Chapter07SM.docx

1、Chapter07SMChapter 7Accounting Information SystemsQuestions 1. The five fundamental principles of accounting information systems are: (a) control principle, (b) relevance principle, (c) compatibility principle, (d) flexibility principle, and (e) cost-benefit principle. 2. The five components of an a

2、ccounting system are: source documents, input devices, information processors, information storage, and output devices. 3. Source documents contain data about business transactions or events that are put into the accounting system and processed. Examples of source documents are invoices from supplie

3、rs, checks received from customers, and payroll forms filled out by employees. 4. An input device is used to transfer data from source documents to the information processor(s). Examples of input devices for computer systems include keyboards, scanners, and bar-code readers. 5. Data stored off-line

4、are not immediately available to the information processor(s), while online data are immediately available. 6. Output devices provide the means by which information is taken from the accounting system and made available for use. 7. Four types of transactions usually recorded in special journals are:

5、 (a) sales on credit, (b) purchases on credit, (c) cash receipts, and (d) cash disbursements. 8. The (a) initial and (b) page number of the journal from which the amount is posted is entered in the Posting Reference column of the ledger account. 9. The double posting does not cause the trial balance

6、 to be out of balance because only one credit is posted to the general ledgerthe subsidiary ledger posting and its balances are not part of a trial balance (they give details of general ledger accounts).10. When copies of the sales invoices are used as a sales journal, each invoice total is posted t

7、o the proper customer account in the subsidiary Accounts Receivable Ledger, after which the invoices are bound in numerical order. Then at the end of the period the bound invoice copies are totaled and the total is debited to Accounts Receivable and credited to Sales. This method is called direct po

8、sting of sales invoices.11. Both kinds of credits must not be placed in the same column because the sum of the credits to the customer accounts must be posted to the Accounts Receivable controlling account (the Other Accounts column total is not postedinstead, each amount is individually posted to i

9、ts general ledger account). Placing these credits in separate columns makes it possible to post the Accounts Receivable column total to its controlling account.12. Immediate recording and posting of credit sales and cash receipts from customers provides up-to-date information for use in decisions ab

10、out granting credit to customers. Also, up-to-date account balances are needed if customers inquire about their balances.13. In its note 11, Best Buy discusses its two reportable segments, Domestic and International. Domestic is by far the larger of the two segments. 14. No. Information regarding th

11、e net income earned by business segments is not found on Circuit Citys Consolidated Statement of Operations (Income Statement). However, notes to its financial statements (not reproduced in Appendix A) include the information regarding business segments, domestic and international. 15. RadioShacks t

12、wo reportable segments are company-operated stores and kiosks.16. No. Information regarding any assets owned by Apples business segments is not reported on the balance sheet. However, the information is detailed in the notes to its financial statements (not reproduced in Appendix A).Quick StudiesQui

13、ck Study 7-1 (10 minutes)1.C4.B2.E5.D3.AQuick Study 7-2 (5 minutes)1. batch2. network3. scanner4. enterprise resource planningQuick Study 7-3 (15 minutes)1.B 7.B2.B 8.E3.A 9.E4.D10.E5.B11.A6.D12.CQuick Study 7-4 (10 minutes)a. Cash Receipts Journalb. Purchases Journalc. Cash Disbursements Journald.

14、Cash Disbursements Journal e. Sales Journalf. Purchases Journalg. Cash Disbursements Journalh. Cash Receipts JournalQuick Study 7-5 (15 minutes)General JournalNov. 2In Purchases JournalNov. 12Automobiles 17,000 R. Adrian, Capital 17,000 Owner contributed an auto to the business.Nov. 16In Sales Journ

15、alNov. 19Sales Returns and Allowances 175 Accounts ReceivableL. Norton 175 Customer returned (worthless) merchandise.Quick Study 7-6 (15 minutes)SegmentSegment IncomeAverage Segment AssetsSegment return on AssetsAmericas $1,665$800208.1%Europe 607380159.7Japan 201173116.2Interpretation: The Americas

16、 segment reports the highest return on segment assets. However, each of its other segments has a relatively high return on segment assets as well.ProductProduct SalesPercent of Total SalesiPod $ 7,676 45.3%Desktops 3,319 19.6Portables 4,056 23.9Other 1,88511.1Total $16,93699.9%* *0.1% rounding error

17、Interpretation: Sales of Apples iPod make up its largest percentage of total individual product sales. Desktops and “Other” make up the smallest percentage of total product sales. EXERCISESExercise 7-1 (15 minutes)SALES JOURNALDateAccount DebitedInvoiceNumberPRAccounts Receivable Dr.Sales Cr.Cost of

18、 Goods Sold Dr. Inventory Cr.Mar. 7K. Anklam 57041,7001,21512B. Swanson 5705 48430325F. Sayers 5706785500Exercise 7-2 (10 minutes)Mar. 2Cash Receipts Journal5Purchases Journal7Sales Journal8Cash Receipts Journal12Sales Journal16Cash Receipts Journal19Cash Receipts Journal25Sales JournalExercise 7-3A

19、 (15 minutes)SALES JOURNALDateAccount DebitedInvoiceNumberPRAccounts Receivable Dr.Sales Cr.Mar. 7K. Anklam 57041,70012B. Swanson 5705 48425F. Sayers 5706785Exercise 7-4 (20 minutes)CASH RECEIPTS JOURNALDateAccount CreditedExplanationPRCash Dr.SalesDiscountDr. Accounts Recble. Cr.Sales Cr.Other Acco

20、unts Cr.Cost of Goods Sold Dr. Inventory Cr.Nov. 9Notes Payable Note to bank3,3753,37513 I. Uno, Capital Contribution4,6754,675 18Sales Cash sale261261147 27E. Han Invoice, 11/7995201,015Exercise 7-5 (10 minutes)Nov. 3Purchases Journal7Sales Journal9Cash Receipts Journal13Cash Receipts Journal18Cash

21、 Receipts Journal22Cash Disbursements Journal27Cash Receipts Journal30Cash Disbursements JournalExercise 7-6A (25 minutes)CASH RECEIPTS JOURNALDateAccountCreditedExplanationPRCash Dr.SalesDiscountDr.Accts.Rec.Cr.SalesCr.OtherAccountsCr.Nov. 9Notes Payable Note to bank3,3753,37513I. Uno, Capital Cont

22、ribution4,6754,67518Sales Cash sale26126127E. Han Invoice, 11/7995201,015Exercise 7-7 (20 minutes)PURCHASES JOURNALDateAccount Date of InvoiceTermsPR Accounts Payable Cr.Inventory Dr. Office Supplies Dr. Other Accounts Dr.June 1Krause, Inc. 6/01n/305,4005,40014Store Supplies/ Chang Co. 6/14n/3046046

23、017Monder Company 6/17n/30480480Exercise 7-8 (10 minutes)June 1Purchases Journal8Sales Journal14Purchases Journal17Purchases Journal24Cash Receipts Journal28Cash Disbursements Journal29Cash Disbursements JournalExercise 7-9A (20 minutes)PURCHASES JOURNALDateAccount Date of InvoiceTermsPR Accounts Pa

24、yable Cr. Purchases Dr. Office Supplies Dr. Other Accounts Dr.June 1Krause, Inc. 6/01n/305,4005,40014Store Supplies/ Chang Co. 6/14n/3046046017Monder Company 6/17n/30480480Exercise 7-10 (25 minutes)CASH DISBURSEMENTS JOURNALDateCk.No.PayeeAccount DebitedPRCashCr.InventoryCr.Other AccountsDr.Accounts

25、PayableDr.Apr. 9210Major Corp. Store Supplies 43643617211City Bank Notes Payable 1,5001,50028212Factow Factow 3,267333,30029213M. Robbins Salaries Expense 1,6751,67530214Acco, Inc. Acco, Inc. 2,7002,700Exercise 7-11 (10 minutes)April 3Purchases Journal9Cash Disbursements Journal12Sales Journal17Cash

26、 Disbursements Journal20Purchases Journal28Cash Disbursements Journal29Cash Disbursements Journal30Cash Disbursements JournalExercise 7-12A (25 minutes)CASH DISBURSEMENTS JOURNALDateCk.No.PayeeAccount DebitedPRCashCr.Purchases DiscountsCr.Other AccountsDr.AccountsPayableDr.Apr. 9210Major Corp. Store

27、 Supplies 43643617211City Bank Notes Payable 1,5001,50028212Factow Factow 3,267333,30029213M. Robbins Salaries Expense 1,6751,67530214Acco, Inc. Acco, Inc. 2,7002,700Exercise 7-13 (10 minutes)a. (i) The June 5 purchase would be recorded in the Purchases Journal.(ii) The June 14 payment would be recorded in the Cash Disbursements Journal. b. The error in journalizing the June 14 transaction should be discovered in the process of crossfooting the Cash Disbursements Journal.Exercise 7-14 (30 minutes) Part 1ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER