Work4Me - PKL Software

Algorithmic Work4Me – Problem 2

1st Web-Based Edition, Copyright © 2015 – 2020 PKL Software, Incorporated. All rights reserved. January 5, 2020

Work4Me

Algorithmic Version

1st Web-Based Edition

Problem Two

Daily Journal Entries

for

Abbey Accounting Services, Incorporated



CHART OF ACCOUNTS

ABBEY BOOKKEEPING SERVICES, INCORPORATED

ASSETS

101 Cash

105 Accounts Receivable

121 Prepaid Rent

122 Prepaid Insurance

127 Office Supplies

131 Office Equipment

139 Automobiles

LIABILITIES

201 Accounts Payable

STOCKHOLDERS’ EQUITY

301 Common Stock

305 Retained Earnings

REVENUE

401 Bookkeeping Fees Earned

OPERATING EXPENSES

602 Office Supplies Expense

604 Vehicle Operating Expense

605 Advertising Expense

606 Delivery Expense

621 Rent Expense

622 Insurance Expense

625 Electric and Gas Expense

626 Telephone Expense

628 License Expense

635 Miscellaneous Expense



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 Problem Check

Figures, 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, Pull Down menu for account entry, C key

for copying credit amounts, and the V key to verify your completed transaction (the CV

key combination). 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.



TRANSACTIONS FOR APRIL 1-30 Student Analysis

April 1

Abbey Bookkeeping Service, Inc. began its business 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 40000 (without a comma and $ 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 40000 (without a comma and $ 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 Ledger 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.




April 1

A check for $900 was issued 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 101 for Cash, tab the Credit column and enter 900.

5. Correct any errors, 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

Ledger 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.

******************************************************************************

Viewing 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, click on OK, select Daily JE, click on OK, and then click on Clear

Screen.




April 1

Business insurance coverage for the month of April was purchased

for $250.00 cash. (Remember to enter D to repeat the date.)

1. Enter 01 for the date or enter the letter D to repeat the date of a previous entry.

2. Enter the correct debit account and the amount. Remember, you can use the pull-down

(small arrow) and select the account.

3. Enter the correct credit account and enter 250.

4. 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 A check for $130.00 was issued to purchase a business license.

******************************************************

April 3

A check was issued for $3,250.00 to purchase office equipment

Enter O3 for the date or enter D to repeat the date of a previous

entry.

******************************************************

April 3

Office equipment costing $2,150.00 and office supplies listed at

$180.50 were purchased on account (20-day credit) from Roper

Office Equipment and Supply. (Remember to select the C key to

copy the credit entry amount.)

This is a compound entry with two debits and a single credit.




April 5

A check for $1,975.00 was received for bookkeeping services

completed for a client.

******************************************************

April 7 A $460.00 check was issued for April advertising.

******************************************************

April 8 A client was billed for $775.00 for bookkeeping services. The

client is extended 15-day credit terms.

******************************************************

April 10

A used car to be used for business operations was purchased for

$7,700.00 cash.

******************************************************

April 12 A new computer costing $3,200.00 was purchased on credit from

Computer Express of Granite Bay.

******************************************************

April 13

Office supplies for $99.90 were purchased on account from

Zikmeister Office Supply. The company offers 10-day credit

terms.




April 14

A check for $3,200.00 was received, today, from a client for

bookkeeping services.

******************************************************

April 15 Bookkeeping services were performed and billed to the client for

$675.00. The client is extended 15-days credit terms.

******************************************************

April 17

A check was issued for $66.50 to Bart’s Chevron Services for gas

and a tire repair.

******************************************************

April 20 A check for $28.00 was issued for postage stamps (office

supplies).

******************************************************

April 22 A check for $15.00 was issued to Gold Run Courier Services to

deliver completed documents to a client.

******************************************************

April 23

A check for $775.00 was received from a client as payment in full

on her account balance that is due today.




April 23

A check for $99.90 was issued as payment, in full, on the

Zikmeister Office Supply account that is now due.

******************************************************

April 23

A check for $65 was issued to the Dozier Printing Services for

color copies of an advertising brochure.

******************************************************

April 23

A check for $2,330.50 was issued as payment, in full, for the

accounts payable balance owed to Roper Office Equipment and

Supply Company.

******************************************************

April 25 Bookkeeping services of $650.00 were completed for a client who

paid the full amount with a check.

******************************************************

April 27 An insurance policy to insure the company assets for the months of

May, June and July was purchased for $1,800.00 cash.

******************************************************

April 29 A check for $235.40 was issued in payment for the Newcastle

Phone Company telephone bill.

******************************************************

April 30 A check for $675.00 was received from a credit customer as a

payment on the customer’s account.




April 30

A check for $3,300.00 was issued as a prepayment of the rent for

May, June and July.

******************************************************************************

This Completes the Transactions for Problem Two – Daily Journal Entries.



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.

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. Print the trial balance.

2. Move the pointer to Check Figures in the Menu Bar. Select Problem Check Figures

and Print the Check Figures for Problem Two - Daily Journal Entries

If ‘Your Balances” do not match the “Correct Balances” of the selected account totals in the

Check Figures for Problem 2, you must correct the unmatched balances before answering the

evaluation questions. Any account that does not match provides a clue to the transaction(s) that

should be reviewed.

If you’ve not printed How to Correct Journal Entries, move the pointer to Support and select

How to Correct Journal Entries. Print the instructions for future reference.

If ‘Your Balances” match the “Correct Balances” for the selected account totals in the Check

Figures for Problem 2, then complete the instructions below, and answer the questions on the

examination on the last page of this manual.

3. Move the pointer to Journal/Ledgers/Statements in the Menu Bar, move down to the

General Ledger selection and click. Click on the Ledger Card button. The Cash ledger

card will appear on the screen. Print the Cash ledger card.

4. 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.

5. Using the same selection and print routine, print the ledger cards for 201, Accounts

Payable and 401, Bookkeeping Fees Earned.

6. 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.

7. When all of the required documents have been printed, you have completed your computer

work for Problem Two. To exit this problem, click on Log Out. From the PKL software

Home Page you may select another problem or exit the website by clicking on the Close

button.

8. Using your printed documents, answer the questions to the examination on the next page.

After you have filled in the answers, log in to Problem 2. Daily Journal Entries. Move the

pointer to Evaluations and complete Exam 2: Daily Journal Entries. You may print the

examination to hand in to your professor or, if required, email your examination to your

professor.



ALGORITHMIC WORK4ME

PROBLEM TWO NAME_______________________________________

DAILY JOURNAL ENTRIES CLASS DAY AND TIME__________DATE________

1. Do the totals on your Trial Balance match the figures shown in the

Check Figures for Problem Two – Daily Journal Entries?

A) Yes

B) No

______________

2. What is the correct balance of the Cash account at the close of

business on April 3?

$_____________

3. At the close of business on April 10, 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?

A) Yes

B) No

______________

5. What is the total amount owed to Abbey Bookkeeping Services by

clients?

A) $ 775.00

B) $ 675.00

C) $ 00.00

D) $1,450.00

_____________

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 13? 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?

Round your answer to the nearest hundredth (two decimal

places). Example .523457 = 52.35%. On the computer

examination DO NOT write “percent” or use the percent sign in

your answer.

____________%

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?

$_____________

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