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1. Read pages 3 through 12 (stopping at Waren’s Month‐End Procedures) in the “Instructions, Flowcharts, and Ledgers” book.
2. Follow Option 1 and first process the Revenue Cycle transactions and then the Expenditure Cycle transactions. Stop before the Month‐End Procedures, i.e., do not perform the month‐end and yearend procedures.
3. Use Transaction List A (Document No. 1 with an A at the bottom left corner). First complete the revenue transactions: 1, 2, 5, 6, 10, 12, 13, 14, 15, followed by the expenditure transactions: 3, 4, 7, 8, 9, 11, 16, 17, 18, 19, 20.
4. Try to get most of the information on the source documents correct, but do not spend a lot of time on this. Focus mostly on completing control activities correctly, e.g., signatures on source documents and attaching source documents together, and recording information in the journals and ledgers correctly.
5. When working through the case, make sure to:
a. Include all the information provided in the Transaction List.
b. Perform all steps indicated in the flowchart related to the transaction (including updating of journals and ledgers as indicated by the flowchart).
c. When completing source documents, use already completed documents as examples.
d. When recording transactions in journals and posting to ledgers, use previous entries in respective journal and ledger as an aid.
e. Use your knowledge of accounting! For example, what are the journal entry when a sale is made on credit and what is the journal entry when the customer later pays within the discount period?
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