1)Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal).An example is shown for each special journal.

2)Post to the appropriate subledgers and general ledger accounts.

Hint: if there are several transactions to the same account in a special journal, you only have to transfer the total to the general ledger.

3) trial balance

4)income statement

5) balance sheet.

6)schedules of AR and AP to test the accuracy of the subledgers

Problem work 25 points The Manual Accounting Process Instructions for completing handout and quiz on WebCT 1) Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal). An example is shown for each special journal. a) Hint: before you begin, go down the list of transaction and decide what journal it goes in. 2) Post to the appropriate subledgers and general ledger accounts. a) Hint: use the post column to keep yourself organized as to which amounts you have transferred to the ledgers. b) Hint: if there are several transactions to the same account in a special journal, you only have to transfer the total to the general ledger. 3) Prepare a trial balance 4) Prepare an income statement 5) Prepare a balance sheet. 6) Prepare schedules of AR and AP to test the accuracy of the subledgers 7) Answer quiz questions on D2L (enter any monetary amounts using numbers only format, e.g. 1500.99 not $1,599.99, make sure to enter two decimal places for monetary amounts even if the answer is an even number). Also, round any calculated amounts to two decimal places, as needed. Example of Manual Accounting (The bad old days) (Hint: You may want to start by identifying transactions that are cash/check received or cash/check paid as those belong on the cash journals. Also think about transactions that belong in the general journal.) The Manson Company completed these transactions during January of the current year: January 1, Began business by selling stock for $500,000.00. January 1, Rented office space for 1 month using check number 800 for $10,000.00 to Smithlord Properties. (Example posted to cash disbursement journal). January 2, Purchased office furniture and equipment on credit from Mckay Company, invoice mck66 dated January 9, terms 2/10, net 30, $20,499.11. (Example posted to purchases journal). January 2, Sold merchandise on credit to John Nelson. Invoice No. 324, $7,965.37. (Terms for all credit sales are 2/10, n/30). (Example posted to sales journal). January 3, Purchased on credit from Cosair Company office supplies, $1224.54, invoice xx12 dated January 3, due in 30 days. Supplies are expected to last for approximately 4 months. January 3, Received merchandise and invoice F1 dated Jan 1, terms 2/10, n/30; from Farnswood Company, $213,022.22. January 3, Sold merchandise on credit to Thomas Zak, Invoice no 325, $4,666.88. January 10, Sent Farnswood Company Check no. 876 in payment of its January 1 invoice less the discount. January 10, Sold merchandise on credit to Margo Edwards, Invoice no. 326, $8,375.21. January 11. Sold merchandise on credit to Ken Duclose, Invoice no. 327, $5,554.23 January 12, Received payment from John Nelson for the January 2 sales less the discount check number 4444. (Example posted to cash receipts journal). January 13, Received payment from Thomas Zak for the January 3 sales less the discount check number 12345. January 15, Issued check no. 877 payable to payroll, in payment of sales salaries for the first half of the month, $7,950.00. Cashed the check and paid the employees. January 15, Cash sales for the first half of the month were $77,341.22. (Normally cash sales are posted daily, but for the purposes of this problem you are going to post them all at once.) January 19, Received payment from Margo Edwards for the sale of January 10 less the discount check number 8888. January 20, Received merchandise and invoice F2 dated Jan 19, terms 2/10, n/30; from Farnswood Company, $113,044.44. January 27, Sold merchandise on credit to Margo Edwards, Invoice no. 328, $6,458.22 January 28, Sold merchandise on credit to Thomas Zak, Invoice no 329, $26,544.11. January 29, Sold merchandise on credit to Heather Terry, Invoice no 330, $11,123.45. January 31, Issued check no. 879 payable to payroll, in payment of sales salaries for the second half of the month, $7,950.00. Cashed the check and paid the employees. January 31, Cash sales for the second half of the month were $72,345.00. (Normally cash sales are posted daily, but for the purposes of this problem, you are going to post them all at once.) January 31, Paid for utilities (water, power, etc) to Unified Utilities Inc. $1,454.77 check number 880. January 31, Paid for advertising from AdsRus for January $10,500.00 check number 881 January 31, Estimated the expected life of the office furniture and equipment to be 5 years with no salvage value. Manson Company will take a full month of straight-line depreciation in January. January 31, Counted ending inventory valued at $ 196,312.00. January 31, Counted office supplies and determined that approximately $750.00 worth of supplies were left and that the rest had been used in January. General Journal Date Description/account Jan 1 Cash Jan 1 Post Debit Credit 500000.00 Common Stock 500000.00 (Issue of stock for $ 500,000.00) Jan 1 Office rent Jan 1 10000.00 Bank 10000.00 (Rent paid for 1 month) Jan 2 Office Furniture & Equipment Jan 2 20499.11 McKay Company 20499.11 (Assets purchased on credit) Jan 2 John Nelson 7965.37 Sales 7965.37 (Credit sale of Merchandise) Jan 3 Office Supplies Jan 3 1224.54 Cosair Company 1224.54 (Credit purchase of office supplies) Jan 3 Merchandise purchases Jan 3 213022.22 Farnswood Company 213022.22 (Credit purchase of merchandise) Jan 3 Thomas Zak 4666.88 Jan 3 Jan 10 Jan 10 Jan 10 Jan 10 Jan 10 Sales (Credit sales of Merchandise to Thomas Zak) Farnswood Company 4666.88 213022.22 Bank 208761.78 Cash discount 4260.44 (Payment made less 2% Cash discount) Margo Edwards 8375.21 Sales 8375.21 (Credit sales of Merchandise) Jan 11 Jan 11 Ken Duclose 5554.23 Sales 5554.23 (Credit sales of Merchandise) Jan 12 Jan 12 Jan 12 Jan 13 Jan 13 Jan 13 Jan 15 Jan 15 Bank Cash discount 7806.06 159.31 John Nelson 7965.37 (Payment received after 2% cash discount) Bank 4573.54 Cash discount 93.34 Thomas Zak (Payment received after 2% cash discount) Cash Bank 4666.88 7950.00 7950.00 (Check # 877 deposited/cashed) Jan 15 Jan 15 Sales salaries 7950.00 Cash 7950.00 (Salaries paid to sales staff) Jan 15 Jan 15 Cash 77341.22 Sales 77341.22 (1st half month sales recorded) Jan 19 Jan 19 Jan 19 Jan 20 Jan 20 Jan 27 Jan 27 Bank 8207.71 Discount 167.50 Margo Edwards (Payment received after 2% cash discount) Merchandise Purchases 8375.21 113044.44 Farnwood Company (Credit purchases from Farnwood company) Margo Edwards 113044.44 6458.22 Sales 6458.22 (Credit sale of merchandise) Jan 28 Jan 28 Thomas Zak 26544.11 Sales 26544.11 (Credit sale of merchandise) Jan 29 Jan 29 Heather Terry Sales 11123.45 11123.45 (Credit sale of merchandise) Jan 31 Jan 31 Cash 7950.00 Bank 7950.00 (Check # 879 cashed/deposited) Jan 31 Jan 31 Sales salaries 7950.00 Cash 7950.00 (Salaries paid to sales staff) Jan 31 Jan 31 Cash 72345.00 Sales 72345.00 (2nd half sales recorded) Jan 31 Jan 31 Utilities expense 1454.77 Bank 1454.77 (Paid utilities expenses check # 880) Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Advertising expense 10500.00 Bank (Paid advertising expenses check # 881) Depreciation expense 10500.00 341.65 Accumulated depreciation (Provision for depreciation of office furniture $20499.11/60 months) Inventory Purchases account (Recording of inventory in books) 341.65 196312.00 196312.00 Jan 31 Jan 31 Stock of office supplies Office supplies expense (Recording of office supplies expense) 750.00 750.00 Sales Journal Date Customer Invoice Number Terms Amount Post S/L (2/10, net 30 unless otherwise noted) 1/2 John Nelson 324 7965.37 1/3 Thomas Zak 325 4666.88 1/10 Margo Edwards 326 8375.21 1/11 Ken Duclose 327 5554.23 1/15 Cash sales 1/27 Margo Edwards 328 6458.22 1/28 Thomas Zak 329 26544.11 1/29 Heather Terry 330 11123.45 1/31 Cash sales 72345.00 Total 220373.70 Date 1/12 Cash Amount 7806.06 77341.22 Check Number Cash Receipts Journal AR Discounts 4444 7965.37 159.31 Customer Numb Nelson Post SL Cash Sales Dat e 1/2 Vendor Invoic e Date McKa y 1/9 Invoice Number mck66 Purchases Journal Terms Purchase (2/10, net s 30 unless Debit otherwise noted) Office Supplie s Debit Other Accounts Debit AP Credit Furniture & equipment Due 2/8 20499.11 20499.11 Cash Disbursements Journal Date Check Number Payee Jan 1 800 Smithlord AP Debit Account Amount Debited Rent Exp 10000.00 Purchas e Discoun t Taken Cash Amount 10000.00 Post S/L Post S/L General Ledger Cash AD-Equipment Sales Payroll Expense AR AP Sales Discounts Depreciation Expense Inventory Notes Payable Purchase Discounts Supplies Expense Purchases Common Stock Utilities Expense COGS Furn and Equipment Supplies Rent Expense Advertising expense Accounts Receivable Sub-Ledger Nelson Zak Duclose Terry Edwards Accounts Payable Sub-Ledger Farnsworth Corsair McKay Trial Balance Account Debit Capital Credit 500000.00 Furniture and equipment 20157.46 Office supplies 750.00 Salary 15900 Purchases 326066.66 Cash 423656.96 Discount allowed 420.15 Office supplies expense 474.54 Depreciation 341.65 Sales 220373.69 Discount received 4260.44 Miscellaneous expense 1454.77 Advertisement 10500.00 Rent 10000.00 Accounts payable 134768.09 Accounts receivable 49680.01 Totals 859402.20 859402.20 Income Statement: Balance Sheet: Schedule of AR Schedule of AP