Algorithmic Gold Run Snowmobile - PKL Software

Algorithmic Gold Run Snowmobile – Module 2

Copyright © 2012 - 2020 PKL Software, Incorporated. All rights reserved Last Revised: September 10, 2020

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Algorithmic

Gold Run Snowmobile

1st Algorithmic Edition

Transactions For December 11-17

and the

Mid-Project Evaluation



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TRANSACTIONS FOR DECEMBER 11-17 December 11 Used store equipment was sold for $320.00 cash. The equipment originally cost $1,250.00 and depreciation to September 30 of this year (the end of the third quarter) totals $820.00. The asset depreciates on a straight-line basis at a rate of $20.00 per month and depreciation is calculated to the nearest month. Two journal entries are required. At the invoice prompt type ASALE. ______________________________________________________________________________ December 11 A check was issued to the Oroville Freight Company for $199.75 as payment of an invoice for freight charges on merchandise delivered to customers under shipping terms of FOB destination. Check Number: 30093. Invoice Number: L3111. ______________________________________________________________________________ December 11 Returned shop supplies with a total cost of $56.00 to Buster Supply. The shop supplies were purchased on account December 4. Sales Invoice Number: B5667. Vendor Number: 20300. ______________________________________________________________________________ December 12 A certified check was received for $1,310.00 from customer Alice Cordero as payment on her account. Ms. Cordero's account was written off as uncollectible on November 15 of this year. Two journal entries are required. The first step is to restore the customers account balance. At the invoice prompt type RECOV. Customer Number: 10750. ______________________________________________________________________________ December 12 A check was received from Western National Credit Card Company for $7,355.18 as payment in full on credit card invoices that had been received through December 1. The invoices, for sales made in late November and early December, totaled $7,641.75 and Western National charges a 3.75% fee for use of their system. Invoice Number: CC301.



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December 13 After exhausting all alternatives to initiate collection, wrote off the $435.00 balance of customer Chris Enburger. Invoice Number: WROFF. Customer Number: 11000. ______________________________________________________________________________ December 13 Purchased accessory items for inventory on credit from Fastwinn, Incorporated. The cash terms are 2/10, n/30, and the goods are shipped FOB shipping point. Net purchase price for the merchandise is $573.30, added freight charges $43.50, and the final net amount of the invoice totals $616.80. Invoice Number: 44777. Vendor Number: 22500. Merchandise listed on the purchase invoice: Stock Number

Item Quantity Net Cost Per Unit

U1000 MICRO WINDSHIELD 5 $44.10 V0333 SNOWMOBILE COVER 6 $58.80 Freight charges added to the invoice: Freight Charges $43.50

______________________________________________________________________________ December 13 Instead of repairing the heavy duty shop hoist and charging the cost to an operating expense account, the hoist, which has one year remaining in its estimated useful life, is completely overhauled at a cost of $3,600.00. This overhaul will extend the useful life of the hoist to four years. The Shop Equipment account will be debited directly for this extraordinary repair. Check Number: 30094. Invoice Number: 35556.



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December 13 Two Trail-Tracker 2000 snowmobiles and one Norton trailer were sold to customer Karen Osetto at an out-the-door price of $14,697.79 which includes sales tax. Ms. Osetto presented a check for $6,000.00 as a cash down payment and charged the balance to her account. The account will be paid in full in 30 days. To calculate the total sales amount, divide the out-the-door price by 1.07. The difference between the answer and the total selling cost will be the sales tax. Sales Invoice Number: G3012. Customer Number: 11510. Merchandise listed on the sales invoice: Stock Number


T2000 TRAIL-TRACKER 2000 2 $5,148.00 SD200 NORTON TRAILER DUO 1 $693.00 ______________________________________________________________________________ December 13 A $370.00 check was issued to Outdoors Unlimited magazine for advertising to be featured in the December 20 issue. Check Number: 30095. Invoice Number: 87333. ______________________________________________________________________________ December 14 Six Swift snowmobiles and six batteries were sold to a local snowmobile club for $50,094.00 plus sales tax. The club presented a certified check as payment in full for their new equipment. Sales Invoice Number: G3013. Merchandise listed on the sales invoice: Stock Number


SW660 SWIFT ENDURO 5 $5,940.00 SW999 SWIFT ARROW 1 $9,900.00 A1150 SUPER CHARGER BATTERY 6 $49.50



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December 14 A check was issued for payment in full of the Buster Supply store equipment and store supplies purchase of December 4, less the $56.00 supply return of December 11. Check Number: 30096. Invoice Number: B5677. Vendor Number: 20300. ______________________________________________________________________________ December 15 Five hundred (500) shares of Ramblewood Manufacturing Corporation common stock that had been held as a short-term investment were sold. The stock sold for $11.50 per share, less a commission of $142.50. The stock was originally purchased as a block of 1,000 shares at a total cost (including commission) of $9,250.00. At the invoice prompt enter STINV for stock investment. ______________________________________________________________________________ December 15 Completed 3.25 hours of service and repair work and sold customer Mary Bermuda two snowmobile covers and four pairs of large snow mittens. Selling price of the merchandise is $414.40 and labor is $58.00 per hour. Sales tax is charged on merchandise and labor. Mary charged the full amount to her account. Sales Invoice Number: G3014. Customer Number: 10400. Merchandise listed on the sales invoice: Stock Number


V0333 SNOWMOBILE COVER 2 $58.80 LL355 SNOW MITTENS LARGE 4 $22.40 ______________________________________________________________________________ December 15 A check for $20,545.00 was received from Ruth Yates as payment in full on her account. Sales Invoice Number: G2995. Customer Number: 11950.



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December 15 A check was issued to Zak Veedecampf, the part-time repair and sales person for the business. Zak is paid $10.50 per hour and worked 41.5 hours during the past two-week period ended December 14. Check Number: 30097. Invoice Number: PAYRL. ______________________________________________________________________________ December 15 A check was issued to Swift, Incorporated, as payment in full for the fifteen Cruze faceshields that were purchased for $148.50 (net) on December 5. Check Number: 30098. Invoice Number: S4101. Vendor umber: 27000. ______________________________________________________________________________ December 16 A check was issued to Trail-Tracker, Incorporated, for payment of the account. Check the balance due to Trail-Tracker by examining the Accounts Payable Subsidiary Ledger. Remember that this account balance has been recorded using the net method. Check Number: 30099. Invoice Number: T4357. Vendor Number: 28400. ______________________________________________________________________________ December 16 A credit memo was issued to customer Mary Bermuda of $47.94 for the return of one pair of LL355 SNOW MITTENS LARGE. The mittens sold for $44.80 plus tax on December 15.The inventory cost of the mittens is $22.40. Sales Invoice Number: G3014. Credit Memo Number: CM307. Customer Number: 10400. ______________________________________________________________________________ December 17 A check was issued to the Oroville Freight Company for $423.50 as payment for freight charges on merchandise received from Morelli Sports Equipment on December 10. Invoice Number: L3279. Check Number: 30100.



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December 17 Received notice from the bank that the $6,000.00 check received from customer Karen Osetto on December 13 has not cleared due to non-sufficient funds in Karen’s checking account. The balance of this NSF check and an additional $30.00 handling fee will be charged back to Ms. Osetto's account. The handling fee charged by Gold Run Snowmobile will be entered as Miscellaneous Revenue. Check Number: BADCK. Sales Invoice Number: G3012. Customer Number: 11510. ______________________________________________________________________________ December 17 Completed 4.5 hours of service work and sold customer Alex Wong a Quad Hauler trailer. The retail selling price for the trailer is $1,485.00. The full amount due, including sales tax, is paid with a Bank Credit Card. The bank will charge a credit card fee which will be billed and recorded at the end of the month with the bank reconciliation. Sales Invoice Number: G3015. Merchandise listed on the sales invoice: Stock Number


SSS30 QUAD HAULER 1 $1,188.00 ______________________________________________________________________________ December 17 A debit memo was issued for $58.80 (net cost) and one V0333 SNOWMOBILE COVER was returned to Fastwinn, Incorporated. The cover contained a major defect in the side panel and was not saleable. It was part of the December 13 purchase. Invoice Number: 44777. Debit Memo Number: DM211. Vendor Number: 22500. ______________________________________________________________________________ This completes the transactions for December 11 to December 17.



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Now that you have completed entering the transactions for December 11-17, it is time to check the accuracy of your work.

1. Move the pointer to Check Figures in the Menu Bar, move down to Weekly Check Figures, and click. Select Check Figures for Week 2.

2. Click on Print and print a copy of the Check Figures for Week 2. 3. Move the pointer to Journal/Ledgers/Statements, move down to General Ledger, and

click. 4. Print a copy of the Trial Balance for December 17. 5. Move the pointer to Journal/Ledgers/Statements, move down to Subsidiary Ledgers,

move to Accounts Receivable Ledger, and click. 6. Print a copy of the Schedule of Accounts Receivable. 7. Move the pointer to Journal/Ledgers/Statements, move down to Subsidiary Ledgers,

move to Accounts Payable Ledger, and click. 8. Print a copy of the Schedule of Accounts Payable. 9. Move the pointer to Journal/Ledgers/Statements, move down to Subsidiary Ledgers,

move to Inventory, and click. 10. Print a copy of the Inventory Analysis. 11. Move the pointer to Journal/Ledgers/Statements, move down to General Journal, and

click. 12. Select the Second Week and Print a copy of the General Journal for Week 2. 13. Compare the balance of the Schedule of Accounts Receivable to the balance of

Accounts Receivable shown on the Trial Balance. 14. Compare the balance of the Schedule of Accounts Payable to the balance of Accounts

Payable shown on the Trial Balance. 15. Compare the balances of the accounts shown in the Check Figures for Week 2 to the

balances of the same accounts in the Trial Balance. If any of your account balances DO NOT match the check figures, you must correct the unmatched balances before continuing to the Mid-Project Evaluation or starting Module 3. The most efficient method of locating and correcting the error(s) is to print a copy of the Trial Balance and a copy of the General Journal. For accuracy, efficiency, and a clear audit trail, use ONLY the correction system designed for the Gold Run Snowmobile accounting system, which is shown at the end of this Module. If all of your balances match the check figures, you need to prepare for the Mid-Project Evaluation.



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______________________________________________________________________________

Error Correction Procedures The most efficient method of locating and correcting the error(s) is to print a copy of the Trial Balance and a copy of the General Journal. See Correcting Errors under Support in the menu bar. ______________________________________________________________________________

The Mid-Project Evaluation

Move the pointer to Evaluations, select Mid-Project Evaluation, and click on Print in the popup window that shows the documentation necessary to complete the evaluation. Click on Print in the Menu Bar and print a copy of the evaluation. Answer the questions in the printed copy. After you have answered the questions, return to the Mid-Project Evaluation and enter your answers in the spaces provided. ______________________________________________________________________________

CONTINUING TO MODULE 3 When your account balances match those of the check figures, you have completed the Mid- Project Evaluation, and you have printed all the required documents for Module 2, you are ready to begin the data entry for Module 3, which includes the transactions for December 18 to 24. To begin, you must first print a copy of the Module 3 manual. Move the pointer to Support on the Menu Bar and click Download Student Manual. Select Module 3, Transactions for December 18 to December 24. Print the manual.

______________________________________________________________________________

BACKUP YOUR DATA FILES

Go to Administration on the Menu Bar, scroll down to Files: Reset and Backup, select Backup Data Files, and click. You now have a copy of all of your work to the end of Module 2. This file will allow you to return to end of Module 2 even after entering transactions beyond Module 2. ______________________________________________________________________________

EXITING THE SYSTEM

If you have completed your work for this session, click on Logout from the Menu Bar. This will return you to the PKL Home Page. You can exit the program at any point and return to that point later.



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MID-PROJECT EVALUATION NAME_______________________________________ GOLD RUN SNOWMOBILE CLASS DAY AND TIME__________DATE________

1. Do the totals on your printed Trial Balance match the Weekly Check Figures for Week 2?

A. Yes B. No

____________

2. What is the balance of the Cash account? Enter all dollar answers without dollar signs. Example: 147.00

$____________

3. What was the balance of the Cash account at the end of the work day December 10?

$____________

4. How many checks have been issued by the business during the period of December 4 through December 10?

A. One B. Two C. Three D. Five

____________

5. What was the amount of the check written on December 14?

$____________

6. Is the balance of the Merchandise Inventory account greater than $132,500.00?

A. Yes B. No

____________

7. What is the balance of 'net' sales?

$____________

8. What is the balance of the Salaries and Wages Expense account?

$____________

9. Is the Total of the December 17 Trial Balance greater than $699,670.00?

A. Yes B. No

____________

10. What is the net decrease in the Accounts Receivable account?

$____________



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MID-PROJECT EVALUATION GOLD RUN SNOWMOBILE 11. What was the credit entry to the Accounts Receivable account on

December 12? A. Collection of a customer's account B. Recovery of a bad debt C. Sales return and allowance D. None of the above

____________

12. What was the balance of the Merchandise Inventory account on December 14?

$____________

13. What is the net increase in the Accounts Payable account?

$____________

14. What was the amount of the largest sale between December 3 and December 17?

$____________

15. What was the cost of goods sold for the sale recorded with sales invoice G3013?

$____________

16. What is the total increase in the Cost of Goods Sold account?

$___________

17. What is the 'net realizable value' of the Accounts Receivable?

$___________

18. What is the balance of the Schedule of Accounts Receivable?

$____________

19. What is the balance of the Downieville Dusters account?

$____________

20. What is the balance of the Beverly Kline account?

$____________

21. What is the account number of the customer with the largest outstanding balance?

____________

22. The December 17 debit to the Karen Osetto account was for: A. the sale of merchandise. B. the return of an NSF check. C. a sales return. D. none of the above.

____________

23. What is the balance of Cheryl Papini's account?

$_____________



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MID-PROJECT EVALUATION GOLD RUN SNOWMOBILE 24. What is the account number of the customer with the oldest outstanding

balance?

_____________

25. What is the account number of the customer who paid invoice number G2995 in full?

____________

26. On what date was customer invoice G2995 paid? A. Dec. 15 B. Dec. 19 C. Dec. 25 D. Jan. 14 E. Jan. 15

____________

27. What is the current balance of the Accounts Payable account?

$____________

28. What is the balance of the Morelli Sports Equipment account?

$____________

29. What is the balance of the Wind Dancer account?

$____________

30. What is the account number of the vendor with the largest unpaid balance?

____________

31. What is the account number of the vendor with the oldest unpaid balance?

____________

32. What will be the amount of the discount lost on the Norton America account?

$ ____________

33. What was the December 17 debit to the Fastwinn, Incorporated account? A. Debit memorandum B. Sales return and allowance C. Correcting entry D. Both A and B

____________

34. What is the number of the vendor account that had the largest recorded credit purchase of merchandise?

____________

35. How many vendors have unpaid balances? A. Six B. Five C. Four D. Seven E. None of the above

$____________



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MID-PROJECT EVALUATION GOLD RUN SNOWMOBILE 36. What is the last date for paying the Swift, Incorporate account to

earn the purchase discount? A. December 15 B. December 19 C. January 10 D. January 19 E. None of the above

____________

37. Is the balance of the Accounts Payable account greater than $110,850.00?

A. Yes B. No

____________

38. How many inventory items are At or Below the Reorder point?

____________

39. What is the Stock Number of the inventory item with the highest Unit Cost?

____________

40. How many units of T3300 are on hand?

____________

41. What is the FIFO value of inventory item T1500?

$____________

42. What is the FIFO value of inventory item SW660?

$____________

43. How many units of SW660 (Swift Enduro) were sold for cash on December 4th?

____________

44. How many units of LL355 are on hand?

____________

45. What was the number of the credit memorandum issued for one unit of inventory item LL355 on December 16?

____________

46. What is the account number of the vendor who supplied fifteen units of RR925 on December 5?

____________

47. What is the current Units on Hand for inventory Stock Number SD200?

____________

48. What is the current Units on Hand for inventory Stock Number B1200?

____________



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MID-PROJECT EVALUATION GOLD RUN SNOWMOBILE

49. What is the Reorder Point for inventory Stock Number LL244? _____________ 50. What is the Reorder Point for inventory Stock Number XX111?

. ____________

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Algorithmic Gold Run Snowmobile - PKL Software