1 3 Assignment Learning Objectives: Primary Learning Objectives: · Review the concepts of the beginning financial accounting course · Review the accounting cycle · Work with a manual accounting information system · Begin using a computerized accounting information system Secondary Learning Objective: · Begin work with the SAP ERP system INTRODUCTION: This is part 2 of the assignment that continues where part 1 left off. There are additional journal entries that you need to make, adjusting journal entries for month end and closing entries. You will again show the impact of the transactions on t-accounts and create a trial balance. For the last part of the assignment you will explore how your journal entries might be created in an automated system by entering your “manual” journal entries into the SAP/R3 system. In a true ERP or integrated accounting system, these transactions would flow through to the general ledger via other functions within the system. For example, sales transactions would be created in a sales order module. When the sale is processed by someone outside of the accounting department, the appropriate journal entries would be automatically created in the general ledger by our accounting system. However, it is also possible to post transactions directly to the general ledger as we have done in our manual system and as we will do in this assignment. We will then use the SAP system to produce a set of financial statements (balance sheet and income statement). DETAILED REQUIREMENTS: Refer to Cottonwood’s company information and chart of accounts from the first assignment and the following transactions and additional detail to complete steps 1 and 2. If you had any errors in your t-accounts, and trial balances from part 1 of the assignment, you will want to make appropriate corrections before starting part 2. 1. Correct all of the errors in part 1 of the assignment. 2. Using the journals, t-accounts, and trial balances you developed in assignment 1, record Cottonwood’s daily transactions for the last half of the month (January 16 – 31, 2007) if appropriate, (some transactions may not involve journal entries), as general journal entries into Excel. Also, post these journal entries into t-accounts and then calculate account balances using cell formulas in Excel. Again, enter the t-account balances into your Excel document and then transfer the balances into the trial balance. Use your linked worksheets to expedite the process and minimize data entry errors. 3. The next step is to record the adjusting entries into the general journal and then post them into the t-accounts and trial balance. 4. Record closing entries in your trial balance as if this were a year-end close. 5. Now use the SAP ERPsystem to make all above entries using the general ledger system in SAP. This should be done in a series of steps: · Examine the A321 chart of accounts. · Record beginning account balances in the SAP general ledger. This.

1. 1
3
Assignment Learning Objectives:
Primary Learning Objectives:
· Review the concepts of the beginning financial accounting
course
· Review the accounting cycle
· Work with a manual accounting information system
· Begin using a computerized accounting information system
Secondary Learning Objective:
· Begin work with the SAP ERP system
INTRODUCTION:
This is part 2 of the assignment that continues where part 1 left
off. There are additional journal entries that you need to make,
adjusting journal entries for month end and closing entries.
You will again show the impact of the transactions on t-
accounts and create a trial balance. For the last part of the
assignment you will explore how your journal entries might be
created in an automated system by entering your “manual”
journal entries into the SAP/R3 system. In a true ERP or
integrated accounting system, these transactions would flow
through to the general ledger via other functions within the
system. For example, sales transactions would be created in a
sales order module. When the sale is processed by someone
outside of the accounting department, the appropriate journal
entries would be automatically created in the general ledger by
our accounting system. However, it is also possible to post

2. transactions directly to the general ledger as we have done in
our manual system and as we will do in this assignment. We
will then use the SAP system to produce a set of financial
statements (balance sheet and income statement).
DETAILED REQUIREMENTS:
Refer to Cottonwood’s company information and chart of
accounts from the first assignment and the following
transactions and additional detail to complete steps 1 and 2. If
you had any errors in your t-accounts, and trial balances from
part 1 of the assignment, you will want to make appropriate
corrections before starting part 2.
1. Correct all of the errors in part 1 of the assignment.
2. Using the journals, t-accounts, and trial balances you
developed in assignment 1, record Cottonwood’s daily
transactions for the last half of the month (January 16 – 31,
2007) if appropriate, (some transactions may not involve journal
entries), as general journal entries into Excel. Also, post these
journal entries into t-accounts and then calculate account
balances using cell formulas in Excel. Again, enter the t-
account balances into your Excel document and then transfer the
balances into the trial balance. Use your linked worksheets to
expedite the process and minimize data entry errors.
3. The next step is to record the adjusting entries into the
general journal and then post them into the t-accounts and trial
balance.
4. Record closing entries in your trial balance as if this were a
year-end close.
5. Now use the SAP ERPsystem to make all above entries using
the general ledger system in SAP. This should be done in a

3. series of steps:
· Examine the A321 chart of accounts.
· Record beginning account balances in the SAP general ledger.
This should be done as one composite journal entry (the first
journal entry). Use January 1, 2007 as the journal entry date for
the beginning account balances.
· Record the daily transactions for the first half of January in
the SAP general ledger (do each journal entry as a separate
entry, not as one giant composite entry, be sure use appropriate
dates).
· Display the trial balance (you should compare this to your
manual entries).
· Repeat the previous two steps for the journal entries for the
second half of January.
· Record the adjusting entries.
· Simulate closing the books as of January 31, 2007 using the
SAP utility. (Do not enter closing entries into the general
ledger. These entries would be done automatically through the
SAP month-end closing function.)
Instructions for using the SAP ERP system start on page 7 of
this document.
When submitting the assignment you must also submit the
graded part 1 of this assignment that was returned to you. This
will be used to verify that you made all of the corrections.
Use the following transaction information to complete steps 1
and 2:
DESCRIPTION OF EVENTS OCCURRING January 16 –31,
2007

4. DateDescription of Event
27
January 16, 2007
BCC (see January 11 & 12) sent payment of $6,000 to
Cottonwood via electronic funds transfer, (EFT). Cottonwood’s
warehouse picked and packed BCC’s order and shipped it to
Bozeman via CWX. Freight costs of $430 were paid by
Cottonwood at the time of shipment.
28
Cottonwood paid $21,000 to employees for wages earned during
the first half of January.
29
The industrial shelving was delivered and installed in
Cottonwood’s warehouse (see January 11th). The vendor’s
invoice, which matched Cottonwood’s purchase order, was
hand-delivered to accounts payable. Cottonwood paid the
shipping of $320. The vendor’s contractor completed
installation that day.
30
Cottonwood paid UPS for the shipment to Del Norte County
Rodeo on January 9th.
31
January 17, 2007
Cottonwood received customer checks totaling $9,980 for
payment on outstanding accounts.
32
The owners of Cottonwood were talking to the owner of the
warehouses that they lease. They are good friends. The
conversation centered around wise investment of the excess
cash that Cottonwood presently has. The owner of the
warehouses stated that he wishes to diversify his investments,

5. especially with the flat real estate market. He suggested that
Cottonwood purchase the warehouses. He said that he would
give Cottonwood a good deal. Cottonwood decided to buy only
one of the warehouses and continue to lease the other one. The
price is to be $360,000 with a down payment of 20%. The
original owner will carry a mortgage for the remainder with an
interest rate of 7.5%. Title is to transfer on March 15, 2007.
Today Cottonwood sent earnest money of $10,000 to the owner
of the warehouse.
33
January 18, 2007
Cottonwood placed a purchase order with the Buckaroo
Outfitters for $52,000 in resale merchandise. Payment terms to
Buckaroo are net 30.
34
January 19, 2007
The Red Bluff Rodeo called in an order for $4,800 in event
merchandise. The order information was given to the
warehouse, where the merchandise was picked and set on the
delivery dock for RB Rodeo to pick up. Cost of the merchandise
was $2,496. Terms of the sale were cash on delivery, (COD).
Later in the day, Red Bluff Rodeo picked up and paid for their
order, (including sales tax).
35
January 22, 2007
Cottonwood received payment from Dust Bowl Rodeo for their
order from January 8th.
36
The FFA Rodeo in LaJunta Colorado (January 4th) returned
$4,000 in event merchandise as excess merchandise. The
merchandise was inspected and restocked. FFA is given a credit
to their account for the returned merchandise. The credit is for
the $4,000 minus a 10% restocking fee. The cost of the goods
is $2,085. FFA LaJunta paid the return shipping of $62.

6. 37
Cottonwood applied for credit with a new supplier, Howdy
Partner U.S.A. A credit application was faxed to HP’s
headquarters in San Antonio, TX. Cottonwood is anticipating
an order with HP for $12,000 in resale merchandise.
38
January 23, 2007
Cottonwood’s bank notified them that an EFT in the amount of
$102,240 from Alamo Conference Center had been deposited
into their account.
39
Cottonwood received their order from Buckaroo Outfitters from
January 18th. Buckaroo Outfitters paid the shipping charge of
$105. The inventory was counted and placed on the shelves.
Proof of receipt and the vendor’s invoice was sent to
accounting.
40
January 24, 2007
The Boise Stampede called in an order for $98,726 in
merchandise. $57,224 is for resale merchandise and $41,502 is
for event merchandise. The cost of the resale merchandise is
$36,623 and the cost of the event merchandise is $21,580.
Boise Stampede has not yet established credit with Cottonwood.
They are told that they must either supply the needed
information to establish credit or pay cash before the goods can
be delivered.
41
January 25, 2007
Cottonwood placed a purchase order with Rocking-5R Ranch
Supplies for $38,000 in events merchandise. Cottonwood’s
payment terms are 2% 10 net 30.
42
Cottonwood received a check from BCC (see January 12th) for

7. $15,000.
43
January 29, 2007
Cottonwood has made arrangements with their two primary
suppliers, Rodeo Outfitters and Lazy J for them to drop ship
orders in the future. That means that the orders will be placed
with the supplier and shipped directly from them. This reduces
Cottonwood’s inventory carrying cost by reducing the need for
inventory and frees up some cash for other purposes. The
primary concern about this arrangement was that Cottonwood
prides itself on almost always shipping the goods the same day
as the order. Both suppliers have assured Cottonwood that they
can also do same day shipment.
44
January 31, 2007
Cottonwood paid rent of $5,000 for the coming month’s lease of
the warehouses.
45
Cottonwood pays sales tax once a year in January for the
preceding 12 months. They do not make any sales tax deposits
during the year. Cottonwood paid sales tax of $4,178 for 2006
sales taxes collected.
46
Cottonwood purchased their warehouse and office equipment on
December 1, 2004 for $162,000. At the time they signed a
seven-year note payable from the bank for $90,000. Over the
seven years, payments of $1,589, which includes both principle
and interest, are to be made at the end of each month. The
annual interest rate on the loan is 12% calculated on the
outstanding balance. The calculation of interest is based on each
month having 30 days. Cottonwood transferred funds in the
amount of $1,589 from their checking account to pay the loan
amount due. (Hint: It is probably best to create an amortization
schedule to handle this entry.)

8. 47
Cottonwood paid the full amount due on the industrial shelving
(see January 11th & 16th).
48
The employees submitted their time statements for January 16th
through 31st. The calculated payroll is $21,600.
49
The owners and managers of Cottonwood choose a vendor from
several responses to the RFP sent out in early December to
supply them with their new shrink-wrap equipment. The
supplier will make some minor adjustments to their standard
equipment to meet Cottonwood’s needs. Cottonwood owners
sign the contract, which specifies a total equipment cost of
$239,000 including customization, installation, initial training,
and a two-year warranty. Delivery and installation is tentatively
scheduled for May 1, 2007. A down-payment of $59,750 is due
February 28th.
After you develop the journal entries for the above transactions,
you should post the entries to t-accounts and calculate the
account balances, (using cell formulas in Excel). Don’t forget to
include transactions from part 1 of the assignment (the first half
of the month), in calculating your balances. Using these account
balances and additional adjustment information below, record
adjusting journal entries. Note: It is possible that not all
adjusting entries are given in the following list.
Adjustment information as of January 31, 2007 not already
given in the original transaction(s):
1. Rodeo supply sales is a relatively new industry, so bad debt
average has not yet been established for the industry. Based on
prior experience, Cottonwood estimates that approximately
1/2% of the net credit sales (gross credit sales minus returns of

9. credit sales) for the month will become bad debt. Cottonwood
writes off bad debts as they occur and recognizes bad debt
expense based on anticipated bad debts as an adjusting entry
each month.
2. As a control measure, physical inventories are taken on a
periodic basis alternating between the resale merchandise
inventory and the event merchandise inventory. Physical
inventory of the event merchandise inventory was taken at the
end of January. It was determined that the cost of the event
merchandise on hand was $144,860.
3. Cottonwood counted the supplies on hand after the close of
business on the last day of the month and determined the cost of
the unused supplies to be $450.
4. Warehouse and office equipment was placed in service on
January 1, 2005 and is expected to last 15 years and has no
salvage value. The industrial shelving is expected to have a life
of 10 years and a salvage value of $5,000. Cottonwood
depreciates fixed assets on a straight-line basis and those assets
acquired in the first half of the month for the entire month,
while fixed assets placed in service during the last half of the
month are not depreciated until the second month. Depreciation
is rounded to the nearest dollar and assets are depreciated on a
monthly basis (i.e. number of days in the month is not of
consequence).
5. On February 2, Cottonwood received a $2,251 bill from
PG&E for utilities consumed during January and the January
AT&T bill in the amount of $412.
6. Liability insurance for the 2007 fiscal year was paid at the
end of November 2006. Liability insurance is assumed to be
utilized uniformly monthly over the one-year policy period.

10. 7. 500 product catalogs were sent out in the month of January.
Following are the instructions for entering the accounting data
into the SAP system:
Your instructor will tell you the SAP server (instance) and the
client you will be using.
Your login is USER-XX (where the XX is your assigned number
– this number will be supplied to you by your instructor).
Your initial password is “SAP4US” (note that these are capital
letters). You will be asked to change the password when you
first log on. Change it and be sure to remember this new
password. That will be the password you will use on your
subsequent logons for this assignment and other SAP
assignments.
Your company code is 80XX (where the XX is your assigned
number). Do not use any company code other than the one
assigned to you.
If you are unfamiliar with SAP, there are remedial videos that
you can watch that show you how to navigate around in the
system.
The first thing that you should do is to examine the chart of
accounts. You will find that this is the same as the chart of
accounts that was presented in part 1 of the assignment.
To Look at the Chart of Accounts
Accounting à Financial accounting à General ledger (
Information system ( General ledger reports ( Master Data (
Chart of Accounts ( Chart of Accounts
· Chart of accounts A321
· Execute
The next step is to enter the beginning balances and the
transactional journal entries. In SAP this is called general

11. ledger accounting because as you enter the journal entries into
the system they are immediately posted to the general ledger
accounts.
To enter transactions in General Ledger
Accounting à Financial accounting à General ledger à Document
entry à Enter G/L Account Document
On GL account posting screen enter:
· Doc. Date = the transaction date
· Posting date = same as doc. date (this may generate a warning,
just ignore it)
· Currency = USD (defaulted)
Note: Make sure the company code is your assigned company
code.
Don’t Forget to Enter Your Beginning Balances!
1st Line:
· G/L account = the account number for posting (debit) the
transaction
· D/C = Debit
· Amount in Doc. Currency = the amount of the transaction
2nd Line:
· G/L account = the account number for posting (credit) the
transaction
· D/C = Credit

12. · Doc. Currency amount = the amount of the transaction
… and so on for compound journal entries
· Click on Enter (white check mark on green circle at top left)
· Ignore any message by clicking on Enter.
· Look at the total debits and total credit fields. Debits should
be equal to credits and a green light should be lit.
· Click on Simulate button.
· This is the accounting transaction which you are posting in
your company for period 1.
(January is period 1 for our company)
· SAVE the document icon. Do Not Park your document by
mistake.
Write down the document numbers as you enter each
transaction.
If you parked your documents by mistake, then here is the
procedure you use to release these documents:
Accounting ( Financial Accounting ( General Ledger (
Document ( Parked Documents ( Post/Delete (FBV0)
Enter Company code: 80XX
Fiscal Year: 2007
Click on Document list on the application tool bar

13. On the “List of parked documents”, enter the above information
Execute.
A list of parked documents will appear.
Select all the documents by Edit ( Select all on the menu bar
Click on Create Batch input session button on the application
tool bar
A log will be displayed.
Go and Save.
When you click on save, the documents will be posted.
As you make the entries into the system, you should check to be
sure that they were entered correctly. I would suggest that you
first enter the beginning balances and then check them by
viewing the journal entries using one of the two reports below.
If an entry states that it is parked, that means you made a
mistake and must unpark the document (see above for the
unparking procedure). After you check the correctness of the
beginning entries, then you can enter the journal entries for the
first half of the month (part 1) and compare the results to your
first half trial balance in Excel. If the results don’t match, then
resolve the issue before proceeding to post the second half
journal entries and the adjusting entries. Remember that you
cannot correct erroneous entries in SAP. You have to reverse
the entry and then enter the correct entry. After each posting
compare your results to the trial balance in Excel.
Viewing Journal Entries
If you wish to view the journal entries that you have made,
following are three different ways in which you can display the

14. entries:
1. Document Journal
Information System ( General Report Selection ( Financial
Accounting ( General Ledger Reports ( Document ( General
( Compact Document Journal ( Compact Document Journal
Enter:
· Company code 80XX
· Fiscal Year 2007
· Execute
2. Drill down to the source document
Accounting ( Financial Accounting ( General Ledger (
Account ( Display/change line items
Enter:
· Company code 80XX
· Select All items
· Execute
A list of clear and open accounting documents is displayed
Select any box
Click on Display document (glasses) icon on the application
tool bar to display line items

15. Click on Call up Document overview (mountain-like) button to
display the source document.
3. Document Journal
Information System ( General Report Selection ( Financial
Accounting ( General Ledger Reports ( Document ( General
( Line Item Journal ( Line Item Journal
Enter:
· Company code 80XX
· Fiscal Year 2007
· Execute
To Look at the Balance Sheet and Profit and Loss Statement
Accounting à Financial accounting à General ledger (
Information system ( General ledger reports ( Balance sheet/
profit and loss statement/cash flow ( General ( Actual/actual
comparison ( Balance sheet/profit and loss statement
· Chart of accounts A321
· Company code 80XX (your assigned
code)
· Financial statement version A321 Language
EN
· Reporting year 2007
· Reporting periods 1 to 16
· Comparison year 2006
· Comparison periods 1 to 16
Execute.
You may even want to print your financial statements if you

16. have access to a printer for SAP.
We will simulate year-end close by doing the following.
Simulating the Closing of the Profit and Loss accounts
For a manual accounting system at the end of an accounting
period, it is necessary to make a journal entry that zeroes out
the nominal accounts and eventually closes them to the retained
earnings account. However, in a computerized system the
system can essentially do this by the push of a button. In this
section you will simulate this process. In SAP the closing is
done by executing the following transaction:
Accounting à Financial accounting à General ledger ( Periodic
Processing ( Closing ( Carry Forward ( Balance
Carryforward (New)
· Ledger 0L
· Company code 80XX
· Carry forward fiscal Year 2008
· Test Run Select
· Output list of results Select
· Execute.
Click on the Balance sheet accounts and Retained earnings
accounts.
If the run is successful, print out the screens for both the
balance sheet and the retained earnings. Do not do the actual
closing.
End of Assignment
Accounting Information Systems
Module 1 – Assignment: Part 2

17. Financial Accounting Review Practice Set
Last revised 12/27/2007
©SAP AG 2009 / SAP University Alliances
©SAP AG 2009 / SAP University Alliances
General JournalModule 1 - Financial Accounting Review
Practice Set - Part 1©SAP AG 2009 / SAP University
AlliancesGeneral Journal - Part 11/2/0712002Accrued Wages
Payable20,4001001Cash20,400to record wages
paid1/2/0721304Prepaid Advertising7,2001001Cash7,200to
record payment of prepaid advertising to start March
20071/3/0731301Office Supplies3622001Accounts
Payable362to record purchase of office
supplies1/3/0741001Cash12,6201101Accounts
Receivable12,620to record receipt of payment from
customer1/3/0751202Event Merchandise
Inventory92,0002001Accounts Payable92,000to record receipt
of event merchandise from Rodeo Outfitters1/3/0761304Prepaid
Advertising6,0002001Accounts Payable6,000to record receipt
of advertising catalogs1/4/0771101Accounts
Receivable19,8205002Cost of Goods Sold - Event Merchandise
Sales12,5846008Shipping Expense1704002Event Merchandise
Sales19,8201202Event Merchandise
Inventory12,5841001Cash170to record shipment of order to LJ
FFA1/5/0792001Accounts Payable16,0501001Cash16,050to
record payment of accounts payable1/5/07102099Other Accrued
Expenses Payable4281001Cash428to record payment of
telephone bill1/8/07131101Accounts

18. Receivable126,0005002Cost of Goods Sold - Event Merchandise
Sales80,6006008Shipping Expense6854002Event Merchandise
Sales126,0001202Event Merchandise
Inventory80,6001001Cash685to record shipment to Dust Bowl
Rodeo in Kansas1/8/07141001Cash28,4001101Accounts
Receivable28,400to record receipt of customer
payments1/9/07152099Other Accrued Expenses
Payable2,1101001Cash2,110to record payment of PG&E
bill1/9/07161001Cash18,0005001Cost of Goods Sold - Resale
Merchandise10,4406008Shipping Expense1124001Resale
Merchandise Sales18,0001201Resale Merchandise
Inventory10,4402001Accounts Payable112to record sale of
resale merchandise to Del Norte1/9/07171101Accounts
Receivable102,2405001Cost of Goods Sold - Resale
Merchandise51,2645002Cost of Goods Sold - Event
Merchandise Sales11,5136008Shipping
Expense1,5024001Resale Merchandise Sales80,1004002Event
Merchandise Sales22,1401201Resale Merchandise
Inventory51,2641202Event Merchandise
Inventory11,5131001Cash1,502to record shipment to Alamo
Conference Center1/10/07181201Resale Merchandise
Inventory76,0002001Accounts Payable76,000to record receipt
of inventory from Lazy J1/12/07222001Accounts
Payable3621001Cash362to record payment of Office Max
invoice1/12/07232001Accounts Payable6,0001001Cash6,000to
record payment for printed catalogs1/12/07242001Accounts
Payable92,0001001Cash90,1604100Purchase Discounts1,840to
record payment of Rodeo Outfitters vendor
invoice1/15/07251111Allowance for doubtful
accounts3,5001101Accounts Receivable3,500to recognize write
off of Fly-by-Knight receivable
beginning_balModule 1 - Financial Accounting Review Practice
Set©SAP AG 2009 / SAP University AlliancesAcct #Account
NameDebit BalanceCredit
Balance1001Cash135,98201101Accounts
Receivable54,50001111Allowance for doubtful

19. accounts05,3211201Resale Merchandise
Inventory109,82101202Event Merchandise
Inventory158,12201301Office Supplies60201302Prepaid
Insurance4,80001303Prepaid Rent5,00001304Prepaid
Advertising001310Deposits001401Warehouse and Office
Equipment162,00001411Accumulated depreciation -
Equipment021,6001501Buildings001511Accumulated
depreciation - Buildings001601Land002001Accounts
Payable016,0502002Accrued Wages
Payable020,4002003Accrued Payroll Taxes
Payable002004Accrued Sales Tax Payable04,1782005Accrued
Interest Payable002010Other Payable002020Dividends
Payable002030Current Maturities of Long-Term
Debt011,2062099Other Accrued Expenses
Payable02,5382100Notes Payables059,3343000Common Stock -
(no par)0200,0003100Retained Earnings0290,2004001Resale
Merchandise Sales004002Events Merchandise
Sales004099Miscellaneous Revenue004100Purchase
Discounts005001Cost of Goods Sold - Resale
Merchandise005002Cost of Goods Sold - Events
Merchandise006001Advertising Expense006002Depreciation
Expense006003Insurance Expense006004Interest
Expense006005Office Supplies Expense006006Rent
Expense006007Salaries/Wages Expense006008Shipping
Expense006009Utilities Expense006010Computer
Expense006011Bad Debt Expense006012Maintenance &
Repairs006099Miscellaneous Expense00630,827630,8270
General LedgerModule 1 - Financial Accounting Review
Practice Set - Part 1©SAP AG 2009 / SAP University
AlliancesGeneral Ledger Accounts - Part
11001Cash1101Accounts Receivable1111Allowance for
doubtful accounts1201Resale Merchandise
InventoryBeg.Bal.135,98254,5005,321109,821check
figures20,400112,62043,5002510,440167,200219,820751,26417
12,6204126,0001376,00018170728,4001416,0509102,24017428
103,500256851328,400142,1101518,000161,50217362226,0002

20. 390,1602459,020145,067248,06044,5203,500076,00061,704386,
580251,29149,9350258,040001,821124,11701202Event
Merchandise Inventory1301Office Supplies1302Prepaid
Insurance1303Prepaid
RentBeg.Bal.158,1226024,8005,00092,0005362312,584780,600
1311,5131792,000104,6973620000092,362104,697145,4250964
04,80005,00001304Prepaid
Advertising1310Deposits1401Warehouse and Office
Equipment1411Accumulated depreciation -
EquipmentBeg.Bal.00162,00021,6007,20026,000613,200000000
013,200013,200000162,0000021,6001501Buildings1511Accumu
lated depreciation -
Buildings1601LandBeg.Bal.000000000000000000002001Accou
nts Payable2002Accrued Wages Payable2003Accrued Payroll
Taxes Payable2004Accrued Sales Tax
PayableBeg.Bal.16,05020,40004,178362320,400192,00056,0006
16,05091121676,00018362226,0002392,00024114,412174,4742
0,40000000134,812174,474076,112000004,1782005Accrued
Interest Payable2010Other Payable2020Dividends
Payable2030Current Maturities of Long-Term
DebtBeg.Bal.00011,2060000000000000000011,2062099Other
Accrued Expenses Payable2100Notes Payables3000Common
Stock - (no par)3100Retained
EarningsBeg.Bal.2,53859,334200,000290,200428102,110152,53
800000002,538000059,3340200,0000290,2004001Resale
Merchandise Sales4002Event Merchandise
Sales4099Miscellaneous Revenue4100Purchase
DiscountsBeg.Bal.000018,0001619,82071,8402380,10017126,00
01322,14017098,1000167,9600001,8400267,90098,100167,9600
1,8405001Cost of Goods Sold - Resale Merchandise5002Cost of
Goods Sold - Event Merchandise Sales6001Advertising
Expense6002Depreciation
ExpenseBeg.Bal.000010,4401612,584751,2641780,6001311,513
1761,7040104,69700000166,401061,704104,697006003Insuranc
e Expense6004Interest Expense6005Office Supplies
Expense6006Rent

21. ExpenseBeg.Bal.0000000000000000006007Salaries/Wages
Expense6008Shipping Expense6009Utilities
Expense6010Computer
ExpenseBeg.Bal.0000170768513112161,50217002,469000002,4
69002,469006011Bad Debt Expense6012Maintenance &
Repairs6099Miscellaneous
ExpenseBeg.Bal.0000000000000Beg.Bal.798,362798,3620
Trial BalanceModule 1 - Financial Accounting Review Practice
Set - Part 1©SAP AG 2009 / SAP University
AlliancesAccountBeginning BalanceTransactionsEnding
BalanceAdjustmentsAdjusted BalanceEOM Closing
EntriesBalanceDRCRDBCRDBCRDBCRDBCRDBDBDBCR100
1Cash135,982059,020145,06749,93501101Accounts
Receivable54,5000248,06044,520258,04001111Allowance for
doubtful accounts05,3213,500001,8211201Resale Merchandise
Inventory109,821076,00061,704124,11701202Event
Merchandise
Inventory158,122092,000104,697145,42501301Office
Supplies6020362096401302Prepaid
Insurance4,8000004,80001303Prepaid
Rent5,0000005,00001304Prepaid
Advertising0013,200013,20001310Deposits0000001401Wareho
use and Office
Equipment162,000000162,00001411Accumulated depreciation -
Equipment021,60000021,6001501Buildings0000001511Accumu
lated depreciation -
Buildings0000001601Land0000002001Accounts
Payable016,050114,412174,474076,1122002Accrued Wages
Payable020,40020,4000002003Accrued Payroll Taxes
Payable0000002004Accrued Sales Tax
Payable04,1780004,1782005Accrued Interest
Payable0000002010Other Payable0000002020Dividends
Payable0000002030Current Maturities of Long-Term
Debt011,20600011,2062099Other Accrued Expenses
Payable02,5382,5380002100Notes
Payables059,33400059,3343000Common Stock - (no

22. par)0200,000000200,0003100Retained
Earnings0290,200000290,2004001Resale Merchandise
Sales00098,100098,1004002Event Merchandise
Sales000167,9600167,9604099Miscellaneous
Revenue0000004100Purchase
Discounts0001,84001,8405001Cost of Goods Sold - Resale
Merchandise0061,704061,70405002Cost of Goods Sold - Event
Merchandise Sales00104,6970104,69706001Advertising
Expense0000006002Depreciation Expense0000006003Insurance
Expense0000006004Interest Expense0000006005Office
Supplies Expense0000006006Rent
Expense0000006007Salaries/Wages
Expense0000006008Shipping
Expense002,46902,46906009Utilities
Expense0000006010Computer Expense0000006011Bad Debt
Expense0000006012Maintenance &
Repairs0000006099Miscellaneous
Expense000000630,827630,827798,362798,362932,351932,351
4.61023456
COAModule 1 - Financial Accounting Review Practice
Set©SAP AG 2007 / SAP University
Alliances1001Cash1101Accounts Receivable1111Allowance for
doubtful accounts1201Resale Merchandise Inventory1202Event
Merchandise Inventory1301Office Supplies1302Prepaid
Insurance1303Prepaid Rent1304Prepaid
Advertising1310Deposits1401Warehouse and Office
Equipment1411Accumulated depreciation -
Equipment1501Buildings1511Accumulated depreciation -
Buildings1601Land2001Accounts Payable2002Accrued Wages
Payable2003Accrued Payroll Taxes Payable2004Accrued Sales
Tax Payable2005Accrued Interest Payable2010Other
Payable2020Dividends Payable2030Current Maturities of Long-
Term Debt2099Other Accrued Expenses Payable2100Notes
Payables3000Common Stock - (no par)3100Retained
Earnings4001Resale Merchandise Sales4002Event Merchandise
Sales4099Miscellaneous Revenue4100Purchase

23. Discounts5001Cost of Goods Sold - Resale
Merchandise5002Cost of Goods Sold - Event Merchandise
Sales6001Advertising Expense6002Depreciation
Expense6003Insurance Expense6004Interest Expense6005Office
Supplies Expense6006Rent Expense6007Salaries/Wages
Expense6008Shipping Expense6009Utilities
Expense6010Computer Expense6011Bad Debt
Expense6012Maintenance & Repairs6099Miscellaneous
Expense