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Sua accounting

27/03/2021 Client: saad24vbs Deadline: 2 Day

Systems Understanding Aid (SUA) Assignment

This assignment provides you an opportunity to gain an in depth understanding of how a traditional accounting system operates including the forms that have traditionally provided the documentation for the accounting process and how the information in these documents are used to update accounting journals and ledgers. This exercise will also provide you an introduction to business process internal controls and experience using flowcharts.

We will work on the assignment during class time, but you may also need to work on the assignment outside of class – do not procrastinate. You are allowed to discuss the SUA with others in the class, but you may not copy. You may work in pairs or individually. If you chose to work in pairs, each individual is still responsible for understanding the material. If you rely too heavily on your partner to complete the assignment then you will be less prepared for the exam.

When you have completed all transactions (as outlined below), you will take pictures of select journals, ledgers, and source documents to be uploaded to Blackboard for grading. I will provide you more details on what needs to be captured in your pictures one week before the due date on the syllabus.

Instructions:

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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