Does anybody have the solutions for Systems Understanding Aid 9th edition, transaction B (the green one)?

Document No. 1 Transactions List December 16-31, 2017 Complete each of the following transactions in accordance with the seven-step process on pages 11-12 of the Instructions, Flowcharts, and Ledgers book (step 5). Remember the importance of the systems flowcharts on pages 18-24 for details as to (a) documents to prepare, (b) approvals and other internal control procedures, (c) accounting entries, and (d) filing. You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Some of the following events require the preparation or modification of systems documents and some do not Although systems documents accompany most business transactions, you are asked to prepare and work with only a representative sample in this project. Each event on the transactions list includes one of three symbols. which determine whether documents from the loose document set in this project must be prepared or used: Yes You are required to prepare or modify documents from the loose document set for this event. An accounting entry may or may not be required. No You are not required to prepare or modify documents from the loose document set because documents would not normally be prepared or modified for this type of event. An accounting entry is required, with one exception: the December 20 change in pay rates. You are not required to prepare or modify documents from the loose document set, although this type of event would normally require you to do so. These events are included to provide additional practice in recording transactions. An accounting entry is required. like this. Hints are provided in boxed areas like this. December Yes 18 Received validated deposit receipr (Doc. No. 11) from the bank for $7,931.96 deposit made December 14. . Follow flowchart on page 21. No recording occurs at this time. Cash receipts prelist is Doc. No. 9. File Doc. No. 9 and Doc. No. 11 in the Temporary file tab. December ing Goods, using purchase Yes 18 Ordered the following inventory on account from Velocity Sporting Goods order No. 328 (Doc. No. 16). Units 80 Description Basketball pole pad Basketball bag Portable inflation pump Trainer's first aid kit 30 Vendor address: Freight carrier: Freight charges: Allowances: 1285 Colgrove Avenue, Pierre, SD 57501 Interstate Motor Freight Collect (ie.. paid by Waren Sports Supply) None . Follow flowchart on page 22 Use purchase order No. 325 (Doc. No. 16) as a guide. Use the price list (Doc. No. 3). No receiving or recording occurs at this point for this transaction. Tear document apart and file, following the flowchart guidance. Yes 18 Borrowed $60,000 from First American Bank and Trust by issuing a two-year note payable (Doc. No. 14) with a stated annual interest rate of 5%. Check No. 545 (Doc. No. 8) for $60,000 was received from the bank and deposited. Reviewed the terms and conditions of the note and signed it (Ray Kramer) as the borrower. Restrictively endorse means to write the following on the back of the check: "For deposit only. Waren Sports Supply." See flowchart, page 21. for recording and depositing. Detach the bottom portion of the check and file in the Shipping/Banking file tab. File the note in the Shipping/Banking file tab. Yes 19 Received customer purchase order No. 37225 (Doc. No. 4) in the mail from University of Southern Iowa (USI), approved their credit and shipped the goods. All goods ordered were shipped, except that only 56 shoulder pad sets were available for shipment Carrier & number: Freight charges: Route: Truck & driver: Freight rate: Shipment: Allied Trucking: Carrier number 2154 FOB shipping point; Billed to buyer (i.e.. paid by USI) Express Truck 2961XZ, John Arens $19.00 per 100 lbs. 3 cartons/goal and rim sets @ 40 lbs./carton 5 cartons/backboards @ 150 lbs./carton 7 cartons/shoulder pad sets @ 25 lbs./carton 10 cartons/football helmets 16 lbs./carton See flowchart, pages 18 and 19; follow all steps carefully. You will use several documents and record an entry in the sales journal and the accounts receivable subsidiary ledger for this transaction. For guidance in preparing the bill of lading, see pages 35-36 of the Reference book. . December Yes Received sales return request No. R8034 (Doe No. 12 in free Wien University (EWU). The request was approved and the acknowledgment copy mailed to EWU. Follow the flowchart steps on page 20. 20 No 20 Increased employee pay rates, and employees changed their federal income withholding unts, both effective December 16. There were no changes in filing status or withholding allowances New Federal Income Tax New Pay Rate Withholding Amt. Ray Kramer $3.700.00 semimonthly 5415.00 Jim Adams $22.50 per hour $223.00 Nancy Ford $18.20 per hour $ 74.00 No accounting entries are necessary, but you must update the pay rate history information in the Employee Earnings Subsidiary Ledger. 22 Yes Received merchandise from Velocity Sporting Goods as listed on purchase order No. 328. All merchandise listed on the purchase order was delivered in good condition and in the quantities ordered, except that only 76 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory warehouse. Freight carrier Interstate Motor Freight Freight bill: No. 26425 (Doc. No. 19), received with shipment . Remember to follow the flowchart on page 22. You can't record a purchase yet because the invoice hasn't been received. Yes 22 Received check No. 28564 (Doc. No. 8) from Branch College for payment in full for charge invoice No. 730, and deposited the check Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law that Stevenson College had filed bankruptcy and will be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt. No 22 Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write-off" for accounting for bad debts. Yes 26 Received all goods that Waren had authorized Eastern Wisconsin University (EWU) to return on EWU's return request No. R8034 for credit against their account balance Process and record the sales return now. Ve 1 26 Received check No. 49326 (Doc. No. 8) for $10,000 from Eastern Wisconsin University in partial payment of the remaining amount (after sales return) on charge invoice No. 729, and deposited the check - De mes finales deposit slo until you determine whet Do not finalize a deposit slip until you determine whether there are other cash receipts on the same day. December Yes 26 Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for goods ordered December 18 and received December 22. Follow the flowchart steps on page 22 Upon receiving the invoice, you can now record the purchase using the date on which Waren incurred the liability for the goods. December 22 Yes 26 Issued a check (Doc. No. 20) to Interstate Motor Freight for the amount of the freight bill (Doc. No. 19) for the Velocity Sporting Goods shipment received December 22. Follow the flowchart steps on page 23. Yes 26 Received check No. 65891 (Doc. No. 8) for $7,855 and customer purchase order No. D9794 (Doc. No. 4) in the mail from Andrews College for a cash sale. All goods ordered were shipped and the cash sale was processed and recorded. Carrier & number: Interstate Motor Freight: Carrier number 62XY404 Freight charges: Collect (i.e., paid by Andrews College) Route: Direct Truck & driver: Truck 64, Brian Ward Freight rate: $19.00 per 100 lbs. Shipment: 5 cartons/basketballs @ 35 lbs./carton 2 cartons/hip, tail, arm pad sets @ 7 lbs./carton 4 cartons/footballs @ 19 lbs./carton Start with the flowchart on page 21. No 26 Made a special promotional sale on account to Rosemont University. For the promotion, Waren agreed to a 20% reduction in the selling prices of the following items: Quantity 45 Item No. BA-054 BA-807 Description Premium aluminum bat Pitching machine Yes 26 Received office supplies from Chicago Office Supply as listed on purchase order No. 327 (Doc. No. 16), a copy of which is being held in accounting, Chicago Office Supply's vendor invoice No. 2378 (Doc. No. 18) was received with the goods. All supplies ordered were received in good condition and taken directly to the office, but the invoice was not paid, No 26 Sold a desk to Jim Adams for $250. Jim will pay this amount to Waren in January of 2018. The desk was purchased for a cost of $1,225 on September 30, 2011, along with other office furniture costing $49.525 (total purchase was $50,750). The desk was fully depreciated at the end of 2016. Add a new general ledger account on page 36. Assign it G/L #10210 - Accounts Receivable from Employees. Be sure to include this account in the proper section of Waren's 2017 financial statements. Do not be concerned that the new account is out of sequence in the G/L. Waren reorganizes its chart of accounts and G/L at the beginning of a new fiscal year. Don't forget to update the fixed asset subsidiary ledger on pages 42-43. Document No. 1 Transactions List December 16-31, 2017 Complete each of the following transactions in accordance with the seven-step process on pages 11-12 of the Instructions, Flowcharts, and Ledgers book (step 5). Remember the importance of the systems flowcharts on pages 18-24 for details as to (a) documents to prepare, (b) approvals and other internal control procedures, (c) accounting entries, and (d) filing. You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Some of the following events require the preparation or modification of systems documents and some do not Although systems documents accompany most business transactions, you are asked to prepare and work with only a representative sample in this project. Each event on the transactions list includes one of three symbols. which determine whether documents from the loose document set in this project must be prepared or used: Yes You are required to prepare or modify documents from the loose document set for this event. An accounting entry may or may not be required. No You are not required to prepare or modify documents from the loose document set because documents would not normally be prepared or modified for this type of event. An accounting entry is required, with one exception: the December 20 change in pay rates. You are not required to prepare or modify documents from the loose document set, although this type of event would normally require you to do so. These events are included to provide additional practice in recording transactions. An accounting entry is required. like this. Hints are provided in boxed areas like this. December Yes 18 Received validated deposit receipr (Doc. No. 11) from the bank for $7,931.96 deposit made December 14. . Follow flowchart on page 21. No recording occurs at this time. Cash receipts prelist is Doc. No. 9. File Doc. No. 9 and Doc. No. 11 in the Temporary file tab. December ing Goods, using purchase Yes 18 Ordered the following inventory on account from Velocity Sporting Goods order No. 328 (Doc. No. 16). Units 80 Description Basketball pole pad Basketball bag Portable inflation pump Trainer's first aid kit 30 Vendor address: Freight carrier: Freight charges: Allowances: 1285 Colgrove Avenue, Pierre, SD 57501 Interstate Motor Freight Collect (ie.. paid by Waren Sports Supply) None . Follow flowchart on page 22 Use purchase order No. 325 (Doc. No. 16) as a guide. Use the price list (Doc. No. 3). No receiving or recording occurs at this point for this transaction. Tear document apart and file, following the flowchart guidance. Yes 18 Borrowed $60,000 from First American Bank and Trust by issuing a two-year note payable (Doc. No. 14) with a stated annual interest rate of 5%. Check No. 545 (Doc. No. 8) for $60,000 was received from the bank and deposited. Reviewed the terms and conditions of the note and signed it (Ray Kramer) as the borrower. Restrictively endorse means to write the following on the back of the check: "For deposit only. Waren Sports Supply." See flowchart, page 21. for recording and depositing. Detach the bottom portion of the check and file in the Shipping/Banking file tab. File the note in the Shipping/Banking file tab. Yes 19 Received customer purchase order No. 37225 (Doc. No. 4) in the mail from University of Southern Iowa (USI), approved their credit and shipped the goods. All goods ordered were shipped, except that only 56 shoulder pad sets were available for shipment Carrier & number: Freight charges: Route: Truck & driver: Freight rate: Shipment: Allied Trucking: Carrier number 2154 FOB shipping point; Billed to buyer (i.e.. paid by USI) Express Truck 2961XZ, John Arens $19.00 per 100 lbs. 3 cartons/goal and rim sets @ 40 lbs./carton 5 cartons/backboards @ 150 lbs./carton 7 cartons/shoulder pad sets @ 25 lbs./carton 10 cartons/football helmets 16 lbs./carton See flowchart, pages 18 and 19; follow all steps carefully. You will use several documents and record an entry in the sales journal and the accounts receivable subsidiary ledger for this transaction. For guidance in preparing the bill of lading, see pages 35-36 of the Reference book. . December Yes Received sales return request No. R8034 (Doe No. 12 in free Wien University (EWU). The request was approved and the acknowledgment copy mailed to EWU. Follow the flowchart steps on page 20. 20 No 20 Increased employee pay rates, and employees changed their federal income withholding unts, both effective December 16. There were no changes in filing status or withholding allowances New Federal Income Tax New Pay Rate Withholding Amt. Ray Kramer $3.700.00 semimonthly 5415.00 Jim Adams $22.50 per hour $223.00 Nancy Ford $18.20 per hour $ 74.00 No accounting entries are necessary, but you must update the pay rate history information in the Employee Earnings Subsidiary Ledger. 22 Yes Received merchandise from Velocity Sporting Goods as listed on purchase order No. 328. All merchandise listed on the purchase order was delivered in good condition and in the quantities ordered, except that only 76 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory warehouse. Freight carrier Interstate Motor Freight Freight bill: No. 26425 (Doc. No. 19), received with shipment . Remember to follow the flowchart on page 22. You can't record a purchase yet because the invoice hasn't been received. Yes 22 Received check No. 28564 (Doc. No. 8) from Branch College for payment in full for charge invoice No. 730, and deposited the check Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law that Stevenson College had filed bankruptcy and will be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt. No 22 Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write-off" for accounting for bad debts. Yes 26 Received all goods that Waren had authorized Eastern Wisconsin University (EWU) to return on EWU's return request No. R8034 for credit against their account balance Process and record the sales return now. Ve 1 26 Received check No. 49326 (Doc. No. 8) for $10,000 from Eastern Wisconsin University in partial payment of the remaining amount (after sales return) on charge invoice No. 729, and deposited the check - De mes finales deposit slo until you determine whet Do not finalize a deposit slip until you determine whether there are other cash receipts on the same day. December Yes 26 Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for goods ordered December 18 and received December 22. Follow the flowchart steps on page 22 Upon receiving the invoice, you can now record the purchase using the date on which Waren incurred the liability for the goods. December 22 Yes 26 Issued a check (Doc. No. 20) to Interstate Motor Freight for the amount of the freight bill (Doc. No. 19) for the Velocity Sporting Goods shipment received December 22. Follow the flowchart steps on page 23. Yes 26 Received check No. 65891 (Doc. No. 8) for $7,855 and customer purchase order No. D9794 (Doc. No. 4) in the mail from Andrews College for a cash sale. All goods ordered were shipped and the cash sale was processed and recorded. Carrier & number: Interstate Motor Freight: Carrier number 62XY404 Freight charges: Collect (i.e., paid by Andrews College) Route: Direct Truck & driver: Truck 64, Brian Ward Freight rate: $19.00 per 100 lbs. Shipment: 5 cartons/basketballs @ 35 lbs./carton 2 cartons/hip, tail, arm pad sets @ 7 lbs./carton 4 cartons/footballs @ 19 lbs./carton Start with the flowchart on page 21. No 26 Made a special promotional sale on account to Rosemont University. For the promotion, Waren agreed to a 20% reduction in the selling prices of the following items: Quantity 45 Item No. BA-054 BA-807 Description Premium aluminum bat Pitching machine Yes 26 Received office supplies from Chicago Office Supply as listed on purchase order No. 327 (Doc. No. 16), a copy of which is being held in accounting, Chicago Office Supply's vendor invoice No. 2378 (Doc. No. 18) was received with the goods. All supplies ordered were received in good condition and taken directly to the office, but the invoice was not paid, No 26 Sold a desk to Jim Adams for $250. Jim will pay this amount to Waren in January of 2018. The desk was purchased for a cost of $1,225 on September 30, 2011, along with other office furniture costing $49.525 (total purchase was $50,750). The desk was fully depreciated at the end of 2016. Add a new general ledger account on page 36. Assign it G/L #10210 - Accounts Receivable from Employees. Be sure to include this account in the proper section of Waren's 2017 financial statements. Do not be concerned that the new account is out of sequence in the G/L. Waren reorganizes its chart of accounts and G/L at the beginning of a new fiscal year. Don't forget to update the fixed asset subsidiary ledger on pages 42-43