The Manual Accounting Process Instructions for completing handout and quiz on D2L 1) Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal). An example is shown for each special journal. a) Hint: before you begin go down the list of transaction and decide what journal it goes in. 2) Post to the appropriate subledgers and general ledger accounts. a) Hint: use the post column to keep yourself organized as to which amounts you have transferred to the ledgers. b) Hint: if there are several transactions to the same account in a special journal, you only have to transfer the total to the general ledger. 3) Prepare a trial balance 4) Prepare an income statement 5) Prepare a balance sheet 6) Prepare schedules of AR and AP to test the accuracy of the subledgers 7) Answer quiz questions on D2L (enter any monetary amounts using numbers only format, e.g. 1500.99 not $1,599.99, make sure to two decimal places for monetary amounts even if the answer is an even number). Also, round any calculated amounts to two decimal places, as needed. Example of Manual Accounting The Manson Company completed these transactions during January of the current year: 1-Jan Began business by selling stock for 600000. 1-Jan Rented office space for 1 month using check number 900 for $10000 to Smithlord Properties Purchased office furniture and equipment on credit from McKay Company, invoice mck66 dated Jan 2-Jan 9, terms 2/10, net 30, $25000. Sold merchandise on credit to John Nelson. Invoice No. 324, $ 10000. (Terms for all credit sales are 2-Jan 2/10 n/20. Purchased on credit from Cosair Company office supplies, $3000, invoice xx12 dated January 3, due 3-Jan in 30 days. Supplies are expected to last approximately 4 months. Received merchandise and invoice F1 dated Jan 1, terms 2/10, n/30; from Farnswood Company, 3-Jan $213022.22. 3-Jan Sold merchandise on credit to Thomas Zak, invoice no. 324, $6000. January 10, Sent Farnswood Company Check no. 876 in payment of its January 1 invoice less the 10-Jan discount. 10-Jan Sold merchandise on credit to Margo Edwards, invoice no 326, $8375.21. 11-Jan Sold merchandise on credit to Ken Duclose, invoice no 327, $9500. January 12, Received payment from John Nelson for the January 2 sales less the discount check 12-Jan number 4444. (Example posted to cash receipts journal). January 13, Received payment from Thomas Zak for the January 3 sales less the discount check 13-Jan number 12345. January 15, Issu check no. 877 payable to payroll, in payment of sales salaries for the first half of 15-Jan the month, $7,950.00. Cashed the check and paid the employees. Cash sales for the first half of the month were $77341.22. (Normally cash sales are posted daily, but 15-Jan for the purpose of this problem you are posting them all at once. January 19, Received payment from Margo Edwards for the sale of January 10 less the discount 19-Jan check number 8888. January 20, Received merchandise and invoice F2 dated Jan 19, terms 2/10, n/30; from Farnswood 20-Jan Company, $113,044.44. 27-Jan Sold merchandise on credit to Margo Edwards, invoice no 328, $6458.22. 28-Jan Sold merchandise on credit to Thomas Zak, invoice no. 329, $26544.11. 29-Jan Sold merchandise on credit to Heather Terry, invoice no. 330, $12000. January 31, Issued check no. 879 payable to payroll, in payment of sales salaries for the second half 31-Jan of the month, $7,950.00. Cashed the check and paid the employees. Cash sales for the second half of the month were $72345. (Normally cash sales are posted daily, but 31-Jan for the purpose of this problem you are posting them all at once. 31-Jan 31-Jan January 31, Paid for utilities (water, power, etc) to Unified Utilities Inc. $1,454.77 check number 880. Paid for advertising from AdsRus for January in the amount of $10500 check number 881. January 31, Estimated the expected life of the office furniture and equipment to be 5 years with no 31-Jan salvage value. Manson Company will take a full month of straight-line depreciation in January. 31-Jan Counted ending inventory valued at $196312. Counted office supplies and determined that approximately $750 worth of supplies were remaining 31-Jan and that the rest had been used in the month of January. The Manual Accounting Process Instructions for completing handout and quiz on D2L 1) Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal). An example is shown for each special journal. a) Hint: before you begin go down the list of transaction and decide what journal it goes in. 2) Post to the appropriate subledgers and general ledger accounts. a) Hint: use the post column to keep yourself organized as to which amounts you have transferred to the ledgers. b) Hint: if there are several transactions to the same account in a special journal, you only have to transfer the total to the general ledger. 3) Prepare a trial balance 4) Prepare an income statement 5) Prepare a balance sheet 6) Prepare schedules of AR and AP to test the accuracy of the subledgers 7) Answer quiz questions on D2L (enter any monetary amounts using numbers only format, e.g. 1500.99 not $1,599.99, make sure to two decimal places for monetary amounts even if the answer is an even number). Also, round any calculated amounts to two decimal places, as needed. Example of Manual Accounting The Manson Company completed these transactions during January of the current year: 1-Jan Began business by selling stock for 600000. 1-Jan Rented office space for 1 month using check number 900 for $10000 to Smithlord Properties Purchased office furniture and equipment on credit from McKay Company, invoice mck66 dated Jan 2-Jan 9, terms 2/10, net 30, $25000. Sold merchandise on credit to John Nelson. Invoice No. 324, $ 10000. (Terms for all credit sales are 2-Jan 2/10 n/20. Purchased on credit from Cosair Company office supplies, $3000, invoice xx12 dated January 3, due 3-Jan in 30 days. Supplies are expected to last approximately 4 months. Received merchandise and invoice F1 dated Jan 1, terms 2/10, n/30; from Farnswood Company, 3-Jan $213022.22. 3-Jan Sold merchandise on credit to Thomas Zak, invoice no. 324, $6000. January 10, Sent Farnswood Company Check no. 876 in payment of its January 1 invoice less the 10-Jan discount. 10-Jan Sold merchandise on credit to Margo Edwards, invoice no 326, $8375.21. 11-Jan Sold merchandise on credit to Ken Duclose, invoice no 327, $9500. January 12, Received payment from John Nelson for the January 2 sales less the discount check 12-Jan number 4444. (Example posted to cash receipts journal). January 13, Received payment from Thomas Zak for the January 3 sales less the discount check 13-Jan number 12345. January 15, Issu check no. 877 payable to payroll, in payment of sales salaries for the first half of 15-Jan the month, $7,950.00. Cashed the check and paid the employees. Cash sales for the first half of the month were $77341.22. (Normally cash sales are posted daily, but 15-Jan for the purpose of this problem you are posting them all at once. January 19, Received payment from Margo Edwards for the sale of January 10 less the discount 19-Jan check number 8888. January 20, Received merchandise and invoice F2 dated Jan 19, terms 2/10, n/30; from Farnswood 20-Jan Company, $113,044.44. 27-Jan Sold merchandise on credit to Margo Edwards, invoice no 328, $6458.22. 28-Jan Sold merchandise on credit to Thomas Zak, invoice no. 329, $26544.11. 29-Jan Sold merchandise on credit to Heather Terry, invoice no. 330, $12000. January 31, Issued check no. 879 payable to payroll, in payment of sales salaries for the second half 31-Jan of the month, $7,950.00. Cashed the check and paid the employees. Cash sales for the second half of the month were $72345. (Normally cash sales are posted daily, but 31-Jan for the purpose of this problem you are posting them all at once. 31-Jan 31-Jan January 31, Paid for utilities (water, power, etc) to Unified Utilities Inc. $1,454.77 check number 880. Paid for advertising from AdsRus for January in the amount of $10500 check number 881. January 31, Estimated the expected life of the office furniture and equipment to be 5 years with no 31-Jan salvage value. Manson Company will take a full month of straight-line depreciation in January. 31-Jan Counted ending inventory valued at $196312. Counted office supplies and determined that approximately $750 worth of supplies were remaining 31-Jan and that the rest had been used in the month of January