Work4Me I Accounting
Simulations
3rd Web-Based Edition
Problem Two
Daily Journal Entries
for
Abbey Accounting Services, Incorporated
Page 1
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
CHART OF ACCOUNTS
ABBEY BOOKKEEPING SERVICES, INCORPORATED
ASSETS
101
105
121
122
127
131
139
Cash
Accounts Receivable
Prepaid Rent
Prepaid Insurance
Office Supplies
Office Equipment
Automobiles
LIABILITIES
201
Accounts Payable
STOCKHOLDERS’ EQUITY
301
305
Common Stock
Retained Earnings
REVENUE
401
Bookkeeping Fees Earned
OPERATING EXPENSES
602
604
605
606
621
622
625
626
628
635
Office Supplies Expense
Vehicle Operating Expense
Advertising Expense
Delivery Expense
Rent Expense
Insurance Expense
Electric and Gas Expense
Telephone Expense
License Expense
Miscellaneous Expense
Page 2
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
RUN THE PROGRAM!
Problem 2
Daily Journal Entries
Abbey Bookkeeping Services, Incorporated
After you have completed the Demonstration Problem, you are prepared to being work on
Problem 2, the first full accounting problem. Problem Two will guide you through the
journalizing, posting, and statement preparation for a full month of business activity. When you
have completed your entries, you may print a trial balance, general journal and several general
ledger cards for review. After checking your documents for accuracy with the “Check It Out”
box, you will be asked to answer a series of analysis questions using your business
documents.
Be sure to use the special options introduced in the Demonstration Exercise as you work
Problem 2. You can use the D for Date option and the Pull Down menu for account entry.
These data entry features will assist in increasing your efficiency and speed of data entry and
data correction. The mouse will only be needed post the completed journal entry.
You may prepare your account entry information before sitting down at the computer. You will
find that this will speed up your data entry time. You may prefer to analyze each entry and
record the transaction on the computer at the same time.
1. Go to www.pklsoftware.com.
2. To access the Work4Me program, click on Work4Me on the home page.
3. At the log in page, enter your User ID/Name and Password. Then click on Log In.
4. From the Menu Bar of the Data Entry page, move the pointer to Problems, then down to
Problem 2, Daily Journal Entries, and click.
5. Click on OK, at the message directing you to click on Daily JE. 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.
Page 3
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 1
Began Abbey Bookkeeping Service, Inc., by selling 10,000 shares
of common stock at a price of $4.00 per share.
1. At the date prompt, for April 1, enter 01 for the day. 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, move the pointer to the date prompt and enter the correct date.
2. To debit cash, at the account prompt enter 101 (the Cash account number) and press
the Tab key. Type 40,000 (without the $ sign) and press the Tab key.
3. At the account prompt enter 301 (the Common Stock account number) and press the
Tab key twice. In the credit amount column, enter 40,000 (without the $ sign) and
press the Tab key.
4. If you enter the wrong account, click on the account entry line and a dropdown menu
of the Chart of Accounts will appear.
5. When you have completed your entry, Click on the Verify Journal button. If the
entry is in balance, a message box will appear informing you if the journal entry is in
balance (total debit amount equals the total credit amount) and all of the account
numbers are from the Abbey Chart of Accounts. If the date, entry, or account
numbers are not properly entered, you will be given an error message with the
appropriate error details. When all of the error items have been corrected, the Post
button will be activated.
6. Post the journal entry to the General Ledger.
If after verifying the entry, but before posting, you realize that an account number or entry
amount is not correct, click on Clear Screen from the Menu Bar and reenter, verify, and
then post the corrected entry.
If you discover that a transaction entered and posted into the system is incorrect, two
entries are required. Reverse or back out the original error transaction and then enter the
transaction correctly.
7. Continue recording and posting the transactions that follow.
Page 4
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 1
Issued a check for $900 to Jacobson Property Management
as payment for the April rent of the business office.
1. Enter 01 for the date (Enter D for Date).
2. Enter 621 for Rent Expense. While working on the journal entries, the full Chart of
Accounts is available by clicking on the account entry line. You may also enter the
debit to Rent Expense by clicking on account 621 from this pull-down chart.
3. Enter amount of the rent payment (no $ or commas required).
4. Enter the credit to Cash (101) and the amount of the credit.
5. Verify the transaction, correct any problems, and when ready, click on the Post
button to complete the journalizing and posting process.
Remember, if the date, entry, or account numbers are not properly entered, you will see an
error message with the appropriate error details. When the error item/s has been
corrected, the Post button will be activated.
If after verifying the entry, but before posting, you realize that an account number or entry
amount is not correct, click on the Clear All button from the Menu Bar and reenter, verify,
and then post the corrected entry.
******************************************************************************
How To View Your Work
Move the pointer to Journal/Ledgers/Statements on the Menu Bar, then move the pointer
down to General Journal and click. You may view the General Journal and the entries you
recorded or print the General Journal at any time. To return to recording transactions,
move the pointer back to Data Entry and click.
Page 5
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-8
Student Analysis
April 1
Purchased business insurance coverage for the month of April for
$250 cash. (Remember to enter D to repeat the date.)
1. Enter 01 for the date.
2. Enter the correct debit account and the amount.
3. Enter the correct credit account and amount.
4. Verify the transaction and then Post to the General Ledger.
Continue entering the April transactions. If you discover that a transaction entered into the
system at an earlier time needs correction, simply reverse or back out the error transaction
and then enter and post the transaction correctly.
******************************************************
April 3
Issued a check for $130 and purchased a business license.
******************************************************
April 3
Purchased office equipment for $3,250 cash.
******************************************************
April 3
Purchased office equipment costing $2,150.00 and office supplies
listed at $180.50 on account (20-day credit) from Roper Office
Equipment and Supply.
This is a compound entry with two debits and a single credit.
Page 6
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 5
Received a check for $1,975 for bookkeeping services completed
for a client.
******************************************************
April 7
Issued a $460 check for April advertising.
******************************************************
April 8
Performed additional bookkeeping services and billed the client for
$775. The client is extended 15-day credit terms.
******************************************************
April 10
Purchased for $7,700 cash, a used car to be used for business
operations.
******************************************************
April 12
Purchased a new computer costing $3,200 on credit from
Computer Express of Granite Bay.
******************************************************
April 13
Purchased office supplies for $99.90 on account from Zikmeister
Office Supply. The company offers 10-day credit terms.
******************************************************************************
Now that you have completed entering the first 12 transactions, it is time to check the accuracy
of your work. The “Check It Out” box on the following page has the correct balances of
several of the accounts that you have been working with so far this period.
Page 7
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
1. Move the pointer to Journal/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 on the next
page.
IF ALL OF YOUR TOTALS MATCH THE CHECK FIGURES, you are ready to continue
entering the remaining transactions for April. If you do not match the check figures, proceed to the
instructions below the “Check It Out” box.
“CHECK IT OUT”
101
Cash
105
Accounts Receivable
127
Office Supplies
131
Office Equipment
139
Automobile
201
Accounts Payable
401
Bookkeeping Fees Earned
605
Advertising Expense
621
Rent Expense
622
Insurance Expense
628
License Expense
TRIAL BALANCE TOTAL
$29,285.00
775.00
280.40
8,600.00
7,700.00
5,630.40
2,750.00
460.00
900.00
250.00
130.00
$48,380.40
IF ANY OF YOUR BALANCES DO NOT MATCH THE CORRECT FIGURES LISTED, YOU
HAVE ONE OR MORE ERRORS THAT MUST BE CORRECTED BEFORE YOU CAN
CONTINUE. THE MOST EFFICIENT METHOD OF LOCATION AND CORRECTING THE
ERROR/S IS TO PRINT A COPY OF THE TRIAL BALANCE AND A COPY OF THE
GENERAL JOURNAL.
1. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to
General Ledger and click. Print a copy of the Abbey Bookkeeping Service, Inc., 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
you journal entries for errors. Make the necessary corrections by backing out each
error entry and then reentering it correctly.
Page 8
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
4. When your balances match the “Check It Out” box figures, you are ready to continue
entering the remaining transactions for this problem.
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 14
Received a check for $3,200 for bookkeeping services completed
today for a client.
******************************************************
April 15
Performed bookkeeping services and billed the client for $675.
The client is extended 15-days credit terms.
******************************************************
April 17
Paid $66.50 to Bart’s Chevron Services for gas and a tire repair.
******************************************************
April 20
Purchased $28 worth of postage stamps (office supplies) for the
office.
******************************************************
April 22
Paid $15 to the Gold Run Courier Services to deliver completed
documents to a client.
******************************************************
April 23
Received a $775 check from a client as payment in full on their
account balance that is due today.
Page 9
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 23
Issued a check for $99.90 as payment in full on the Zikmeister
Office Supply account that is now due.
******************************************************
April 23
Issued a check for $65 to the Dozier Printing Services for color
copies of an advertising brochure.
******************************************************
April 23
Issued a check for $2,330.50 as payment in full of the accounts
payable balance owed to Roper Office Equipment and Supply
Company.
******************************************************
April 25
Completed $650 worth of bookkeeping services for a client and the
client paid in full with a company check.
******************************************************
April 27
Purchased for $1,800 cash, a blanket business insurance policy for
the months of May, June and July.
******************************************************
April 29
Issued a check for $235.40 in payment of the Newcastle Phone
Company telephone bill.
******************************************************
April 30
Received a check for $675 as payment in full on account from a
charge customer.
Page 10
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
TRANSACTIONS FOR APRIL 1-30
Student Analysis
April 30
Issued a check for $3,300 as a prepayment of the rent for May,
June and July.
******************************************************************************
Now that you have completed entering all of the April transactions for Abbey Bookkeeping
Services, Incorporated, it is time to check the accuracy of your work. In the “Check It Out”
box on the following page are the correct balances of key accounts that you have been working
with this period. Remember that the “Check It Out” box is NOT a trial balance, and only
key account balances are listed.
1. Move the pointer to Journal/Ledgers/Statements on the Menu Bar, then 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 on the next
page.
If your totals DO NOT match the check figures, proceed to the instructions below the
“Check It Out” box.
If all of your totals match the check figures, you are ready to print the Trial Balance and
other documents and then exit the system. Continue with instruction three that follows.
3. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to
General Ledger and click. The Abbey Bookkeeping Service, Incorporated, Trial
Balance will appear on the screen. Print the trial balance.
4. Click on the Ledger Card button. The Cash ledger card will appear on the screen.
Print the Cash ledger card.
5. Click the Ledger Card button and using the pull down screen, select account 105
Accounts Receivable. Click on Show Ledger Card and print the Accounts Receivable
ledger card.
6. Using the same selection and print routine, print the ledger cards for 201, Accounts
Payable and 401, Bookkeeping Fees Earned.
7. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then down to
General Journal and click. The General Journal will appear on the screen. Print the
journal.
Page 11
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
8. When all of the required documents have been printed, you have completed your
computer work for Problem Two. Move the pointer to Support on the Menu Bar,
down to Home Page and click. From the PKL software Home Page you may select
another problem or exit the website by clicking on the Close button.
Using your printed documents, carefully answer the questions on the Classic Account
Service, Incorporated, Problem Two Analysis Form. Instructions as to how and when
your assignment is to be turned in will be given by your instructor.
“CHECK IT OUT”
101
Cash
105
Accounts Receivable
121
Prepaid Rent
127
Office Supplies
131
Office Equipment
201
Accounts Payable
401
Bookkeeping Fees Earned
604
Vehicle Operating Expense
605
Advertising Expense
621
Rent Expense
622
Insurance Expense
635
Miscellaneous Expense
TRIAL BALANCE TOTAL
$26,644.70
0.00
3,300.00
308.40
8,600.00
3,200.00
7,275.00
66.50
525.00
900.00
250.00
0.00
$50,475.00
IF ANY OF YOUR BALANCES DO NOT MATCH THE CORRECT FIGURES, YOU
HAVE ONE OR MORE ERRORS THAT MUST BE CORRECTED BEFORE YOU CAN
CONTINUE.
The most efficient method of locating and correcting the errors is to print a copy of the
Trial Balance and a copy of the General Journal.
1. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, then to General
Ledger and click. Print a copy of the Abbey Bookkeeping Service, Incorporated,
Trial Balance.
2. Move the pointer to the Journal/Ledgers/Statements in the Menu Bar, then to
General Journal and click. Print a copy of the General Journal.
Page 12
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
3. Check your journal entries for error/s. If you do not match the balance of a
particular account, check the transaction/s that was recorded (or not recorded) for
that account. Make the necessary correction/s by backing out the error entry and
then journalizing the correct entry.
4. When your balances match the “Check It Out” box totals, proceed to instructions 3-8
starting on the previous page.
Page 13
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
WORK4ME I - PROBLEM TWO
DAILY JOURNAL ENTRIES
NAME_______________________________________
CLASS DAY AND TIME__________DATE________
1. Do the totals on your Trial Balance match the figures shown in the
“Check It Out” box? Answer only Y for Yes or N for No.
______________
2. If no errors have been made, what should be the correct balance of
the Cash account at the close of business on April 3?
$_____________
3. At the close of business on April 13, what total amount has been
debited to the Cash account so far this month?
$_____________
4. Has the correct balance of the Cash account fallen below $20,000 at
any time during April? Answer only Y for Yes or N for No.
______________
5. What is the total amount owed to Abbey Bookkeeping Services by
clients? (list dollars and cents in your answer)
$_____________
6. What is the reason for your answer to question number five?
A. customers are not allowed to charge
B. all accounts receivable balances have been paid in full
C. there have been no charges by customers this month
______________
7. How much was owed by Abbey Bookkeeping Services,
Incorporated, on April 15? List dollars and cents in your answer.
$_____________
8. How many individual vendor accounts are still outstanding at the
end of April and must be paid in May?
A. Four
B. Three
C. Two
D. One
______________
9. What are the total revenues earned through the close of business
April 15?
$_____________
10. What are the total revenues for the month of April?
$_____________
11. What is the total of the April expenses?
$_____________
12. What is the total net income for the month of April?
$_____________
13. The net income is what percent of the total revenues?
Always round your answer to two decimal places: .323457 =
32.35%. On the computer examination DO NOT write
“percent” or use the percent sign in your answer.
____________%
Page 14
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014
14. If a balance sheet was prepared at the end of April, what would be
the total for business assets?
$_____________
15. The beginning Retained Earnings balance for this new business was
$0.00. If a Retained Earnings Statement is prepared at the end of
April, what will be the new balance of this account?
$_____________
Page 15
Work4Me I – Problem 2
3rd Web-Based Edition, Copyright © 2010 PKL Software, Incorporated. All rights reserved.
Last Revised: October 13, 2014