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Chap 4-A Alt 4
Chap 4-A Alt 4
Chap 4-A Alt 4
Recording Transactions and
Adjustments and Performing Month-end
and Year-end Closing Procedures
Options A, B, and C. This chapter has three options depending upon
your previous experience with a manual version systems project called
the Systems Understanding Aid, written by the same authors as this
computerized project. Option A is for students who have not used the
Systems Understanding Aid before. Option B is for students who have
completed the Systems Understanding Aid before using Transactions
List A (Document No. 1). Option C is for students who have completed
the Systems Understanding Aid before using Transactions List B
(Document No. 1).
Your Instructor has chosen Option A for you to perform and is handing
out this set of materials as an alternative transaction set to that in the
Instructions & Assignments book included in your Computerized
Accounting Using Microsoft Great Plains Dynamics package. You are to
replace pages 4-3 through 4-24 in your Instructions & Assignments
book with these handout pages, and perform these alternative Chapter
4 transactions and procedures instead of those listed in Chapter 4 of
the book.
Option A
Introduction............................................................................4-3/4-4
Perform Maintenance for Inventory Sales Prices and Costs. . .4-4/4-5
Record December 16-31 Transactions and Perform
Related Maintenance........................................................4-5/4-12
Perform December 2001 Month-end Procedures................4-12/4-15
Record 2001 Year-end Adjusting Entries............................4-16/4-19
Print Financial Statements and Other Reports...................4-19/4-20
Perform Year-end Closing Procedures.........................................4-20
Check Figures (4 pages in Instr. & Assigns. Book)..............4-21/4-22
Option A
Introduction
If, at any time, you decide that you want to start the
chapter over, you may do so by uninstalling and reinstalling
the Dynamics software following the instructions in Chapter
1. You may want to do so if you have made errors that are
too difficult to correct or if you believe that you do not
understand the material in this chapter.
Chapter 4/Option A
4-3
3. Reference book. Open the Reference book to the
appropriate pages for the transaction you are
recording or other activity you are doing and follow
the instructions. In some cases, you will not have
practiced using a Reference book section. You
should not be concerned about this lack of practice.
4. Dynamics software.
Waren Distributing, Inc. is a wholesaler that sells small
appliances. Waren’s accountant has recorded all transactions
for the year ended 12-31-01 through December 15, 2001
using Dynamics. For this assignment, you will do the
following using Dynamics:
In this section, you will compare the selling price and cost
of each product to the amounts included in Dynamics and
update Dynamics for any differences.
Chapter 4/Option A
4-4
If you are not already working in Dynamics, open the
Dynamics program.
Open Waren Distributing, Inc.
Perform maintenance for inventory sales prices and costs
for each inventory item, following the guidance on page
132 of the Reference book. Be sure to save each
inventory item changed before proceeding to the next
inventory item.
PRICE AND COST LIST
AS OF DECEMBER 15, 2001
Chapter 4/Option A
4-7
distribution accounts are correct for Waren’s December 16-31
transactions unless otherwise noted on pages 4-7 to 4-12.
The following is background information that you will need to record
Waren’s December 16-31 transactions.
Bank
Waren uses only one bank, First American Bank & Trust, for all
deposits and checks, including payroll.
Inventory Method
Chapter 4/Option A
4-9
WAREN DISTRIBUTING TRANSACTIONS FOR DECEMBER 16-31,
2001
Transaction# December
Chapter 4/Option A
4-10
• After recording the cash receipt, record the deposit into
the bank on the same day using the Bank Deposit Entry
window (see pages 46-49 of the Reference book).
Chapter 4/Option A
4-11
No. 335, along with invoice #18719. The payment terms on
the invoice are 2/10, Net 30. All merchandise listed on the
purchase order was delivered in good condition and in the
quantities ordered, except that only 80 can openers (Item No.
CO-22) were received. The total of the invoice is $19,155.
The goods were placed immediately in the inventory
warehouse.
Chapter 4/Option A
4-12
$3,200 from Bertram Appliance in partial payment of the
remaining amount (after sales return) on invoice No. 728.
Chapter 4/Option A
4-13
purchase order No. 334 were received in good condition and
taken to the warehouse.
Regular Overtim
Employe Hours e
e Hours
Jim 88 8.73
Adams
Nancy 88 9.09
Ford
Chapter 4/Option A
4-14
15 31 Receive goods from a purchase order and add a fixed
asset record through maintenance: Received a computer
from Chicago Office Supply ordered on Waren’s purchase
order No. 332, which is shown as an open purchase order in
Dynamics. Also received vendor’s invoice No. 2305 from
Chicago Office Supply, totaling $2,288 including sales tax of
$88. The payment terms on the invoice are “Upon receipt.”
The computer was received in new and undamaged condition
in the warehouse. The estimated useful life is 5 years with no
salvage value. After it was unpacked and tested, it was taken
directly to the office. It was not paid for.
Chapter 4/Option A
4-15
Perform December 2001 Month-end Procedures
Chapter 4/Option A
4-16
Prepare the December Bank Reconciliation
Chapter 4/Option A
4-17
• The following checks have not cleared the bank as of
December 31: check #s 217, 257, 258, 259, 260,
261, and 262.
• The December 24 cash receipts from Bertram
Appliance and Redwood Fixtures have not cleared the
bank as of December 31.
• A service charge of $28.50 is included on the
December bank statement. Note: The bank service
charge should be posted to account #41000 – Other
operating expense.
Chapter 4/Option A
4-18
Post December 16 – 31 Transactions to the General ledger
Chapter 4/Option A
4-19
Card. Note: Due to a small font size, you cannot view the
trial balance numbers on the screen before printing.
Chapter 4/Option A
4-20
Item Description Perpetual Physical Count
No. Records
CO-22 Can opener 30 30
3 6
EK-48 Electric knife 32 31
2 7
SD-21 Smoke 16 15
detector 6 6
Chapter 4/Option A
4-21
you should record the remaining four year-end adjusting
entries through the Transaction Entry window. Treat each
entry as a separate transaction.
Chapter 4/Option A
4-22
• Use the Reports function in Dynamics to determine
annual net sales from the income statement. Be sure
the current date on the Dynamics main window is
12/31/01 before opening the report window (click
on date, then change date on pop-up window).
Chapter 4/Option A
4-23
The trial balance on page 4-22 shows the correct
balances in all general ledger accounts after the year-end
adjusting entries are recorded.
• Balance sheet
• Statement of income and retained earnings
• General journal (cross-reference report by journal
entry) for December
• Account receivable aged trial balance
• Accounts payable aged trial balance
• Inventory stock status report as of 12-31-01
• Employee earnings register for 2001
• Depreciation ledger
Chapter 4/Option A
4-24
Print the following custom reports for December,
following the instructions on pages 164-168 of the
Reference book.
• Sales listing
• Cash receipts listing
• Purchases listing
• Check listing
• Payroll listing
After all reports are printed, the next step is to close the
general ledger for the current year. The closing process in
Dynamics closes all income statement accounts to the
retained earnings account and sets up the new fiscal year for
Waren.
Chapter 4/Option A
4-25