Cybertext Financial Accounting

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AW10423.xlsx
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Instructions

Elf Village Productions 50 Sheet Legal Pad
Building Blocks of Accounting .. A Financial Perspective
Introduction Page 1
Welcome to the world's first ePractice case, an individualized, internet generated and
and graded case study that focuses on the analytically portion of the accounting cycle.
All sheets have been locked to protect the "HELP" messages built into this case. Enter the required
data into the yellow filled cells on the General Journal, Worksheet and Financial Statement sheets.
Step 1 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 2 Journalizing the Transactions
Using your unique transactions record the corresponding general journal entry, rounding to
two decimal places, =Round(value,2).
Step 3 Using the Worksheet as a reference, prepare the Income Statement, Statement of
Changes in Owner's Equity and the Balance Sheet.
Step 4 Record the closing entries to the Income Summary and then the capital accounts.
Step 5 Upload the File.
Autumn, when you are ready to have your work graded you will upload your file
AW1042.xls, AW1042.xlsx or AW1042.xlsb from the bottom of the the same screen that the project
was downloaded from. If you have a problem uploading see FAQ 01.
Step 6 You will be graded on the Journal Entries and the three financial statements. The project
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.
Step 7 Note: Save and make backup copies regular
If there are any questions about the project e-mail friedman@cybertext.com
F111 200818

FAQ

Elf Village Productions 50 Sheet Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ Page 1
FAQ 01 My file used to upload, why is it not uploading?
FAQ 02 When I try to enter information in the General Journal why does an error appears indicating that the cell protected?
FAQ 03 In the feedback section, what does it mean when I have points under reverse?
FAQ 04 How does my instructor get my grade?
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 ...."
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
Upload the binary file at cybertext.com
Elf Village Productions 50 Sheet Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ Page 2
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 Page 3
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.

Excel Binary Workbook (.xlsb)

Welcome

Building Blocks of Accounting -- A Financial Perspective
FIRST LAST SS File Created
Autumn Welch 1042 AW1042 10/29/20

Chart of Accounts

Error # Message
Elf Village Productions 50 Sheet Legal Pad 1 Debit And Credit On Same Line
2 Debit Before Credit
Building Blocks of Accounting .. A Financial Perspective 4 Need An Account Number
Chart of Accounts 8 Round To Two Decimal Places
Number Name Normal Balance 16 Need a Description
1110 Cash Debit 32 Need a Date
1120 Accounts Receivable Debit 64
1130 Prepaid Insurance Debit 128
1140 Prepaid Rent Debit 256
1150 Office Supplies Debit 512
1211 Office Equip. Debit 1024
1212 Accum. Depr.-Office Equip. Credit
1311 Computer Equip. Debit
1312 Accum. Depr.-Computer Equip. Credit
1411 Building Debit
1412 Accum. Depr.-Building Credit
1510 Land Debit
2101 Accounts Payable Credit
2102 Advanced Payments Credit
2103 Interest Payable Credit
2105 Salaries Payable Credit
2106 Income Taxes Payable Credit
2201 Mortgage Payable Credit
2202 Notes Payable Credit
3100 Hudson Bloom, Capital Credit
3300 Hudson Bloom, Withdrawals Debit
3400 Income Summary Credit
4100 Computer & Consulting Revenue Credit
5010 Rent Expense Debit
5020 Salary Expense Debit
5030 Advertising Expense Debit
5040 Repairs & Maint. Expense Debit
5050 Oil & Gas Expense Debit
5080 Supplies Expense Debit
5090 Interest Expense Debit
5100 Insurance Expense Debit
5110 Depreciation Expense Debit

Transactions

1305 Autumn Welch
Transaction Description of transaction
01. June 1: Hudson Bloom invested $133,035.00 cash and computer equipment with a fair market value of $32,340.00 in his new business, Byte of Accounting.
02. June 1: Check # 5000 was used to purchased office equipment costing $735.00 from Office Express. The invoice number was 87417.
03. June 1: Check # 5001 was used to purchased computer equipment costing $11,340.00 from Autumn Welch. The invoice number was 20117.
04. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance.
05. June 4: Additional office equipment costing $400.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.
06. June 8: Unsatisfactory office equipment costing $80.00 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 $27,500.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers.
08. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $5,808.00 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 $7,250.00 was received for services performed for Pitman Pictures.
10. June 16: Byte purchased a building and the land it is on for $107,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $10,700.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.
11. June 17: Check # 5006 for $6,900.00 was paid for rent of the office space for June, July and August.
12. June 17: Received invoice number 26354 in the amount of $475.00 from the local newspaper for advertising.
13. June 21: Billed various miscellaneous local customers $4,700.00 for consulting services performed.
14. June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328.
15. June 21: Accounts payable in the amount of $320.00 were paid with Check # 5007.
16. June 22: Check # 5010 was used to pay the advertising bill that was received on June 17.
17. June 22: Received a bill for $1,190.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254.
18. June 22: Check # 5009 was used to pay salaries of $910.00 to equipment operators for the week ending June 18. Ignore payroll taxes.
19. June 23: Cash in the amount of $3,765.00 was received on billings.
20. June 23: Purchased office supplies for $505.00 from Staples on account. The invoice number was 65498.
21. June 28: Billed $5,910.00 to miscellaneous customers for services performed to June 25.
22. June 29: Cash in the amount of $5,600.00 was received for billings.
23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011.
24. June 29: Check # 5012 was used to pay salaries of $910.00 to equipment operators for the week ending June 25. Ignore payroll taxes.
25. June 30: Received a bill for the amount of $815.00 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 $2,100.00 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, July and August. 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 9.00 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 $5,625 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 $500. The office equipment has a scrap value of $300. 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 $546.00 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.
[IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $144,000.00. On June 10, eight days later, $27,500.00 was repaid. Interest expense must be
calculated on the $144,000.00 for eight days. In addition, interest expense on the $116,500.00 balance of the loan ($144,000.00 less $27,500.00 = $116,500.00) must be calculated for the 20 days remaining in the month of June.]
Closing Entries
35. Close the revenue accounts.
36. Close the expense accounts.
37. Close the income summary account.
38. Close the withdrawals account.

General Journal

A Byte of Accounting
General Journal
Transaction Date Account Name Description Debit Credit Total Balance
01 0 0
0 0
0 0
0 0
02 0 0
0 0
0 0
0 0
03 0 0
0 0
0 0
0 0
04 0 0
0 0
0 0
0 0
05 0 0
0 0
0 0
0 0
06 0 0
0 0
0 0
0 0
07 0 0
0 0
0 0
0 0
08 0 0
0 0
0 0
0 0
09 0 0
0 0
0 0
0 0
10 0 0
0 0
0 0
0 0
11 0 0
0 0
0 0
0 0
12 0 0
0 0
0 0
0 0
13 0 0
0 0
0 0
0 0
14 0 0
0 0
0 0
0 0
15 0 0
0 0
0 0
0 0
16 0 0
0 0
0 0
0 0
17 0 0
0 0
0 0
0 0
18 0 0
0 0
0 0
0 0
19 0 0
0 0
0 0
0 0
20 0 0
0 0
0 0
0 0
21 0 0
0 0
0 0
0 0
22 0 0
0 0
0 0
0 0
23 0 0
0 0
0 0
0 0
24 0 0
0 0
0 0
0 0
25 0 0
0 0
0 0
0 0
26 0 0
0 0
0 0
0 0
27 0 0
0 0
0 0
0 0
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 0
0 0
0 0
32 0 0
0 0
0 0
0 0
33 0 0
0 0
0 0
0 0
34 0 0
0 0
0 0
0 0
35 0 0
0 0
0 0
0 0
36 0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
37 0 0
0 0
0 0
0 0
38 0 0
0 0
0 0
0 0

Note: You can only enter data into the yellow filled cells.

Worksheet

A Byte of Accounting, Inc.
Worksheet
For Period Ending January 0, 1900
Account Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet
Number Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
1110 Cash 0.00 0.00 0.00 0.00
1120 Accounts Receivable 0.00 0.00 0.00 0.00
1130 Prepaid Insurance 0.00 0.00 0.00 0.00
1140 Prepaid Rent 0.00 0.00 0.00 0.00
1150 Office Supplies 0.00 0.00 0.00 0.00
1211 Office Equip. 0.00 0.00 0.00 0.00
1212 Accum. Depr.-Office Equip. 0.00 0.00 0.00 0.00
1311 Computer Equip. 0.00 0.00 0.00 0.00
1312 Accum. Depr.-Computer Equip. 0.00 0.00 0.00 0.00
1411 Building Cost 0.00 0.00 0.00 0.00
1412 Accum. Depr.-Building 0.00 0.00 0.00 0.00
1510 Land 0.00 0.00 0.00 0.00
2101 Accounts Payable 0.00 0.00 0.00 0.00
2102 Advanced Payments 0.00 0.00 0.00 0.00
2103 Interest Payable 0.00 0.00 0.00 0.00
2105 Salaries Payable 0.00 0.00 0.00 0.00
2106 Income Taxes Payable 0.00 0.00 0.00 0.00
2201 Mortgage Payable 0.00 0.00 0.00 0.00
2202 Notes Payable 0.00 0.00 0.00 0.00
3100 Hudson Bloom, Capital 0.00 0.00 0.00 0.00
3300 Hudson Bloom, Withdrawals 0.00 0.00 0.00 0.00
4100 Computer & Consulting Revenue 0.00 0.00 0.00 0.00
5010 Rent Expense 0.00 0.00 0.00 0.00
5020 Salary Expense 0.00 0.00 0.00 0.00
5030 Advertising Expense 0.00 0.00 0.00 0.00
5040 Repairs & Maint. Expense 0.00 0.00 0.00 0.00
5050 Oil & Gas Expense 0.00 0.00 0.00 0.00
5080 Supplies Expense 0.00 0.00 0.00 0.00
5090 Interest Expense 0.00 0.00 0.00 0.00
5100 Insurance Expense 0.00 0.00 0.00 0.00
5110 Depreciation Expense 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00
NET INCOME
Balance
`

Income Statement

0 A Byte of Accounting
0 Income Statement Worksheet!I42 Worksheet!L42 Worksheet!G43
0 For Month Ending January 0, 1900
You must finish the worksheet before you can complete the Income Statement, see FAQ 05.
Revenues
4100 Computer Revenue
Expenses
5010 Rent Expense
5020 Salary Expense
5030 Advertising Expense
5040 Repairs & Maint. Expense
5050 Oil & Gas Expense
5080 Supplies Expense
5090 Interest Expense
5100 Insurance Expense
5110 Depreciation Expense
Total
Net Income

Changes in Owner's Equity

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
Balance, Beginning of Period
0 Investment
0 Net Income
0 Withdrawals
Balance, End of Period

Balance Sheet

0 A Byte of Accounting
d Balance Sheet
As of January 0, 1900
You must finish the worksheet before you can complete the Balance Sheet, see FAQ 05.
Assets
Current Assets
1110 Cash
1120 Accounts Receivable
1130 Prepaid Insurance
1140 Prepaid Rent
1150 Office Supplies
Total
Long-Term Assets
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
Total
Total Assets
Liabilities
Current Liabilities
2101 Accounts Payable
2102 Advanced Payment
2103 Interest Payable
2105 Salaries Payable
Total
Long-Term Liabilities
2201 Mortgage Payable
2202 Notes Payable
Total
Total Liabilities
Owner's Equity
Hudson Bloom, Capital
Total Liabilities and Owner's Equity

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Data for General Ledger

Data

Ledger