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**Last years instructions.

This years will be slightly modified and the check figures will be
different.**
ACTG 335 Fall 2011
Systems Understanding Aid (SUA) Instructions
OBJECTIVE:
Observe a simple, complete accounting system in action and become familiar with basic business processes,
documents, internal controls, and the accounting cycle. These concepts provide the foundation for advanced AIS
and auditing topics.
REQUIRED:
1) READ THESE INSTRUCTIONS CAREFULLY TO SAVE YOURSELF A LOT OF UNNECESSARY WORK.
2) Record all transactions from the blue transaction list (Transaction List A). Use Option 2 to record the
transactions in chronological order (Option 1 is also finethe transactions do not need to be in any particular
order). Instructions are available on p. 10 of the SUA Instructions, Flowcharts, and Ledgers booklet. If youd
like more instructions to help you get started, Ive posted some videos at youtube.com. Type yuthas into the
search bar and youll find them.
3) Follow the month-end instructions on p. 12. You do not need to complete the bank reconciliation, as described in
instruction 3., but you do need to record a bank service charge of 27.50 in the general journal (Dr. Other operating
expense, Cr. Cash).
4) Follow year-end procedure 1. on page 13. Instead of using the green worksheetdocument #25, use the Excel
SUA worksheet posted at the D2L site. Make sure that debits equal credits, and backtrack to find errors in
posting, in journal totals, or in individual transactions to rectify your error. You do not need to complete the YE
adjusting entries! Print the worksheet and bring it with your packet to class Oct. 20.
QUIZ:
Your grade on the project will be based on an open-book timed QUIZ ON TUESDAY, OCT. 18. The quiz will be
available in D2L from 10:00am until 7:40pm. You will have one hour to complete the exam once you start. You will
also need to bring your project packet, including the printed worksheet (see #4 above), to class on THURSDAY, Oct.
20I will collect some project documents at that time (for example, I might collect the ledgers, the first check,
and the cash receipts prelist.)
The project/quiz will be worth 15% of your grade for the class.
HINTS:
Make sure you carefully follow the flowcharts and put proper signatures/initials on the documents whenever the
instructions say to do so. If there is no designated space for the signatures/initials, just make sure they are visible.
(Do not initial things unless instructions tell you to do so.)
If you find a mistake and correct it, make sure that you correct both the recorded transaction and the related
document. There should be an audit trail connecting documents, journals, ledgers, and financial statements.
Write checks only when explicitly directed to do so. Do not write a check when you receive a bill, wait until the
instructions tell you to pay the bill.
If you get stuck on a transaction, skip it and move on until you can get help (preferably via the D2L discussion
forum). The transactions do not need to be in order.
There are a few transactions that regularly cause problems, heres some information that might help:
On Dec. 22, Received check No. 28564 follow the flow chart on p. 21
On Dec. 22, Received legal notificationDr. 10300 Allowance for doubtful accts., Cr. 10200 A/R for
the amount of the uncollectible debt.
On Dec. 23, Received vendor invoice No. 34719, remember that on Dec. 22 you only received part of
the goods ordered. When you prepare the check, pay only for the goods you actually received.
Dec. 31, the FICA rate for payroll tax calculations is given in the instructions booklet on p. 8, withholding
amounts were given on the blue list on Dec. 20.
Systems Understanding Aid
Check Figures
7
th
Edition Transaction List A, Main Solution

Journals
Sales Journal -- 2 entries
Account # 10200 30200
Amount $ 49,398.00 $ 3,480.00
Cash Receipts Journal--4 entries
Account # 10100 30300 10200
Amount $ 115,082.36 $ 261.64 $ 23,082.00
Purchases Journal--3 entries
Account # 30500 20100
Amount $ 51,795.00 $64,279.15
Cash Disbursements Journal--3 entries
Account # 10100 20100 30800
Amount $ 73,099.43 $59,162.00 $ 1,300.00
Payroll Journal--3 entries
Account # 40500 20300 10100
Amount $ 15,152.48 $ 1,824.44 $ 12,168.89
General Journal
1 entry to write off Stevenson college account on Dec.
22
2 ME adjusting entries: one to record the bank service
charge, another to record payroll tax.


Year-end Worksheet
12-31-09 Unadjusted Trial Balance total $2,108,116.87
Note: youll get this total if you record Allowance for Doubtful Accounts as a
negative balance in the credit column. If you record it as a debit, youll get
$2,109,266.06, which is also correct.