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Work4MeAlgorithmic Version1st Web-Based EditionDescriptions of Algorithmic ProblemsPage 1 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
What Are Algorithmic Problems?This edition of PKL’s Algorithmic Work4Me has been developed for the first yearaccounting and business student. It is an excellent tool for familiarizingaccounting students with accounting procedures, starting with basic debit andcredit journal entries and progressing through the more complex journal entriesassociated with adjusting, closing, sales, purchases, and bad debts transactions.What does algorithmic entail? After the first two problems, each student willstart with different balances in beginning ledger and subsidiary accounts. Manyof the transactions will require unique values to be journalized.Evaluation questions at the end of each problem will require answers unique toeach student’s work. The first demonstration problem introduces the softwareand basic entries illustrating the concept of double-entry bookkeeping. Thebalance of the computerized exercises provide a hands-on review of dailyentries, maintaining subsidiary ledgers for customers and vendors, adjustingentries, closing entries, and simple analysis of financial statements. All of theclerical functions are handled by the computer. When answering ten to fifteenevaluation questions, the student must use their printed documents to answer thequestions. The questions include analysis of the accuracy of the student’s work,and analysis of the effects of the business transactions on the financial conditionof the business. The student's exam may be taken a preset number of times andis auto-graded and recorded in the instructor's grade book.Students can and should be encouraged to work together, but obviously theexaminations must be answered independently of any other individual student.An additional feature of Algorithmic Work4Me is Accounting Coach, which can befound under Support on the far right of the Algorithmic Work4Me mainmenu. Accounting Coach provides users an opportunity to review accountingtopics, such as journalizing, posting, adjusting and closing entries, purchases,sales, inventory valuation, bad debts expense, depreciation expense, notes, andcash control. It too is algorithmic, so students can review the topics as manytimes as necessary to become competent in those topics.Page 2 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
Descriptions of the ProblemsA short description of each problem is given with some detail about the algorithmicportion(s) of the problem.ProblemNumber12DescriptionDemonstration ProblemThis is a short, introductory problem witheight entries, and instructions to get thestudent acquainted with the computerizeddata entry system and printing accountingdocuments.Daily Journal EntriesThe student records daily journal entries.An end-of-period Trial Balance is verifiedfor accuracy.AlgorithmicNoNo3Adjusting EntriesAdjusting entries are recorded and anAdjusted Trial Balance is prepared.YesBeginning ledger accountbalances are unique foreach user.4Daily and Adjusting EntriesDaily entries are recorded for the last halfof the month and a Trial Balance isprepared and verified. Adjusting entriesare recorded and Financial Statements areprepared and analyzed.YesBeginning ledger accountbalances are unique foreach user. Many of theadjusting entries areunique for each user.5Closing EntriesAutomated closing entries aredemonstrated.YesBeginning ledger accountbalances are unique foreach user.Page 3 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
ProblemNumber6DescriptionAdjusting, Closing, and AnalysisIn addition to adjusting entries andautomated closing entries, the studentmust complete a 20 question analysis.AlgorithmicYesBeginning ledger accountbalances are unique foreach user. Many of theadjusting entries areunique for each user.7Accounts Receivable with PerpetualInventoryThis problem is an introduction toPerpetual Inventory and to the AccountsReceivable Subsidiary Ledger. The studentrecords each update entry to MerchandiseInventory and Cost of Goods Sold as Salesand Sales Returns are recorded.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user. Thefinancial statements areunique for each user.8Accounts Payable with PerpetualInventoryThis problem is an introduction toPerpetual Inventory and to the AccountsPayable Subsidiary Ledger.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user. Thefinancial statements areunique for each user.9Accounts Receivable and AccountsPayableThis problem combines accountsreceivable and accounts payabletransactions. It includes an automaticupdating of the Merchandise Inventoryand Cost of Goods Sold accounts whensales or sales returns are recorded.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user. Thefinancial statements areunique for each user.10Accounting for Bad DebtsThis problem requires the write off ofaccounts receivable through the allowancemethod of accounting for bad debts.Included is the recovery of accountswritten off in the current period and in aprior accounting period.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user.Page 4 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
ProblemNumber11DescriptionAging of Accounts ReceivableThis is problem requires the completion ofan aging of accounts receivable form anddetermining the adjustment foruncollectible accounts under differentscenarios.AlgorithmicNo12Notes Receivable and PayableThe student records journal entries forcreating and paying notes payable and forcreating and collecting notes receivable.Interest calculations are requited.YesBeginning ledger accountbalances are unique foreach user.13Perpetual Inventory with InventoryLedgerThis problem includes a perpetualinventory system for the purchase and saleof merchandise inventory with aninventory subsidiary ledger.YesBeginning ledger accountbalances are unique foreach user.14Plant Acquisition and DisposalTransactions involve the acquisition, sale,trade-in, and disposal of plant andequipment; and recording depreciation,where appropriate.YesBeginning ledger accountbalances are unique foreach user.15Long-Term Notes and BondsTransactions involve borrowing andpaying long-term notes and the sale ofbonds at par value, with discount, and at apremium.YesBeginning ledger accountbalances are unique foreach user.16Common, Preferred, and TreasuryStockTransactions involve the sale of par-valueand no-par value common and preferredstock, the purchase and sale of treasurystock, and cash and stock dividends.YesBeginning ledger accountbalances are unique foreach user.Page 5 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
ProblemNumber17DescriptionFinancial Statement AnalysisThis problem is an introduction totechniques for analyzing financialstatements, including ratios andpercentages.AlgorithmicYesBeginning ledger accountbalances and financialstatements are unique foreach user.18PartnershipsThis problem is an introduction topartnership accounting, with purchase ofinterest, dissolution, and liquidation.NoGeneral Ledger startswith zero balances.Partnership is formed,additional partner addedby purchase of interest,one partner leaves thepartnership, and finalliquidation occurs.19Statement of Cash FlowsThis problem is an introduction tostatements of cash low. Students mustjournalize and identify operating,investing, and financial activities.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user. TheStatement of Cash Flowsis unique for each user.20Long-Term InvestmentsThis problem requires the recording of thepurchase and sale of long-terminvestments. Included are available-forsale equity securities, available-for-saledebt security, and equity securities withsignificant influence.YesBeginning ledger accountbalances and subsidiaryledger balances areunique for each user.Page 6 of 6Algorithmic Work4Me – Problem Explanations1st Web-Based Edition. Copyright 2015 – 2020 PKL Software. Incorporated. All rights reserved.January 4, 2020
The student records journal entries for creating and paying notes payable and for creating and collecting notes receivable. Interest calculations are requited. Yes Beginning ledger account balances are unique for each user. 13 Perpetual Inventory with Inventory Ledger This problem includes a perpetual inventory system for the purchase and sale
