school teachers. The luncheon was funded out
of the Protestant account of the NETPDC
chapel fund. The Purchase Order illustrated in
figure II-4-23 provides the accounting data
needed for this transaction. The Purchase Order
in this figure is very similar to the one illustrated
in figure II-4-22. Two of the major differences
are that the Purchase Order was prepared the
same day that the luncheon was held; and, this
latter purchase did not involve a purchase of
goods to be used at a later date. This poses a
question; “Why fill out a Purchase Order when
goods are not being ordered from a vendor?”
There is a good explanation for this procedure.
By issuing a Purchase Order for every expendi-
ture, the chapel fund administrator has to initial
the form indicating that there are sufficient
funds in the particular account to cover the ex-
penditure and this ensures that overspending
does not occur. After the chapel fund adminis-
trator initials the Purchase Order in this latter
transaction for the luncheon, the procedures are
identical to the steps explained for the August 4,
1980 transaction for the Roman Catholic
account.
For the remainder of this chapter and the
next, an explanation will not be given for all
transactions. The accounting data will be sup-
plied along with the step-by-step entries required
on the Receipts and Expenditures Record. Refer
to this section or the preceding sections for
clarification when necessary.
Checking Account
Figure II-4-24 shows the check issued for
payment of the luncheon.
Receipts and Expenditures Record
Just as was done with the purchase of the
medals in the Roman Catholic account trans-
action, the cost of the luncheon must be posted
to the Receipts and Expenditures Record. Figure
II-4-25 illustrates the steps needed to bring the
Protestant acccount up to date. Following is a
brief explanation of each step:
23. DATE—enter 8/7 for August 7, 1980.
24. DESCRIPTION—enter the words
“CMO CLUB” to reflect that a transaction was
made with the club.
25. CHECK NO.—enter the check number
that was issued to the CMO Club to pay for the
luncheon. The check number for this transaction
is 523.
26. P.O. NO.—enter the Purchase Order
number that was used for this transaction. The
Purchase Order number is P-82.
27. ROMAN CATHOLIC ACCOUNT
BALANCE—since the Roman Catholic account
was not affected by this transaction, simply
bring the previous balance (
||content||
,262.51) forward
to the next line.
2 8 . P R O T E S T A N T A C C O U N T E X-
PEND.—enter the total amount of the
expenditure
for the luncheon from the
checkbook and the Purchase Order. The
amount is 2.51.
29. PROTESTANT ACCOUNT BAL-
ANCE—subtract the 2.51 from the previous
balance (
||content||
,497.57). The new balance is
||content||
,355.06.
30. COMPOSITE BALANCE—add the
ROMAN CATHOLIC ACCOUNT BALANCE
(
||content||
,262.51)
and
the
PROTESTANT
AC-
COUNT BALANCE (
||content||
,355.06). The new
balance is ,617.57. Check the figures again.
AUGUST 10, 1980
Sunday services were conducted on this date.
The collections were turned over to the chapel
fund administrator after being counted and
verified by the appropriate account custodians.
Roman Catholic Service
The collection was counted by two adults
and certified by the Roman Catholic account
custodian. The collection consisted of the
monies illustrated in figure II-4-26.
Protestant Service
The collection was counted by two adults
and certified by the Protestant account custo-
dian. The collection consisted of the monies
illustrated in figure II-4-27.
Receipts and Expenditures Record
The steps required to bring the Roman
Catholic and Protestant accounts up to date are
4-29
