Appendix E – Accounting with Special Journals
Problem E-6BA (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Nov. 17
G2
557
(557)
26
G2
922
(1,479)
30
P2
42,614
41,135
30
D2
35,500
5,635
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Nov. 2
R2
88,500
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
10,000
Acct. No. 318
Date
Explanation
PR
Debit
Credit
Balance
30,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
S2
33,275
33,275
30
R2
34,873
68,148
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
R2
506
Acct. No. 505
Date
Explanation
PR
Debit
Credit
Balance
Nov. 30
P2
36,057
36,057
Date
Explanation
PR
Debit
Credit
Balance
Nov. 17
G2
Acct. No. 507
Nov. 30
D2
Appendix E – Accounting with Special Journals
Serial Problem, Success Systems (Continued)
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Computer
Supplies
Dr.
Other
Accounts
Dr.
Jan. 7
Kansas Corp ……………………….….
1/7
1/10, n/30
✓
5,800
5,800
26
Kansas Corp ……………………….….
1/26
1/10, n/30
✓
9,000
9,000
Mar. 8
Harris Office Products ………..……………..
3/8
✓
2,730
_____
2,730
31
Totals ………………………………….……………..
17,530
14,800
2,730
0
(201)
(119)
(126)
(✓)
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Jan. 4
n/a
Lyn Addie …………………………..
Wages Expense
Wages Payable
623/210
625
125
500
15
n/a
Not specified …………………………..
Merchandise Inventory
119
600
600
17
n/a
Kansas Corp …………………………..
Kansas Corp
✓
5,742
58
5,800
31
n/a
Lyn Addie …………………………..
Wages Expense
623
1,250
1,250
Feb. 1
n/a
Hillside Mall ……..……………………
Prepaid Rent
131
2,475
2,475
3
n/a
Kansas Corp …………………………..
Kansas Corp
✓
8,414
90
8,504
5
n/a
Not specified …………………………..
Advertising Expense
655
600
600
15
n/a
A. Lopez …………..………………
Dividends
319
4,800
4,800
26
n/a
Lyn Addie …………………………..
Wages Expense
623
1,000
1,000
27
n/a
A. Lopez …………..………………
Mileage Expense
676
192
192
Mar. 11
n/a
Not Specified …………………………..
Repairs Expense
684
960
960
19
n/a
Harris Off. Prod ..…………………………
Harris Office Products
✓
3,830
3,830
31
n/a
A. Lopez …………..………………
Mileage Expense
676
128
___
128
_____
31
Totals ……………….………….
30,616
148
12,630
18,134
(101)
(119)
(✓)
(201)
Appendix E – Accounting with Special Journals
Serial Problem, Success Systems (Concluded)
Part 3
GENERAL JOURNAL
Page 2
2014
Jan. 5 Cash …………………………………………………………. 101 25,000
Appendix E – Accounting with Special Journals
Ethics Challenge — BTN E-1
1. Independence in fact means that the auditor maintains an objective
point of view of the client. Independence in appearance means that a
2. While auditors are hired by their clients to perform audits, auditors
have a responsibility to the company’s “stakeholders” and the public.
3. Since Erica Gray is a sole practitioner it is questionable whether she
can consult on the client’s accounting system and then remain
objective in subsequent years when she performs the audit of the
Communicating in Practice — BTN E-2
The memo should recommend the use of special journals and subsidiary
ledgers. It should explain the time-saving aspect of journalizing in labeled
Appendix E – Accounting with Special Journals
Taking It to the Net — BTN E-3
(See Dell’s Note 14 – Segment Information)
1. Large Enterprise; Public; Small and Medium Business; and Consumer.
2. The Large Enterprise segment reports $1,854 million of operating income
and the Large Enterprise segment reports $3,108 million of assets.
3. Dell’s Operating Income and Total Assets by Segment
($ millions)
Operating
Income 2012
Total Assets 2012 :
Total Assets 2011
Segment Return
on Assets
Large Enterprise …..……
$ 1,854
$3,108 : $2,934
61.4%
Public ………………….……
$ 1,644
$2,330 : $2,545
67.4%
Small & Medium
Business …………………
$ 1,665
$1,421 : $1,398
118.1%
Consumer …………………
$ 324
$1,503,: $1,458
21.9%
The Small and Medium Business had the highest segment return on
assets for the fiscal year ended 2012 with a 118.1% return. The other
three showed returns on assets ranging from 21% to 67%.
4. The six product groups reported by Dell include: Desktop PCs, Mobility,
Software and peripherals, Servers and networking, Enhanced services,
and Storage.
($ millions)
2012 Fiscal Year
Mobility ……………………………………………………….
$19,104 30.8%
Desktop PCs …………………………..…………………..
14,144 22.8
Software and peripherals ……………………………..
10,222 16.5
Servers and networking ……………………………….
8,336 13.4
Services …………………………..………………………….
8,322 13.4
Storage ……………………………………………………….
1,943 3.1
Totals ………………………………………………………….
$62,071 100.0%
Appendix E – Accounting with Special Journals
Teamwork in Action — BTN E-4
For check figures in the implementation of this activity see the solution
to Problem E-3A or E-3B.