AFM 101

I n t e r a c t i v e C a s e Pro j e c t L a u n c h

Fall 2016

Agenda for this session

Introductions
Friday Tutorials for the Interactive Case Project
About the Project
In-Session Demo (First 2 Transactions)
List of Transactions By Cycle
General FAQ
Student Testimonials About the Project
Closing Remarks

Introductions
Interactive Case Tutorial Sessions Begin October 28th, 2016
Tutorial Leaders

Tutorial Time

Location

Michael Chan

9:30-10:20 AM Fridays

STC 0050

Hanning Cai

10:30-11:20 AM Fridays

STC 0020

Claire Peng

11:30AM -12:20 PM Fridays

STC 0020

General Inquiries Related to the Interactive Case Project:

Post on my Discussion Board! (LEARN: Interactive Case Project thread)
Teamwork Conflicts / Issues
Contact your instructor

Friday Interactive Case Tutorial Sessions (Starting Oct. 28)

Will Focus on Specific Cycles Each Week
KEEP UP! Bring project questions related to the cycle to the tutorial
Format: Q&A Session to seek help from your Tutorial Leader
Optional Attendance
Tutorial Date

Cycle

Friday, Oct. 28

Sales & Cash Receipts

Friday, Nov. 4

Sales & Cash Receipts

Purchases & Cash Disbursements

Friday, Nov. 11

Purchases & Cash Disbursements

Payroll

Friday, Nov 18

Payroll
Month-End/Year End Procedures

About the Project: Systems Understanding Aid 9th Edition

Project Completed in Pairs
Register your team on LEARN: AFM 101 -> Connect -> Groups
Each Pair Requires ONE Systems Understanding Aid Package
Purchase from UW Bookstore (South Campus Hall)
Sections 002/ 003/ 004/ 006
10% of Final Mark in AFM 101

About the Project: Systems Understanding Aid 9th Edition

Transactions: Required to Record BY CYCLE
Use the Set of Blue Transactions in your package (discard set of green transactions)
Reading Before Starting This Project:
Instructions, Flowcharts, & Ledgers Book
Pg 3- 17
Reference Book
Chapter 1: Overview of the Accounting System
Chapter 2: Flowcharting

Signing off on Case Submission & Scheduling

We worked as a team
through the
completion of all
elements of the
assignment.

To Help You Get Started

In-Session Demo

List of Transactions by Cycle

In-Session Demo: Transaction #1 (Sales & Cash Receipts)

December 18: Received validated deposit receipt (Doc. No. 11)
from the bank for $7,931.96 for deposit made December 14
Refer to the flowchart on Page 21

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #1 (Sales & Cash Receipts)

Agree deposit receipt and prelist to cash receipts journal. Initial journal.

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #1 (Sales & Cash Receipts)

Agree deposit receipt and prelist to cash receipts journal. Initial journal.

*Recommended to use Excel Cash Receipts Journal (provided on LEARN)

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #2 (Sales & Cash Receipts)

December 18: Borrowed $60,000 from First American Bank and
Trust by issuing a two-year note payable (Doc. No. 14) with a
stated annual interest rate of 5%. Check No. 545 (Doc. No. 8) for
$60,000 was received from the bank and deposited. Reviewed the
terms and conditions of the note and signed it (Ray Kramer) as the
borrower.
Refer to the flowchart on Page 21

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #2 (Sales & Cash Receipts)

Restrictively Endorse Check
On the back of Doc. No. 8:

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #2 (Sales & Cash Receipts)

Enter on Cash Receipts Prelist

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #2 (Sales & Cash Receipts)

Make entry in cash receipts journal

*Recommended to use Excel Cash Receipts Journal (provided on LEARN)

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

In-Session Demo: Transaction #2 (Sales & Cash Receipts)

Prepare bank deposit slip for each days receipt

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

List of Transactions By Cycle

Page #

Date

Brief Transaction Description

Cycle

December
18

Received validated deposit receipt (Doc. No. 11) from the bank for
$7,931.96 for deposit made December 14

Sales & Cash

Receipts

December
18

Ordered the following inventory on account from Velocity Sporting

Goods, using purchase order No. 328 (Doc. No. 16)

Purchases & Cash

Disbursements

December
18

Borrowed $60,000 from First American Bank and Trust by issuing a

two-year note payable (Doc. No. 14) with a stated annual interest
rate of 5%. Check No. 545 (Doc. No. 8) for $60,000 was received
from the bank and deposited. Reviewed the terms and conditions of
the note and signed it (Ray Kramer) as the borrower

Sales & Cash

Receipts

December
19

Received customer purchase order No. 37225 (Doc. No. 4) in the

mail from University of Southern Iowa (USI), approved their credit
and shipped the goods. All goods ordered were shipped, except that
only 56 shoulder pad sets were available for shipment

Sales & Cash

Receipts

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

List of Transactions By Cycle

Page #

Date

Brief Transaction Description

Cycle

December
20

Received sales return request No. R8034 (Doc. No. 12) in the mail
from Eastern Wisconsin University (EWU). The request was
approved and the acknowledgment copy mailed to EWU.

Sales & Cash

Receipts

December
20

Increased employee pay rates, and employees changed their

federal income tax withholding amounts, both effective December 16.
There were no changes in filing status or withholding allowances.

Payroll

December
22

Received merchandise from Velocity Sporting Goods as listed on

purchase order No. 328. All merchandise listed on the purchase
order was delivered in good condition and in the quantities ordered,
except that only 76 basketball pole pads (Item. No. BB-019) were
received. The goods were placed immediately in the inventory
warehouse.

Purchases & Cash

Disbursements

December
22

Received check No. 28564 (Doc. No. 8) from Branch College for
payment in full for charge invoice No. 730, and deposited the check.

Sales & Cash

Receipts

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

List of Transactions By Cycle

Page #

Date

Brief Transaction Description

Cycle

December
22

Received legal notification from Benson, Rosenbrook, and

Martinson, P.C., attorneys at law, that Stevenson College had filed
bankruptcy and will be unable to pay any of its outstanding debts to
its suppliers. Write off the account as a bad debt.

Sales & Cash

Receipts

December
26

Received all goods that Waren had authorized Eastern Wisconsin

University (EWU) to return on EWUs return request No. R8034 for
credit against their account balance.

Sales & Cash

Receipts

December
26

Received check No. 49326 (Doc. No. 8) for $10,000 from Eastern
Wisconsin University in partial payment of the remaining amount
(after sales return) on charge invoice No. 729, and deposited the
check.

Sales & Cash

Receipts

December
26

Received vendor invoice No. 34719 (Doc. No. 18) from Velocity
Sporting Goods for goods ordered December 18 and received
December 22.

Purchases & Cash

Disbursements

December
26

Issued check (Doc. No. 20) to Interstate Motor Freight for the
amount of the freight bill (Doc. No. 19) for the Velocity Sporting
Goods shipment received December 22.

Purchases & Cash

Disbursements

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

List of Transactions By Cycle

Page #

Date

Brief Transaction Description

Cycle

December
26

Received check No. 65891 (Doc. No. 8) for $7,855 and customer
purchase order No. D9794 (Doc. No. 4) in the mail from Andrews
College for a cash sale. All goods ordered were shipped and the
cash sale was processed and recorded.

Sales & Cash

Receipts

December
26

Received office supplies from Chicago Office Supply as listed on

purchase order No. 327 (Doc. No. 16), a copy of which is being held
in accounting. Chicago Office Supplys vendor invoice No. 2378
(Doc. No. 18) was received with the goods. All supplies ordered were
received in good condition and taken directly to the office, but the
invoice was not paid.

Purchases & Cash

Disbursements

December
28

Issued check (Doc. No. 20) to Velocity Sporting Goods for payment
in full of their invoice No. 34719 for goods received December 22.

Purchases & Cash

Disbursements

December
29

Printed and reviewed payroll time record reports (Doc. No. 21) for
Ford and Adams for the time period ended December 31 and
prepared the payroll for all three employees, including paychecks.

Payroll

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

List of Transactions By Cycle

Page #

Date

Brief Transaction Description

Cycle

December
29

Received the 11-inch tablets ordered on Warens purchase order

No. 325 (Doc. No. 16) and vendor invoice No. 2423 (Doc. No. 18)
from Chicago Office Supply. The tablets were received in new and
undamaged condition and taken directly to the office. The estimated
useful life is 5 years with no salvage value.

Purchases & Cash

Disbursements

December
29

Received vendor invoice No. 72654 (Doc. No. 18) from University
Athletic News for advertisements Waren ran during the Christmas
season and immediately issued a check (Doc. No. 20) for payment in
full.

Purchases & Cash

Disbursements

Source: Arens & Ward (Michigan State University), Systems Understanding Aid 9 th Edition

General FAQ
1. Do we have to use pen or pencil for recording on the source documents?
Either pen or pencil is acceptable.
2. Do we record the journal entries in the journals book or in Excel (journal
templates from LEARN)?
) Strongly recommend to record in the Excel journals provided in LEARN.
However, either or is acceptable.
3. Oh no I made a mistake recording on the source document in pen/pencil and it
copied onto other documents! What do I do?
) As this is an academic assignment, you can cross-it out/erase/white-it out
and this will be acceptable.
4. Is there a specific spot to initial on source documents?
) If there is no designated area for an initial, then anywhere on the source
document is acceptable as long as the initial is legible and easily
identifiable.

General FAQ
5. Filing documents: to file a source document, do we place it before or after the
tab?
After the tab. Please see Figure 1 below for filing placement.
Figure 1. Cash Receipts Prelist filed in the Shipping/Banking tab

General FAQ
6. Shipping/Billing Flowchart (pg 18) Which tab should each Cash Sale Invoice
be filed under?
Sales Invoice #1 (Customer): Mailed/Given to Outsiders
Sales Invoice #2 (Accounting): Accounting
Sales Invoice #3 (Shipping): Shipping/Banking
Sales Invoice #4 (Packing Slip): Shipping/Banking
7. Cash Receipts Deposit Flowchart (pg. 21) Which tab should the Bank Deposit
Slip be filed under?
Mailed/Given to Outsiders
8. Where should the Bank Reconciliation, Bank Statement, Cash Receipts Prelist
be filed?
Shipping/Banking
9. How should we attach documents together?
) Please staple documents when indicated to attach together in the
flowcharts.

Student Testimonials About

the Project

Closing Remarks