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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%
Specialty Footwear....... 32 29 165 146 20.6%
Other Specialty........... 21 14 47 34 51.9%
Total............................... $218 $204 $1,267 $1,033
Analysis and interpretation: This company shows solid profitability in all
segments based on segment return on assets.
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Education.
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
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
3 Gabel Company.....................................
3/3 n/10, EOM 1,230 1,230
9 Office Equip./Spell Supply......................
3/9 n/10, EOM 163/21,850 21,850
14 The CD Company...................................
3/13 2/10, n/30 32,625 32,625
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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
13 Linda Witt...............................................Invoice 3/3.............................................................................
9,996 204 10,200
CASH DISBURSEMENTS JOURNAL Page 2
Date
Ck.
No. Payee Account Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Mar.
416 Van Industries........................................Van Industries.......................................................................
42,728 872 43,600
31 Totals..................................................... 108,924
1,476
36,600
73,800
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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
Inventory................................................................119 2,425
Received a credit memo for returns.
19 Accounts Payable—Spell Supply.............................201/630
Office Equipment...................................................163 630
Received a credit memo for returns.
Date Explanation PR Debit Credit Balance
Mar. 1 10,000
17 G2 2,425 7,575
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Chapter 07 - Accounting Information Systems
31 P2 76,225 83,800
31 D2 1,476 82,324
31 S2 27,600 54,724
31 R2 37,030 17,694
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Chapter 07 - Accounting Information Systems
Problem 7-1A (Continued)
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Mar. 9 P2 21,850 21,850
19 G2 630 21,220
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
Mar. 6 R2 82,000 82,000
Z. Church, Capital Acct. No. 301
31 R2 64,860 116,685
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Mar. 31 R2 652 652
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Chapter 07 - Accounting Information Systems
31 D2 18,300 36,600
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Chapter 07 - Accounting Information Systems
Problem 7-1A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date Explanation PR Debit Credit Balance
CD Company
Date Explanation PR Debit Credit Balance
Mar. 14 P2 32,625 32,625
17 G2 2,425 30,200
23 D2 30,200 0
Gabel Company
Date Explanation PR Debit Credit Balance
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Chapter 07 - Accounting Information Systems
Mar. 3 P2 1,230 1,230
16 P2 1,770 3,000
Spell Supply
Date Explanation PR Debit Credit Balance
Mar. 9 P2 21,850 21,850
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Chapter 07 - Accounting Information Systems
Problem 7-1A (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit Credit
Sales discounts.................................................... 652
Cost of goods sold..............................................64,630
Sales salaries expense........................................ 36,600 ________
Totals.....................................................................$232,905 $232,905
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany..........................................................$14,910
Linda Witt................................................................ 4,315
Total accounts receivable......................................$19,225
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Chapter 07 - Accounting Information Systems
CHURCH COMPANY
Schedule of Accounts Payable
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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.
30 Totals................................................... 37,470
26,925
(106/413) (502/119)
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
16 Sales....................................................Cash Sales 52,840 52,840 35,880
18 L.T. Notes Payable.................................Note to bank 251 60,000 60,000
20 Nic Nelson...........................................Sale of 4/11 10,290 210 10,500
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Problem 7-2A (Continued)
30 R3 27,600 9,870
Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Mar. 31 125,000
Apr. 30 S3 26,925 98,075
30 R3 94,780 3,295
Long-Term Notes Payable Acct. No. 251
Date Explanation PR Debit Credit Balance
30 R3 126,815 164,285
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Apr. 30 R3 552 552
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Apr. 30 S3 26,925 26,925
30 R3 94,780 121,705
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Education.
13 R3 4,000 0
13 S3 5,100 5,100
23 R3 5,100 0
Paula Kohr
Date Explanation PR Debit Credit Balance
Apr. 5 S3 8,000 8,000
14 R3 8,000 0
27 S3 3,170 3,170
Nic Nelson
Date Explanation PR Debit Credit Balance
Part 4
WISET COMPANY
Trial Balance
April 30
Debit Credit
Cash...................................................................... $298,863
Accounts receivable............................................ 9,870
Inventory............................................................... 3,295
Long-term notes payable.................................... $170,000
B. Wiset, Capital................................................... 100,000
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