Comprehensive Problem, cont.
Requirement 7, cont.
AMHERST NETWORKING SYSTEMS
Balance Sheet
August 31
Assets
Current Assets:
Cash $ 3,779
Accounts Receivable 26,795
Merchandise Inventory 47,035
Liabilities
Current Liabilities:
Accounts Payable $ 18,950
Salaries Payable 1,060
Comprehensive Problem, cont.
Requirement 8
General Journal Page 9
Date Accounts and Explanation
Post.
Ref.
Debit Credit
Comprehensive Problem, cont.
Requirement 9
AMHERST NETWORKING SYSTEMS
Post-Closing Trial Balance
August 31
Account Name Debit Credit
Cash $
3,779
Accounts Receivable 26,795
Merchandise Inventory 47,035
Office Supplies 1,000
Critical Thinking
Tying It All Together Case B-1
McCormick & Company Incorporated, is a global leader in flavor that manufactures, markets, and
distributes spices, seasoning mixes, condiments, and other flavorful products. The company’s brands
include McCormick, Lawry’s, and Club House. In addition, the company also markets authentic ethnic
brands such as Zatarain’s, Thai Kitchen, and Simply Asia.
Requirements
1. Review Item 1A (Risk Factors) of the Notes to the Financial Statements. How does McCormick &
Company, Incorporated minimize the risks associated with data breaches or cyber attacks?
2. Perform a web search on ways businesses can prevent security breaches. What are some security
solutions that McCormick & Company might use?
SOLUTION
Requirement 1
Decision Case B–1
A fire destroyed certain accounting records of Green Books. The controller, Marilyn Green, asks your help in
reconstructing the records. All of the sales are on account, with credit terms of n/30. The only accounting record
preserved from the fire is the accounts receivable subsidiary ledger, which follows.
Requirements
1. Determine the beginning and ending balances of Accounts Receivable.
2. Determine the sales on account in the month of April.
3. Determine total cash receipts on account from customers during April.
SOLUTION
Requirement 1
Fraud Case B–1
Didrikson Rubin, the auditor of Red Barn Farm Equipment, was verifying cash payments to vendors for
the past several months. She noticed that several checks had been paid to a specific vendor, but she
couldn’t find a record of the transactions in the computerized system. Didrikson suspects that an
employee is issuing checks to a fictitious “vendor” and then deleting the transactions from the
computerized system. How might Didrikson investigate the suspected fraud?
SOLUTION
Team Project B–1
Ace Moving is considering investing in an entry-level computerized accounting information system. Ace
needs a system that can record customer invoices and cash receipts. In addition, it would like to track all
of its bills and cash payments. As a team, investigate the two common entry-level accounting software
products: QuickBooks and Sage 50 Accounting. Prepare a PowerPoint presentation that summarizes the
similarities and differences between the two software systems.
SOLUTION
Communication Activity B–1
In 150 words or fewer, explain what an accounting information system is and describe an effective
system.
SOLUTION