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Electronic Filing and Calculating Objectives for Tasks 9-12 To use percent key to calculate percentages. To use formulas to calculate the percentage, base, and rate in business problems. To complete deposit slips and reconcile a bank statement balance and a checkbook balance. To record petty cash vouchers and calculate petty cash fund balance. To calculate payroll. Percents In Task 8, we discussed percent as a relationship between two numbers. The example was 8 cans in a case and if six cans are sold, a relationship between the number sold and the whole amount is established. So 6/8 or .75 or 75% of the case has been sold. Percent (con’t) In the example mentioned, there are three elements involved in the relationship. The base (whole amount represented by 100%). The rate (a part of the base expressed as a percent). 8 cans in a case 6/8 or 75% of the case was sold The percentage (a part of the base expressed as an amount when the rate is applied to the base). 6 cans sold Do not confuse the terms percentage and percent. Percentage is the part (amount) taken from base and percent is rate of that part and will always be followed by percent sign. Percent Key Feature Percents do not need to be converted into a decimal when the Percent Key is used. Use the Percent Key [%] instead of the Equals Key [=] to obtain the answer. Practice Percent Key Clear the calculator (CE). Set Decimal Selector on 2. Set Rounding Selector on 5/4. Enter 319 and strike the [x] Multiplication Key. Enter 4 and strike the [%] Percent Key. Did you get $12.76? Complete problems 2 through 5 in class. Complete 6 through 10 on own. Identifying the Missing Element In business calculations, one of three elements often will be missing (base, rate, or percentage). It is necessary to determine which element is missing and apply the formula to calculate it. B = Base (whole amount) R = Rate (part expressed as a percent) P = Percentage (part expressed as an amount) Practice Identifying Missing Elements Remember: Identify the missing element 177 is ___% of 590 Of can precede the base in every situation. Is usually precedes or follows the percentage. Percent sign always follows the rate. Percentage is 177. (Is follows 177) Base is 590. (Of precedes 590) Rate is missing. (Number is followed by a percent sign. Complete problems 12 through 15 in class. Complete 16-25 on own. Formulas Use the following formulas to calculate the missing element. Base: B = P ÷ R Rate: R = P ÷ B Percentage: P = B x R Calculating the Percentage (Part) Formula: P = BR The percentage may be smaller or larger than the whole depending on the percent. The multiplication sign can be substituted for the word of. Clear the calculator (CE) Set decimal selector on 2 and rounding selector on 5/4 Practice Calculating Percentage What is 60% of $1,540? Base is 1,540 and Rate is 60% Enter 1,540 and strike the Multiplication Key [x] Enter 60 and strike the Percent Key [%] Did you get $924.00? Complete problems 27 through 30 in class. Complete 31 through 35 on own. Remember: P = BR Calculating the Rate (Percent) Drop any zeros when recording your answers. Problem: $2,940 is what percent of $24,500? Clear the calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 2,940 is Percentage; 24,500 is Base Enter 2940 and strike the Division Key [÷] Enter 24500 and strike the Percent Key [%] Did you get 12%? Complete problems 37 through 40 together in class. Complete 41 through 45 on own. Remember: R = P ÷ B Calculating the Base (Whole) Problem: 230 is 20% of what amount? Clear the calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 230 is percentage; 20% is rate Enter 230 and strike the Division Key [÷] Enter 20 and strike the Percent Key [%] Did you get $1,150.00? Calculate problems 47 through 50 in class. Calculate 51 through 55 on own. Remember: B = P ÷ R Complete Problems 56-70 on own Special Percent Features When dealing with sales, you may have an additional tax calculation after the percentage is obtained. Using Percent Add-On Feature Problem: $350.27 for total sales receipts and 8% tax rate is applied for computation of the total amount due. Clear the calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Enter 350.27 and strike Multiplication Key [x] Enter 8 and strike the Percent Key [%] Did you get $28.02? Tap the Plus-Equals Key [+=]. Did you get $378.29? Complete problems 72 through 74 in class using an 8% tax on total sales. Complete 75 through 80 on own. Calculate Percent Increase or Decrease Businesses often compare amount of difference and the percent change. The base is the original amount and the percentage is the second amount. If base is smaller than second amount, there is a percent increase. If the base is larger than second amount, there is a percent decrease. Practice Percent Increase or Decrease Compare one month of income with another. Clear the calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Subtract first month from second month April (27,489) [-] March (24,589) Did you get 2,900? Strike the Division Key [÷] Enter first month (24,589) and strike the Percent Key [%]. Did you get 11.79%? Complete problems 82 through 85 in class Complete 86 through 91 on own. Problems 92-107 You do not need to complete on p. 51. Calculating Salary Increase Annual employee performance appraisal. Each evaluated on 11 factors and given a score between 0 and 100 for each factor. Anyone receiving an average score of 70 or above qualifies for salary increase. Practice Calculating Salary Increase Set Decimal Selector on 0 and rounding to round up Calculate the average score (total score ÷ 11). Use Constant [K] feature (781 ÷ 11 [=] 880 [=] 1,008 [=] etc.) Refer to chart on p. 52 to record bonus percent on average score Multiply bonus percent and current monthly salary to obtain proposed monthly salary use percent addon feature (1650 [x] 3.5 [%] [=]) Did you get $1,708? Advance to next page Practice Salary Increase (con’t) Total current monthly salary column (#146) Total proposed monthly salary column (#147) Calculate percent increase of total proposed monthly salary over the current monthly salary (proposed [+] current [-] [÷] proposed [%]) Set Decimal Selector on 2 and rounding on 5/4 43,025 [+] 41,171 [-] [÷] 43,025 [%] Did you get 4.5%? Banking Records Banking Definitions Deposit slip is the form prepared by the bank listing all cash and checks to be deposited. Payor is the person who signs the check. ABA Number (American Bankers Association) is the number located in the upper right-hand corner of the check. Practice Completing Deposit Slips Clear calculator (CE). Set Decimal Selector on 2 and rounding on 5/4. Record the bills. ($132.00) Record the coins. ($.87) List each check separately by ABA number or payor. Total amounts listed. Complete 2 through 3 in class. Maintaining Bank Account Balance A checkbook consists of checks and either check stubs (p. 56) or a check register (p. 61). A check is an order directing the bank to make payment from a bank account. To keep a current balance of account, add all deposits and subtract all checks from the preceding balance on the check stub or register. A copy of check information is recorded on stub or register. Practice Completing Check Stubs Clear calculator (CE). Set Decimal Selector on 2 and rounding on 5/4. Add balance brought forward ($1,923.58) and the deposit ($100.00). Record the total (1,923.58 [+] 100.00 [+/=] $2,023.58) Subtract check amount from total. (2,023.58 [+] 64.20 [-] [=] Record balance ($1,959.38). Complete problems 4-7 in class. Complete 8-12 on own. Bank Reconciliation Once a month the bank sends a statement showing account transactions. Compare your check stubs or register with bank statement to detect errors. Adjust checkbook balance by subtracting services charges and etc. If you have an interest-bearing account, interest earned needs to be added to balance. Reconciliation Process Compare deposits made. If there are outstanding deposits (a deposit that has been made but not yet processed by the bank), add deposits to statement’s balance. Compare checks written. If there are outstanding checks (a written check not yet processed by the bank) not shown on statement, subtract them from statement’s balance. Subtract charges shown on statement from checkbook balance. Add any interest earned to checkbook balance. Subtract bank drafts (automatic payments), ATM withdrawals, etc. from checkbook balance. Reconciling Bank Statements Bank Statement Balance Checkbook Balance Record bank statement balance. (2,318.20) List and add outstanding deposits and record subtotal. List and total outstanding checks. Subtract from subtotal above and record the adjusted bank statement balance. Record checkbook balance. Record and subtract any services charges and record and add any interest earned. Record the adjusted checkbook balance. Complete problem 13, page 59 in class. Complete 14 on own. Locating Errors in Checkbook When checkbook and bank statement disagree, look for errors in: Deposits. Were they all recorded and added correctly. Checks. Match checks listed on statement with checks on stubs or register. Calculations. Check all addition and subtraction entries. If error was made, determine difference and add or subtract the difference from checkbook balance. Practice Correcting Checkbook Errors Calculate error amounts and record amounts. Write Add if the difference should be added to checkbook balance or sub if difference should be subtracted from checkbook balance. Complete problem 20 on own. Petty Cash A predetermined amount of cash on hand to pay for miscellaneous items and to make change when needed. Petty Cash Fund Checks written for small amounts, called petty cash payments, are paid from a petty cash fund. A petty cash voucher (a printed receipt) is completed for each payment and kept in a petty cash box. The cash plus the total of cash vouchers should equal the original amount established for the fund. A petty cash book is used to track all money spent from the petty cash fund. Petty Cash Book Used to track all money spent from the petty cash fund. Recording the Vouchers Enter date in Date column (record month on first line only) Record explanation in Explanation column Record voucher number in the Voucher No. column Record the amount of the voucher in Payment column Calculate balance after each entry in the Balance column (previous balance minus payment) Replenish the Fund At end of month, replenish cash to original amount. After last entry, write Total under Explanations column, bring down total of beginning receipts, total payments, draw a double line under totals. Write Ending Balance in the Explanation column. Record the ending balance amount in Receipts column (total receipts minus payments) on line below totals. Write Replenish Fund in Explanation column with the amount needed to total the original petty fund amount (receipts minus ending balance) on the next line under ending balance. On the same line as replenish fund amount, total the ending balance and replenish fund and place amount in the Balance column. Cash Short or Over After replenishing the petty cash box, if the actual cash is more than the book balance, the cash if over. If the actual cash is less than the book balance, the cash is short. A notation is made in petty cash book indicating the amount short or over. Actual cash in petty cash box is adjusted by the amount short or over. Calculate the Problem Petty cash fund amount is $75. Balance in petty cash book is $13.50. Actual cash in petty cash box is $12.25. Clear calculator. Use memory feature. Set Decimal Selector on 2. Set Rounding Selector on 5/4. Calculate amount need to replenish fund (75 [-] 12.25). Did you get $62.75? Calculate the shortage (13.50 [-] 12.25). Did you get $1.25? Add shortage to amount to replenish (62.75 [+] 1.25). The words Replenish Fund, Short $1.25 would be written in Explanation column. Practice Cash Short or Over Complete problems 6 & 7 together in class. Write the word Over or Short next to the answer on the Answer Sheet. Problems 8-14 Do on own. Remove form 11-1 from p. 145. Complete top Petty Cash Book. Use March information on p. 65. For problem 14, total the March Cash to determine if there is a shortage or overage. If there is, include the notation after Replenish Fund in the Explanation column and on Answer Sheet. Payroll Earnings Payroll records must be current and processed following procedures that ensure correctness. Methods used for calculating vary. Wages may be paid based on hourly rates (often with overtime pay). Commissions may be paid as a portion of sales, piecework production or straight salary. Payments can be daily, weekly, biweekly, monthly, or semimonthly. Gross earnings is amount earned. Net earnings is amount received after deductions from gross earnings. Pay Periods and Gross Salary Annual salary is divided by number of pay periods in a year. Semimonthly—24 pay periods Monthly—12 pay periods Biweekly—26 pay periods Weekly—52 pay periods Practice Pay Periods and Gross Salary Calculate gross salary per pay period. Clear calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Determine number of pay periods in a year and write in column one. Calculate gross salary per pay period by dividing annual salary by the number of pay periods. 22,750 [÷] 24 [=] Did you get $947.92? Complete problems 2 and through 5 in class. Salary Increase Plus Merit Pay Changes in salary may occur due to promotions received, length of service, and/or merit pay. Practice Salary Increase Plus Merit Pay Clear calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Using Decimal Equivalent 1. 2. 3. 4. 5. 6. 7. Mentally add the percent increase to 100% (5% [+] 100% = 105%) Multiply current annual salary by decimal equivalent of 105% (22,750 [x] 1.05 [=] 23,887.50) Tap the Plus Key [+] to re-enter $23,887.50 Enter merit pay and tap Plus Key (350 [+]) Did you get 24,237.50 for the new annual salary? Calculate salary per pay period ( [÷] 24 [=]). Did you get $1,009.90? Practice Salary Increase Plus Merit Pay (con’t) Using the Percent Add-On Feature 1. Multiply the current salary by the percent increase. 2. 3. 4. 5. 6. 22,750 x 5 [%]. Did you get $1,137.50? Tap the Plus Key. Did you get $23,887.50? Tap the Plus Key to reenter $23,887.50. Enter merit pay and tap Plus Key (350 +) Did you get 24,237.50 for the new annual salary? Calculate salary per pay period ( [÷] 24 [=]). Complete problems 7 through 9 in class Complete 10-15 on own. Salary Plus Commission Sales people are compensated with straight commissions or salary plus commission (percent of total sales or a graduated scale based on varying sales totals. Practice Salary Plus Commission Clear calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Calculate commission earned by multiplying total sales by commission rate. ($63,000 x 4 [%] = $2,520.00) Calculate gross salary by adding commission earned to base salary. ([M+] $3,000 [M+] [*M]). Did you get $5,520? Complete problems 17 through 18. Complete 19 and 20 on own. Hourly Earnings A time clock is commonly used to track the number of hours worked by employees paid on an hourly basis. Forty hours per week or eight hours per day is considered regular pay. Overtime pay may be based on hours worked over eight hours per day or hours worked over forty hours per week is typically calculated at 1 ½ times regular rate. Practice Calculating Hourly Earnings Clear calculator (CE) Set Decimal Selector on 2 and rounding on 5/4. Calculate regular earnings by multiplying regular hours by rate per hour. Calculate overtime rate by multiplying rate per hour by 1.5. Calculate overtime earnings by multiplying number of overtime hours by overtime rate. Calculate gross earnings by adding regular earnings and overtime earnings. (over) Practice Calculating Hourly Earnings (con’t) Use memory feature Regular earnings—(40 [x] $7.95 [=] $318.00 [M+]) Overtime rate—(7.95 [x] 1.5 [=] $11.93) Overtime earnings—(43 [+] 40 [-] [*] 3 [x] $11.93 [=] $35.79 [M+]) Gross earnings –$318.00 [+] $35.79 (Tap [*M]). Did you get $353.79? Complete problems 22 through 23 Complete 24 and 25 on own. Piecework Plus Bonus Some manufacturing firms pay employees based on number of units produced each day. When established standards are exceeded, the employee receives a bonus. Practice Piecework Plus Bonus Clear calculator (CE) Set Decimal Selector on 2 and rounding on 5/4 Use memory feature Calculate regular earnings by multiplying rate per unit by standard units. Calculate units produced above standard by subtracting standard units from units produced. Calculate bonus earnings by multiplying units produced above standard by bonus rate. Calculate gross earnings by adding regular earnings and bonus earnings. Practice Piecework Plus Bonus (con’t) Regular earnings—($1.23 [x] 1,200 [=]) [M+] Did you get $1,476.00? Units above standard—(1,700 [+] 1,200 [-] [*]) Did you get 500? Bonus earnings—(500 [x] $2.00 [=]) [M+] Did you get $1,000.00? Gross earnings—([*M]) Did you get $2,476.00? Complete problems 27 and 28 in class. Complete 29 and 30 on own.