978-0077633059 Appendix E Solution Manual Part 1

subject Type Homework Help
subject Pages 9
subject Words 1520
subject Authors John Wild, Ken Shaw

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Appendix E
Accounting with Special Journals
QUESTIONS
1. The five components of an accounting system are: source documents, input
devices, information processors, information storage, and output devices.
2. Source documents contain data about business transactions or events that are put
3. The five fundamental principles of accounting information systems are: (a) control
4. An input device is used to transfer data from source documents to the information
5. Data stored "off-line" 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
7. Four types of transactions usually recorded in special journals are: (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 to be out of balance because
10. When copies of the sales invoices are used as a sales journal, each invoice total is
posted to the proper customer account in the subsidiary Accounts Receivable
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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
12. Immediate recording and posting of credit sales and cash receipts from customers
13. In its note 11 (Segment Information and Geographic Data), Apple discusses its
reportable segments; the Company manages its business primarily on a geographic
14. In its note 15 (Information about Segments and Geographic Areas), Google
discusses its reportable segments. The Company’s three reportable geographical
15.
Segment
Operating
Income Net Sales
Operating Income /
Net Sales
Americas.............................. $22,817 $62,739 36.4%
Europe.................................. 13,025 37,883 34.4%
Apple’s Japan segment is the most profitable reportable segments as it has the
highest operating margin of 50.7%. Its retail segment is the least profitable
Financial and Managerial Accounting, 6th Edition
2
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QUICK STUDIES
Quick Study E-1 (15 minutes)
Quick Study E-2 (10 minutes)
Quick Study E-3 (10 minutes)
a. Sales Journal
b. Purchases Journal
c. Cash Disbursements Journal
Quick Study E-4 (15 minutes)
General Journal
Nov. 2 [In Purchases Journal]
Nov. 12 Automobiles............................................................. 17,000
Common Stock.................................................. 17,000
Owner contributed an auto in exchange for stock.
Accounts Receivable—K. Myer....................... 175
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Quick Study E-5 (15 minutes)
a) Accounts Receivable Ledger
ACCOUNTS RECEIVABLE LEDGER
Stern Company
Date Explanation PR Debit Credit Balance
Diaz Brothers
Date Explanation PR Debit Credit Balance
Jan. 19 S1 1,600 1,600
28 R1 1,600 0
Rex Company
Date Explanation PR Debit Credit Balance
b) General Ledger
GENERAL LEDGER
Accounts Receivable
Date Explanation PR Debit Credit Balance
Quick Study E-6 (20 minutes)
PURCHASES JOURNAL
Date Account
Date
of
Invoice Terms PR
Account
s
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
May 1 Krause, Inc..................
5/01 n/30 10,100 10,100
14 Store Supplies/
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Quick Study E-7 (10 minutes)
May 1 Purchases Journal
8 Sales Journal
14 Purchases Journal
Quick Study E-8 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE LEDGER
Eric Horner Hong Jiang
July 8 11,100 July 14 20,500
Mary Mack Troy Wilson
Part 2
GENERAL LEDGER
Accounts Receivable Sales
July 30 72,100 July 30 72,100
Part 3
WARTON COMPANY
Schedule of Accounts Receivable
July 30
Eric Horner......................................................... $11,100
Hong Jiang......................................................... 20,500
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Quick Study E-9 (15 minutes)
Product Product Sales Percent of Total Sales
iPhone............................................ $ 91,279 53.4%
iPad................................................. 31,980 18.7
Mac................................................. 21,483 12.6
Interpretation: Sales of Apple’s iPhone make up its largest percentage of
of total product sales segments.
Quick Study E-10 (15 minutes)
General Journal
1. [In Purchases Journal]
2. [In Sales Journal]
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EXERCISES
Exercise E-1 (15 minutes)
SALES JOURNAL
Date Account Debited
Invoice
Number PR
Accounts
Receivable Dr.
Sales Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
May 7 J. Dryer......................................5704 1,250 800
Exercise E-2 (10 minutes)
May 2 Cash Receipts Journal
5 Purchases Journal
7 Sales Journal
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Exercise E-3 (20 minutes)
CASH RECEIPTS JOURNAL
Date
Account
Credited Explanation PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Recble.
Cr.
Sales
Cr.
Other
Accounts
Cr.
Cost of
Goods
Sold Dr.
Inventory Cr.
Nov. 9 Notes Payable.............Note to bank 3,750 3,750
Exercise E-4 (10 minutes)
November 3 Purchases Journal
7Sales Journal
9Cash Receipts Journal
13 Cash Receipts Journal

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