Chapter 07 – Accounting Information Systems
Exercise 7-10 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Anna Page Sara Reed Aaron Reckers
25 1,340
Part 2
GENERAL LEDGER
Accounts Receivable Sales
Sales Returns and
Allowances
31
20
31
Inventory Cost of Goods Sold
31
Part 3
MOUNTAIN VIEW
Schedule of Accounts Receivable
May 31
Anna Page…………………………………….. $ 1,500
Accounts Receivable Controlling Account
Total debit……………………………………..…… $10,010
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Education.
Chapter 07 – Accounting Information Systems
Exercise 7-11 (20 minutes)
Segment Income
(in $ mil.)
Segment Assets
(in $ mil.)
Segment Return
on Assets
Segment 2015 2014 2015 2014 2015
Specialty
Skiing Group.............. $ 72 $ 68 $ 591 $ 450 13.8%
Skating Group............ 19 16 63 52 33.0%
Analysis and interpretation: This company shows solid profitability in all
segments based on segment return on assets.
For the specialty segments, the “Other Specialty” has the highest segment
For the geographic segments, the highest segment return on assets is
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Chapter 07 – Accounting Information Systems
PROBLEM SET A
Problem 7-1A (100 minutes)
Parts 1 and 2
SALES JOURNAL Page 2
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Mar. 2 Min Cho…………………………………..…..854 16,800 8,400
3 Linda Witt…….…..….….…....................855 10,200 5,800
(106/413) (502/119)
PURCHASES JOURNAL Page 2
Date Account
Date of
Invoice Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Mar. 1 Van Industries……………………...…..…..…
3/1 2/15, n/30 43,600 43,600
(201) (119) (124) ()
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Chapter 07 – Accounting Information Systems
Problem 7-1A (Continued)
Parts 1 and 2—continued
CASH RECEIPTS JOURNAL Page 2
Date
Account Credited
Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Mar. 6 L.T. Notes Pay…………………………………..Note to bank……………………………………………………...…..…...
251 82,000 82,000
12 Min Cho……………………...…..…..…..…....Invoice, 3/2……………………………………………..…..…....…..…...
16,464 336 16,800
(101) (415) (106) (413) () (502/119)
CASH DISBURSEMENTS JOURNAL Page 2
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Mar.
13
416 Van Industries………………………..…..…...Van Industries…………………………………...…..…..…..…..…..….
42,728 872 43,600
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Chapter 07 – Accounting Information Systems
(101) (119) () (201)
Problem 7-1A (Continued)
Parts 1 and 2—continued
GENERAL JOURNAL Page 2
Mar. 17 Accounts Payable—CD Co…..…………..…………........201/2,425
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Store Supplies Acct. No. 125
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Problem 7-1A (Continued)
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Mar. 17 G2 2,425 (2,425)
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
Z. Church, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Sales Salaries Expense Acct. No. 621
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Problem 7-1A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date Explanation PR Debit Credit Balance
Mar. 10 S2 5,600 5,600
Min Cho
Date Explanation PR Debit Credit Balance
Linda Witt
Date Explanation PR Debit Credit Balance
Mar. 3 S2 10,200 10,200
ACCOUNTS PAYABLE LEDGER
CD Company
Date Explanation PR Debit Credit Balance
Gabel Company
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Spell Supply
Date Explanation PR Debit Credit Balance
Van Industries
Date Explanation PR Debit Credit Balance
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Chapter 07 – Accounting Information Systems
Problem 7-1A (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit Credit
Cash….………..…………..…....................................$ 69,884
Accounts receivable…..……………..………............19,225
Inventory….……..……………..……..........................17,694
Sales discounts………..……….............................. 652
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany…………………………………………………$14,910
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Chapter 07 – Accounting Information Systems
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company……………………………………………..$ 3,000
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Problem 7-2A (70 minutes)
Parts 1, 2 and 3
SALES JOURNAL Page 3
Date Account Debited
Invoice
Number PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Apr. 3 Page Alistair….…................................
760 4,000 3,000
5 Paula Kohr…………………………………..
761 8,000 6,500
CASH RECEIPTS JOURNAL Page 3
Date Account Credited Explanation PR
Cash
Dr.
Sales
Discoun
t
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Apr.13 Page Alistair………..............................Sale of 4/3 3,920 80 4,000
14 Paula Kohr…………………………………..Sale of 4/5 7,840 160 8,000
(101) (415) (106) (413) () (502/119)
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Solutions Manual, Chapter 7
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