was 25. The entry required is 25. Since a check
of the Quantity column shows that 25 items were
ordered, then this order can be authorized for
payment if the merchandise was not damaged in
shipping. A brief explanation of the bottom half
of Part 3 of the Purchase Order follows:
l Date—the date that the goods or services
were actually received and the statement,
Authorized for Payment, is inserted in the space
provided. The entry is August 3, 1980 Author-
ized for Payment. When the account custodian
enters this authorization, he is saying that the
medals were received as requested and that none
of the goods was damaged.
. Signature and Printed Name of Person
Receiving Material—the account custodian will
sign and print his name in the space provided.
After the account custodian has made the re-
quired entries on Part 3, he will submit all sup-
porting evidence, including the vendor’s invoice
attached to Part 3 of the Purchase Order, to the
chapel fund administrator for payment. For the
rest of this chapter and the next, Purchase
Orders will not be explained in as much detail.
Refer back to this portion for guidance if
necessary. For the sake of clarity, Part 3 will be
the only part of the Purchase Order that will be
utilized for explanation purposes.
Checking Account
After the chapel fund administrator receives
Part 3 of the Purchase Order from the account
custodian with the authorization to pay on the
form, he then writes a check to the vendor for
the total amount of the Purchase Order. RPC
Smithers is also the administrator for the NET-
PDC chapel fund as well as the Roman Catholic
account custodian. He wrote a check in the
amount of for the medals to the Ecumenical
Bookstore. A sample check is shown in figure
II-4-21. The NETPDC chapel fund started the
fiscal year with check number 1 and has subse-
quently written 521 checks to date. The check
number for this transaction will be number 522.
The current balance of the chapel fund
checking account reflects the combined total of
all of the money in the individual religious
group accounts of those authorized to be
members of the chapel fund. For the purpose of
this accounting application, there are two
accounts: Roman Catholic and Protestant. The
current balance in the chapel fund checking
account, added to the in the petty cash fund,
should always equal the latest COMPOSITE
BALANCE in the Receipts and Expenditures
Record. For this accounting application, check-
ing account functions will not be performed
other than the issuing of checks and posting the
check numbers as required. However, it is im-
portant to remember that the chapel fund
administrator must maintain an accurate and
up-to-date checking account as well as a concise
Receipts and Expenditures Record.
Receipts and Expenditures Record
The information must be posted to the
Receipts and Expenditures Record to show the
purchase of the medals from the Roman
Catholic account. Figure II-4-22 illustrates the
steps that should be taken to bring this account
up to date. Following is a brief explanation of
each step:
15. DATE—enter 8/4 for August 4, 1980.
16. DESCRIPTION—enter the words
“ECUMENICAL BOOKSTORE” to reflect
that a transaction was made with this company.
17. CHECK NO.—enter the check number
that was issued to the Ecumenical Bookstore to
cover the cost of the medals. The check number
for this transaction is 522.
18. P.O. NO.—enter the Purchase Order
number that was used for this transaction. The
Purchase Order number is C-75.
19. ROMAN CATHOLIC ACCOUNT EX-
PEND.—enter the total amount of the expend-
iture for the medals from the checkbook and
the Purchase Order. The amount is .
20. ROMAN CATHOLIC ACCOUNT
BALANCE—subtract the from the previous
balance (
||content||
,337.51). The new balance is
||content||
,262.51.
21. PROTESTANT ACCOUNT BAL-
ANCE—since the Protestant account was not
affected by this transaction, simply bring the
previous balance (
||content||
,497.57) forward to the next
line. By bringing forward the balance of an
4-26
