1. The individual accounts receivable ledger accounts provide business managers information on the
5. a. Sometime following the end of the current month, one of two things may happen: (1) an overdue
notice will be received from Kelly Co., and/or (2) a letter will be received from Kelley Co.,
7. An electronic form is a software window that provides the inputs for a particular transaction. For
8. The use of controlling accounts to verify the accuracy of subsidiary accounts is used in a manual
CHAPTER 5
ACCOUNTING SYSTEMS
DISCUSSION QUESTIONS
CHAPTER 5 Accounting Systems
PE 5–1A
PE 5–1B
Apr. 6 78 Lemon Co. 1,240
PE 5–2A
May 20. Collected cash of $100 from Matrix Communications Inc. (Invoice No. 527).
PE 5–2B
Aug. 10. Provided $750 services on account to Moravian Products Inc., itemized
Accounts Rec. Dr.
Fees Earned Cr.
Date
Invoice
No.
Post.
Ref.
Account Debited
PRACTICE EXERCISES
REVENUE JOURNAL
REVENUE JOURNAL
Date
Invoice
No.
Account Debited
Post.
Ref.
Accounts Rec. Dr.
Fees Earned Cr.
CHAPTER 5 Accounting Systems
PE 5–3A
PE 5–3B
Amount
Accounts
Payable
Cr.
Party
Supplies
Dr.
Other
Accounts
Dr.
PURCHASES JOURNAL
PURCHASES JOURNAL
Other
Accounts
Dr.
Post.
Ref.
Post.
Ref.
Accounts
Payable
Cr.
Office
Supplies
Dr.
Amount
Post.
Ref.
Post.
Ref.
Date
Account Credited
Account Credited
Date
CHAPTER 5 Accounting Systems
PE 5–4A
PE 5–4B
PE 5–5A
Horizontal analysis:
2014 2013 Amount Percent
Retail $110,000 $ 92,000 $ 18,000 19.6%
Increase/(Decrease)
CHAPTER 5 Accounting Systems
PE 5–5B
Horizontal analysis:
2014 2013 Amount Percent
Camping $280,000 $240,000 $ 40,000 16.7%
Increase/(Decrease)
CHAPTER 5 Accounting Systems
Ex. 5–1
Ex. 5–2
a., b., and c.
Accounts Receivable
EXERCISES
CHAPTER 5 Accounting Systems
Ex. 5–3
a. Cash receipts journal f. Cash receipts journal
k. General journal
CHAPTER 5 Accounting Systems
Ex. 5–6
a.
Account Debited
Invoice
No.
REVENUE JOURNAL
Accounts Rec. Dr.
Fees Earned Cr.
Date
Post.
Ref.
CHAPTER 5 Accounting Systems
Ex. 5–7
a. and b.
d.
Accounts Receivable Customer Balances
Aladdin Co. Borman Co.
EVERGREEN CONSULTING INC.
May 31, 2014
CHAPTER 5 Accounting Systems
Ex. 5–8
Ex. 5–9
Page 8
2014
Page 12
Date
Post.
Ref.
Account Debited
FANTASY PRODUCTIONS INC.
Accounts Receivable Customer Balances
July 31, 2014
Accounts Rec. Dr.
Fees Earned Cr.
Invoice
No.
REVENUE JOURNAL
Cash
Dr.
Post.
Ref.
Account Credited Fees Earned
Cr.
Accts.
Rec. Cr.
CASH RECEIPTS JOURNAL
Date
CHAPTER 5 Accounting Systems
Ex. 5–10
a.
Page 19
2014
Page 25
2014
b.
REVENUE JOURNAL
Account Debited
Post.
Ref.
Date
Accounts Rec. Dr.
Fees Earned Cr.
Invoice
No.
CASH RECEIPTS JOURNAL
Date
AUTUMN COVE INC.
Accounts Receivable Customer Balances
December 31, 2014
Fees
Earned
Cr.
Cash
Dr.
Accts.
Rec.
Cr.
Post.
Ref.
Account
Credited
CHAPTER 5 Accounting Systems
Ex. 5–10 (Concluded)
c. The accounts receivable subsidiary ledger is needed to track customer services
impossible to manage collections from individual customers.
Ex. 5–11
Ex. 5–12
Ex. 5–13
CHAPTER 5 Accounting Systems
Ex. 5–14
a.
Accounts
Payable
Cr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref.
Amount
Date
Account Credited
PURCHASES JOURNAL
Post.
Ref.
CHAPTER 5 Accounting Systems
Ex. 5–15
a. and b.
Jan. 4 570 Jan. 1 Bal. 410
d.
Enviro-Wash Supplies Inc.
January 31, 2014
$ 920
Accounts Payable Creditor Balances
Enviro-Wash Supplies Inc. Little Co.
WALLACE WINDOW CLEANERS INC.
CHAPTER 5 Accounting Systems
Ex. 5–16
Augusta Sod Co. $ 6,010
OUT OF EDEN LANDSCAPING CO.
Accounts Payable Creditor Balances
April 30, 2014
CHAPTER 5 Accounting Systems
Ex. 5–17
Page 36
2014
Mar. 3 9
Page 41
2014
Mar. 1 57 Liquid Klean Supplies Inc. 9325
325
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
CASH PAYMENTS JOURNAL
Ck.
No.
Account Debited
PURCHASES JOURNAL
Date
Post.
Ref.
Accounts
Payable
Cr.
190
Post.
Ref.
Date
Account Credited
Sani-Fresh Products Inc.
190
Post.
Ref.
Amount
Cleaning
Supplies
Dr.
Other
Accounts
Dr.
CHAPTER 5 Accounting Systems
Ex. 5–18
a.
Page 16
2014
June 4 9
Page 22
2014
June 6 345 Labradore Inc. 9360
Post.
Ref.
Amount
Pet
Supplies
Dr.
Post.
Ref.
Date
Account Credited
Best Friend Supplies Inc.
Ck.
No.
Account Debited
PURCHASES JOURNAL
Date
Post.
Ref.
Accounts
Payable
Cr.
255
255
Other
Accounts
Dr.
Accounts
Payable
Dr.
CASH PAYMENTS JOURNAL
Other
Accounts
Dr.
Cash
Cr.
360
CHAPTER 5 Accounting Systems
Ex. 5–18 (Concluded)
b.
Meow Mart Inc. $ 400
Ex. 5–19
a. Two errors were made in balancing the accounts in the subsidiary ledger:
(1) The Castle Chemical Supplies Inc. transaction of March 9 should have
HAPPY TAILS INC.
Accounts Payable Creditor Balances
June 30, 2014
CHAPTER 5 Accounting Systems
Ex. 5–19 (Concluded)
b.
C. D. Greer and Son $15,750
Ex. 5–21
KLONDIKE ASSAY SERVICES INC.
Accounts Payable Creditor Balances
March 31, 2014
CHAPTER 5 Accounting Systems
Ex. 5–22
a. In the electronic invoice form from QuickBooks® shown above, typical
fields for data input can be identified as follows:
b. The customer Accounts Receivable is debited, and Fees Earned is credited.