WHAT IS THE CYBERTEXT – ACCOUNTING CYCLE PRACTICE SETThe Accounting Cycle Practice Set via Cybertext must be completed and turned in by each student. If a student does not complete the Accounting Cycle Practice Set via Cybertext with a 70% or better he/she will receive an “F” for the course (This assignment covers the main course objectives, which is why I require a minimum passing grade of a 70%, C in order to pass the class). This assignment is NOT a testing tool but a LEARNING tool.Remember in order to move on to the financial statements you MUST PROPERLYcomplete the worksheet. Please see the below for proper completion of the worksheet.VERY IMPORTANT – Pivot table and General Ledger are NOT required for this course.Building Blocks of Accounting .. A Financial Perspective
A SOLE PROPRIETORSHIP
areej, when you are ready to have your work graded you will upload this file
AO3244.xls or AO3244.xlsx,
to the same screen that the project was downloaded from:
www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective, Enter
password, Upload Your Excel File.
Keep two copies of your spreadsheet in two separate places in case one does not work.
You may find it easier to work on this project if you print a hard copy of all the pages.
NOTE:
If there are any questions about the project e-mail friedman@cybertext.com or call 305.284.6296.
Grade will be based upon answers entered into the yellow filled cells.
F111
180807
Elf Village
Productions
50 Sheet
Legal Pad
Building Blocks of Accounting .. A Financial Perspective
Page 1
FAQ
FAQ 01
My file used to upload, why is it not uploading?
Answer:
Sometimes we unknowingly add items to a workbook that inhibits the upload process. The conversion to a Excel Binary
Workbook (*.xlsb) version generally fixes the problem. If the problem continues simple send your BINARY file
as an attachment with your username and password…friedman@cybertext.com
Windows Operating System
Select File
Select Save As
Select Save As Type:
Select Excel Binary Workbook (*.xlsb)
Select Save
Upload the binary file at cybertext.com
Apple Operating System
Select File
Select Save As
Select Format:
Select Excel Binary Workbook (*.xlsb)
Select Save
MF1234.xlsx
Upload the binary file at cybertext.com
Excel
Binary Workbook (.xlsb)
Elf Village
Productions
50 Sheet
Legal Pad
Building Blocks of Accounting .. A Financial Perspective
Page 2
FAQ
FAQ 02
When I try to enter information in the General Journal why does an error appears indicating that the cell protected?
Answer:
The computer program is designed to save you time. Instead of requiring you to enter the description four
times the program automatically copies the description when you enter a new account number. This process
requires that the data entry is limited to those cells which contain unique information. The cells that you can
enter data into are the yellow filled cells.
FAQ 03
In the feedback section, what does it mean when I have points under reverse?
Answer:
If you pay a telephone expense of $100.00
Telephone Expense
100
Cash
100
If you debit cash and credit telephone expense you have reversed the whole entry.
Cash
100
Telephone Expense
100
If you debit cash and credit anything else you have reversed part of the entry.
Cash
100
Rent Expense
100
Elf Village
Productions
50 Sheet
Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ
FAQ 04
How does my instructor get my grade?
Answer:
Every time you upload your grade is recorded in a table. Your instructor can look at the table whenever they
want to, although only the last grade counts. Keep a hard copy of your last upload for documentation.
FAQ 05
I have entered all the transactions and have completed the worksheet however I get following
message on the financial statements: “You must finish the worksheet before you can complete the ….”
Answer:
The worksheet demonstrates that the accounting system is working. If all of your journal entries are
in balance then the Unadjusted Trial Balance and the Adjusting Entry columns will balance. The
Adjusted Trial Balance columns net the Unadjusted Trial Balance and the Adjusting Entry columns.
There are four steps to completing the worksheet:
1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the
Balance Sheet columns, (debits remain debits and credits remain credits).
2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses.
3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and
the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet.
4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise
there is an error in the completion of the worksheet.
Page 3
Building Blocks of Accounting — A Financial Perspective
The instructions start on row 22 of this page.
FIRST
areej
LAST
oudeh
SS
3244
File
AO3244
Welcome to the world’s first ePractice case, an individualized, internet generated and graded case study that focuses on the
analytically portion of the accounting cycle while automating the repetitive posting cycle.
NOTE: If the program is not working e-mail markfriedman@miami.edu, 305.284.6296.
Step I – The Chart of Accounts
The chart of accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of
accounts and use it as an easy reference guide.
Step II – Journalizing the Transactions.
Using your unique transactions record the corresponding general journal entry, rounding to two decimal places.
For example,
01
June 1: Hudson Bloom made a $40,000 cash investment in his business, Byte of Accounting.
01
Description
Cr
ed
it
Name
De
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Ac
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Da
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Tr
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io
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In the date field enter the date of the transaction. If you do not enter a date value an error message will appear.
Jun 01
01
Jun 01
Description
Cr
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it
Name
De
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t
Ac
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t
Da
te
Tr
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sa
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io
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In the account field enter the account number that corresponds to the account in the chart of accounts.
You can also use the pull down list to find the appropriate account number. If you use a number that
is not on the chart of accounts an error message will appear.
1110 Cash
The name of the account will automatically appear in the name column. If it is the wrong
account renter the correct account number.
Cr
ed
it
Cr
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Ac
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1110 Cash
Description
De
bi
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Jun 01
Name
De
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01
Da
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Tr
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io
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Enter the description in the description field.
Hudson’s investment
nt
Ac
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Da
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Tr
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io
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Enter the amount in the debit field.
Name
Description
Transaction # 1 Not in Balance by $40,000.
01
Jun 01
1110 Cash
Hudson’s investment
40.000,00
Description
Cr
ed
it
Name
De
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Ac
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Da
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Tr
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io
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Enter the second account number.
Transaction # 1 Not in Balance by $40,000.
01
Jun 01
1110 Cash
3100 Hudson Bloom, Capital
Hudson’s investment
40.000,00
Hudson’s investment
01
Jun 01
1110 Cash
3100 Hudson Bloom, Capital
Description
Hudson’s investment
Hudson’s investment
Cr
ed
it
Name
De
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Ac
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t
Da
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Tr
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io
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Enter the amount in the credit field.
40.000,00
40.000,00
Step III – Worksheet
Although not graded, you should complete the Worksheet. If each of your journal entries are in balance then your
Unadjusted Trial Balance, Adjusting Entry and Adjusted Trial Balance columns will be in balance.
1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the
Balance Sheet columns, (debits remain debits and credits remain credits).
2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses.
3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and
the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet.
4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise
there is an error in the completion of the worksheet.
Step IV – Prepare the Financial Statements.
After you have entered all of the transactions and prepared the Worksheet, you are to prepare the Income
Statement, Changes in Owners’ Equity Statement and the Balance Sheet using the forms provided.
Step V – Prepare the Closing Entries.
Based upon the information from your Worksheet or from your Financial Statements, prepare the closing entries.
Step VI – Upload the File.
Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you
downloaded the file.
Grading:
You will be graded on the Journal Entries and the three financial statement. The case will be computer graded,
therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when
grading your financial statements.
Note:
Save and make backup copies regularly.
Number
1110
1120
1130
1140
1150
1211
1212
1311
1312
1411
1412
1510
2101
2102
2103
2105
2106
2201
2202
3100
3300
3400
4100
5010
5020
5030
5040
5050
5080
5090
5100
5110
Name
Cash
Accounts Receivable
Prepaid Insurance
Prepaid Rent
Office Supplies
Office Equip.
Accum. Depr.-Office Equip.
Computer Equip.
Accum. Depr.-Computer Equip.
Building
Accum. Depr.-Building
Land
Accounts Payable
Advanced Payments
Interest Payable
Salaries Payable
Income Taxes Payable
Mortgage Payable
Notes Payable
Hudson Bloom, Capital
Hudson Bloom, Withdrawals
Income Summary
Computer & Consulting Revenue
Rent Expense
Salary Expense
Advertising Expense
Repairs & Maint. Expense
Oil & Gas Expense
Supplies Expense
Interest Expense
Insurance Expense
Depreciation Expense
Normal Balance
Debit
Debit
Debit
Debit
Debit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Debit
Credit
Credit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Debit
Error #
1
2
4
8
16
32
64
128
256
512
1024
Message
Debit And Credit On Same Line
Debit Before Credit
Need An Account Number
Round To Two Decimal Places
Need a Description
Need a Date
Byte of Accounting
areej oudeh 3499
Transaction
Description of transaction
01,
June 1: Hudson Bloom invested $129,168.00 cash and computer equipment with a fair market value of
$34,500.00 in his new business, Byte of Accounting.
02,
June 1: Check # 5000 was used to purchased computer equipment costing $12,420.00 from areej oudeh.
The invoice number was 20117.
03,
June 1: Check # 5001 was used to purchased office equipment costing $598.00 from Office Express.
The invoice number was 87417.
June 2: Check # 5002 was used to make a down payment of $27,000.00 on additional computer
04, equipment that was purchased from Royce Computers, invoice number 76542. The full price of the
computer was $135,000.00. A five-year note was executed by Byte for the balance.
05,
June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer
Corporation. The invoice number was 98432.
06,
June 8: Unsatisfactory office equipment costing $100.00 from invoice number 98432 was returned to
Discount Computer for credit to be applied against the outstanding balance owed by Byte.
07,
June 10: Check # 5003 was used to make a $20,750.00 payment reducing the principal owed on the June
2 purchase of computer equipment from Royce Computers.
June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer
08, equipment for $6,480.00 from Seth’s Insurance. The effective date of the policy was June 16 and the
invoice number was 2387.
09, June 16: A check in the amount of $6,000.00 was received for services performed for Pitman Pictures.
June 16: Byte purchased a building and the land it is on for $125,000.00 to house its repair facilities and
to store computer equipment. The lot on which the building is located is valued at $20,000.00. The
10, balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment
of $12,500.00. A thirty year mortgage with an inital payement due on August 1st, was established for
the balance.
11, June 17: Check # 5006 for $4,200.00 was paid for rent for June and July.
12,
June 17: Received invoice number 26354 in the amount of $400.00 from the local newspaper for
advertising.
13, June 21: Accounts payable in the amount of $400.00 were paid with Check # 5007.
14,
June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express
for $675.00. The invoice number was 975-328.
15, June 21: Billed various miscellaneous local customers $4,400.00 for consulting services performed.
16,
June 22: Check # 5009 was used to pay salaries of $960.00 to equipment operators for the week ending
June 18. Ignore payroll taxes.
17,
June 22: Received a bill for $1,215.00 from Computer Parts and Repair Co. for repairs to the computer
equipment. The invoice number was 43254.
18, June 22: Check # 5010 was used to pay the advertising bill that was received on June 17.
19,
June 23: Purchased office supplies for $505.00 from Staples on account. The invoice number was
65498.
20, June 23: Cash in the amount of $3,525.00 was received on billings.
21, June 28: Billed $5,385.00 to miscellaneous customers for services performed to June 25.
22, June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011.
23, June 29: Cash in the amount of $5,101.00 was received for billings.
24,
June 29: Check # 5012 was used to pay salaries of $960.00 to equipment operators for the week ending
June 25. Ignore payroll taxes.
25,
June 30: Received a bill for the amount of $790.00 from O & G Oil and Gas Co. The invoice number
was 784537.
26,
June 30: Check # 5013 was used to pay for airline tickets of $1,600.00 to send the kids to Grandma
Ellen for the July 4th holiday.
Adjusting Entries – Round to two decimal places.
27,
The rent payment made on June 17 was for June and July. Expense the amount associated with one
month’s rent.
28, A physical inventory showed that only $202.00 worth of office supplies remained on hand as of June 30.
29,
The annual interest rate on the mortgage payable was 8.50 percent. Interest expense for one-half month
should be computed because the building and land were purchased and the liability incurred on June 16.
30, Record a journal entry to reflect that one half month’s insurance has expired.
31,
A review of Byte’s job worksheets show that there are unbilled revenues in the amount of $9,000.00 for
the period of June 28-30.
The fixed assets have estimated useful lives as follows:
Building – 31.5 years
Computer Equipment – 5.0 years
32, Office Equipment – 7.0 years
Use the straight-line method of depreciation. Management has decided that assets purchased during a
month are treated as if purchased on the first day of the month. The building’s scrap value is $8,000.00.
The office equipment has a scrap value of $500.00. The computer equipment has no scrap value.
Calculate the depreciation for one month.
33,
A review of the payroll records show that unpaid salaries in the amount of $576.00 are owed by Byte for
three days, June 28 – 30. Ignore payroll taxes.
34,
The note payable to Royce Computers (transactions 04 and 07) is a five-year note, with interest at the
rate of 12 percent annually. Interest expense should be computed based on a 360 day year.
Closing Entries
35, Close the revenue accounts.
36, Close the expense accounts.
37, Close the income summary account.
38, Close the withdrawals account.
A Byte of Accounting
General Journal
To
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Description
C
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Name
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A
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Tr
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D
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Note: You can only enter data into the yellow filled cells.
01
0
0
0
0
0
0
0
0
02
0
0
0
0
0
0
0
0
03
0
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0
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04
0
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05
0
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0
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14
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17
0
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18
0
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0
0
A Byte of Accounting
General Journal
To
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Description
C
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Name
D
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A
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Tr
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D
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Note: You can only enter data into the yellow filled cells.
0
0
0
0
19
0
0
0
0
0
0
0
0
20
0
0
0
0
0
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25
0
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26
0
0
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27
0
0
0
0
0
0
0
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28
0
0
0
0
0
0
0
0
29
0
0
0
0
0
0
0
0
30
0
0
0
0
0
0
0
0
31
0
0
0
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0
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0
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32
0
0
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33
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0
34
0
0
0
0
0
0
0
0
35
0
0
0
0
0
0
0
0
A Byte of Accounting
General Journal
To
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Description
C
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Name
D
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A
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Tr
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D
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Note: You can only enter data into the yellow filled cells.
36
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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0
0
37
0
0
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0
0
0
0
38
0
0
0
0
0
0
0
0
A Byte of Accounting, Inc.
Worksheet
For Period Ending January 0, 1900
Account
Number Name
1110 Cash
1120 Accounts Receivable
1130 Prepaid Insurance
1140 Prepaid Rent
1150 Office Supplies
1211 Office Equip.
1212 Accum. Depr.-Office Equip.
1311 Computer Equip.
1312 Accum. Depr.-Computer Equip.
1411 Building Cost
1412 Accum. Depr.-Building
1510 Land
2101 Accounts Payable
2102 Advanced Payments
2103 Interest Payable
2105 Salaries Payable
2201 Mortgage Payable
2202 Notes Payable
3100 Hudson Bloom, Capital
3300 Hudson Bloom, Withdrawals
4100
5010
5020
5030
5040
5050
5080
5090
5100
5110
Unadjusted Trial Balance
Debit
Credit
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
Adjusting Entries
Debit
Credit
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
Computer & Consulting Revenue
Rent Expense
Salary Expense
Advertising Expense
Repairs & Maint. Expense
Oil & Gas Expense
Supplies Expense
Interest Expense
Insurance Expense
Depreciation Expense
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
Total
NET INCOME
Balance
0,00
0,00
0,00
0,00
`
Adjusted Trial Balance
Debit
Credit
Income Statement
Debit
Credit
Balance Sheet
Debit
Credit
0
A Byte of Accounting
0
Income Statement
Worksheet!I42
0
For Month Ending January 0, 1900
You must finish the worksheet before you can complete the Income Statement, see FAQ 05.
4100
5010
5020
5030
5040
5050
5080
5090
5100
5110
Revenues
Computer Revenue
Expenses
Rent Expense
Salary Expense
Advertising Expense
Repairs & Maint. Expense
Oil & Gas Expense
Supplies Expense
Interest Expense
Insurance Expense
Depreciation Expense
Total
Net Income
Worksheet!L42
Worksheet!G43
0
A Byte of Accounting
Statement of Owner’s Equity
For Month Ending January 0, 1900
You must finish the worksheet before you can complete the Changes in Owner’s Equity, see FAQ 05.
Total
0
0
0
Balance, Beginning of Period
Investment
Net Income
Withdrawals
Balance, End of Period
0
d
A Byte of Accounting
Balance Sheet
As of January 0, 1900
You must finish the worksheet before you can complete the Balance Sheet, see FAQ 05.
Assets
1110
1120
1130
1140
1150
1211
1212
Current Assets
Cash
Accounts Receivable
Prepaid Insurance
Prepaid Rent
Office Supplies
Total
Long-Term Assets
Office Equip.
Accum. Depr.-Office Equip.
1311
1312
Computer Equip.
Accum. Depr.-Computer Equip.
1411
1412
Building Cost
Accum. Depr.-Building
1510
Land
Total
Total Assets
Liabilities
2101
2102
2103
2105
2201
2202
Current Liabilities
Accounts Payable
Advanced Payment
Interest Payable
Salaries Payable
Total
Long-Term Liabilities
Mortgage Payable
Notes Payable
Total
Total Liabilities
Owner’s Equity
Hudson Bloom, Capital
Total Liabilities and Owner’s Equity
How to Create a Pivot Table
1. Log in
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