invoice by
printing it (Control-P) to a PDF Writer.
23. Go to Reports on top menu and Inventory. Save an Inventory Stock Status By Item report as of Nov. 30, using PDF Writer. In a Word file, record
which inventory item you think is closest to its reorder point and therefore should be ordered soon.
Page 10
24. You want to send an advertisement to all your customers. Under File on top menu, Print Forms, Print Labels, use the feature to print labels for all
customers. Accept the default label type. Note that addresses were never entered for customers so only the names will print. Use PDF Writer to
save the printout.
25. (A) Under Reports on top menu and Customers & Receivables, create an A/R Aging Summary for all customers as of Nov. 30 (use PDF Writer to
save the printout).
(B) On the aging summary, double click on the balance of the one customer who is past due (i.e. QuickZoom). Create a QuickZoom report showing
how many days have passed since you created the invoice for that customer (use PDF Writer to save the printout). Note that we ignored entering
due dates on invoices so the aging days may be off a bit.
(C) Use your Word file to record at least three steps you could take to prevent customers from getting behind on their payments.
(D) Under the Company top menu, Prepare Letters with Envelopes, Prepare a Harsh Collection Letter to American Janitorial Services. This may
require you to copy a template and edit it. QuickBooks should open a Word file with suggested wording for the letter. Edit the letter in Word to your
satisfaction and then save it. Sign off with your own name, as business owner.
26. Print a standard balance sheet as of Nov. 30 and a standard P&L for Nov. Use PDF Writer to save the printouts. In your Word file, write a response
to the following questions:
(A) How did the business do in Nov.? Better or worse than Oct? Why do you think this is? Be specific.
(B) What steps do you think could be taken to improve the operating results or this business? Be specific.
Days 8-10 (2PS#8, 2PS#9, 2PS#10) Steps 27-37
You should have already completed steps 1-26 on previous assignments. Complete the steps below to finish up the practice set.
27. Enter transactions for December. Transactions are listed at the end of this document. Note: to minimize data entry you should only enter the total
sales transactions for month, dated Dec. 13 (e.g. one invoice for each credit customer for the month and one sales receipts entry for the whole
month).
28. Print a standard balance sheet as of Dec. 31 and a standard P&L for the quarter-ended Dec. 31 (with a separate column for each month). Use PDF
Writer to save the printouts. In your Word file, indicate which of the three months in the quarter was the most profitable and why.
29. One of the most misunderstood but important subjects that small business owners must deal with is payroll and other taxes. There are a multitude of
tax forms which must be filed correctly or penalties will be assessed. We will focus on three common federal forms that must be filed by Jan. 31 of
each year. (For time’s sake, we are skipping the state forms, including Wash. sales tax, Wash. B&O tax, WCI tax, and SUTA tax). By Googling,
obtain 2015 Form W-2, Form 940, and Form 941. There are instructions for the forms that can also be downloaded if you need them, but the forms
are quite self-explanatory.
(A) You should have already completed the Excel spreadsheet for payroll. Make sure to submit the spreadsheet as part of this step.
(B) Regarding the 2015 Form W-2 for Shirley Scrubber, indicate in a Word file what would appear on the following lines: b,c,e,f, 1,2,3,4,5,6
(C) Complete Form 941 for the 4th quarter of 2015. Use a fill-in form. Assume the full payment for December’s payroll tax was made the following
month (Jan. 15) and that you are completing the form after this payment was made. Save/print the form using PDF Writer.
(D) Complete Form 940 for the calendar year 2015. Assume that full payment for unemployment was made the following month (Jan. 15) and that
you are completing this form after this payment was made.
Page 11
30. Go to the Company menu (at the top), Planning & Budgets, Set Up Budgets. Proceed to create a 2015 budget for the following P&L income
accounts with no additional detail; enter budget figures (not based on previous periods) for October, for November and December. We are ignoring
expense accounts for time’s sake. Here are the budget amounts: Dry Cleaning Income $1,000/mo.; Laundry Service Income, $10,000/mo.; and
Sale of Inventory $400/mo. Go to Report, Budget, and save a Profit & Loss Budget vs. Actual for the 4th quarter 2015 (using PDF Writer) showing
each month in separate columns together with a total. Make the page landscape. Note that for expediency sake, we only entered budget figures for
income. But obviously in the real world expenses would be budgeted as well.
31. (A) Go to Reports, Company & Financial, and save a net worth graph for the last three months of the year. Use PDF Writer. (B) Go to Reports,
Sales, and save a sales graph for the quarter, using PDF Writer.
32. Go to Reports, Company Snapshot. Expand the window. List the information on this dashboard. Can you think of any information helpful to a
manager than is not on this dashboard?
33. (A) Save a Summary Balance Sheet as of Dec. 31, using PDF Writer. (B) Use the filter feature (under Modify Report button) to restrict the accounts
to long-term liabilities. Save the long-term liabilities section as of Dec. 31, using PDF Writer.
34. Go to Reports, Inventory and save a Physical Inventory Worksheet, using PDF Writer. Explain what this form would be used for in your Word file.
35. Go to Reports, Vendors & Payables, and create 1099 summary report for all vendors on all allowed accounts. In your Word file, make a list of
vendors, if any, that need Forms 1099-MISC issued to them. Remember the rule that Forms 1099-MISC don’t have to be sent to corporations
(except fishing or attorney corporations) or to vendors that were paid less than $600 during the previous year. Note that all banks, utility companies,
and gov’t entities are incorporated.
36. Go to the Help (QuickBooks Help) and search for condensing data. Explain the purpose of this feature in your Word file.
37. Go to the Help (QuickBooks Help) and search “Why are passwords important?” Explain in your Word file how this feature can assist in
strengthening internal control in QuickBooks.
NOTE: Make sure that all reports are emailed to acct341@wallawalla.edu in the order of the list at the end of this document.
Page 12
Week
Date
TRANSACTIONS
10/5
Recorded cash sales for week (see details at end of this document. Use only one Create Sales Receipts window for all the week’s
cash sales. Then recorded the deposit of receipts in bank checking account (using Make Deposit window). Also, recorded all
invoices for week, creating a separate invoice for each customer. Sales details are listed in a separate table below. Do NOT
record sales for more than one week at a time before completing all other transactions for that week, i.e. you should not go more
than a week without entering ALL transactions for the week, including invoices, cash receipts & disbursements, etc.
Recorded direct payment (where it comes directly out of bank account automatically) for $189.76 to Cascade Natural Gas for Sept.
(Create new utilities expense account.) For all direct or automatic payments, use the Write Check window without assigning a
check number.
Direct payment made for mortgage (use Excel to calculate monthly payment and prepare a 12-month amortization table). Make
sure to split the payment between mortgage principal and interest. You will create a new interest expense account.
Recorded cash sales for week and deposited receipts in bank checking account. Recorded invoices for week. Follow each of
these steps carefully before proceeding.
Wrote check for $81.90 to Qwest of which $56.91 was for Sept. telephone and $24.99 for Yellow Pages listing. No liability for this
was set up at Sept. 30. Yellow pages should be charged to Advertising Expense, a new account. Last check written in Sept. was
#1465
Received payments from all customers for September 30 balances, except American Janitorial Services. (See 10/19 for deposit.)
Use Receive Payments window.
Wrote check for $566.93 to Pacific Power for Sept. electricity (those dryers really lap up the juice). No liability was set up at 9/30,
which means you should charge an expense (not a liability) when you pay.
Recorded cash sales for week and deposited all receipts (from cash sales and from credit customers) in bank checking account.
Recorded invoices for week. Follow each of these steps before proceeding.
Wrote check for $951.22 to the City of Walla Walla for Sept. water/sewer. No liability was set up at 9/30 for this.
1
10/5
10/10
10/12
2
10/12
10/16
10/16
3
10/19
10/19
10/22
4
10/23
10/24
10/25
10/25
10/26
10/31
5
10/31
10/31
Sent purchase order to H&F Industrial Supplies for the following inventory items: 5 lint removers @ $3.03; 20 wrinkle guard sprays
@ $3.78; 10 garment bags @ $7.57; 8 regular hangers @ $3.75; 10 specialty hangers @ $7.50; and 5 traveling irons @ $15.13.
Print a copy of the purchase order and save it using PDF Writer.
Decided to increase petty cash from $100 to $500, so wrote check for $400 to petty cash and cashed it.
Received payment from American Janitorial Services for September. This company often pays late.
Wrote checks to pay Sept. balance in accounts payable to Chemco Distributors and H&F Industries Supplies. Use Pay Bills
function on the Vendor Section.
Wrote check to Wash. Dept. of Revenue to pay Sept. sales tax. (Use Vendor section, Manage/Pay Sales Tax).
Recorded cash sales for week and deposited all receipts in bank checking account. Recorded invoices for week.
Estimated 64.5 gallons of dry-cleaning solution left. Use Adjust Qty on Hand in Company section. Adjust to D/C Solution Expense
account.
Shirley turned in her timecard for Oct. showing 160 regular hours and 3 OT hours. Wrote check to record employee’s payroll.
Also, used Make Journal Entry to record employer's payroll. See example of worksheet at end of document and description of
payroll at beginning of document.
For proper month-end cutoff, recorded cash receipts for week to date and made deposit. Recorded invoices for week-to-date.
Page 13
11/1
11/1
11/2
11/5
11/7
6
11/9
11/9
11/13
11/14
11/16
7
8
11/16
Statements summarizing activity for October were prepared and mailed to each credit customer with balance owing, so that
customers would know how much to pay (due Nov. 15). In order to save time, save (using PDF Writer) one statement for Wash.
State Penitentiary (go to Customers on top menu and then to Create Statements).
Wrote check for $100 to BMCU for withholding from Shirley's Oct. payroll
Recorded cash sales for remainder of week and made deposit. Recorded invoices for remainder of week.
Automatic payment of $193.54 made from bank account to Cascade Natural Gas for Oct.
Received shipment from H&F Industrial Supplies for inventory items ordered on 10/22. An invoice was included with the shipment.
Invoice showed shipping & handling charges of $14.55 in addition to inventory charges. Use Receive Inventory with Bill window.
Create new Freight-in Acct (type COGS) and enter the freight cost on the expense tab.
Made mortgage payment (automatic payment).
Recorded cash sales for week and deposited receipts in bank checking account. Recorded invoices for week.
Paid $86.55 to Qwest ($61.56 for Oct. telephone and $24.99 for Yellow Pages listing)
Wrote check to H&F Industrial Supplies for invoice received on 11/7.
Automatic withdrawal is made from checking account to the US Treasury for payment SS, MC and FIT due for October. (Note:
Employers use the internet or telephone to set up a scheduled payment with the IRS which comes out of the checking account
automatically.
Recorded cash sales for week and checks received in the mail from all credit customers for Oct., except American Janitorial
Service which almost always pays late. Deposited receipts in bank checking account. Recorded invoices for week.
11/16
Paid $579.75 to Pacific Power for Oct. electricity.
11/19
11/23
11/23
Paid $962.37 to the City of Walla Walla for Oct. water/sewer.
Recorded cash sales for week and deposited them. Recorded invoices for week.
Sent purchase order to Chemco Distributors for 30 gallons of dry-cleaning solution at $25.20 per gallon.
11/26
Paid sales tax accrued through the end of Oct. to Wash. Dept. of Revenue. Separately, paid Dept. of Revenue the B&O tax due
for October. The B&O tax is 1.5% of total income for Sept. and Oct. plus a $20 penalty for failing to pay Sept. tax when due.
Sept.'s total revenue was $11,303. You’ll need to create a P&L statement to find October’s total revenue. Create a new account
called B&O Tax Expense.
Need to replenish petty cash. Balance of cash/coin in drawer was $392.79. Documents in drawer included: a receipt for stamps
$39, an IOU slip where Shirley had borrowed $35 in order to take a friend of hers out to lunch, a receipt for $32.21 from the office
supply store for some envelopes and paper supplies. You will need to create a new Other Current Asset account entitled
Receivable-Employee to record the IOU. Also, you should create an expense account for Office Supplies and another for any
Over/Short Expense.
Received shipment from Chemco Distributors for dry-cleaning solution ordered on 11/23. Invoice included with shipment. Invoice
showed shipping & handling of $23.87 to be charged to the Freight-In account.
11/27
9
11/29
11/30
11/30
11/30
11/30
11/30
Paid the invoice from Chemco Distributors received the previous day.
Recorded cash sales for week and deposited receipts in bank checking account. Recorded invoices for week.
Estimated about 59 gallons of dry-cleaning solution left in end-of-month inventory.
Wrote check to Shirley Scrubber who turned in a timecard for Nov. showing 158 reg hrs plus 1 OT hr.
Recorded employer’s payroll for Nov.
Page 14
10
11
12/4
12/5
12/6
Paid $100 to BMCU for withholding from Shirley's Nov. payroll
Automatic payment of $167.71 made from bank account to Cascade Natural Gas for Nov.
Sent purchase order to H&F Industrial Supplies for the following inventory items: 7 lint removers @ $3.05; 18 wrinkle guard sprays
@ $3.80; 12 garment bags @ $7.60; 10 regular hangers @ $3.78; 10 specialty hangers @ $7.55; and 6 traveling irons @ $15.15.
12/10
12/11
Mortgage payment was automatically made out of bank account.
Received shipment from H&F Industrial Supplies for inventory items ordered on 12/06. An invoice was included with the shipment.
Invoice showed shipping & handling charges of $15.05 in addition to inventory charges.
12/12
Recorded customer invoices for month. Notice that to save the accountant time, we have totaled all invoices for December into
one amount per customer, rather than show weekly amounts.
Recorded cash sales for month and deposited receipts in bank checking account. (All of Dec. transactions have been lumped
together to save time.)
Paid $82.49 to Qwest (of which $57.50 was for Nov. telephone and $24.99 for Yellow Pages listing)
Automatic withdrawal is made from checking account to the US Treasury for payment SS, MC and FIT due for November.
12/12
12/13
12/13
12
13
12/17
12/18
Paid $590.71 to Pacific Power for Nov. electricity.
Recorded checks received in the mail from all credit customers for Nov., except American Janitorial Service which you find out has
declared Ch. 7 bankruptcy. Deposited receipts in bank checking account.
12/19
12/20
12/24
12/25
12/26
Paid $962.37 to the City of Walla Walla for Nov. water/sewer.
Wrote check to yourself for $2,000 to cover personal expenses.
Closed for Xmas
Closed for Xmas
Paid sales tax and B&O tax for November to Wash. Dept. of Revenue. Write separate checks. The B&O tax is 1.5% of gross
revenue for November.
12/28
Wrote off the balance in American Janitorial Service account to Bad Debt Expense. See Bad Debts in help index for instructions.
You must write-off each invoice separately as a discount to Bad Debt Expense. In addition, you will need to total the amount of
sales tax included in the written-off invoices and create a journal entry debiting sales tax payable and crediting bad debts expense.
Adjusted prepaid insurance to record 4th quarter expense.
Set up an interest payable for the accrued interest owed to Uncle George at end of year.
Estimated 42 gallons of dry-cleaning solution left in end-of-month inventory.
Recorded half-year of straight-line depreciation on buildings (39-year life, no salvage value) and equipment (7-year life, no salvage
value).
Wrote check to Shirley Scrubber who turned in a timecard for December showing 120 regular hours plus 2 OT hours. Also
recorded employer's payroll for Dec.
12/28
12/28
12/28
12/28
12/28
12/31
1/1
Closed for New Years
Closed for New Years
Page 15
WEEKLY LOG OF SALES ACTIVITY
IMPORTANT: Transactions on the left (under blue heading) are invoices to be sent to the customers listed. Transactions on the right (under orange heading) are cash sales
(called cash receipts), for which we don’t care about the customer’s name (e.g. Wal-Mart doesn’t need your name when you buy something there). Therefore, the customer
names listed (e.g. American Janitorial Service) apply only for invoices, but these names do NOT apply to cash sales. If you are confused, ask me and I’ll explain it to you.
Sales on Credit (Invoices)
Cash Sales (Sales Receipt -- name of customer is irrelevant)
Wash
CLEANERS
U
uniforms
CREDIT CUSTOMERS
L
linens
Week Ending Oct. 5
Sales of Inventory
pntshrt
drsskt
lint
wrinkle
garmet
Reg
spec
trav
quilt
coat
rmvr
spray
bag
Hangers
hangers
iron
curtain
suit
pntshrt
drsskt
2
2
50 (1
package)
50
4
8
4
2
American Janitorial Service
U
20
St. Mary Medical Ctr
L
45
are in
Doyle Electric
U
18
50-pack
City Of College Place
U
33
units
Grassi Refrigeration Inc
U
14
Wash. State Penitentiary
L
950
City Of Walla Walla
U
25
Va Medical Ctr
L
35
Walla Walla General Hospital
L
30
Whitman College Plant Service
U
16
Walla Walla Electric
U
14
Doyle Electric
U
19
City Of College Place
U
34
City Of Walla Walla
U
26
American Janitorial Service
U
21
Grassi Refrigeration Inc
U
15
Wash. State Penitentiary
L
951
Va Medical Ctr
L
36
St. Mary Medical Ctr
L
46
Walla Walla General Hospital
L
31
Whitman College Plant Service
U
17
Walla Walla Electric
U
15
Week Ending Oct. 12
Hangers
6
Week Ending Oct. 19
Doyle Electric
4
1
U
Dry Cleaning
16
Page 16
3
3
100
100
1
2
12
1
50
100
2
4
5
3
City Of College Place
U
31
City Of Walla Walla
U
23
American Janitorial Service
U
18
Grassi Refrigeration Inc
U
12
Wash. State Penitentiary
L
948
Va Medical Ctr
L
33
St. Mary Medical Ctr
L
43
Walla Walla General Hospital
L
28
Whitman College Plant Service
U
14
Walla Walla Electric
U
12
Doyle Electric
U
20
City Of College Place
U
35
City Of Walla Walla
U
27
American Janitorial Service
U
22
Grassi Refrigeration Inc
U
16
Wash. State Penitentiary
L
952
Va Medical Ctr
L
37
St. Mary Medical Ctr
L
47
Walla Walla General Hospital
L
32
Whitman College Plant Service
U
18
Walla Walla Electric
U
16
Week Ending Oct. 26
Partial Week Ending Oct. 31
pntshrt
drsskt
lint
wrinkle
garmet
Reg
spec
trav
quilt
coat
rmvr
spray
bag
Hangers
hangers
iron
curtain
suit
pntshrt
drsskt
2
1
2
2
50
50
4
8
4
50
50
1
2
7
1
2
Doyle Electric
U
23
City Of College Place
U
38
City Of Walla Walla
U
30
American Janitorial Service
U
25
Grassi Refrigeration Inc
U
19
Wash. State Penitentiary
L
955
Va Medical Ctr
L
40
St. Mary Medical Ctr
L
50
Walla Walla General Hospital
L
35
Whitman College Plant Service
U
21
Walla Walla Electric
U
19
Partial Week Ending Nov. 2
pntshrt
drsskt
4
Page 17
3
lint
wrinkle
garmet
Reg
spec
trav
quilt
coat
rmvr
spray
bag
Hangers
hangers
iron
curtain
suit
50
50
1
5
pntshrt
drsskt
Week Ending Nov. 9
4
Doyle Electric
U
14
City Of College Place
U
29
City Of Walla Walla
U
21
American Janitorial Service
U
16
Grassi Refrigeration Inc
U
10
Wash. State Penitentiary
L
946
Va Medical Ctr
L
31
St. Mary Medical Ctr
L
41
Walla Walla General Hospital
L
26
Whitman College Plant Service
U
12
Walla Walla Electric
U
10
Doyle Electric
U
21
City Of College Place
U
36
City Of Walla Walla
U
28
American Janitorial Service
U
23
Grassi Refrigeration Inc
U
17
Wash. State Penitentiary
L
953
Va Medical Ctr
L
38
St. Mary Medical Ctr
L
48
Walla Walla General Hospital
L
33
Whitman College Plant Service
U
19
Walla Walla Electric
U
17
Week Ending Nov. 16
Week Ending Nov. 23
Doyle Electric
U
15
City Of College Place
U
30
City Of Walla Walla
U
22
American Janitorial Service
U
17
Grassi Refrigeration Inc
U
11
Wash. State Penitentiary
L
947
Va Medical Ctr
L
32
St. Mary Medical Ctr
L
42
Walla Walla General Hospital
L
27
Whitman College Plant Service
U
13
Walla Walla Electric
U
11
3
3
50
100
2
7
7
3
pntshrt
drsskt
lint
wrinkle
garmet
Reg
spec
trav
quilt
coat
rmvr
spray
bag
Hangers
hangers
iron
curtain
suit
pntshrt
drsskt
2
1
2
2
2
6
4
2
1
3
1
lint
wrinkle
rmvr
spray
pntshrt
drsskt
Page 18
50
100
50
1
2
11
garmet
Reg
spec
trav
quilt
coat
bag
Hangers
hangers
iron
curtain
suit
pntshrt
drsskt
Week Ending Nov. 30
4
Doyle Electric
U
18
City Of College Place
U
33
City Of Walla Walla
U
25
American Janitorial Service
U
20
Grassi Refrigeration Inc
U
14
Wash. State Penitentiary
L
950
Va Medical Ctr
L
35
St. Mary Medical Ctr
L
45
Walla Walla General Hospital
L
30
Whitman College Plant Service
U
16
Walla Walla Electric
U
14
Doyle Electric
U
69
City Of College Place
U
129
City Of Walla Walla
U
97
American Janitorial Service
U
0
Grassi Refrigeration Inc
U
53
Wash. State Penitentiary
L
3797
Va Medical Ctr
L
137
St. Mary Medical Ctr
L
177
Walla Walla General Hospital
L
117
Whitman College Plant Service
U
60
Walla Walla Electric
U
55
Totals For All Of December
3
3
50
100
2
7
7
3
pntshrt
drsskt
lint
wrinkle
garmet
Reg
spec
trav
quilt
coat
rmvr
spray
bag
Hangers
hangers
iron
curtain
suit
pntshrt
drsskt
12
2
9
4
200
250
2
12
24
8
Page 19
Payroll worksheets to be created in Excel:
Employee's Payroll
Reg
OT
Month
Rate
(entered as a check, see dr/cr below)
See IRS
0.062
0.0145
Table
Hrs
Hrs
Oct
?
?
$14.00
$
Gross
-
$
SS
-
$
MC
-
$
FIT
-
$
Cr. Un.
-
$
Net Pay
-
Nov
?
?
$14.00
$
-
$
-
$
-
$
-
$
-
$
-
Dec
?
?
$14.00
$
-
$
-
$
-
$
-
$
-
$
-
Qtr TL
?
?
$
-
$
-
$
-
$
-
$
-
$
-
Debit/Credit Template:
Enter employee’s payroll as a check, with debits as positive numbers and credits as negative numbers. Columns above
correspond to the account below.
Debit/Credit Template:
dr
cr
cr
cr
cr
cr
wage exp
ss pay
mc pay
fit pay
cu pay
cash
Employer's Payroll (entered as a journal entry, see dr/cr below)
0.062
0.0145
0.03825
0.006
0.015
SS
MC
WCI
FUTA
SUTA
Month
Total
Oct
$
-
$
-
$
-
$
-
$
-
$
-
Nov
$
-
$
-
$
-
$
-
$
-
$
-
Dec
$
-
$
-
$
-
$
-
$
-
$
-
Qtr TL
$
-
$
-
$
-
$
-
$
-
$
-
Jan
$
-
$
-
$
-
$
-
$
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$
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General Journal Template
Enter employer’s payroll as a general journal entry
cr
cr
cr
cr
cr
dr payr
ss pay
mc pay
wci pay
futa pay
suta pay
tax exp
New Accounts Needed:
Wages Expense
Payroll Tax Expense
SS Payable
MC Payable
FIT Payable
WCI Payable
Credit Union Payable
FUTA Payable
SUTA Payable
Type
Expense
Expense
Other Cur. Liab.
Other Cur. Liab.
Other Cur. Liab.
Other Cur. Liab.
Other Cur. Liab.
Other Cur. Liab.
Other Cur. Liab.
Page 20
ACCT341, PS#2, Grading Grid for first half
Step
3
4
5
6
8
9
10
10
11
12
13
13
13
14
15
16
17
18
19
20
TOTAL
Pts
2
2
2
2
8
2
6
2
4
4
11
11
4
4
18
10
2
2
2
2
100
Description
Chart of accts
Item list
Vendor list
Customer list
Forms I-9 and W-4
Purchase Order on Oct. 22
Amortization table
Loan Manager (points for stating it’s not working?)
Customer stmt and question
Inventory valuation summary and question
Oct. Balance Sheet
Oct P&L
Questions about results and improvements
Default accounts
Debits & credits
Questions on why payroll not used, I-9 and W-4
To delete or void acct?
Can you delete acct if transactions recorded?
Inactive vs. delete acct?
Account numbers vs. account names
Steps 1-20 are due all together on the date shown on the
course schedule (before the mid-term exam).
Page 21
ACCT341, PS#2, Grading Grid for second half
Step
Pts
Description
22
23
24
25
26
28
29
29
29
28
30
31
31
32
33
33
34
35
36
37
TOTAL
10
4
4
8
12
10
14
4
4
4
4
2
2
4
2
2
2
2
3
3
100
Tracking time, emailed invoice, and customized invoice
Inventory stock status and question
Customer labels
Aging and collections
Nov. BS & P&L and questions
Dec. BS and Quarterly P&L
Payroll spreadsheet
Form W-2
Form 941
Form 940
P&L Budget vs. Actual
Net worth graph
Sales graph
Snapshot and questions
Summary Bal. Sheet
Filtered L/T liabilities
Physical inventory worksheet and question
1099 Vendors
Purpose of condensing data
Use of passwords as internal control
GRAND TOTAL 200 points
Page 22