SUA Project Assignment 1: Sales and Cash Receipts

Transactions List December 1631, 2022

Complete each of the following transactions in accordance with the seven-step process on pages 1112 of the Instructions and Flowcharts book (step 5). Remember the importance of the flowcharts on pages 1824 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. Flowchart page references are included in the third column of the transactions list where appropriate.

Document No. 1 Transactions List December 16-31, 2022 Complete each of the following transactions in accordance with the seven-step process on pages 11-12 of the Instructions and Flowcharts book (step 5). Remember the importance of the 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. Flowchart page references are included in the third column of the transactions list where appropriate. Some of the following events require the preparation or modification of documents and some do not. Although 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 two symbols, which determine whether documents from the document set in this project must be prepared or used: Yes You are required to prepare or modify documents from the 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 document set because documents would not normally be prepared or modified for this type of event. An accounting entry is required, with one exception: annual change in employee pay rates. Hints are provided in boxed areas like this. Trans. # 1 p. 18-19 Sale Document? Dec. Flowchart Description Received customer purchase order No. 53426 (Doc. No. 4) from Rosemont University, 16th Yes approved their credit and shipped the goods. All goods ordered were shipped, except that only 35 shoulder pad sets were available for shipment. Carrier & number: Allied Trucking; Carrier number 2154 Freight charges: FOB shipping point (i.e., will be paid by Rosemont) Route: Express Truck & driver: Truck 2961XZ, John Arens Freight rate: $37.00 per 100 lbs. Shipment: 5 cartons/goal and rim sets @ 42 lbs./carton 2 cartons/backboards @123 lbs./carton 7 cartons/shoulder pad sets @ 30 lbs./carton 4 cartons/football helmets @ 32 lbs./carton Rosemont's credit limit is documented in their subsidiary ledger account. 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. Trans. # Document? Dec. Flowchart Description Received an email notification from First American Bank and Trust for an ACH pay- 16th Yes ment from Branch College. ACH payment received was $1,622.88 for payment in full of charge sale invoice No. 730. 2 Cash Receipt p.21 3 3 16th Yes Purchase p.22 50 Ordered the following inventory on account from Velocity Sporting Goods, using purchase order No. 328 (Doc. No. 16). Units Item # Description 115 BB-019 Basketball pole pad 125 BB-538 Basketball bag 75 BB-431 Whistle and lanyard - set of 6 BB-399 Basketball net 100 FB-027 Shoulder pad set (to cover back order and inventory restock) Vendor address: 1285 Colgrove Ave., Pierre, SD 57501 Freight carrier: Interstate Motor Freight Freight charges: FOB shipping point (i.e., will be paid later by Waren) Allowances: None 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. File purchase order copies following the flowchart guidance. 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. Borrowed $90,000 from First American Bank and Trust by issuing a two-year note payable (Doc. No. 14) with a stated annual interest rate of 5.5%. Received an email notification from the bank that the $90,000 proceeds were electronically deposited into Waren's checking account. Reviewed the terms and conditions of the note and signed it (Ray Kramer) as the borrower. Follow the ACH deposit procedures in the flowchart and be sure to file the note in the Banking file tab. Received sales return request No. R8034 (Doc. No. 12) from Eastern Wisconsin University (EWU). The request was approved, and the acknowledgment copy mailed to EWU. 19th Yes 4 Purchase p.22 5 19th Yes Cash Receipt p.21 6 19th Yes Sales Return p. 20 You can't record the sales return yet because the goods have not yet been received from Eastern Wisconsin University. Received vendor invoice No. 105963 (Doc. No. 18) from First Security Insurance for the fourth quarter's health insurance coverage for employees and immediately issued a check (Doc. No. 20) for payment in full. 7 20th Yes Cash Disbursement p.23 Purchase orders are not issued for services that Waren purchases. Trans. # 8 Payroll 9 Purchase Document ? Dec. Flowchart Description Increased employee pay rates effective for the December 16th-31st semimonthly 20th No pay period. There were no changes in filing status or withholding allowances. New Pay Rate NA Ray Kramer $3,600 semimonthly Jim Adams $22.00 per hour Nancy Ford $18.30 per hour No accounting entries are necessary, but you must update the pay rate history information in the Pay Rate History Tab. Received merchandise from Velocity Sporting Goods as listed on purchase order 20th Yes No. 328. All merchandise listed on the purchase order was delivered in good condi- tion and in the quantities ordered, except that only 99 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory p.22 warehouse. You can't record a purchase yet because the invoice hasn't been received. Filled the backorder quantity of 40 shoulder pad sets for Rosemont University's 21st Yes customer purchase order No. 53426 (Doc. No. 4). Approved Rosemont's credit and shipped the back ordered shoulder pad sets. Prepared a new charge sale invoice (Doc. No. 6) for the sale to Rosemont. p. 18-19 Carrier & number: Allied Trucking; Carrier number 2154 Freight charges: FOB shipping point (i.e., will be paid by Rosemont) Route: Express Truck & driver: Truck 2988XZ, Jennifer Hansen Freight rate: $37.00 per 100 lbs. Shipment: 8 cartons/shoulder pad sets @ 30 lbs./carton Rosemont's credit limit is documented in their subsidiary ledger account. 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. Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for 22nd Yes goods ordered December 16th and received December 20th. 10 Sale 11 Purchase p.22 Upon receiving the invoice, you can now record the purchase using the date on which Waren incurred the liability for the goods, December 20th. 12 23rd No Bad Debt Write-off Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law, that Stevenson College had filed bankruptcy and will most likely be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write-off" for accounting for bad debts. p. 19 D 3 Trans. # Document? Dec. Flowchart Description Received all goods that Waren had authorized Eastern Wisconsin University (EWU) 23rd Yes to return on EWU's return request No. R8034 for credit against their account balance. 13 Sales Return p. 20 14 27th Yes Cash Receipt Process and record the sales return now. Received check No. 49326 (Doc. No. 8) for $12,000 from Eastern Wisconsin University in partial payment of the remaining amount (after sales return) on charge sale invoice No. 729. Restrictively endorse means to write the following on the back of the check: "For deposit only. Waren Sports Supply." Cash receipts prelist is Doc. No. 9. Do not finalize a deposit slip (Doc. No. 10) until you determine whether there are other cash receipts in the form of checks on the same day. p. 21 15 27th Yes Sale and Cash Receipt P.21 Received check No. 47852 (Doc. No. 8) for $5,835 and customer purchase order No. H8241 (Doc. No. 4) in the mail from Hawkins College for a cash sale. All goods ordered were shipped and the cash sale was processed and recorded. Made a bank deposit for this cash sale plus today's collection from Eastern Wisconsin University. Received validated deposit receipt (Doc. No. 11) from the bank after deposit was made. Carrier & number: Interstate Motor Freight; Carrier number 62XY404 Freight charges: FOB shipping point (i.e., will be paid by Hawkins College) Route: Direct Truck & driver: Truck 64, Regina Rexrode Freight rate: $37.00 per 100 lbs. Shipment: 3 cartons/basketballs @ 14 lbs./carton 15 cartons/hip, tail, and arm pad sets @32 lbs./carton 5 cartons/footballs @ 24 lbs./carton Record this cash receipt and process the bank deposit for the day. File Doc. No. 9 and Doc. No. 11 in the Temporary file tab. Received vendor invoice No. 72654 (Doc. No. 18) from University Athletic News for advertisements Waren ran during the Christmas season and immediately issued a check (Doc. No. 20) for payment in full. Yes 16 28th Cash Disbursement p.23 17 28th Yes Received freight bill 26245 (Document No. 19) from Interstate Motor Freight for the Velocity Sporting Goods shipment received December 20th. Issued check (Doc. No. 20) to Interstate Motor Freight for the full amount of the freight bill. Cash Disbursement p. 23 18 29th Yes Issued an electronic payment to Velocity Sporting Goods using ACH Payment Authorization No. E-53431 (Doc. No. 21) for payment in full of their invoice No. 34719 (Doc. No. 18) for goods received December 20th. Cash Disbursement p.23 Consider the credit terms before determining the amount of the electronic payment. Trans. # Dec. 29th 19 Purchase Document? Flowchart Description Received the standing workstations ordered on Waren's purchase order No. 325 Yes (Doc. No. 16) and vendor invoice No. 2423 (Doc. No. 18) from Chicago Office Supply. The workstations were received in new and undamaged condition and p. 22 taken directly to the office. The estimated useful life is 5 years with no salvage value. 20 30th Yes Payroll p.24 Printed and reviewed payroll time record reports (Doc. No. 22) for Ford and Adams for the time period ended December 31st and prepared the payroll for all three employees, including paychecks. Federal and state withholding amounts for each employee are as follows: Income Tax Withholding Amounts Federal State of Illinois Ray Kramer $315.00 $168.82 Jim Adams $209.00 $101.64 Nancy Ford $78.00 $74.74 Paychecks are considered Mailed/Given to Outsiders. Time record reports are filed in the "Accounting" file tab. 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 Eastern Wisconsin University. YEAR-END PROCEDURES After completing all the month-end procedures, go to page 14 of the Instructions and Flowcharts book and complete all the year-end procedures. Additional information for the year-end procedures is: No No Ending Inventory - A physical inventory was taken 1/1/23, before business began for the new year. Merchandise on hand cost $204,236.00. Bad Debt Expense - The expense for bad debts is estimated at the end of the year as one-fifth of one percent (0.002) of net sales. Marketable Securities - At December 31, 2022, the market value of marketable securities held by Waren approximated the cost of the securities. No Sales and Cash Receipts Study flowcharts on pages 18-21. Complete the seven-step process for recording a transaction on pages 11 and 12 for all sales and cash receipts transactions on the transactions list. Complete WAREN'S MONTH-END PROCEDURES 1, 4, 5, and 6 on pages 12 and 13 for sales and cash receipts only. REQUIREMENTS Option 2 - Chronological Approach Record each transaction in chronological date sequence. This method of recording transactions is common in smaller businesses with fewer transactions where separated accounting duties are not as feasible as in option 1 Following option 2, complete all transactions in the transactions list following the seven-step process described below and on page 12 before beginning any month-end procedures. 3. Understand the two symbols on Document No. 1. Each event on the transactions list includes one of two symbols, which determine whether documents from the document set in the project must be prepared or used: You are required to prepare or modify documents from the document Yes set for this event. An accounting entry may or may not be required. You are not required to prepare or modify documents from the No document set for the event. An accounting entry is required, with one exception: the annual change in employee pay rates. 4. Identify which transactions require an accounting entry. Some transactions require only the preparation or modification of documents, others require only an accounting entry in one of the six journals, and still others require both. You should carefully read each transaction on the transactions list (Document No. 1) and clearly identify which ones require an accounting entry. 5. Follow the seven-step process for recording a transaction. You should now begin processing the first transaction. Carefully apply the following instructions to each transaction in sequence (using recording option 1 (cycle-based approach) or 2 (chronological approach) as specified by your instructoz]. i Read and analyze the transaction on the transactions list (Document No. 1). ii. Find the appropriate flowchart or flowcharts, which are included as a selection in the Resources area of the site and on pages 18 through 24 of this material Study Waren's system to learn the procedures to follow. The flowchart specifies the details as to documents to prepare, approvals and other internal control procedures, accounting entries, and filing sii. Locate and prepare appropriate documents if any are necessary for this transaction. Be sure that each document is filled out completely and that all procedures indicated in the flowcharts are performed (such as initialing for approval, canceling after payment, etc.) For document fields that require entry of a name, set of initials, or signature, you need to right-click on the field and then select the appropriate format (name, initials, or signature) and appropriate employee (Ray Kramer, Jim Adams, or Nancy Ford). You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Parts of their roles as described in the flowcharts may have already been done. REQUIREMENTS iv. Record the transaction in the appropriate journal if an entry is necessary for this transaction Use the general journal only when no other journal is appropriate. v. Postindividualitems to subsidiary ledgers if necessary for this transaction. Then, place a check mark [in the post reference columns to indicate that journal items have been posted vi File documents in the appropriate file tab in accordance with the flowchart description. See pages 5 and 6 of this material for additional filing guidance. vii. Proceed to the next transaction. Repeat this process until you have completed all transactions on the transactions list (Document No. 1), except month-end and year-end procedures. WAREN'S MONTH-END PROCEDURES Document No. 1 Transactions List December 16-31, 2022 Complete each of the following transactions in accordance with the seven-step process on pages 11-12 of the Instructions and Flowcharts book (step 5). Remember the importance of the 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. Flowchart page references are included in the third column of the transactions list where appropriate. Some of the following events require the preparation or modification of documents and some do not. Although 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 two symbols, which determine whether documents from the document set in this project must be prepared or used: Yes You are required to prepare or modify documents from the 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 document set because documents would not normally be prepared or modified for this type of event. An accounting entry is required, with one exception: annual change in employee pay rates. Hints are provided in boxed areas like this. Trans. # 1 p. 18-19 Sale Document? Dec. Flowchart Description Received customer purchase order No. 53426 (Doc. No. 4) from Rosemont University, 16th Yes approved their credit and shipped the goods. All goods ordered were shipped, except that only 35 shoulder pad sets were available for shipment. Carrier & number: Allied Trucking; Carrier number 2154 Freight charges: FOB shipping point (i.e., will be paid by Rosemont) Route: Express Truck & driver: Truck 2961XZ, John Arens Freight rate: $37.00 per 100 lbs. Shipment: 5 cartons/goal and rim sets @ 42 lbs./carton 2 cartons/backboards @123 lbs./carton 7 cartons/shoulder pad sets @ 30 lbs./carton 4 cartons/football helmets @ 32 lbs./carton Rosemont's credit limit is documented in their subsidiary ledger account. 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. Trans. # Document? Dec. Flowchart Description Received an email notification from First American Bank and Trust for an ACH pay- 16th Yes ment from Branch College. ACH payment received was $1,622.88 for payment in full of charge sale invoice No. 730. 2 Cash Receipt p.21 3 3 16th Yes Purchase p.22 50 Ordered the following inventory on account from Velocity Sporting Goods, using purchase order No. 328 (Doc. No. 16). Units Item # Description 115 BB-019 Basketball pole pad 125 BB-538 Basketball bag 75 BB-431 Whistle and lanyard - set of 6 BB-399 Basketball net 100 FB-027 Shoulder pad set (to cover back order and inventory restock) Vendor address: 1285 Colgrove Ave., Pierre, SD 57501 Freight carrier: Interstate Motor Freight Freight charges: FOB shipping point (i.e., will be paid later by Waren) Allowances: None 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. File purchase order copies following the flowchart guidance. 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. Borrowed $90,000 from First American Bank and Trust by issuing a two-year note payable (Doc. No. 14) with a stated annual interest rate of 5.5%. Received an email notification from the bank that the $90,000 proceeds were electronically deposited into Waren's checking account. Reviewed the terms and conditions of the note and signed it (Ray Kramer) as the borrower. Follow the ACH deposit procedures in the flowchart and be sure to file the note in the Banking file tab. Received sales return request No. R8034 (Doc. No. 12) from Eastern Wisconsin University (EWU). The request was approved, and the acknowledgment copy mailed to EWU. 19th Yes 4 Purchase p.22 5 19th Yes Cash Receipt p.21 6 19th Yes Sales Return p. 20 You can't record the sales return yet because the goods have not yet been received from Eastern Wisconsin University. Received vendor invoice No. 105963 (Doc. No. 18) from First Security Insurance for the fourth quarter's health insurance coverage for employees and immediately issued a check (Doc. No. 20) for payment in full. 7 20th Yes Cash Disbursement p.23 Purchase orders are not issued for services that Waren purchases. Trans. # 8 Payroll 9 Purchase Document ? Dec. Flowchart Description Increased employee pay rates effective for the December 16th-31st semimonthly 20th No pay period. There were no changes in filing status or withholding allowances. New Pay Rate NA Ray Kramer $3,600 semimonthly Jim Adams $22.00 per hour Nancy Ford $18.30 per hour No accounting entries are necessary, but you must update the pay rate history information in the Pay Rate History Tab. Received merchandise from Velocity Sporting Goods as listed on purchase order 20th Yes No. 328. All merchandise listed on the purchase order was delivered in good condi- tion and in the quantities ordered, except that only 99 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory p.22 warehouse. You can't record a purchase yet because the invoice hasn't been received. Filled the backorder quantity of 40 shoulder pad sets for Rosemont University's 21st Yes customer purchase order No. 53426 (Doc. No. 4). Approved Rosemont's credit and shipped the back ordered shoulder pad sets. Prepared a new charge sale invoice (Doc. No. 6) for the sale to Rosemont. p. 18-19 Carrier & number: Allied Trucking; Carrier number 2154 Freight charges: FOB shipping point (i.e., will be paid by Rosemont) Route: Express Truck & driver: Truck 2988XZ, Jennifer Hansen Freight rate: $37.00 per 100 lbs. Shipment: 8 cartons/shoulder pad sets @ 30 lbs./carton Rosemont's credit limit is documented in their subsidiary ledger account. 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. Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for 22nd Yes goods ordered December 16th and received December 20th. 10 Sale 11 Purchase p.22 Upon receiving the invoice, you can now record the purchase using the date on which Waren incurred the liability for the goods, December 20th. 12 23rd No Bad Debt Write-off Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law, that Stevenson College had filed bankruptcy and will most likely be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write-off" for accounting for bad debts. p. 19 D 3 Trans. # Document? Dec. Flowchart Description Received all goods that Waren had authorized Eastern Wisconsin University (EWU) 23rd Yes to return on EWU's return request No. R8034 for credit against their account balance. 13 Sales Return p. 20 14 27th Yes Cash Receipt Process and record the sales return now. Received check No. 49326 (Doc. No. 8) for $12,000 from Eastern Wisconsin University in partial payment of the remaining amount (after sales return) on charge sale invoice No. 729. Restrictively endorse means to write the following on the back of the check: "For deposit only. Waren Sports Supply." Cash receipts prelist is Doc. No. 9. Do not finalize a deposit slip (Doc. No. 10) until you determine whether there are other cash receipts in the form of checks on the same day. p. 21 15 27th Yes Sale and Cash Receipt P.21 Received check No. 47852 (Doc. No. 8) for $5,835 and customer purchase order No. H8241 (Doc. No. 4) in the mail from Hawkins College for a cash sale. All goods ordered were shipped and the cash sale was processed and recorded. Made a bank deposit for this cash sale plus today's collection from Eastern Wisconsin University. Received validated deposit receipt (Doc. No. 11) from the bank after deposit was made. Carrier & number: Interstate Motor Freight; Carrier number 62XY404 Freight charges: FOB shipping point (i.e., will be paid by Hawkins College) Route: Direct Truck & driver: Truck 64, Regina Rexrode Freight rate: $37.00 per 100 lbs. Shipment: 3 cartons/basketballs @ 14 lbs./carton 15 cartons/hip, tail, and arm pad sets @32 lbs./carton 5 cartons/footballs @ 24 lbs./carton Record this cash receipt and process the bank deposit for the day. File Doc. No. 9 and Doc. No. 11 in the Temporary file tab. Received vendor invoice No. 72654 (Doc. No. 18) from University Athletic News for advertisements Waren ran during the Christmas season and immediately issued a check (Doc. No. 20) for payment in full. Yes 16 28th Cash Disbursement p.23 17 28th Yes Received freight bill 26245 (Document No. 19) from Interstate Motor Freight for the Velocity Sporting Goods shipment received December 20th. Issued check (Doc. No. 20) to Interstate Motor Freight for the full amount of the freight bill. Cash Disbursement p. 23 18 29th Yes Issued an electronic payment to Velocity Sporting Goods using ACH Payment Authorization No. E-53431 (Doc. No. 21) for payment in full of their invoice No. 34719 (Doc. No. 18) for goods received December 20th. Cash Disbursement p.23 Consider the credit terms before determining the amount of the electronic payment. Trans. # Dec. 29th 19 Purchase Document? Flowchart Description Received the standing workstations ordered on Waren's purchase order No. 325 Yes (Doc. No. 16) and vendor invoice No. 2423 (Doc. No. 18) from Chicago Office Supply. The workstations were received in new and undamaged condition and p. 22 taken directly to the office. The estimated useful life is 5 years with no salvage value. 20 30th Yes Payroll p.24 Printed and reviewed payroll time record reports (Doc. No. 22) for Ford and Adams for the time period ended December 31st and prepared the payroll for all three employees, including paychecks. Federal and state withholding amounts for each employee are as follows: Income Tax Withholding Amounts Federal State of Illinois Ray Kramer $315.00 $168.82 Jim Adams $209.00 $101.64 Nancy Ford $78.00 $74.74 Paychecks are considered Mailed/Given to Outsiders. Time record reports are filed in the "Accounting" file tab. 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 Eastern Wisconsin University. YEAR-END PROCEDURES After completing all the month-end procedures, go to page 14 of the Instructions and Flowcharts book and complete all the year-end procedures. Additional information for the year-end procedures is: No No Ending Inventory - A physical inventory was taken 1/1/23, before business began for the new year. Merchandise on hand cost $204,236.00. Bad Debt Expense - The expense for bad debts is estimated at the end of the year as one-fifth of one percent (0.002) of net sales. Marketable Securities - At December 31, 2022, the market value of marketable securities held by Waren approximated the cost of the securities. No Sales and Cash Receipts Study flowcharts on pages 18-21. Complete the seven-step process for recording a transaction on pages 11 and 12 for all sales and cash receipts transactions on the transactions list. Complete WAREN'S MONTH-END PROCEDURES 1, 4, 5, and 6 on pages 12 and 13 for sales and cash receipts only. REQUIREMENTS Option 2 - Chronological Approach Record each transaction in chronological date sequence. This method of recording transactions is common in smaller businesses with fewer transactions where separated accounting duties are not as feasible as in option 1 Following option 2, complete all transactions in the transactions list following the seven-step process described below and on page 12 before beginning any month-end procedures. 3. Understand the two symbols on Document No. 1. Each event on the transactions list includes one of two symbols, which determine whether documents from the document set in the project must be prepared or used: You are required to prepare or modify documents from the document Yes set for this event. An accounting entry may or may not be required. You are not required to prepare or modify documents from the No document set for the event. An accounting entry is required, with one exception: the annual change in employee pay rates. 4. Identify which transactions require an accounting entry. Some transactions require only the preparation or modification of documents, others require only an accounting entry in one of the six journals, and still others require both. You should carefully read each transaction on the transactions list (Document No. 1) and clearly identify which ones require an accounting entry. 5. Follow the seven-step process for recording a transaction. You should now begin processing the first transaction. Carefully apply the following instructions to each transaction in sequence (using recording option 1 (cycle-based approach) or 2 (chronological approach) as specified by your instructoz]. i Read and analyze the transaction on the transactions list (Document No. 1). ii. Find the appropriate flowchart or flowcharts, which are included as a selection in the Resources area of the site and on pages 18 through 24 of this material Study Waren's system to learn the procedures to follow. The flowchart specifies the details as to documents to prepare, approvals and other internal control procedures, accounting entries, and filing sii. Locate and prepare appropriate documents if any are necessary for this transaction. Be sure that each document is filled out completely and that all procedures indicated in the flowcharts are performed (such as initialing for approval, canceling after payment, etc.) For document fields that require entry of a name, set of initials, or signature, you need to right-click on the field and then select the appropriate format (name, initials, or signature) and appropriate employee (Ray Kramer, Jim Adams, or Nancy Ford). You are to perform the roles of Ray Kramer, Nancy Ford, and Jim Adams. Parts of their roles as described in the flowcharts may have already been done. REQUIREMENTS iv. Record the transaction in the appropriate journal if an entry is necessary for this transaction Use the general journal only when no other journal is appropriate. v. Postindividualitems to subsidiary ledgers if necessary for this transaction. Then, place a check mark [in the post reference columns to indicate that journal items have been posted vi File documents in the appropriate file tab in accordance with the flowchart description. See pages 5 and 6 of this material for additional filing guidance. vii. Proceed to the next transaction. Repeat this process until you have completed all transactions on the transactions list (Document No. 1), except month-end and year-end procedures. WAREN'S MONTH-END PROCEDURES