This is an accounting assignment for job application requirements-
For Item 1, please follow the instructions to "audit" how the invoices and payments have been processed. For Items 2 and 3, please read the scenarios and create the appropriate journal entries.
The instructions should give details on exactly what we're asking you to do.
We are asking you to do this for two reasons. First, you're going to be following instructions as part of this job. Second, we will be looking at your responses as our primary filter when assessing applications. We have found that this helps us find great people.
These are examples we created for this job application - these scenarios are fictitious.
Instructions- View this URL to find a hypothetical examples for the Accounting Manager Work Product Test.
https://docs.google.com/a/HireAthena.co/document/d/1xfPDnMKSeCZO69AnFvpYYctMz0tCrbrFMqEBYZ_MW18/edit
Item 1:
1. For Item 1, there is a sample (A) invoice from a vendor, (B) screenshot of how the invoice is accounted for, including accounting allocations, and (C) check to be mailed to the vendor.
2. For this exercise, you will be looking at the invoice and following the instructions below to make sure the invoice has been processed properly. As you follow these instructions, make notes on any mistakes (if any) that you find. At the end of this exercise, you will be writing an email to your boss detailing any problems or mistakes you have found (if any).
3. These are the instructions to audit how the invoice is accounted for and payments for a given invoice.
A. First, pull up the invoice. Now look at each screenshot that shows how that invoice has been processed. Please verify each item in the checklist below.
Vendor: Does the value for "Vendor" exactly match the business name on the Invoice?
Invoice #: Does the "Invoice #" exactly match the invoice number printed on the invoice?
-NOTE: If no invoice number is included on the invoice, the "Invoice #" should follow this format: "First word of vendor name_invoice date (in the yyyymmdd format)"
Amount: Does the "Amount" to be paid to the vendor exactly match the total amount on the invoice?
Payment terms: Does the "Payment Terms exactly match the payment terms described on an invoice?
-NOTE: If no payment terms are included on the invoice, this should be left blank
Invoice Date: Does the "Invoice Date" exactly match the date printed on the invoice?
Due Date: Does the "Due Date" exactly match the due date printed on the invoice?
-NOTE: If no Due Date is listed, the Due Date can be calculated by taking the Invoice Date and adding the number of days specified in Payment Terms. For instance, if the Invoice Date is January 1, 2014, and the Payment Terms are Net 10, the Due Date would be January 11, 2014 (ten days after January 1).
Credits Applied: Does "Credits Applied" exactly match any credits listed on the invoice?
Expense Allocations (Account field): Is the invoice allocated to the correct account(s)?
- NOTE #1: Here is a list that includes all the Accounts needed for this exercise:
- Computer Equipment - Hardware
- Computer Equipment - Software
- Legal
- Office Supplies
- Office Supplies - non-food
- Rent
- T&E - Meals
- T&E - Ground Transportation
- Utilities
- Note #2: Some invoices should be "split" across two or more accounts.
B. Next, verify that the payment (check) for each invoice properly reflects the following:
Date: Does the date printed on the check exactly match the date that the payment is due?
Recipient: Is the value shown next to "Pay To The Order Of" correct?
-Note: The recipient should be an exact match for the vendor name printed on the invoice, unless there are other payment instructions.
Amount: Does the amount printed on the check exactly match the total amount on the invoice, less any applicable credits? Also, does the written out version of the amount match the numerical version of the amount?
Address: Does the address of the vendor printed on the check exactly match the vendor's address on the invoice?
Item 2:
1. For Item 2, there is a sample (A) invoice sent to a client, and (B) check received from the client.
2. Using the information on the sample invoice and check, please create the appropriate journal entries for using the accounts below (as needed). Please note that the accounting must be done on a monthly basis.
- Accounts receivable
- Accounts payable
- Deferred revenue
- Accrued expenses
- Revenue
- Cash
Item 3:
1. For Item 3, there is a sample business transaction
2. Please create the appropriate journal entries for this transaction using the accounts below (as needed):
- Cash
- Accounts receivable
- Accumulated depreciation
- Loss on sale of assets
- Prepaid expenses
- Fixed assets
Now, using the information you collected in Items 1, 2 and 3, please write an email to your boss, Suzie. This email should explain any problems or mistakes you have found (if any) in Item 1 and provide the appropriate journal entries for Items 2 and 3. For Item 1, please don't stop listing mistakes once you find a single mistake, as the goal of this exercise is to find ALL of the possible mistakes.