Exam 7: Accounting Information Systems

Adjusting entries are recorded

An (x) below the "Other Accounts" column in a cash receipts journal indicates the

Cash from sales of merchandise will be recorded in the

The principles of developing an accounting information system do not include

The accounting environment does not change as a result of

Which of the following is not a special journal?

Gaston Company began business on October 1. The partial sales journal, as it appeared at the end of the month, follows: 1. Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales (No. 401) and an accounts receivable subsidiary T-account ledger with an account for each customer. Make the appropriate postings from the sales journal. Fill in the appropriate posting references in the sales journal above. 2. Prove the accounts receivable subsidiary ledger by preparing a schedule of accounts receivable.

Blanton Co. uses special journals and a general journal. The following transactions occurred during May 2010. May 1 I. Blanton invested $30,000 cash in the business. 2 Sold merchandise to B. Maxville for $5,600 cash. The cost of the merchandise sold was $4,200. 3 Purchased merchandise for $4,400 from J. Willis using check no. 101. 14 Paid salary to H. Arness $700 by issuing check no. 102. 16 Sold merchandise on account to K. Andrews for $840, terms n/30. The cost of the merchandise sold was $630. 22 A check of $7,000 is received from M. Kline in full for invoice 101; no discount given. Instructions (a) Prepare a multiple-column cash receipts journal and a multiple-column cash payments journal. (Use page 1 for each journal.) (b) Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal.

Which of the following would not be an appropriate heading for a column in the cash receipts journal?

On December 1, the accounts receivable control account balance in the general ledger of the Titus Company was $9,000. The accounts receivable subsidiary ledger contained the following detailed customer balances: Alba $1,500, Cole $2,100, Emley $2,600, and Hill $2,800. The following information is available from the company's special journals for the month of December: Cash Receipts Journal: Cash received from Emley $1,900, from Alba $1,600, from Sears $1,700, and from Cole $1,800. Sales Journal: Sales to Sears $4,300, to Emley $1,700, to Alba $2,300, and to Hill $2,400. Additionally, Emley returned defective merchandise for credit for $900. Alba returned defective merchandise for $600 which he had purchased for cash. Instructions (a) Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December. (b) Reconcile the accounts receivable control account with the subsidiary ledger by preparing a detail list of customer balances at December 31.

Shown below is a page from a special journal. 1. What is the name of this journal? 2. Give an explanation for each of the transactions in this journal. 3. Explain the following: (a) the numbers under the bottom lines. (b) the checks entered into the Post. Ref. column. (c) the numbers 113 and 416 in the Post. Ref. column. (d) the (x) below the Other Accounts column.

Enterprise resource planning systems integrate all aspects of the organization, including accounting, sales, human resource management, and manufacturing.

Postings to the control accounts in the general ledger are made

The individual amounts in the Accounts Payable column in the cash payments journal are posted to the subsidiary ledger

The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.

Evans Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals. Transactions Oct. 5 Purchased merchandise on account for $20,000 from Glover Company. Terms: 2/10, n/30; FOB shipping point. Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy. Oct. 8 Purchased store supplies on account for $700 from Hicks Supply Company. Terms: 2/10, n/30. Oct. 11 Purchased merchandise on account for $14,000 from Bates Corporation. Terms: 2/10, n/30; FOB shipping point. Oct. 13 Granted a reduction of $3,000 to Bates Corporation for merchandise purchased on October 11 and returned because of damage. Oct. 15 Paid Glover Company for merchandise purchased on October 5, less discount. Oct. 16 Purchased merchandise for $8,000 cash from Clements Company. Oct. 21 Paid Bates Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount. Oct. 25 Purchased merchandise on account for $22,000 from Dixon Company. Terms: 2/10, n/30; FOB shipping point. Oct. 31 Purchased office equipment for $30,000 cash from Roberts Office Supply Company.

Hamels Products uses both special journals and a general journal as described in this chapter. Hamels also posts customers' accounts in the accounts receivable subsidiary ledger. The postings for the most recent month are included in the subsidiary T accounts below. Instructions Determine the correct amount of the end-of-month posting from the sales journal to the Accounts Receivable control account.

The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

Which of the following is not a true statement about the daily posting of the sales journal?

If a customer takes a sales discount, an entry is made in the