12 guidance. vi. File documents in the appropriate file tab in the envelope in accordance y the flowchart description. See pages 5 and 6 of this book for additional vii. Proceed to the next transaction. Repeat this process until you have come all transactions on the transactions list (Document No. 1), except mon and year-end procedures. WAREN'S MONTH-END PROCEDURES after all transactions are recorded in the journals and subsidiary ledgers. You are to Following are the procedures performed at the end of each month by Waren's employ the roles of Ray Kramer, Nancy Ford, and Jim Adams and perform each of these mont procedures, all journals and ledgers, and four items from the loose document set. Black end procedures for December. The only materials needed are this list of seven month-e statement (Doc. No. 23), and the list of items clearing with the bank statement (Doc. No. 20, Se monthly statement (Doc. No. 15), bank reconciliation for November (Doc. No. 22), December b other documents and records temporarily aside. 1. Jim Adams foots and crossfoots each of the five special journals (sales, cash receip 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 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. 23) and list of items clearing with the bask statement (Doc. No. 24) 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 to the posting in the general ledger cash account. He initials the cash account 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. 22) as a model. Deposits in transit and outstanding checks at November 30 are listed there. m ment No. 15 REQUIREMENTS 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 2017. Thus, a review of the employee earnings subsidiary ledger on pages 40 and 41 of this 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. 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