Table 7-8 Nordin Avionics J. Nordin Avionics began business on January 1, 2019. The business was started with $10,000 in the cash account and $30,000 of inventory in stock. Nordin uses a sales journal to record credit sales and a cash receipts journal to record all cash receipts, including both cash sales and cash collections of credit sales. At the end of January, the two journals appeared as follows: Sales Journal $\begin{array}{|l|l|l|l|l|r|} \hline & & & &\text { Accts Rec } & \\ \text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \\ &&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\\ \hline \text { Jan } 4 & 1000 & \text { Reed, A. } & & \$ 5,000 & \$ 4,100 \\ \hline 6 & 1001 & \text { Charles, B. } & & 1,240 & 990 \\ \hline 13 & 1002 & \text { Reed, A. } & & 3,200 & 2,800 \\ \hline 20 & 1003 & \text { Williams, D. } & & 900 & 820 \\ \hline 22 & 1004 & \text { Charles, B. } & & 5,100 & 4,600 \\ \hline & & \text { Total } & & \$ 15,440 & \$ 13,310 \\ \hline \end{array}$ Cash Receipts Journal \[\begin{array} { | r | r | r | r | r | r | r | } \hline \text { Date } & { \begin{array} { c } \text { Cash } \\ \text { Debit } \end{array} } & \begin{array} { c } \text { Sales Revenue } \\ \text { Credit } \end{array} & \begin{array} { c } \text { Accts. } \\ \text { Rec. } \\ \text { Credit } \end{array} & \text { Invoice \# } & \text { Customer } & \begin{array} { r } \text { COGS DR/ } \\ \text { Inventory CR } \end{array} \\ \hline \text { Jan 5 } & \$ 3,300 & \$ 3,300 & & & & \$ 2,700 \\ \hline 10 & 5,000 & & \$ 5,000 & 1000 & \text { Reed, A. } & \\ \hline 14 & 9,000 & 9,000 & & & & 8,000 \\ \hline 18 & 1,240 & &1,240 & 1001& \text { Charles,B. } & \\ \hline & \$ 18,540 & \$ 12,300 & \$ 6,240 & & & \$ 10,700 \\ \hline \end{array}\] -Refer to Table 7-8 at the end of January, what was the balance in accounts receivable?

A) $9,200 B) $14,200 C) $7,960 D) $8,000 A) $9,200 B) $14,200 C) $7,960 D) $8,000

Table 7-6 Provincewide Milling Company uses a sales journal. On June 2, the sales journal appears as you see below. Sales Journal $\begin{array}{|l|l|l|l|l|r|} \hline & & & &\text { Accts Rec } & \\ \text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \\ &&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\\ \hline \text { June 2 } & 909 & \text { Richardson Products } & & \$ 4,200 & \$ 1,090 \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & \text { Total } & & & \\ \hline \end{array}$ Other sales that took place in June are as follows: \[\begin{array} { | c | c | c | c | } \hline \text { Inv \# } & \text { Sales Amount } & \text { Customer } & \text { Cost of Goods Sold } \\ \hline 910 & \$ 880 & \text { Anton, Michael } & \$ 390 \\ \hline 911 & 1,120 & \text { A1 Repairs } & 560 \\ \hline 912 & 500 & \text { Thompson, Al } & 220 \\ \hline \end{array}\] -Refer to Table 7-6, at the end of the month what entry was made to cost of goods sold?

A) credit $2,260 B) debit $2,260 C) debit $6,700 D) credit $6,700 A) credit $2,260 B) debit $2,260 C) debit $6,700 D) credit $6,700

Parker Industrial Corp. uses a sales journal to record each sale transaction. At the end of January, the sales journal was as you see below: Sales Journal $\begin{array}{|r|r|l|l|r|r|} \hline & & & &\text { Accts Rec } & \\ \text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \\ &&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\\ \hline \text { Jan 12 } & 3077 & \text { Fogelin, A. } & & \$ 2,400 & \$ 960 \\ \hline 19 & 3078 & \text { Faass Products Co. } & & 1,012 & 800 \\ \hline 24 & 3079 & \text { Lanier Service Inc. } & & 444 & 201 \\ \hline 29 & 3080 & \text { June, L. } & & 709 & 366 \\ \hline 31 & & \text { Total } & & \$ 4,565 & \$ 2,327 \\ \hline \end{array}$ When the sales journal is posted to the general ledger, which entries are made?

A) debit Accounts Receivable $4,565; credit Inventory $2,327 debit Sales Revenue $4,565; credit COGS $2,327 B) debit Sales Revenue $4,565; credit Accounts Receivable $4,565 debit Inventory $2,327; credit COGS $2,327 C) debit Accounts Receivable $4,565; credit Sales Revenue $4,565 debit COGS $2,327; credit Inventory $2,327 D) debit Accounts Receivable $2,327; credit Inventory $2,327 debit COGS $4,565; credit Inventory $4,565 A) debit Accounts Receivable $4,565; credit Inventory $2,327 debit Sales Revenue $4,565; credit COGS $2,327 B) debit Sales Revenue $4,565; credit Accounts Receivable $4,565 debit Inventory $2,327; credit COGS $2,327 C) debit Accounts Receivable $4,565; credit Sales Revenue $4,565 debit COGS $2,327; credit Inventory $2,327 D) debit Accounts Receivable $2,327; credit Inventory $2,327 debit COGS $4,565; credit Inventory $4,565

Exam 7: Accounting Information Systems

Table 7-9 The following transactions occurred during the month of July for Lancer Company. July 1 Sold Merchandise on credit for \ 3,100 to Chris Co, 2/10,30 , Invoice 316 . 7 Sold merchandise on credit to D. James for \ 900,2/20 , n 30 , Invoice 317 . 8 Borrowed \ 2,750 by giving a note to the bank. 13 Owner invested an additional \ 3,500 cash into the business. 18 Sold merchandise to M . Garnett for \ 230 cash. 22 Sold merchandise to Co. \ 2,100 , Invoice 318/30 . 27 Received payment from D. James for the July 7 purchase. 30 Paid salaries of \ 1,600 . -Refer to Table 7-9. Using the general ledger, prepare a trial balance. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Trial Balance }$ Debit Credit

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Question 1

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$\text {Lancer Co.}$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text {Trial Balance}$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text {July 31}$
$\begin{array}{|l|r|r|}\hline 101 \text { Cash } & \text { Debit } & \text { Credit } \\\hline 102 \text { Accounts receivable } & 7,362 & \\\hline 210 \text { Notes payable } & 5,200 & \\\hline 310 \text { Capital } & & 2,750 \\\hline 400 \text { Sales } & & 3,500 \\\hline 410 \text { Sales discounts } & & 6,330 \\\hline & 18 & \\\hline \text { Total } & & \\\hline\end{array}$

Accounting system flexibility creates additional costs to the organization.

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Question 2

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False

Every subsidiary ledger must have its own:

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Question 3

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A

A cash receipts journal would likely contain all of the following columns except:

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Question 4

Spreadsheets can be linked to computerized accounting packages to help create more complex reports.

(True/False)

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Question 5

Outputs would include:

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Question 6

The entries in a purchases journal are posted to the ________ subsidiary ledger.

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Question 7

In a manual system, processing includes journalizing transactions, posting the accounts, and preparing the financial statements.

(True/False)

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Question 8

Data from source documents such as sales receipts and bank deposit slips are referred to as outputs of a data processing system.

(True/False)

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Question 9

The general ledger accounts used when posting the sales journal are:

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Question 10

The purchase of office equipment for cash would be recorded in:

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Question 11

Table 7-8 Nordin Avionics J. Nordin Avionics began business on January 1, 2019. The business was started with $10,000 in the cash account and $30,000 of inventory in stock. Nordin uses a sales journal to record credit sales and a cash receipts journal to record all cash receipts, including both cash sales and cash collections of credit sales. At the end of January, the two journals appeared as follows: Sales Journal Accts Rec Date Invoice \# Customer Post DR COGS DR/ Ref. Sales Rev CR Inventory CR Jan 4 1000 Reed, A. \ 5,000 \ 4,100 6 1001 Charles, B. 1,240 990 13 1002 Reed, A. 3,200 2,800 20 1003 Williams, D. 900 820 22 1004 Charles, B. 5,100 4,600 Total \ 15,440 \ 13,310 Cash Receipts Journal Date Cash Debit Sales Revenue Credit Accts. Rec. Credit Invoice \# Customer COGS DR/ Inventory CR Jan 5 \ 3,300 \ 3,300 \ 2,700 10 5,000 \ 5,000 1000 Reed, A. 14 9,000 9,000 8,000 18 1,240 1,240 1001 Charles,B. \ 18,540 \ 12,300 \ 6,240 \ 10,700 -Refer to Table 7-8 at the end of January, what was the balance in accounts receivable?

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Question 12

Describe the benefits of a computerized accounting system versus a manual accounting system.

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Question 13

Table 7-6 Provincewide Milling Company uses a sales journal. On June 2, the sales journal appears as you see below. Sales Journal Accts Rec Date Invoice \# Customer Post DR COGS DR/ Ref. Sales Rev CR Inventory CR June 2 909 Richardson Products \ 4,200 \ 1,090 Total Other sales that took place in June are as follows: Inv \# Sales Amount Customer Cost of Goods Sold 910 \ 880 Anton, Michael \ 390 911 1,120 A1 Repairs 560 912 500 Thompson, Al 220 -Refer to Table 7-6, at the end of the month what entry was made to cost of goods sold?

(Multiple Choice)

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Question 14

Parker Industrial Corp. uses a sales journal to record each sale transaction. At the end of January, the sales journal was as you see below: Sales Journal Accts Rec Date Invoice \# Customer Post DR COGS DR/ Ref. Sales Rev CR Inventory CR Jan 12 3077 Fogelin, A. \ 2,400 \ 960 19 3078 Faass Products Co. 1,012 800 24 3079 Lanier Service Inc. 444 201 29 3080 June, L. 709 366 31 Total \ 4,565 \ 2,327 When the sales journal is posted to the general ledger, which entries are made?

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Question 15

Which of the following is not an element of internal control?

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Question 16

In a manual accounting system the posting from a purchases journal includes daily posting for cash transactions.

(True/False)

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Question 17

The account that is credited for every transaction entered in the purchases journal is:

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Question 18

The final stage of data processing is the:

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Question 19

Assuming the use of special journals, the sale of equipment for cash would be recorded in the:

(Multiple Choice)

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Question 20

Accounting system flexibility creates additional costs to the organization.

Every subsidiary ledger must have its own:

A cash receipts journal would likely contain all of the following columns except:

Spreadsheets can be linked to computerized accounting packages to help create more complex reports.

Outputs would include:

The entries in a purchases journal are posted to the ________ subsidiary ledger.

In a manual system, processing includes journalizing transactions, posting the accounts, and preparing the financial statements.

Data from source documents such as sales receipts and bank deposit slips are referred to as outputs of a data processing system.

The general ledger accounts used when posting the sales journal are:

The purchase of office equipment for cash would be recorded in:

Describe the benefits of a computerized accounting system versus a manual accounting system.

Which of the following is not an element of internal control?

In a manual accounting system the posting from a purchases journal includes daily posting for cash transactions.

The account that is credited for every transaction entered in the purchases journal is:

The final stage of data processing is the:

Assuming the use of special journals, the sale of equipment for cash would be recorded in the:

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

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