Steps Essential to Success 1. Print a copy of the Problem you intend to complete. To do so, go to the software log-in page and click on Download Student Manual button, click on the Problem to open it. You may print or save the PDF file. 2. Read each transaction in the Problem. In the margin of the page write the account number(s) of the account(s) to be debited and the account number(s) of the account(s) to be credited. Using the Chart of Accounts for the specific Problem you are working. 3. Determine the appropriate dollar amount of each entry and write that amount beside the account number. 4. Make a note of any invoice, check, debit memorandum, and credit memorandum numbers that cited in the transaction. 5. If the instructions to the Problem include a Customer List or a Vendor List, and the transaction involves Accounts Receivable or Accounts Payable, make a marginal note of the number of the customer or vendor account. Some problems will not require that you enter a customer or vendor number. Data Entry Procedures Entering the Date for Daily Entries: Enter the date in the Date box in DD format. For example, enter the 5th day of the month as 05. Enter the 27th day of the month as 27. Entering the Date for Adjusting Entries: For Problems that require adjusting entries, enter the last day of the month as the date. Failure to do so will disallow the data to be recorded in the General Journal and/or posted to the General Ledger. Dates for Closing Entries: For Problems requiring closing entries, no date entries are required. The program will automatically record and post the closing entries when the Closing JE button is clicked. Page 1
Enter the Account Numbers and Titles: In the first row of the Account Numbers and Titles column, type the number of the account to be debited and press the TAB key. You may also use the drop-down list box of the first row of the Account Numbers and Titles column to select the number and title of the account to be debited or credited. In the first row of the debit dollar column, type the dollar amount of the debit entry and press the TAB key. Do not enter dollar signs ($) in the debit and credit dollar rows. In the second row of the Account Numbers and Titles column, type the number of the account to be credited and press the TAB key. In the second row of the credit dollar column, type the dollar amount of the credit entry and press the TAB key. Verify the Entry: After you have entered the date, the account titles and the dollar amounts, click the Verify Journal button to verify that correct accounts were used and that the debit and credit rows are numerically correct. This does not guarantee that a transaction has been correctly recorded, only that the entry is in balance and can be posted. Only your due diligence in analyzing and correctly recording the transaction will prevent incorrect journal entries from being recorded in the General Journal and posted to the General Ledger. A message box will appear telling you whether the journal entry is in balance. If you determine you have incorrectly recorded the transaction, click the Clear Screen button and the entered data will be cleared from the screen. If you determine your entry is correct, continue entering the rest of the transaction or Post the transaction. Page 2
Input Documentation After the journal entry has been verified, some transactions will require you to enter the document number of each document for the transaction. Invoice Number: Every transaction requires a 5-digit invoice number. Check Number: Every transaction involving a credit to the Cash account will require a 5-digit check number. Credit Memorandum Number: Every transaction involving a Sales Return and Allowance for a credit sale requires a 5-digit credit memo number. Debit Memorandum Number: Every transaction involving a return of merchandise to a vendor requires a 5-digit debit memo number. Customer Number: Every transaction involving a credit customer requires that the individual customer's account be identified. In the Customer text box enter the 5-digit customer number or use the pull-down menu to select the customer. Vendor Number: Every transaction involving a credit purchase requires that the individual vendor's account be identified. In the Vendor text box enter the 5-digit vendor number or use the pull-down menu to select the vendor. The Verify Documents button: After you have entered all of the required documents, press the Verify Documents button. This provides verification that you have entered all the required 5-digit document numbers and, when required, have selected a customer number or vendor number. This does not guarantee that the document numbers are correct, only that they are the correct length and match the journal entry. Remember that after you verify the entry, you still have the opportunity to clear the data entry by pressing the Clear Screen button. Post the Entry Adjusting Entries: Adjusting entries do not require documentation for the data entry. When no documentation is required for the data entry, after verifying the entry, press the Post Entry button. Your adjusting entry will be recorded in the General Journal and posted to the General Ledger. Page 3
Daily Entries: After successfully entering the documentation, press the Post Entry button. Your entry and all of the documentation will be transferred to the General Journal and posted to the General Ledger. If a customer or vendor account is involved, the appropriate subsidiary ledger for customers or vendors is posted, as well. Closing Entries: Closing entries are not recorded. The program will automatically record the closing entries and post them to the General Ledger. Follow the directions in Module 5 for closing the general ledger. Remember that before you post the entry, you still have the opportunity to clear the data entry by pressing the Clear Screen button. Compound Journal Entries Use the same procedures as described above for compound entries of more than two debits or more than two credits. Enter all the debit entries first, followed by all the credit entries. Special Features That Speed Up the Data Entry Procedure The C key: At the last dollar credit entry, rather than enter a dollar amount, enter the letter c or C. Using the letter c or C will automatically enter a dollar credit amount that will create an in balance journal entry when pressing the TAB key. The C, V key combination: At the last dollar credit entry, rather than enter a dollar amount, enter the letter c or C and the letter v or V. This combination of key strokes will automatically enter a dollar credit amount that will create an in balance journal entry and verify the journal entry, thus eliminating the need to click the Verify Journal button. A second reminder: before you post the entry, you still have the opportunity to clear the data entry by clicking the Clear Screen button. Page 4
Practice Sets with Perpetual Inventory Ledger If your practice set features a perpetual inventory system with a merchandise inventory ledger, then after clicking on the Verify Documents button, you must do the following: 1. Enter the number of the inventory item being sold or purchased. 2. Enter the number of units of the inventory item being sold or purchased. 3. Press the Verify Inventory Data button to verify the inventory items and units entered are acceptable and match the key amounts in the data entry. 4. Press the Post Entry button. Your data entry and all of the documentation will be transferred to the General Journal and posted to the General Ledger. If a customer or vendor account was used, the appropriate subsidiary ledger for customers or vendors is posted. The inventory ledger for Merchandise Inventory is also posted. Remember that before you post the entry, you still have the opportunity to clear the data entry by pressing the Clear Screen button. Page 5