Read Pages 3 Through 12 Stopping At Waren's Month-End Proced

Read Pages 3 Through 12 Stopping At Warens Monthend Procedures

Read pages 3 through 12 (stopping at Waren’s Month-End Procedures) in the “Instructions, Flowcharts, and Ledgers” book. Follow Option 1 and first process the Revenue Cycle transactions and then the Expenditure Cycle transactions. Stop before the Month-End Procedures, i.e., do not perform the month-end and year-end procedures.

Use Transaction List A (Document No. 1 with an A at the bottom left corner). First complete the revenue transactions: 1, 2, 5, 6, 10, 12, 13, 14, 15, followed by the expenditure transactions: 3, 4, 7, 8, 9, 11, 16, 17, 18, 19, 20.

Try to get most of the information on the source documents correct, but do not spend a lot of time on this. Focus mostly on completing control activities correctly, e.g., signatures on source documents and attaching source documents together, and recording information in the journals and ledgers correctly.

When working through the case, make sure to:

  • Include all the information provided in the Transaction List.
  • Perform all steps indicated in the flowchart related to the transaction (including updating of journals and ledgers as indicated by the flowchart).
  • When completing source documents, use already completed documents as examples.
  • When recording transactions in journals and posting to ledgers, use previous entries in respective journal and ledger as an aid.
  • Use your knowledge of accounting! For example, what are the journal entries when a sale is made on credit and what is the journal entry when the customer later pays within the discount period?

Paper For Above instruction

This assignment tasks students with processing a series of revenue and expenditure transactions based on specific instructions from a provided case scenario. The initial step involves careful reading of pages 3 through 12 in the “Instructions, Flowcharts, and Ledgers” textbook, stopping exactly at Waren’s Month-End Procedures. This ensures comprehension of the fundamental workflow before engaging in detailed transaction processing. The process follows Option 1, which prioritizes the sequential recording of revenue cycle transactions followed by expenditure cycle activities, deliberately omitting the month-end and year-end procedures to focus on core transaction recording.

The primary tool for this exercise is Transaction List A, designated as Document No. 1 with an ‘A’ marker. It details a series of transactions numbered 1, 2, 5, 6, 10, 12, 13, 14, 15 for the revenue cycle and transactions 3, 4, 7, 8, 9, 11, 16, 17, 18, 19, 20 for the expenditure cycle. In processing these, students should aim for accuracy in source document completion, ensuring essential control activities such as signatures and proper attachment are observed, even if some details need not be overly precise. Attention must be given to accurately recording transaction details into appropriate journals—sales journal, cash receipts journal, purchases journal, cash disbursements journal, etc.—and then posting these entries to respective ledger accounts.

In executing the transaction processing, students should simulate the flowchart steps linked to each transaction, updating journals and ledgers accordingly. Existing completed source documents can serve as templates to facilitate consistency. When recording transactions, students should leverage prior journal and ledger entries to ensure coherence and accuracy, particularly with complex entries such as credit sales and subsequent customer payments.

For example, understanding the correct journal entries for sales on credit (debit Accounts Receivable, credit Sales) and for subsequent payments within the discount period (debit Cash, debit Sales Discount if applicable, credit Accounts Receivable) is crucial. The emphasis is on applying proper accounting principles consistently throughout the exercise.

References

  • Rezaee, Z., & Elzamly, S. (2020). Financial Accounting with Practice Set. Pearson Education.
  • Horngren, C. T., Harrison, W. T., & Oliver, M. S. (2018). Financial & Managerial Accounting. Pearson.
  • Gibson, C. H. (2021). Financial Reporting & Analysis. Cengage Learning.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Financial Accounting. Wiley.
  • Benston, G. J., & Hartgraves, A. L. (2019). Accounting Information Systems. Prentice Hall.
  • Romney, M. B., & Steinbart, P. J. (2020). Accounting Information Systems. Pearson.
  • Larson, K. D., & Gray, C. (2019). Ethics in Accounting: A Decision-Making Approach. McGraw-Hill Education.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2021). Financial Accounting Theory and Analysis. Wiley.
  • Simons, R. (2021). Financial Accounting Principles. McGraw-Hill Education.
  • Stice, J., & Stice, E. (2020). Intermediate Accounting. Cengage Learning.

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