Title: Question 1
Title: Question 2
QA_Ori:Source documents contain data about business transactions or events that are put into the accounting
Title: Question 3
Title: Question 4
QA_Ori:An input device is used to transfer data from source documents to the information processor(s). Examples
Title: Question 5
Title: Question 6
Title: Question 7
Title: Question 8
Title: Question 9
Title: Question 10
QA_Ori:When copies of the sales invoices are used as a sales journal, each invoice total is posted to the proper
Title: Question 11
QA_Ori:Both kinds of credits must not be placed in the same column because the sum of the credits to the customer
Title: Question 12
QA_Ori:Immediate recording and posting of credit sales and cash receipts from customers provides up-to-date
QA_Ori:In its note 12 (Segment Reporting), Polaris discusses its single reportable segment; the Company’s
Title: Question 14
QA_Ori:Yes. Because Arctic Cat reports one business segment, the segment information on its Income Statement is
Title: Question 15
QA_Ori:KTM’s three reportable segments are: Europe, North America, and Others. Note that segment information
(Segment Information).
Title: Question 16
QA_Ori:No. Information regarding any assets owned by Piaggio’s business segments is not reported on the balance
A).
Title: Quick Study 7-1
QA_Ori:
1. A 4. E
Title: Quick Study 7-2
QA_Ori
1. batch
Title: Quick Study 7-3
QA_Ori:
1. B 7. B
6. C 12. D
Title: Quick Study 7-4
QA_Ori
a. Sales Journal
b. Purchases Journal
Title: Quick Study 7-5
QA_Ori
General Journal
Nov. 2 [In Purchases Journal]
Nov. 12 Automobiles 17,000
T. Biloxi, Capital 17,000
Owner contributed an auto to the business.
Title: Quick Study 7-6
QA_Ori
a) Accounts Receivable Ledger
ACCOUNTS RECEIVABLE LEDGER
Stern Company
Date Explanation PR Debit Credit Balance
Jan. 10 S1 4,000 4,000
20 R1 2,000 2,000
Diaz Brothers
Date Explanation PR Debit Credit Balance
b) General Ledger
GENERAL LEDGER
Accounts Receivable
Date Explanation PR Debit Credit Balance
Title: Quick Study 7-7
QA_Ori
PURCHASES JOURNAL
Date Account
Date of
Invoice
Terms PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
May 1 Krause, Inc. 5/01 n/30 10,100 10,100
Title: Quick Study 7-8
QA_Ori
May 1 Purchases Journal
8 Sales Journal
14 Purchases Journal
29 Cash Disbursements Journal
Title: Quick Study 7-9
QA_Ori
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
Title: Quick Study 7-10
QA_Ori
Segment
Segment Operating
Income
Average Segment Assets Segment Return on Assets
Interpretation: The Europe segment reports the highest return on segment assets. However, each of its other
segments has a relatively high return on segment assets as well.
QA_Ori
Product Product Sales Percent of Total Sales
iPhone $ 47,057 43.5%
iPad 20,358 18.8
Interpretation: Sales of Apple’s iPhone make up its largest percentage of total individual product sales. Desktops
and iPods make up the smallest percentage of total product sales.
Title: Quick Study 7-11
QA_Ori
General Journal
1. [In Purchases Journal]
QA_ Edit
Title: Exercise 7-1
QA_Ori
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
Title: Exercise 7-2
QA_Ori
May 2 Cash Receipts Journal
5 Purchases Journal
7 Sales Journal
Title: Exercise 7-3
QA_Ori:
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
Title: Exercise 7-4
QA_Ori
November 3 Purchases Journal
7 Sales Journal
9 Cash Receipts Journal
Title: Exercise 7-5
QA_Ori
a) Accounts Payable Ledger
ACCOUNTS PAYABLE LEDGER
Bailey Company
Date Explanation PR Debit Credit Balance
Preston Company
Date Explanation PR Debit Credit Balance
b) General Journal
Title: Exercise 7-6
QA_Ori
CASH DISBURSEMENTS JOURNAL
Date
Ck.
No. Payee
Account
Debited PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Apr. 9 210 Kitt Corp. Store Supplies 650 650
17 211 City Bank Notes Payable 1,400 1,400
Title: Exercise 7-7
QA_Ori
April 3 Purchases Journal
9 Cash Disbursements Journal
12 Sales Journal
Title: Exercise 7-8
QA_Ori
1. When crossfooting the Purchases Journal.
Title: Exercise 7-9
QA_Ori:
a. (i) The June 5 purchase would be recorded in the Purchases Journal.
b. The error in journalizing the June 14 transaction should be discovered in the process of crossfooting the
Cash Disbursements Journal.
Title: Exercise 7-10
QA_Ori
Part 1
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Anna Page Sara Reed Aaron Reckers
May 17 1,850 May 20 350 May 10 2,940 May 6 3,880
25 1,340
Part 2
GENERAL LEDGER
Accounts Receivable Sales
Sales Returns and
Allowances
Inventory Cost of Goods Sold
Part 3
MOUNTAIN VIEW
Schedule of Accounts Receivable
May 31
Anna Page $ 1,500
Title: Exercise 7-11
QA_Ori
Segment Income
(in $ mil.)
Segment Assets
(in $ mil.) Segment Return on Assets
Segment 2013 2012 2013 2012 2013
Specialty
Skiing Group $ 72 $ 68 $ 591 $ 450 13.8%
Skating Group 19 16 63 52 33.0%
QA_Ori:Analysis and interpretation: This company shows solid profitability in all segments based on segment
return on assets.
QA_Ori:For the geographic segments, the highest segment return on assets is produced by the European segment
with 65.2% in 2013, whereas the South American segment has the lowest return of 14.0%.
Title: Problem 7-1A
QA_Ori
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
11 Nic Nelson 762 10,500 7,000
(106/413) (502/119)
CASH RECEIPTS JOURNAL Page 3
Date Account Credited Explanation PR
Cash
Dr.
Sales
Discount
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
©McGraw-Hill Companies, 2011
Solutions Manual, Chapter 7
442
