Unique Global Imports Simulation. Helpful Hints

Unique Global Imports Simulation Helpful Hints FORM JOURNAL 1 Sales 2 Purchases 3 Cash Payments 4 Sales 5 Purchases 6 Cash Payments A-R Bank Statement Refer to page 124 to 125 in the textbook Additional Information Step 1: Check stubs are on pages 3 and 4 (packet of printed forms, blue and white forms) Compare the check number on the checks stubs to the check numbers on the bank statement (last page of source documents Form R). The check numbers that are NOT on the bank statement are outstanding checks. Remember the checks that you have already wrote in the check book (checks # 902 and 903). There is a total of five outstanding checks. Record the outstanding checks on the bank reconciliation form (page 17 of the printed forms, right side bottom) Step 2 Do the same as above for the deposits that are written on the check stubs. Record the outstanding deposit slips on the bank reconciliation form (right side, top) Step 3 Refer to textbook page 125 to prepare the bank statement. Remember to record the bank charges from the bank statement on the left side of the bank reconciliation form. There are two bank charges: Service charge (abbreviated SC) Credit Card Fee (abbreviated CC) Step 4 Record the bank service charges on check stub #904, refer to

check stub #884 as a model. 7 and 8 Cash Payments Bank service charge = miscellaneous fee Credit Card Fee = Credit Card Fee Expense Document # Memorandum # 9 Cash receipts 10 Cash receipts 11 Sales 12 Cash payments 13 Purchases 14 Cash Receipts Journalize the Total Sales, Sales Tax, and Cash Debit Refer to pages 277 to 279 in textbook 15 Deposit Slip Currency and Coin is the Total Cash from the terminal summary The checks that are to be deposited and listed on the deposit slip are the two checks received thus far: look in source documents or refer to cash receipts journal (Receipt # 453 and Receipt # 454). You can skip endorsement of the checks. Total the deposit. Write the deposit on check stub # 905. Total the credit cards sales and also record that deposit on the check stub #905 (credit cards sales are automatically deposited in the checking account but you have to write them on the paycheck stub to have the correct balance) Record the deposits exactly as they are modeled in the instruction booklet, the numbers are exactly the same. 16 Sales 17 Purchase 18 Cash Receipts 19 General (page 255 in the textbook) 20 Cash Receipts (CR) 21 Cash Payments (CP) 22 General (G) refer to page 406 in the textbook 23 CP (account is advertising expense) 24 Sales (S) 25 G (refer to page 108 in textbook) 26 CR

27 S 28 CP Replenishing Petty Cash, Check is made out to cash (to journalize refer to page 136 and 249 in the text book) Note: there is no cash short or over 29 CR Follow same procedures as forms 14 and 15 30 Same as above Note: There are three checks to be deposited 31 P 32 CR 33 P 34 CP 35 CP (refer to textbook page 245) 36 CR 37 CP 38 S 39 CR 40 P 41 CP 42 CP (P845 is form 17) 43 S 44 CP (refer to textbook page 385) Issue two checks: State National Bank, check #913: Journalize as follows Debit account Employee Income State Payable $1120.00 and credit cash column $3716.76 (same line); Next line: Debit account Social Security Tax Payable $2104.57; Next Line: Debit Medicare Tax Payable $492.19. State Tax Department, check #914: Debit Sales Tax payable $93770.7 and credit cash column $93770.70 45 CP (miscellaneous expense) 46 P

47 Payroll Records: Refer to page 343 357 (chapter 12) Complete the payroll register for payroll period 12-15 and the earning records for each employee. Write a check for Payroll for the amount of the total net pay for all employees, check #916 Journalize this in the Cash Payments Journal as follows, refer to textbook page 371. Debit account Salary Expense $8573.55 Credit Employee Income Tax Payable $572.00 Credit Social Security Tax Payable $531.55 Credit Medicare Tax Payable $124.32 Credit US Savings Bonds Payable $55.00 Credit United Way Donations Payable $25.00 48 General Journal: Refer to step by step directions in instruction booklet and page 376 in the Text Book. Employers have to pay Social Security Tax (6.2%) and Medicare tax (1.45%) just like employees they pay the same amount as the employees Employers also have to pay federal (.8%) and state unemployment tax (5.4%) Payroll Tax Expense: debit 696.79 SS Tax Payable credit 531.55 Medicare Tax Payable credit 124.32 Unemployment Tax Payable Federal credit 5.28 Unemployment Tax payable State credit 35.64 49 S Journal Totals Remember the bottom of the page is titled; Brought Forward Top of new page is: Carried Forward Check point: Verify Totals: General Debit: $24175.21 General Credit: $1307.87 Accounts Payable: $16331.00 Purchases Discount Credit: $36.90 Cash Credit: $39161.44

Cash Proof Use blue printed form 1. Beginning Cash Balance: from check book 2. Cash Receipts per journals: up to 12/13/12 in CRJ (include Elana Ramos) 3. TOTAL above amounts 4. Total cash payments journal cash credit column 5. Subtract 4 above from 3 above 6. Check stub: balance brought forward from checks stub 917 7. Checks in CRJ that have not been deposited (since last TS was journalized (Hint 3 checks, doc no. R458,459,460) 8. Add 6 and 7 IF LINE 8 AND LINE 5 ARE THE SAME YOU HAVE PROVED CASH CONGRATULATIONS! 50 CP 51 CP 52 CR 53 S 54 S 55 CP 56 CR 57 CP (USE BALANCE DUE FOR AMOUNT) 58 CR 59 CR: This is the third time you are journalizing a terminal summary, refer back to form 29 and 14 CR 60 Deposit slip and check stub / no journal Refer back to Forms 15 and 30 There are six checks to be deposited and remember the cash amount from the terminal summary (form 59) The six checks are listed in your Cash Receipts Journal after the doc number TS56 61 CR 62 CP (same as form 35 refer to CP journal: 12/2 Islander and Form 42, CP journal: 12/14 Savannah.) P846 is form 31 with a price of 549.54, calculate the 2 % discount and write check for (549.54 2% discount) 63 P 64 P 65 CP

66 CR 67 CP 68 S 69 S 70 CR 71 P 72 GENERAL this is a purchases credit, refer to page 257 in text book 73 S 74 CP: acct is utilities expense and check is made out to TTS 75 CR: CR: This is the fourth time you are journalizing a terminal summary, refer back to form 29, 14, and 59. 76 Deposit Slip and Check stub / no journal Refer to Forms 15, 30, and 60 77 CP: Refer to page 407 in the text book 78 CR 79 General: Sales Credit, refer to page 286 in the text book 80 CP: look in purchases journal on 12/21 for P851 balance amount is $3075.00. Look in General journal on 12/24 for DM22, amt = $300.00. Take purchase invoice balance minus debit amount = amount owed (Accounts Payable Debit column). Then the multiply the amounted owed times 2 % to get the purchases discount amount. Then subtract discount from amount owed to get balance due (amount of check). 81 CP 82 CR: Note: do nothing special with regard to the credit memorandum because it has already been journalized. 83 S 84 CP and Record on Check stub refer to check stub 904. 85 CP and Record on Check stub refer to check stub 904 86 CP refer to Form 28 (text book pages 136 and 249 in the text book or the back of your QRG) NOTE: this time there is a cash shortage 87 CP refer to Form 43 To check your work, I will provide totals for the 12-31 payroll register: Total Earnings: $8517.30 Deductions: Total Federal income tax: $563.00 Total Social Security Tax: $528.09

Total Medicare Tax: $123.50 Health Insurance: $288.00 Other total: 80.00 (remember this amount is journalized between two accounts U.S. savings bonds payable and United Way donations payable, you have to figure out the totals for each account 88 General journal: Refer to form 48 in general journal 12/15 Totals are as follows: Social Security Tax Payable $528.09 Medicare Tax Payable $123.50 Unemployment Tax Payable Federal: $5.64 Unemployment Tax Payable State: $38.07 89&90 Fourth time doing these forms I know you got it WHEW! YOU ARE DONE CONGRATULATIONS! THE FINAL EXAM IS AN AUDIT TEST OF THE SIMULAITION ALL POSTING ON THE SIMULATION IS EXTRA CREDIT;