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Directions: For each of the definitions, write the letter of the appropriate term in the space provided.

a. Help system

b. Option buttons

c. Check boxes

d. Command buttons

e. Window

f. Drop-down menu

g. List box

h. Menu bar

i. Toolbar

j. Tab sequence

k. Text boxes

l. Insertion point

m. Clipboard

n. Focus

o. Tool tips

p. Grid cells

q. Navigation buttons

1. ___ The logical sequence in which the computer expects each text box, option button, or command to be traversed.

2. ___ A bar displayed continuously on the top line of the screen, showing the menus available.

3. ___ A list of items that appears immediately below the selected menu.

4. ___ Fields in a window that are used to enter or change text.

5. ___ A rectangular area of the screen in which the software communicates with the user.

6. ___ A list of choices associated with a text box from which the user may choose.

7. ___ Buttons representing options, where the selected option contains a filled circle icon and only one option may be selected.

8. ___ A button that initiates an immediate action.

9. ___ A box located to the left of each of several choices that contains either a blank or a ✓ and permits the user to select or deselect the choices.

10. ___ A bar displayed on the top of the application window that contains icons representing common processing tasks that a user is most likely to perform.

11. ___ An arrangement of rows and columns used to enter, edit, or delete data and text.

12. ___ The location within a window in which the computer will receive the next piece of input as identified by a highlight bar, insertion point, or dotted box.

13. ___ A character that appears when the mouse pointer is positioned over a text box to mark the current position where data will be entered or edited.

14. ___ A provision within the software that offers a quick way to find information about key terms, what to enter into text boxes, the effect of option button settings, the steps required to perform a particular procedure, and shortcut keys the user may use to accomplish various tasks.

15. ___ A brief informational message that automatically appears when the pointer is positioned on a toolbar button.

16. ___ Buttons arranged in a vertical column along the left side of the display screen that facilitate fast, efficient, and intuitive movement throughout the accounting application.

17. ___ A temporary storage area where data may be copied, then pasted elsewhere.

The following problem provides practice of the applications described in this chapter.

Step 1: Remove the Audit Test Questions 1-B at the end of this problem and fill in the answers as you work through the following steps.
Step 2: Start Integrated Accounting 8e.
Step 3: Open and load file IA8 Problem 01-B.
Step 4: Enter your name in the User Name dialog box.
Step 5: Choose Save As and save the file to your disk or folder with a file name of 01-B Your Name.
Step 6: Access the Help system to obtain information about copying Integrated Accounting 8e reports contents to the clipboard.
(Enter copying as the search string in the search field of the Help system.)
Step 7: Use the on-screen calculator to divide $56,400.00 by 12.
Step 8: Calculate the annual cost of college based on savings using the College Planner. With the Annual College Costs option on, enter the following data, and then display the schedule of college savings and payments reports.
Beginning College Savings .............................. $8,000.00
Annual Yield (Percent) .....................................           4.25
Years until College ...........................................              10
Number of Years of College .............................              4
Annual Contribution........................................ $5,200.00
Step 9: Use the Accounting Equation tab in the Drills window to enter the following transactions.
Sept. 01 Received cash from owner as an investment, $8,500.00.
02 Paid cash for supplies, $475.00.
02 Paid cash for insurance, $525.00.
03 Bought supplies on account, $1,200.00.
04 Paid cash for utility bills, $375.00.
05 Owner withdrew cash for personal use, $1,500.00.
06 Paid cash on account, $650.00.
Step 10: Display the accounting equation report.

Step 11: Use the Classify Accounts tab in the Drills window to identify the account classification, normal account balance, and debit or credit increase for each of the following accounts:
Supplies
Accounts Payable
Advertising Expense
Utilities Expense
David Lopez, Drawing
Rent Expense
Step 12: Display the classify accounts report.
Step 13: Use the Explore Accounting System to display the Accounts Payable account activity.
Step 14: Save the data file.

Step 15: End the Integrated Accounting 8e session.

What is a business?

From the college planner, what is the calculated annual college payments?

What is an MIS?

What is the total amount of assets shown on the accounting equation report?

What account number is assigned to Fees?

What is an account classification?

From the Explore Accounting System, note the transaction activity for the Supplies account.

What is a double-entry accounting system?

From the Help system, note the procedure used to copy accounting data to the clipboard for pasting into word processor or spreadsheet applications.

What is the purpose of the Explore Accounting System?

What is the result of using the calculator to find the quotient of $56,400 divided by 12?

General Journal Transactions
Dec. 01 Paid cash for month’s rent, $1,200.00; Check No. 3829.
01 Paid cash for monthly telephone bill, $237.73; Check No. 3830.
02 Paid cash for delivery charges, $42.00; Check No. 3831. Charge to Miscellaneous Expense.
05 Purchased advertising on account, $255.00; Invoice No. 2515.
05 Billed client for services rendered, $3,200.00; Invoice No. 5435.
06 Purchased supplies on account, $118.56; Invoice No. 2516.
06 Paid cash for mileage reimbursement, $405.00; Check No. 3832. Charge to Automobile Expense.
07 Purchased repair services on account, $285.00; Invoice No. 2517.
07 Paid cash for travel expenses, $125.35; Check No. 3833.
09 Paid cash on account, $175.00; Check No. 3834.
09 Purchased supplies on account, $225.30; Invoice No. 2518.
09 Billed client for services rendered, $2,000.00; Invoice No. 5436.
12 Billed client for services rendered, $3,575.00; Invoice No. 5437.
13 Purchased advertising on account, $500.00; Invoice No. 2519.
14 Paid cash for dues for a professional organization, $265.00; Check No. 3835.
15 Received cash on account, $3,200.00; Invoice No. 5435.
16 Paid cash for charitable contribution, $75.00; Check No. 3836.
19 Received cash on account, $3,700.00; Invoice No. 5434.
20 Billed client for services rendered, $1,200.00; Invoice No. 5438.
21 Purchased supplies on account, $135.00; Invoice No. 2520.
23 Paid cash on account, $136.85; Check No. 3837.
27 Paid cash on account, $250.00; Check No. 3838.
29 Received cash on account, $3,250.00; Invoice No. 5433.
30 Paid cash on account, $311.86; Check No. 3839.
30 Received cash on account, $2,000.00; Invoice No. 5436.
30 Paid monthly salaries, $2,054.38; Check No. 3840.
30 The owner withdrew cash for personal use, $3,200.00; Check No. 3841.

Step 1: Start Integrated Accounting 8e.
Step 2: Open the opening balances file named IA8 Problem 02-A.
Step 3: Enter your name in the Your Name text box.
Step 4: Save the file to your disk or folder with a file name of 02-ABC Your Name, where 02-A is the problem number, and BC stands for ‘‘Before Closing.’’

Step 5: Enter the December general journal transactions.
Step 6: Display the general journal report for the month of December.
Step 7: Use the Explorer and other error correction features of the software to correct the following error:
It was discovered that the cash received, invoice number 5434, on December 19, was recorded as $50.00 less than the actual amount of cash received. Use the Explore Accounting System window to find and make note of the amount of the transaction entered in error, then use the general journal to enter and post the correct amount of the journal entry in error.
Step 8: Display a corrected general journal report.
Step 9: Display a trial balance.
Step 10: Enter the December adjusting entries for the month of December for Morrow Consulting:
Insurance expired during December.................................. $85.00
Inventory of supplies on December 31............................... $1,178.50
Depreciation on office equipment for December ............. $423.00

Step 11: Display the December adjusting entries.
Step 12: Display the income statement.
Step 13: Display the yearly Consulting Fees account detail from the income statement by clicking the Show Detail button on the income statement.
Step 14: Display the statement of owner’s equity.
Step 15: Display the balance sheet.
Step 16: Display the Supplies account detail from the balance sheet.
Step 17: Generate an expense distribution graph.
Step 18: Process the following bank reconciliation data:
Checkbook balance .................................... $12,764.00
Bank credit ................................................... $283.96
Bank charge ................................................. $12.00
Balance shown on bank statement .......... $6,652.20

Outstanding deposits as follows:
$3,200.00
$3,750.00
$3,250.00
$2,000.00
Outstanding checks as follows:
Check         No. Amount
3838                 $250.00
3839                 $311.86
3840             $2,054.38
3841             $3,200.00
Step 19: Display the bank reconciliation report.
Step 20: Check your work.
Click Check on the toolbar button. If errors appear, use the Explorer and other error corrections features of the software to correct your errors.
Step 21: Save your data file (with a file name of 02-ABC Your Name).
Step 22: Optional spreadsheet and word processing integration activity.
Joyce Morrow, owner, asked you to create a spreadsheet report showing only the cash receipt transactions entered into the accounting system for the month of December. Prepare an interoffice memorandum that contains this information. Use the following steps to complete this task:
a. Display and copy the general journal report to the clipboard in spreadsheet format.
b. Start your spreadsheet software and load spreadsheet template file IA8 Spreadsheet 02-S.
c. Select cell A1 as the current cell (if not already selected) and paste the general journal report into the spreadsheet.
d. Delete all rows of data that are not cash receipt transactions, change the title of the report from General Journal to Cash Receipts, and replace the old totals with the sum of the debit and credit columns. Format the spreadsheet similar to Figure 2.32.
e. Print the Cash Receipts report.
f. Save your spreadsheet file to your disk or folder with a file name of 02-A Your Name.
g. Select and copy the spreadsheet report to the clipboard.
h. End your spreadsheet application.

i. Start your word processing application software and load template file IA8 Word processing 02-AB (load as a document file).
j. Replace FROM: Student Name with your name.
k. Position the insertion point one line after the last line in the document and paste the spreadsheet report. Format your document as necessary.
l. Print the completed document.
m. Save the document to your disk or folder with a file name of 02-A Your Name.
n. End your word processing application and return to the Integrated Accounting application.

Step 23: Generate and post the closing journal entries.
Click on the Gen. Led. navigation button, and then click the Generate Closing Entries menu button. When the dialog box appears asking if you want to generate closing journal entries, click Yes. The closing journal entries automatically generated by the computer will appear in a dialog box. Click Post. When the general journal appears, showing that the closing entries have been posted, click Close.
Step 24: Display the closing entries.
Click on the Gen. Led. navigation button, and then click the Journal Reports menu button. When the Report Selection window appears, choose the Journal option and the General Journal report (if not already selected) and click OK. When the Journal Report Selection dialog box appears, choose the Customize Journal Report option and enter a Reference restriction of Clo.Ent. so that only the closing entries are reported.
Step 25: Display a trial balance (called the post-closing trial balance).
Step 26: Save your data to disk with a file name of 02-AAC Your Name where 02-A is the problem, and AC is ‘‘After Closing.’’

Step 27: Use the Check toolbar button to check your work.
Step 28: End the Integrated Accounting 8e session.

Figure 2.32

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

General ledger accounts cannot be deleted unless the account balance is zero.

Describe the process for deleting an account that has a zero balance from the chart of accounts.

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

The Find menu item in the Edit menu could be used to find a transaction that contained a specified debit or credit amount.

From the College Planner, what is the calculated annual college payments?

Identify the five planning tools provided in Integrated Accounting 8e.

What is the total amount of assets shown on the accounting equation report?

What is the purpose of the Check toolbar button?

What account number is assigned to Utilities Expense?

From the Explore Accounting System, note the transaction activity for Accounts Payable.

Write the answers to the following questions in the space provided.
1. What is the amount of check number 3839 shown on the general journal report?
2. What are the total of the debit and credit columns of the general journal report (before the adjusting and closing entries)?
3. What is the balance in the Rent Expense account (before closing)?
4. What is the balance (before closing) in the Dues & Subscriptions Expense account you added to the chart of accounts?
5. What are the debit and credit totals shown in the trial balance report (before adjusting entries)?
6. What are the total of the debit and credit columns of the adjusting entries shown on the general journal report for adjusting entries?
7. What is the total operating revenue for the month?
8. What are the total operating expenses for the year?
9. What are the total operating expenses for the month as a percentage of total operating revenue?
10. What is the net income for the month?
11. What is the net income for the year as a percentage of total operating revenue?
12. What is the owner’s equity at the end of the fiscal period?
13. What are the total assets?
14. What are the total liabilities?

15. From the Expense Distribution pie chart, what are the three highest expenses for the year?
16. From the bank reconciliation report, what is the amount of the adjusted checkbook and bank balances?
17. What are the totals of the debit and credit columns of the closing entries shown on the general journal report?
18. What are the debit and credit totals shown in the trial balance after closing?

Data From Problem 

General Journal Transactions
Dec. 01 Paid cash for month’s rent, $1,200.00; Check No. 3829.
01 Paid cash for monthly telephone bill, $237.73; Check No. 3830.
02 Paid cash for delivery charges, $42.00; Check No. 3831. Charge to
Miscellaneous Expense.
05 Purchased advertising on account, $255.00; Invoice No. 2515.
05 Billed client for services rendered, $3,200.00; Invoice No. 5435.
06 Purchased supplies on account, $118.56; Invoice No. 2516.
06 Paid cash for mileage reimbursement, $405.00; Check No. 3832. Charge to
Automobile Expense.
07 Purchased repair services on account, $285.00; Invoice No. 2517.
07 Paid cash for travel expenses, $125.35; Check No. 3833.
09 Paid cash on account, $175.00; Check No. 3834.
09 Purchased supplies on account, $225.30; Invoice No. 2518.
09 Billed client for services rendered, $2,000.00; Invoice No. 5436.
12 Billed client for services rendered, $3,575.00; Invoice No. 5437.
13 Purchased advertising on account, $500.00; Invoice No. 2519.
14 Paid cash for dues for a professional organization, $265.00; Check No. 3835.
15 Received cash on account, $3,200.00; Invoice No. 5435.
16 Paid cash for charitable contribution, $75.00; Check No. 3836.
19 Received cash on account, $3,700.00; Invoice No. 5434.
20 Billed client for services rendered, $1,200.00; Invoice No. 5438.
21 Purchased supplies on account, $135.00; Invoice No. 2520.
23 Paid cash on account, $136.85; Check No. 3837.
27 Paid cash on account, $250.00; Check No. 3838.
29 Received cash on account, $3,250.00; Invoice No. 5433.
30 Paid cash on account, $311.86; Check No. 3839.
30 Received cash on account, $2,000.00; Invoice No. 5436.
30 Paid monthly salaries, $2,054.38; Check No. 3840.
30 The owner withdrew cash for personal use, $3,200.00; Check No. 3841.

Directions: For each of the definitions, write the letter of the appropriate term in the space provided.

a. Accounting cycle

b. Fiscal period

c. Maintaining accounts

d. Journal

e. Posting

f. General journal

g. Adjusting entries

h. General journal report

i. Income statement

j. Component percentage

k. Balance sheet

l. Statement of owner’s equity

m. Graph

n. Closing journal entries

o. Post-closing trial balance

p. Bank reconciliation


1. A pictorial representation of data that can be produced by the computer and depicted on the screen and printer.
2. A tab used to enter and post general journal entries and to make corrections or delete existing journal entries.
3. The process of updating the ledger account balances with all debits and credits from the journal entries.
4. A display or printout that is useful in detecting errors and verifying the equality of debits and credits.
5. The process of adding new accounts, changing titles of existing accounts, and deleting inactive accounts from the chart of accounts.
6. A financial statement used to show the changes that have occurred to the owner’s equity during the fiscal period.
7. A financial statement that provides information on the net income or net loss of a business over a period of time.
8. A financial statement that provides information on the overall financial strength of a business.
9. A value that represents a percent of total operating revenue.
10. The process that involves all accounting activities, beginning with entering transactions and ending with closing.
11. A regular interval of time for which a business analyzes its financial information.

12. A record of the debit and credit parts of each transaction recorded in date sequence.

13. Changes entered into the computer to update general ledger accounts at the end of a fiscal period.
14. Journal entries automatically generated by the computer that close all temporary income statement accounts to the income summary account, close the income summary account to the capital account, and close the drawing account to the capital account.
15. A report produced after the period-end closing procedure that is completed to verify that debits equal credits in the general ledger accounts.
16. A report that reconciles the bank statement balance with the checkbook balance.

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

An entry to add a new account is entered in the General Journal window.

Describe the process for adding an account to the chart of accounts.

General Journal Transactions
Dec. 01 Paid cash for month’s rent, $1,200.00; Check No. 3829.
01 Paid cash for monthly telephone bill, $237.73; Check No. 3830.
02 Paid cash for delivery charges, $42.00; Check No. 3831. Charge to
Miscellaneous Expense.
05 Purchased advertising on account, $255.00; Invoice No. 2515.
05 Billed client for services rendered, $3,200.00; Invoice No. 5435.
06 Purchased supplies on account, $118.56; Invoice No. 2516.
06 Paid cash for mileage reimbursement, $405.00; Check No. 3832. Charge to Automobile Expense.
07 Purchased repair services on account, $285.00; Invoice No. 2517.
07 Paid cash for travel expenses, $125.35; Check No. 3833.
09 Paid cash on account, $175.00; Check No. 3834.
09 Purchased supplies on account, $225.30; Invoice No. 2518.
09 Billed client for services rendered, $2,000.00; Invoice No. 5436.
12 Billed client for services rendered, $3,575.00; Invoice No. 5437.
13 Purchased advertising on account, $500.00; Invoice No. 2519.
14 Paid cash for dues for a professional organization, $265.00; Check No. 3835.
15 Received cash on account, $3,200.00; Invoice No. 5435.
16 Paid cash for charitable contribution, $75.00; Check No. 3836.
19 Received cash on account, $3,700.00; Invoice No. 5434.
20 Billed client for services rendered, $1,200.00; Invoice No. 5438.
21 Purchased supplies on account, $135.00; Invoice No. 2520.
23 Paid cash on account, $136.85; Check No. 3837.
27 Paid cash on account, $250.00; Check No. 3838.
29 Received cash on account, $3,250.00; Invoice No. 5433.
30 Paid cash on account, $311.86; Check No. 3839.
30 Received cash on account, $2,000.00; Invoice No. 5436.
30 Paid monthly salaries, $2,054.38; Check No. 3840.
30 The owner withdrew cash for personal use, $3,200.00; Check No. 3841.
Step 1: Start Integrated Accounting 8e.
Step 2: Open the opening balances file named IA8 Problem 02-A.
Step 3: Enter your name in the Your Name text box.
Step 4: Save the file to your disk or folder with a file name of 02-ABC Your Name, where 02-A is the problem number, and BC stands for ‘‘Before Closing.’’

Step 5: Enter the December general journal transactions.
Step 6: Display the general journal report for the month of December.
Step 7: Use the Explorer and other error correction features of the software to correct the following error:
It was discovered that the cash received, invoice number 5434, on December 19, was recorded as $50.00 less than the actual amount of cash received. Use the Explore Accounting System window to find and make note of the amount of the transaction entered in error, then use the general journal to enter and post the correct amount of the journal entry in error.
Step 8: Display a corrected general journal report.
Step 9: Display a trial balance.
Step 10: Enter the December adjusting entries for the month of December for Morrow Consulting:
Insurance expired during December.................................. $85.00
Inventory of supplies on December 31............................... $1,178.50
Depreciation on office equipment for December ............. $423.00
Step 11: Display the December adjusting entries.
Step 12: Display the income statement.
Step 13: Display the yearly Consulting Fees account detail from the income statement by clicking the Show Detail button on the income statement.
Step 14: Display the statement of owner’s equity.
Step 15: Display the balance sheet.
Step 16: Display the Supplies account detail from the balance sheet.
Step 17: Generate an expense distribution graph.
Step 18: Process the following bank reconciliation data:
Checkbook balance ...................................... $12,764.00
Bank credit ..................................................... $283.96
Bank charge .................................................... $12.00
Balance shown on bank statement ............. $6,652.20

Outstanding deposits as follows:
$3,200.00
$3,750.00
$3,250.00
$2,000.00
Outstanding checks as follows:
Check No.             Amount
3838 .....................$250.00
3839 .....................$311.86
3840 ..................$2,054.38
3841 ..................$3,200.00
Step 19: Display the bank reconciliation report.
Step 20: Check your work.
Click Check on the toolbar button. If errors appear, use the Explorer and other error corrections features of the software to correct your errors.
Step 21: Save your data file (with a file name of 02-ABC Your Name).
Step 22: Optional spreadsheet and word processing integration activity.
Joyce Morrow, owner, asked you to create a spreadsheet report showing only the cash receipt transactions entered into the accounting system for the month of December. Prepare an interoffice memorandum that contains this information. Use the following steps to complete this task:
a. Display and copy the general journal report to the clipboard in spreadsheet format.
b. Start your spreadsheet software and load spreadsheet template file IA8 Spreadsheet 02-S.
c. Select cell A1 as the current cell (if not already selected) and paste the general journal report into the spreadsheet.
d. Delete all rows of data that are not cash receipt transactions, change the title of the report from General Journal to Cash Receipts, and replace the old totals with the sum of the debit and credit columns. Format the spreadsheet similar to Figure 2.32.
e. Print the Cash Receipts report.
f. Save your spreadsheet file to your disk or folder with a file name of 02-A Your Name.
g. Select and copy the spreadsheet report to the clipboard.
h. End your spreadsheet application.

i. Start your word processing application software and load template file IA8 Word processing 02-AB (load as a document file).
j. Replace FROM: Student Name with your name.
k. Position the insertion point one line after the last line in the document and paste the spreadsheet report. Format your document as necessary.
l. Print the completed document.
m. Save the document to your disk or folder with a file name of 02-A Your Name.
n. End your word processing application and return to the Integrated Accounting application.
Step 23: Generate and post the closing journal entries.
Click on the Gen. Led. navigation button, and then click the Generate Closing Entries menu button. When the dialog box appears asking if you want to generate closing journal entries, click Yes. The closing journal entries automatically generated by the computer will appear in a dialog box. Click Post. When the general journal appears, showing that the closing entries have been posted, click Close.
Step 24: Display the closing entries.
Click on the Gen. Led. navigation button, and then click the Journal Reports menu button. When the Report Selection window appears, choose the Journal option and the General Journal report (if not already selected) and click OK. When the Journal Report Selection dialog box appears, choose the Customize Journal Report option and enter a Reference
restriction of Clo.Ent. so that only the closing entries are reported.
Step 25: Display a trial balance (called the post-closing trial balance).
Step 26: Save your data to disk with a file name of 02-AAC Your Name where 02-A is the problem, and AC is ‘‘After Closing.’’

Step 27: Use the Check toolbar button to check your work.
Step 28: End the Integrated Accounting 8e session.


Figure 2.32

Write the answers to the following questions in the space provided.
1. What is the amount of check number 3838 shown on the general journal report?
2. What are the totals of the debit and credit columns of the general journal reports (before the adjusting and closing entries)?
3. What is the balance in the Accounts Payable account?
4. What is the balance in the Advertising Expense account (before closing)?
5. What are the debit and credit totals shown in the trial balance report (before adjusting entries)?
6. What are the totals of the debit and credit columns of the adjusting entries shown on the general journal report for adjusting entries?
7. What is the total operating revenue for the year?
8. What are the total operating expenses for the month?
9. What are the total operating expenses for the year as a percentage of total operating revenue?
10. What is the net income for the year?
11. What is the net income for the month as a percentage of total operating revenue?
12. What is the owner’s equity at the end of the fiscal period?
13. What are the total assets?
14. What are the total liabilities?

15. From the Expense Distribution pie chart, what are the two highest expenses?
16. From the bank reconciliation report, what is the amount of the adjusted checkbook and bank balances?
17. What are the totals of the debit and credit columns of the closing entries shown on the general journal report?
18. What are the debit and credit totals shown in the trial balance after closing?


Data From Problem

General Journal Transactions
Dec. 01 Paid cash for month’s rent, $1,200.00; Check No. 3829.
01 Paid cash for monthly telephone bill, $237.73; Check No. 3830.
02 Paid cash for delivery charges, $42.00; Check No. 3831. Charge to Miscellaneous Expense.
05 Purchased advertising on account, $255.00; Invoice No. 2515.
05 Billed client for services rendered, $3,200.00; Invoice No. 5435.
06 Purchased supplies on account, $118.56; Invoice No. 2516.
06 Paid cash for mileage reimbursement, $405.00; Check No. 3832. Charge to Automobile Expense.
07 Purchased repair services on account, $285.00; Invoice No. 2517.
07 Paid cash for travel expenses, $125.35; Check No. 3833.
09 Paid cash on account, $175.00; Check No. 3834.
09 Purchased supplies on account, $225.30; Invoice No. 2518.
09 Billed client for services rendered, $2,000.00; Invoice No. 5436.
12 Billed client for services rendered, $3,575.00; Invoice No. 5437.
13 Purchased advertising on account, $500.00; Invoice No. 2519.
14 Paid cash for dues for a professional organization, $265.00; Check No. 3835.
15 Received cash on account, $3,200.00; Invoice No. 5435.
16 Paid cash for charitable contribution, $75.00; Check No. 3836.
19 Received cash on account, $3,700.00; Invoice No. 5434.
20 Billed client for services rendered, $1,200.00; Invoice No. 5438.
21 Purchased supplies on account, $135.00; Invoice No. 2520.
23 Paid cash on account, $136.85; Check No. 3837.
27 Paid cash on account, $250.00; Check No. 3838.
29 Received cash on account, $3,250.00; Invoice No. 5433.
30 Paid cash on account, $311.86; Check No. 3839.
30 Received cash on account, $2,000.00; Invoice No. 5436.
30 Paid monthly salaries, $2,054.38; Check No. 3840.
30 The owner withdrew cash for personal use, $3,200.00; Check No. 3841.

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

Only transactions that do not involve cash may be recorded in the General Journal window.

Describe the process for changing the title of an existing account in the chart of accounts.

What kind of transaction(s) may be entered in the general journal?

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

The Chart of Accounts button on the General Journal window generates a Chart of Accounts selection list.

Describe the process for correcting a general journal entry.

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

A new general ledger account can be added (or changed) while entering a journal entry.

Describe the process for deleting a general journal entry.

If the statement is true, write a T in the space provided. If the statement is false, write F in the space provided.

Instead of entering an account number in the general journal, you may select the account from a Chart of Accounts selection list window.

Explain how the Chart of Accounts button can be used while entering general journal transactions.

Complete the date range section of the following Journal Report Selection window to display all general journal entries from July 1 through July 31 of the current year.

Complete the following Journal Report Selection window to display all general journal entries from September 1 through September 10 of the current year with a reference of 5435.

If the balance in the Supplies account after all transactions for the fiscal period have been processed and before adjusting entries is $1,585.00 and the current supplies inventory is $1,250.00, what is the amount of the supplies adjusting entry?

What financial statements are available for a non departmentalized business organized as a sole proprietorship?

What information is automatically provided by the computer to aid in the bank reconciliation process?

Describe the procedure to correct an error discovered after closing.

Briefly describe the closing entries automatically generated by the computer.

For each of the definitions, write the letter of the appropriate term in the space provided.

a. Purge invoices and purchase orders

b. Account Maintenance/Inventory

c. Computerized purchase order processing system

d. Unit of measure

e. Purchase requisition

f. Reorder point

g. Purchase order transaction

h. Quantity on hand

i. Quantity on order

j. Purchase invoice

k. Receiving report

l. Retail price

m. Purchase invoice transaction

n. Purchases return transaction

o. Vendors

p. Cash payment transaction

q. Check

1.   A two-character abbreviation that indicates how the item is sold (each, by the dozen, by the box, etc.).

2. A count of the quantity of this particular item currently contained in the merchandise inventory.

3. A transaction that creates and posts an entry in the general journal, updates the vendor account balance, and decreases an inventory item’s quantity on hand.

4. A transaction that increases an inventory item’s quantity on order.

5. A transaction that creates and posts an entry in the purchases journal, updates the vendor account balance, decreases inventory item(s) quantity on order, increases an inventory item(s) quantity on hand, and generates an internal purchase invoice document.

6. The current selling price per unit for this item.

7. The window used to enter additions, changes, and deletions to inventory items.

8. A document sent to the business’s accounting department by a vendor containing the vendor’s name; original purchase order number; quantity, description, and price of the merchandise sent; and terms of the order.

9. When the quantity on hand reaches this point, additional items are to be ordered.

10. The process in which previously entered transactions are erased when capacity is exceeded.

11. A document prepared by the receiving department, containing the description, quantity, and condition of the merchandise received.

12. A formal document requesting a purchase of merchandise.

13. The quantity of this item for which stock is ordered but not yet received.

14. Comprises the procedures involved in automatically integrating the purchase order, purchase invoice, and cash disbursement data into the inventory and general ledger.

15. A computer-generated output given to each vendor in payment of purchases owed.

16. Businesses from which merchandise is purchased or supplies and other assets are bought.

17. Any type of transaction involving the payment (disbursement) of cash.

What problem(s) may occur if the merchandise inventory is too low?

Write the answers to the following questions in the space provided. Note: all the following questions relate to March 8–14.
Register Reports
1. What is the total amount of purchase orders for the period?
2. What is the total amount of purchase invoices for the period?
Inventory List Report
3. What is the last cost for the RKC Electric Range?
4. What is the reorder point for the ICY 20 CF. Freezer?
5. How many Trash Compactors are on hand?
Journal and Ledger Reports
6. What are the total debits and credits shown on the purchases journal?
7. What are the total debits and credits shown on the cash payments journal?
8. From the General Ledger report, what was the Merchandise Inventory account balance on March 14?
9. From the General Ledger report, what was the Accounts Payable account balance on March 13?
10. From the schedule of accounts payable, what is the total amount owed?
Inventory Reports and Graph
11. How many items were ordered during the period?

12. How many items were received during the period?
13. List the item(s) that are out of stock for which no items are currently on order.
14. From the graph, what is the most profitable inventory item?


Data From Problem 

Mar 08         

Ordered the following merchandise from ICY Refrigeration Co., terms 2/0, n/30. Purchase Order No. 505.


08 

Received the following merchandise for Purchase Order No. 501 from SPOTLESS Mfg., Inc., terms 2/10, n/30. Purchase Invoice No. 921.


08 

Ordered the following merchandise from IDEAL Appliance Mfg., terms 2/10, n/30. Purchase Order No. 506.


09 

Received the following merchandise for Purchase Order No. 503 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 922.


10 

Ordered the following merchandise from RKC Production, Inc., terms 2/10, n/30. Purchase Order no. 507.


11 

Returned the following merchandise to ICY Refrigeration, Co. Purchase Invoice No. R919.


12 

Received the following merchandise from Purchase Order No. 502 from RKC Production, Inc., terms 2/10, n/30. Purchase Invoice No. 923.


13 

Ordered the following merchandise from ICY Refrigeration, Co., terms 2/10, n/30. Purchase Order No. 508.


14 

Received the following merchandise for Purchase Order No. 504 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 924.

Why is data not lost when invoices and purchase orders are purged?

Write the answers to the following questions in the space provided. Note: all the following questions relate to March 8–14.
Register Reports
1. What is the total amount of purchase orders for the period?
2. What is the total amount of purchase invoices for the period?
Inventory List Report
3. What is the last cost for the SPOTLESS Washer?
4. What is the retail price of the Top MNT 25 CF. Refrig.?
5. How many IDEAL Dishwashers are on hand?
Journal and Ledger Reports
6. What are the total debits and credits shown on the purchases journal?
7. What are the total debits and credits shown on the cash payments journal?
8. From the General Ledger report, what was the Merchandise Inventory account balance on March 14?
9. From the General Ledger report, what was the Accounts Payable account balance on March 11?
10. From the schedule of accounts payable, what is the total amount owed?
Inventory Reports and Graph
11. How many items were ordered during the period?

12. How many items were received during the period?
13. List the item(s) that are out of stock for which no items are currently on order.
14. From the graph, what is the least profitable inventory item?


Data From Problem 

Mar 08 

Ordered the following merchandise from ICY Refrigeration Co., terms 2/10, n/30. Purchase Order No. 505.

08 

Received the following merchandise for Purchase Order No. 501 from SPOTLESS Mfg., Inc., terms 2/10, n/30. Purchase Invoice No. 921.

08 

Ordered the following merchandise from IDEAL Appliance Mfg., terms 2/10, n/30. Purchase Order No. 506.

09 

Received the following merchandise for Purchase Order No. 503 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 922.

10 

Ordered the following merchandise from RKC Production, Inc., terms 2/10, n/30. Purchase Order No. 507.

11 

Returned the following merchandise to ICY Refrigeration, Co. Purchase Invoice No. R919.

12 

Received the following merchandise from Purchase Order No. 502 from RKC Production, Inc., terms 2/10, n/30. Purchase Invoice No. 923.

13 

Ordered the following merchandise from ICY Refrigeration Co., terms 2/10, n/30. Purchase Order No. 508.

14 

Received the following merchandise for Purchase Order No. 504 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 924.

Step 1: Start up Integrated Accounting 8e.
Step 2: Load opening balances file IA8 Problem 03-A.
Step 3: Enter your name in the Your Name text box and click OK.
Step 4: Save the file with a file name of 03-A Your Name.
Step 5: Enter the inventory stock item maintenance data.
Add Stock No. 4030; GC Electric Range; unit of measure, EA (Each); reorder point, 5; retail price, $485.95 to the stock item file.
Add Stock No. 4040; GC Gas Range; unit of measure, EA (Each); reorder point, 5; retail price, $547.35 to the stock item file.
Change the retail price of S by S 29 CF. Refrig. (Stock No. 3040) to $1,879.00.
Change the reorder point of GC Washer (Stock No. 1010) to 14 and the retail price to $349.95.
Step 6: Enter the following purchase order and purchase invoice transactions.
Weekly Purchase Order and Purchase Invoice Transactions

Mar 08         

Ordered the following merchandise from ICY Refrigeration Co., terms 2/0, n/30. Purchase Order No. 505.


08 

Received the following merchandise for Purchase Order No. 501 from SPOTLESS Mfg., Inc., terms 2/10, n/30. Purchase Invoice No. 921.


08 

Ordered the following merchandise from IDEAL Appliance Mfg., terms 2/10, n/30. Purchase Order No. 506.


09 

Received the following merchandise for Purchase Order No. 503 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 922.


10 

Ordered the following merchandise from RKC Production, Inc., terms 2/10, n/30. Purchase Order no. 507.


11 

Returned the following merchandise to ICY Refrigeration, Co. Purchase Invoice No. R919.


12 

Received the following merchandise from Purchase Order No. 502 from RKC Production, Inc., terms 2/10, n/30. Purchase Invoice No. 923.


13 

Ordered the following merchandise from ICY Refrigeration, Co., terms 2/10, n/30. Purchase Order No. 508.


14 

Received the following merchandise for Purchase Order No. 504 from MNT Refrigerators, Inc., terms 2/10, n/30. Purchase Invoice No. 924.

Step 7: Enter the Cash Payment Transactions shown below.
Weekly Cash Payment Transactions
Mar 12 Paid invoice 917 to GC Manufacturing, Inc., $1,590.00, no discount. Check No. 4735.
13 Paid invoice 920 to IDEAL Appliance Mfg., $710.25, less 2% discount, $14.21. Check No. 4736.
14 Paid invoice 921 to SPOTLESS Mfg., Inc., $1,914.00, less 2% discount, $38.28. Check No. 4737.

Step 8: Display the purchase order and purchase invoice registers for the period of March 8 through March 14.
Step 9: Display an Inventory List report.
Step 10: Display the general, purchases, and cash payments journals for the period of March 8 through March 14.
Step 11: Display a general ledger report for the Merchandise Inventory and Accounts Payable accounts.
Step 12: Display a schedule of accounts payable.
Step 13: Display an accounts payable ledger for all vendors.
Step 14: Display the inventory transactions report for the period of March 8 through March 14.
Step 15: Display the Inventory Exceptions report.
Step 16: Generate a Most Profitable Inventory Items graph and a Least Profitable Inventory Items graph.
Step 17: Save your data to disk.
Step 18: Use the Check toolbar button to check your work.
Step 19: Optional spreadsheet integration activity.

Use a spreadsheet to prepare a report showing the current retail value of each stock item in Hayes Appliances’s inventory. Use the optional spreadsheet integration activity in Sample Problem 3-S and Figure 3.29 as a guide if necessary.
a. Display and copy the Inventory List report to the clipboard in spreadsheet format.
b. Start your spreadsheet software and load template file IA8 Spreadsheet 03-S.
c. Select cell A1 as the current cell, and paste the Inventory List report from the clipboard into the spreadsheet.
d. In Cell B4 enter: Value at Retail.
In cell I7 enter: Value, and in cell I8 enter: at Retail. Enter the formula to calculate the value at retail in cell I10, then copy it to each of the following inventory items. Enter the appropriate formula for your spreadsheet software to sum the Value at Retail column at the end of the report.

e. Print the spreadsheet report.
f. Save your spreadsheet data with a file name of 03-A Your Name.
g. End your spreadsheet session.

Step 20: Optional word processing integration activity.
Complete a memorandum that lists inventory items currently on order.
The list should include the last cost and retail price for each item on the
list. Refer to Figure 3.30 as a guide if necessary.
a. Display and copy the Inventory List report to the clipboard in word processor format.
b. Start your word processing software and load template file IA8 Word processing 03-S (load as a document file).
c. Paste the contents of the clipboard into the memorandum at the location specified.
d. Enter your name and today’s date where indicated.
e. Remove the report heading and align the column headings. Remove all inventory items that do not have on-order quantities and format the information as necessary.
f. Print the memorandum.
g. Save the memorandum document with a file name of 03-A Your Name.
h. End your word processing session.

Step 21: End the Integrated Accounting 8e session.

Make use of the data in Sample Problem 3-S to describe the integration that would take place when the following transaction is entered into the computer:
Ordered—3 SPOTLESS Washers at $300.00 each from SPOTLESS Mfg., Inc.

Make use of the data in Sample Problem 3-S to describe the integration that would take place when the following transaction is entered into the computer:
Received—2 Mini Washer & Dryers at $525.00 each from RKC Production, Inc.

Inventory System Integration:

Accounting System Integration:

Make use of the data in Sample Problem 3-S to describe the integration that would take place when the following transaction is entered into the computer:

Returned—2 S by S 19 CF. Refrig. at $500.00 each to GC Manufacturing, Inc.

Inventory System Integration:

Accounting System Integration:

Make use of the data in Sample Problem 3- to describe the integration that would take place when the following transaction is entered into the computer:

Paid–DELTA Appliances, Inc., $1,500.00, less 2% discount, $30.00. Accounting System Integration:

What information is contained on the purchases journal report?

What information is contained on the Cash Payments Journal report?

What information is contained on the Schedule of Accounts Payable report?

What information is contained on the Accounts Payable Ledger report?

What information is contained on the purchase order register?

What information is contained on the purchase invoice register?

What is the purpose of the Inventory List report?

What is the purpose of the Inventory Transactions report?

What is the purpose of the Inventory Exceptions report?

Identify the tasks performed by the computer when sales invoice data are entered through the Sales Invoice tab.

How is the quantity entered in the Sales Invoice window for a sales return transaction?

Itemize the steps required to make a change to an existing sales invoice.

What do the terms 2/10, n/30 mean?

What totals are contained at the bottom of the computer-generated sales invoice?

Make use of the data in Sample Problem 4-S to describe the integration that would take place when the following sales invoice transaction is entered into the computer:
Sold – 1 Wet & Dry Vacuum at $325.00, $19.50 sales tax, to Robert Thorson (use a FIFO cost of $185.00).
Inventory System Integration:
Accounting System Integration:

Make use of the data in Sample Problem 4-S to describe the accounting system integration that would take place when the following cash receipt transaction is entered into the computer:
Received cash on account from Wingler Motel, covering Sales Invoice No. 534 for $4,250.00, less 2% discount, $85.00.

Why are data not lost when sales invoices are purged?

How does the computer determine the value of an inventory item based on average cost?

What assumption does the computer make to determine the value of an inventory item based on the last-in, first-out method?

What assumption does the computer make to determine the value of an inventory item based on the first-in, first-out method?

What account amount does the computer automatically calculate and display when a cash payment transaction is entered?

What account amount does the computer automatically calculate and display when a cash receipt transaction is entered?

What types of cash payments do not require a vendor name in the cash payment transaction screen?

What types of cash receipts do not require a customer name in the cash receipts transaction screen?

What types of information are contained on the Budget Report?

What types of assets are included in the 5-year class for MACRS?

Using the straight-line method, what is the amount of depreciation for the first year for an asset purchased on January 1 for $3,000, with a useful life of 5 years, and with a salvage value of $200.00?

What are three uses of the information provided by the fixed assets system?

What report must be selected in order to obtain a listing of the depreciation adjusting entries generated and posted by the computer?

If the statement is true, write T in the space provided. If the statement is false, write F in the space provided.
1. The computer permits the user to delete an employee at any time during the calendar year.
2. You cannot make corrections to the payroll transactions once they have been entered into the computer.
3. When a payroll transaction is entered, the computer can be instructed to calculate payroll taxes.
4. The computer can automatically generate an employee’s paycheck.
5. The payroll software is date sensitive, and it depends on the payroll transaction dates to accurately accumulate and process payroll data.
6. Payroll journal entries must be manually entered into the general journal to update the general ledger payroll account balances.
7. The general journal report provides a listing of the journal entries posted during payroll processing.

What is the difference between the Current Payroll Journal Entry and the Employer’s Payroll Taxes menu items?

What steps must be taken to delete a payroll transaction already entered to prevent an employee from being paid?

How does the computer know what check numbers to assign to current payroll checks?

What is the purpose of the Quarterly Report?

What procedure is used to perform period-end closing for a business organized as a partnership with unequal partner distribution of income or loss?

What information is provided on a corporation’s income statement that is not contained on a sole proprietorship or partnership income statement?

What is the purpose of the stockholders’ equity section of the balance sheet?

What are the four major sections of the ratio analysis report?

What three classifications of cash receipts and payments appear on the statement of cash flows?

How does the software use the account number ranges to classify long term assets and liabilities in the statement of cash flows?

Which of the two methods of determining cash flow from operating activities is used by the Integrated Accounting 8e software?

Once calculated, all ratios should be compared to what?

How can a company improve its return on average total assets ratio?

How can a company improve its return on average stockholders’ equity ratio?

How can a company improve its rate earned on net sales ratio?

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