MONTH-END PROCEDURES-After you have recorded all the transactions, go to page 12 of the Instructions and Flowcharts book and complete all the month-end procedures. An additional month-end requirement for this project is: Yes Monthly Statement- - Prepare a monthly statement (Doc. No. 15) for Rosemont University. WAREN SPORTS SUPPLY EST 2002- 1970 Michigan 150012 DATE STATEMENT Document No. 15 Document No. 15. PAGE PAGE CUSTOMER NAME AND ADDRESS TERMS: 2/10, Net 30 INVOICE NUMBER DATE AMOUNT DUE AGE IN DAYS CURRENT 31-00 01-00 CUSTOMER NOMBER REMITTANCE ADVICE DATE CUSTOMER NUMBER PLEASE DETACH AND RETURN THE STUB WITH YOUR REMITTANCE TO: WAREN SPORTS SUPPLY 1978 MICHIGAN AVENUE CHICAGO, IL 60612 OVER SO INVOICE NUMBER AMOUNT TOTAL DUE TOTAL CURRENT TOTAL 31-60 TOTAL 61-90 TOTAL OVER 90 TOTAL DUE REVIEWED BY WAREN'S MONTH-END PROCEDURES Following are the procedures performed at the end of each month by Waren's employees after all transactions are recorded in the journals and subsidiary ledgers. You are to assume the roles of Ray Kramer, Nancy Ford, and Jim Adams and perform each of these month- end procedures for December. The only materials needed are this list of seven month-end procedures, all journals and ledgers, and four items from the loose document set: blank monthly statement (Doc. No. 15), bank reconciliation for November (Doc. No. 23), December bank statement (Doc. No. 24), and the list of items clearing with the bank statement (Doc. No. 25). Set all other documents and records temporarily aside. 12 12 1. Jim Adams foots and crossfoots each of the five special journals (sales, cash receipts, purchases, cash disbursements, and payroll). He uses the following symbols in the special journals to indicate that his work has been performed: F for Footing and C for Cross-footing. 2. Jim Adams posts the column totals and individual transactions in "Other" columns to the appropriate general ledger account and updates each general ledger account balance. He places a posting reference check mark [] under each column total in the journals and by each of the individual transactions in the "Other" columns to show that the numbers have been posted. 3. Ray Kramer prepares a bank reconciliation on a separate working paper (not provided). After receiving the bank statement (Doc. No. 24) and list of items clearing with the bank statement (Doc. No. 25) from the bank, he performs the following procedures: a. Traces and agrees the monthly totals from the cash account columns of the cash receipts and cash disbursements journals and the net pay column of the payroll journal to the posting in the general ledger cash account. He initials the cash account (net pay) column totals in the journals, as well as the general ledger lines where the totals are posted. b. Compares each entry in the cash receipts prelist (Doc. No. 9) to the cash receipts journal for name, date, and amount, and puts a check mark [] by each entry in the prelist. c. Prepares a bank reconciliation using the procedures outlined in the Systems Understanding Aid Reference book on pages 62 through 65. You can also use November's bank reconciliation (Doc. No. 23) as a model. Any deposits in transit and outstanding checks at November 30 are listed there. d. Adjusts the cash general ledger account using the general journal, regardless of materiality, for all reconciling items requiring an adjustment. e. Attaches together and files the bank reconciliation, bank statement, list of items clearing with bank statement, and the cash receipts prelist in the file labeled "Shipping/Banking." 4. Jim Adams calculates and records the unemployment taxes paid by employers, and Waren's portion of the FICA payroll tax. These payroll taxes are calculated at the end of the month on gross payroll and recorded in the general journal. The taxes are paid the following month. State and federal unemployment taxes are imposed on the first $7,000 of wages paid to covered employees in 2022. Thus, a review of the employee earnings subsidiary ledger on pages 19 through 21 of the Ledgers book indicates that only one of Waren's employees remains subject to this tax (ie, has not yet exceeded the wage base maximum). The same wage base maximum is used in the project for both state and federal unemployment taxes to simplify the calculations. The state unemployment tax (SUTA) rate is 3.55%. Because employers are allowed credits against the federal unemployment tax (FUTA) rate for participation in state unemployment programs, the net FUTA rate is .6%. 5. General Journal: Ray Kramer approves all monthly general journal entries and places his initials in the Approval column. Next, Jim Adams posts transactions from the general journal to the general ledger (and subsidiary if applicable), places a posting reference check mark [] in the general journal post reference column for each item posted, and updates each general ledger balance. 6. Nancy Ford foots the balances of each subsidiary for the accounts receivable, accounts payable, employee earnings, and fixed assets subsidiaries, and compares the total to the appropriate general ledger control account (G/L accounts 10200, 20100, 40500, 10800, and 10900, respectively). She initials each general ledger control account to indicate that she has made the comparison. 7. Jim Adams prepares a monthly statement (Doc. No. 15) for each customer with a balance. He includes information about each unpaid invoice including its aging status. Aging totals and the total amount due are shown at the bottom. He completes the remittance advice (attached to the monthly statement) in a similar fashion except that no aging is included. Ray Kramer reviews each statement and initials it before it is mailed to the customer. In this project, you are to prepare a December monthly statement for only one customer and file it in the "Mailed to Outsiders" file tab. The name of the selected customer is stated in the transactions list (Doc. No. 1) provided with your loose document set in this package. After completing all seven month-end procedures for December, continue to the next section and perform Waren's year-end procedures. 13 WAREN SPORTS SUPPLY LIST OF ITEMS CLEARING WITH BANK STATEMENT DECEMBER 2022 Document No. 25 CHECKS/ACH PAYMENTS Check/ACH Date Date Number Written Cleared Payee Amount 1137 11/30 12/5 Ray Kramer 2,765.38- 1138 11/30 12/4 Jim Adams 1,797.23 1139 11/30 12/4 Nancy Ford 786.70 1140 12/7 12/12 First Security Insurance 575.00 1141 12/12 12/15 Chicago Office Supply 7.367.00 E-53430 12/13 12/15 Velocity Sporting Goods 35,392.70 1143 12/13 12/15 1144 12/13 12/19 1145 12/14 12/20 1146 12/14 12/20 Board of Water and Light Interstate Motor Freight Internal Revenue Service Internal Revenue Service 1,360.25 778.75 3,066.32 10.30 1147 12/14 12/21 State of Illinois 60.96 1148 12/14 12/21 State of Illinois 590.86 1149 12/15 12/22 Ray Kramer 2,765.38 1150 12/15 12/21 Jim Adams 1,740.90 1151 12/15 12/21 Nancy Ford 1,297,32 DEPOSITS Date Date Recorded Deposited by Bank Amount 12/6 12/8 5.891.00 12/8 12/12 4,090.52 12/12 12/15 5,306.00) 12/14 12/15 7,931.96 12/16 12/19 1,622.88 12/19 12/19 90,000.00 Statement of Account First American BANK AND TRUST COMPANY Chicago, Illinois 60603 PAGE NO ACCOUNT NUMBER MONTH 1 of 1 000334 18 December 2022 Waren Sports Supply 1978 Michigan Avenue Chicago, Illinois 60612 Document No. 24 FOR ASSISTANCE: CALL 1-800-FAB-2864 OR WRITE: CUSTOMER SERVICE P.O. BOX 28914 CHICAGO, ILLINOIS 60610 BALANCE FORWARD 77.087.72 MINIMUM BALANCE 50,262.94 TOTAL CK/ACH AMT 60,355.05 AVERAGE BALANCE 96,940.76 TOTAL DEPOSIT AMOUNT 114,842.36 OF CK/ACH 15 ACH FEE/SERV CHO 25.50 ENDING BALANCE NO OF DEPOSITS 6 131,549.53 DEPOSITED ITEMS CHECKING ACCOUNT ENTRIES DATE CHECKS/ACH/DEBITS CHECKS/ACHDEBITS DEPOSITS/CREDITS November 30, 2022 Balance Forward BALANCE 77,087,72 4-Dec 5-Dec 786.70 2,765 38 1,797.23 74,503.79 71,738.41 8-Dec 5.891.00 77.629.41 12-Dec 575.00 4,090.52 81,144.93 15-Dec 7,367.00 1,360.25 ACH 35,392.70 5,306.00 7,931.96 50,262.94 19-Dec 778.75 ACH 1,62288 EFT 90,000.00 141,107.07 20-Dec 21-Dec 3,066.32 10.30 138,030.45 60.96 1,297.32 22-Dec 30-Dec 1,740.90 2.765.38 590.86 134,340.41 131,575.03 ACH-F S/C 20.50 5.00 131,549.53 December 31, 2022 Ending Balance 131,549.53 House hem TRANSACTION CODE LEGEND ACH-Automatic Clearing DO-Drect Deposit DM-Debit Memo EFT-Electronic Funds Transfer ACH-F-ACH tee CD CD Interest Deposit CM-Credit Memo NSF-NSF Fees OD-Overdrawn Balance PR-Payroll Deposit RT-Returmed tem SC-Service Charge ATM TRANSACTIONS RA-Credit Card Advance RD-Envelope Depost RC-Credt Card Payment RM Mortgage Loan P RL-Money Matic Loan R-Installment Loan P RO-One Payment RW-Cash Withdrawal RS-Transfer to Savings RF Transter From Savings cast Statement of Account Waren Sports Supply Bank Reconciliation November 2022 Bank Statement General Ledger Unadjusted balance, 11-30-22 $ 77,087.72 $ 69,774.20 Add: Deduct: Deposits in transit Outstanding checks 0.00 #1118 1,985.21 #1137 2,765.38 #1138 1,797.23 #1139 786.70 (7,334.52) Adjustments: Bank fees/service charges (21.00) Adjusted balance, 11-30-221 $ 69,753.20 $ 69,753.20 Journal Entry, 11-30-22 Account No. Debit Credit 41000 10100 Other operating expense i $21.00 Cash $21.00 Document No. 23