Accounting Information Systems and Special Journals

1.     CheckPoint: Accounting Information Systems and Special Journals

·         Resource: Fundamental Accounting Principles, pp. 289, 290, & 291

·         Complete Quick Study questions 7-1 & 7-3 on p. 289 and Exercises 7-1, 7-4, 7-7, & 7-10 on pp. 290–291.

·         Post your answers as an attachment.

QUICK STUDY

QS 7-1

Accounting information

system principles

Place the letter of each system principle in the blank next to its best description.

A. Control principle      D. Flexibility principle

B. Relevance principle E. Cost-benefit principle

C. Compatibility principle

1. __D__The principle prescribes the accounting information system to change in response to technological advances and competitive pressures.

2. __A__The principle prescribes the accounting information system to help monitor activities.

3. __B__The principle prescribes the accounting information system to provide timely information for effective decision making.

4. __C__The principle prescribes the accounting information system to adapt to the unique characteristics of the company.

5. _E__The principle that affects all other accounting information system principles.

QS 7-3

Accounting information

system components

Identify the most likely role in an accounting system played by each of the numbered items 1 through

12 by assigning a letter from the list A through E on the left:

A. Source documents B. Input devices C. Information processors D. Information storage E. Output devices

__C__1. Bar code reader __D__2. Filing cabinet __A__3. Bank statement __B__4. Computer scanner __B__5. Computer keyboard __D__6. Zip drive __E__7. Computer monitor __A__8. Invoice from a supplier __C__9. Computer software __E__10. Computer printer __B__11. Digital camera __D__12. MP3 player

Exercise 7-1

Sales journal—perpetual

P1

Hutton Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursement journal, and a general journal. The following transactions occur in the month of March:

Mar.     2 Sold merchandise costing $300 to B. Fager for $450 cash, invoice no. 5703.

            5 Purchased $2,300 of merchandise on credit from Marsh Corp.

            7 Sold merchandise costing $800 to J. Dryer for $1,150, terms 2_10, n_30, invoice no.            5704.

            8 Borrowed $8,000 cash by signing a note payable to the bank.

            12 Sold merchandise costing $200 to R. Land for $320, terms n_30, invoice no. 5705.

            16 Received $1,127 cash from J. Dryer to pay for the purchase of March 7.

            19 Sold used store equipment for $900 cash to Malone, Inc.

            25 Sold merchandise costing $350 to T. Burton for $550, terms n_30, invoice no. 5706.

Prepare headings for a sales journal like the one in Exhibit 7.5. Journalize the March transactions that should be recorded in this sales journal.

Date	Account Dr	Invoice Number	PR	Accounts Receivable Dr Sales Cr	Terms	Cost of Goods Sold Dr Inventory Cr
Mar 2	B Fager	5703	✓	450		300
Mar 7	J Dryer	5704	✓	1150	2/10,n/30	800
Mar 12	R Land	5705	✓	320	n/30	200
Mar 25	T Burton	5706	✓	550	n/30	350

Exercise 7-4

Cash receipts journal—perpetual

P1

Moeder Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.

Nov.    3 Purchased $3,100 of merchandise on credit from Hargrave Co., terms n_20.

            7 Sold merchandise costing $840 on credit to J. York for $900, subject to a $18 sales discount if paid by the end of the month.

            9 Borrowed $2,750 cash by signing a note payable to the bank.

            13 J. Emling, the owner, contributed $4,000 cash to the company.

            18 Sold merchandise costing $130 to B. Box for $230 cash.

            22 Paid Hargrave Co. $3,100 cash for the merchandise purchased on November 3.

            27 Received $882 cash from J. York in payment of the November 7 purchase.

            30 Paid salaries of $1,600 in cash.

Prepare headings for a cash receipts journal like the one in Exhibit 7.7. Journalize the November

transactions that should be recorded in the cash receipts journal.

Date	Account Credited	Explanation	PR	Cash Dr	Sales Discount Dr	Account Receivable Cr	Sales Cr	Other Accounts Cr	Cost of goods sold Dr Inventory Cr
Nov 9	Note payable	Borrowed cash	✓	2750				2750
Nov 13	Capital	Owner investment	✓	4000				4000
Nov 18	B Box	Sales	x	230			230		130
Nov 22	Hargrave Co	Buy merchandise	✓	3100				3100
Nov 27	J York	Invoice 11/7	✓	882		882
Nov 30	Salaries Payable	Paid Salaries	✓	1600				1600

Exercise 7-7

Purchases journal—perpetual

P1

Redmon Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of June.

June     1 Purchased $8,100 of merchandise on credit from Vick, Inc., terms n_30.

            8 Sold merchandise costing $900 on credit to R. Panke for $1,500 subject to a $30 sales                      discount if paid by the end of the month.

            14 Purchased $240 of store supplies from Poe Company on credit, terms n_30.

            17 Purchased $260 of office supplies on credit from Rehmer Company, terms n_30.

            24 Sold merchandise costing $400 to L. Barnett for $630 cash.

            28 Purchased store supplies from Piburn’s for $90 cash.

            29 Paid Vick, Inc., $8,100 cash for the merchandise purchased on June 1.

Prepare headings for a purchases journal like the one in Exhibit 7.9. Journalize the June transactions that should be recorded in the purchases journal.

Date	Account	Date of Invoice	Terms	PR	Accounts Payable Cr	Inventory Dr	Office supplies Dr	Other Accounts Dr
Jun 1	Vick Inc	Jun 1	n/30	✓	8100			8100
Jun 14	Poe Co	Jun 14	n/30	✓	240	240
Jun 17	Rehmer Co	Jun 17	n/30	✓	260		260

Exercise 7-10

Cash disbursements journal—perpetual

P1

Politte Supply uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of April.

Apr.     3 Purchased merchandise for $2,750 on credit from Scott, Inc., terms 2_10, n_30.

            9 Issued check no. 210 to Kidman Corp. to buy store supplies for $450.

            12 Sold merchandise costing $400 on credit to C. Myers for $670, terms n_30.

            17 Issued check no. 211 for $1,500 to pay off a note payable to City Bank.

            20 Purchased merchandise for $3,500 on credit from LeBron, terms 2_10, n_30.

            29 Issued check no. 212 to LeBron to pay the amount due for the purchase of April 20,            less the discount.

            30 Paid salary of $1,700 to B. Decker by issuing check no. 213.

            31 Issued check no. 214 to Scott, Inc., to pay the amount due for the purchase of April 3.

Prepare headings for a cash disbursements journal like the one in Exhibit 7.11. Journalize the April transactions that should be recorded in the cash disbursements journal.

Date	Ck No	Payee	Account Debited	PR	Cash Cr	Inventory Cr	Other Accounts Dr	Accounts Payable Dr
Apr 9	210	Kidman, Corp	Inventory	✓	450	450
Apr 17	211	City Bank	Note Payable	✓	1500		1500
Apr 29	212	Lebron	Inventory	✓	2800	2800	700
Apr 30	213	B Decker	Salaries Payable	✓	1700		1700
Apr 31	214	Scott	Inventory	✓	2750	2750