procedures Document No. 1), except month-end 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 document et blank monthly statement (Doc No. 15), bank reconciliation for November Dec. No. 23) December statement (Doc. No. 24), and the list of items clearing with the bank statement (Doe No 25) 1. 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 markt 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 2. Ray Kramer prepares a bank reconciliation on a separate working paper. (Note that the bank reconciliation is found on a separate tab) After receiving the bank statement (Doc. No. 24) and list of item clearing the 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 his initials by each entry in the prelist 12 MENTS Prepares a bank reconciliation using the procedures outlined in the Understanding Aid Reference material on pages 62 through 65. You can aisoie November's bank reconciliation (Doc. No. 23) as a model. Any deposits in trans and outstanding checks at November 30 are listed there. Note: Enter service charges/bank fees as negative numbers on the bank reconciliation 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 "Banking." 3. 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 indicates that only one of Waren's employees remains subject to this tax lie, 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% 4. 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. 5. Nancy Ford reviews 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 6. 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 document set. After completing all six month-end procedures for December, continue to the next section and perform Waren's year-end procedures. 13