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2014 DECA Ontario Regionals ACTEvent #2

CAREER CLUSTERFinance

CAREER PATHWAYAccounting

INSTRUCTIONAL AREA Financial Analysis

ACCOUNTING APPLICATIONS SERIES EVENT

PARTICIPANT INSTRUCTIONS

PROCEDURES

1. The event will be presented to you through your reading of these instructions, including the Performance Indicators and Event Situation. You will have up to 10 minutes to review this information to determine how you will handle the role-play situation and demonstrate the performance indicators of this event. During the preparation period, you may make notes to use during the role-play situation.

2. You will have up to 10 minutes to role-play your situation with a judge (you may have more than one judge).

3. You will be evaluated on how well you meet the performance indicators of this event.

4. Turn in all your notes and event materials when you have completed the role-play.

PERFORMANCE INDICATORS

1. Explain the nature of a voucher system.

2. Prepare vouchers.

3. Record transactions using a voucher system.

4. Process invoices for payment.

5. Process accounts payable checks/ voucher checks.

Published 2015 by DECA Inc. Copyright © 2015 by DECA Inc. No part of this publication may be reproduced for resale or posted online without written permission from the publisher. Printed in the United States of America.


EVENT SITUATION

You are to assume the role of an internal accountant for the SUPER PLUSH STUFFED TOY COMPANY, a large manufacturing company. The owner has hired a new employee (judge) to assist you with the company’s record keeping. Your supervisor has asked you to explain the voucher system to a new employee (judge). You will teach the new employee (judge) to:

verify an invoice prepare a voucher from an invoice journalize a voucher in a register prepare a voucher check

SUPER PLUSH STUFFED TOY COMPANY buys the machinery, the pelts, the plastic eyes, the stuffing, the boxes and other materials from many different companies. Then they assemble all of the parts in their large factory, box them and ship them to toy stores all over the world. Recently, the stuffing machine’s motor has been running slowly. You ordered a new one for $3,000 from MOUNTAIN MACHINERY. Use the accounting forms on the following pages to explain the accounting process to the new employee (judge).

You present your explanation to the new employee (judge) in a role-play to take place in your office. The new employee (judge) will begin the role-play by greeting you and asking to help him/her understand all aspects of the voucher system.

After you have presented your explanation and have answered the new employee’s (judge’s) questions, the new employee (judge) will conclude the role-play by thanking you for your expertise.

Note:You may write on the accounting forms: voucher, the invoice, the voucher register and the voucher check to use as visual aids to teach the new employee (judge). You will be allowed to bring these forms into the role play.

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InvoiceMountain Machinery No. 62532 Skyline Dr. Date July 2, 2014Dunham, NJ 33326 Terms 2/10, n/30

To: Super Plush Stuffed Toy Company 65 East Washington Ave Brooklyn, NY 22258

Quantity Description Unit Price Amount1 Stuffing machine model z46 3000.00 3000.00

Thank you for your order Invoice Total3000.00

3

Date rec’d__7/12/14__Material received _IA___

Terms approved_ IA_____Prices approved_ IA_____

Voucher No. __553_____


Vchr No. 553Date__7/2/14_____ Due date_7/22/14___ Payment date 7/20/14_To__Mountain MachineryAddress__32 Skyline Dr.City _Dunham_ State_N.J._____ Zip _33326_

Accounts Debited AmountPurchases 3000 00Rent ExpenseSalary Expense

Total DebitsAccounts Credited AmountVouchers payableEmployee income tax payable- FederalEmployee income tax payable- StateFICA tax payable

Total Credits 3000 00

Voucher Approved by__ PB (purchasing supervisor)_______

Registered in voucher Register Page ___7__ by __ SG ___

Paid Date_7/20/14_____ Check No. __1008__ Amount $2940.00____ Approved by_ PS(purchasing supervisor)_______

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Voucher Register (Left Side)

Voucher Date Payee Voucher

No. Paid Voucher

Payable CreditDate C.K. No.

July 2 Mountain Machinery 553 7/20/14 1008 3000.003 BB’s Boxes Inc. 554 800.00

Voucher Register (Right Side)

Register Page _7_ General

Purchases Debit

Rent Expense

Salary Expense

Account Title PostRef.

Debit Credit

3000.00 Equipment 800.00 Miscellaneous Expense- supplies

Super Plush Stuffed Toy Company No. 100865 East Washington Ave. Brooklyn, NY 22258 July 20, 2014

Pay toThe order of __ Mountain Machinery____________ $ 2940.00__

Two thousand nine hundred forty ------------------------00/100 Dollars

Regions Bank

9896 Jamaica St. Patchaug, NY _Internal Accountant__

:031000216: 372 1518 Det

ach

this

stub

bef

ore

cash

ing

Super Plush Stuffed Toy Company

Voucher No. 553

In Payment of:

Invoice No. 625 $3000.00Less 2%Discount 60.00

Amount $2940.00Check No. 1008

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JUDGE’S INSTRUCTIONS

DIRECTIONS, PROCEDURES AND JUDGE’S ROLEIn preparation for this event, you should review the following information with your event manager and other judges:

1. Procedures and Performance Indicators 2. Event Situation3. Judge Role-play Characterization

Participants may conduct a slightly different type of meeting and/or discussion with you each time; however, it is important that the information you provide and the questions you ask be uniform for every participant.

4. Judge’s Evaluation Instructions and Judge’s Evaluation FormPlease use a critical and consistent eye in rating each participant.

JUDGE ROLE-PLAY CHARACTERIZATIONYou are to assume the role of a new employee at the SUPER PLUSH STUFFED TOY COMPANY, a large manufacturing company. The owner has hired you to assist with the company’s record keeping. The supervisor has asked the internal accountant (participant) to explain the voucher system to you. You will ask the internal accountant (participant) about all aspects of the voucher system, including how to:

verify an invoice prepare a voucher from an invoice journalize a voucher in a register prepare a voucher check.

SUPER PLUSH STUFFED TOY COMPANY buys the machinery, the pelts, the plastic eyes, the stuffing, the boxes and other materials from many different companies. Then they assemble all of the parts in their large factory, box them and ship them to toy stores all over the world. Recently, the stuffing machine’s motor has been running slowly. A new one was ordered for $3,000 from MOUNTAIN MACHINERY. The internal accountant (participant) will use the following accounting forms: voucher, the invoice, the voucher register and the voucher check to explain the accounting process to you. The internal accountant (participant) will explain the information to you in a role-play to take place in the internal accountant’s office. You will begin the role-play by greeting the participant and asking to hear their thoughts about all aspects of the voucher system.

During the course of the role-play you are to ask the following questions of each participant:

1. How would you file vouchers in the unpaid voucher file? Explain why.

2. What might our company implement to serve as additional controls to protect our assets, particularly our cash?

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Once the internal accountant (participant) has explained the information and has answered your questions, you will conclude the role-play by thanking the internal accountant (participant) for their assistance.

You are not to make any comments after the event is over except to thank the participant.

SOLUTION Invoice- a written record of goods or services provided and the amount charged for them, sent to a customer or employer as a request for paymentVoucher- document that can be exchanged for goods and services in place of moneyVoucher system- a set of procedures for controlling cash payments by preparing and approving vouchers before payment is madeVoucher Register- a journal used to record vouchers2/10, n/30- a 2% discount is given if paid if the invoice is paid within 10 days or the entire invoice amount must be paid within 30 days.

Key Concepts-The participant show complete understanding of the voucher process and the reason for using the voucher process. That is to control cash payments with a system of checks and balances.

Vouchers are approved before orders are placed Order is placed Order is recorded in the voucher register with date, payee, voucher number, and price Items arrive with an invoice Invoices are carefully checked to match the order with the merchandise that was

delivered Invoices are carefully checked to verify terms and prices Match Invoice to voucher Check due date to be sure to pay on time Prepare a voucher check for invoice total less any discounts Record payment, date paid and check number in the voucher register

InvoiceMountain Machinery No. 62532 Skyline Dr. Date July 2, 2014Dunham, NJ 33326 Terms 2/10, n/30

To: Super Plush Stuffed Toy Company 65 East Washington Ave Brooklyn, NY 22258

Quantity Description Unit Price Amount1 Stuffing machine model z46 3000.00 3000.00

7


Thank you for your order Invoice Total3000.00

Vchr No. 553Date__7/2/14_____ Due date_7/22/14___ Payment date 7/20/14_To__Mountain MachineryAddress__32 Skyline Dr.City _Dunham_ State_N.J._____ Zip _33326_

Accounts Debited AmountPurchases 3000 00Rent ExpenseSalary Expense

Total DebitsAccounts Credited AmountVouchers payableEmployee income tax payable- FederalEmployee income tax payable- StateFICA tax payable

Total Credits 3000 00

Voucher Approved by__ PB (purchasing supervisor)_______

Registered in voucher Register Page ___7__ by __ SG ___

Paid Date_7/20/14_____ Check No. __1008__ Amount $2940.00____ Approved by_ PS(purchasing supervisor)_______

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Date rec’d__7/12/14__Material received _IA___

Terms approved_ IA_____Prices approved_ IA_____

Voucher No. __553_____


Voucher Register (Left Side)

Voucher Date Payee Voucher

No. Paid Voucher

Payable CreditDate C.K. No.

July 2 Mountain Machinery 553 7/20/14 1008 3000.003 BB’s Boxes Inc. 554 800.00

Voucher Register (Right Side)

Register Page _7_ General

Purchases Debit

Rent Expense

Salary Expense

Account Title PostRef.

Debit Credit

3000.00 Equipment 800.00 Miscellaneous Expense- supplies

Super Plush Stuffed Toy Company No. 100865 East Washington Ave. Brooklyn, NY 22258 July 20, 2014

Pay toThe order of __ Mountain Machinery____________ $ 2940.00__

Two thousand nine hundred forty ------------------------00/100 Dollars

Regions Bank

9896 Jamaica St. Patchaug, NY _Internal Accountant__

:031000216: 372 1518 Det

ach

this

stub

bef

ore

cash

ing

Super Plush Stuffed Toy Company

Voucher No. 553

In Payment of:

Invoice No. 625 $3000.00Less 2%Discount 60.00

Amount $2940.00Check No. 1008

ANSWERS TO JUDGES QUESTIONS

1. By date so you would know each day what needs to be paid in order to receive the discounts for paying within the discounted terms. For example 2% discount is generally given when payment is received within 10 days

2. Make bank deposits regularly Keep cash in a safe place Use numbered vouchers All voucher should be journalized accurately Payments should be approved for payment only after verifying orders carefully No check should be issued without a properly authorized voucher

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JUDGE’S EVALUATION INSTRUCTIONS

Evaluation Form Information

The participants are to be evaluated on their ability to perform the specific performance indicators stated on the cover sheet of this event and restated on the Judge’s Evaluation Form. Although you may see other performance indicators being demonstrated by the participants, those listed in the Performance Indicators section are the critical ones you are measuring for this particular event.

Evaluation Form Interpretation

The evaluation levels listed below and the evaluation rating procedures should be discussed thoroughly with your event chairperson and the other judges to ensure complete and common understanding for judging consistency.

Level of Evaluation Interpretation Level

Exceeds Expectations Participant demonstrated the performance indicator in an extremely professional manner; greatly exceeds business standards; would rank in the top 10% of business personnel performing this performance indicator.

Meets Expectations Participant demonstrated the performance indicator in an acceptable and effective manner; meets at least minimal business standards; there would be no need for additional formalized training at this time; would rank in the 70-89th percentile of business personnel performing this performance indicator.

Below Expectations Participant demonstrated the performance indicator with limited effectiveness; performance generally fell below minimal business standards; additional training would be required to improve knowledge, attitude and/or skills; would rank in the 50-69th percentile of business personnel performing this performance indicator.

Little/No Value Participant demonstrated the performance indicator with little or no effectiveness; a great deal of formal training would be needed immediately; perhaps this person should seek other employment; would rank in the 0-49th percentile of business personnel performing this performance indicator.

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ACCOUNTING APPLICATIONS SERIES, 2015

JUDGE’S EVALUATION FORMEVENT #2

INSTRUCTIONAL AREAFinancial Analysis

Participant: _____________________

I.D. Number: ____________________

Did the participant: Little/NoValue

Below Expectations

Meets Expectations

Exceeds Expectations

JudgedScore

PERFORMANCE INDICATORS

1. Explain the nature of a voucher system? 0-1-2-3-4-5 6-7-8-9 10-11-12-13 14-15-16

2. Prepare vouchers? 0-1-2-3-4-5 6-7-8-9 10-11-12-13 14-15-16

3. Record transactions using a voucher system? 0-1-2-3-4-5 6-7-8-9 10-11-12-13 14-15-16

4. Process invoices for payment? 0-1-2-3-4-5 6-7-8-9 10-11-12-13 14-15-16

5. Process accounts payable checks? 0-1-2-3-4-5 6-7-8-9 10-11-12-13 14-15-16

6.Reason effectively, use systems thinking, make judgments and decisions, and solve problems?

0-1-2-3 4-5-6 7-8 9-10

7. Overall impression and responses to the judge’s questions 0-1-2-3 4-5-6 7-8 9-10

TOTAL SCORE

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Documents

CAREER CLUSTER - prestondeca.weebly.comprestondeca.weebly.com/.../6/23360038/2015_act_2015_r… · Web viewProcess invoices for payment. Process accounts payable checks/ voucher