CHAPTER 5 Accounting Systems
Prob. 5–4B (Continued)
1. and 2.
Page 1
2014
1., 2., and 3.
Page 1
2014
Oct. 16 1 Rent Expense 71 7,000
7,000
JOURNAL
Date
Post.
Ref.
Cash
Cr.
Accounts
Payable
Dr.
Debit
CASH PAYMENTS JOURNAL
Description
Credit
Date
Post.
Ref.
Ck.
No.
Account Debited
Other
Accounts
Dr.
CHAPTER 5 Accounting Systems
Prob. 5–4B (Continued)
1.
Post.
Item Ref. Debit Credit Balance
2014
Post.
Item Ref. Debit Credit Balance
2014
Post.
Item Ref. Debit Credit Balance
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Name: Petro Services Inc.
Date
Name: Midland Supply Co.
Date
Date
A-One Office Supply Co.
Name:
CHAPTER 5 Accounting Systems
Prob. 5–4B (Continued)
2. and 3.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
31 J1 15,000 15,000
2014
Oct.
Date
GENERAL LEDGER
Account: Prepaid Rent
2014
Balance
Date
Account:
Account: Cash
2014
Balance
Office Supplies
Balance
Date
CHAPTER 5 Accounting Systems
Prob. 5–4B (Concluded)
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
28 CP1 240,000 240,000
Account No. 21
Account No. 71
Post.
Item Ref. Debit Credit Debit Credit
16 CP1 7,000 7,000
4.
A-One Office Supply Co. $ 3,670
5. A subsidiary ledger for the field equipment would allow the company to track
2014
Account:
Account: Land
Balance
Date
October 31, 2014
Oct.
Balance
Date
Accounts Payable
Oct.
Accounts Payable Creditor Balances
2014
WEST TEXAS EXPLORATION CO.
Rent Expense
Account:
CHAPTER 5 Accounting Systems
Prob. 5–5B
1., 3., and 4.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 917,300
GENERAL LEDGER
Balance
Accounts Receivable
Account:
Account: Cash
Balance
Balance
Date
Balance
2014
2014
Account: Office Supplies
Account: Office Equipment
Date
Date
Account: Maintenance Supplies
Date
2014
2014
Balance
Date
2014
Mar.
CHAPTER 5 Accounting Systems
Prob. 5–5B (Continued)
Account No. 17
Post.
Item Ref. Debit Credit Debit Credit
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
1 Balance 917,800
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
Account: J. Wu, Drawing
Balance
Date
Account: Accumulated Depreciation—Office Equipment
Balance
Date
2014
Balance
Date
Account: Accounts Payable
Account: Accumulated Depreciation—Vehicles
Balance
Date
2014
Mar.
CHAPTER 5 Accounting Systems
Prob. 5–5B (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
Account No. 42
Post.
Item Ref. Debit Credit Debit Credit
18 CR31 900 900
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
30 CP34 33,300 33,300
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
Balance
Date
Account: Maintenance Supplies Expense
Balance
Date
Account: Fees Earned
2014
Mar.
Account: Driver Salaries Expense
Account: Rent Revenue
Balance
Date
Balance
Date
2014
Mar.
CHAPTER 5 Accounting Systems
Prob. 5–5B (Continued)
Account No. 62
Post.
Item Ref. Debit Credit Debit Credit
Account: Rent Expense
Balance
Date
2014
CHAPTER 5 Accounting Systems
Prob. 5–5B (Continued)
2. and 4.
Page 37
2014
Mar. 2 918 26,900
Page 31
2014
Mar. 6 Chavez Co. 97,950
10 Sajeev Co. 910,000
Account Credited
Post.
Ref.
Amount
Maintenance
Supplies
Dr.
Office
Supplies
Dr.
PURCHASES JOURNAL
Date
Post.
Ref.
Accounts
Payable
Cr.
26,900
Date
McIntyre Sales Co.
Post.
Ref.
Other
Accounts
Dr.
Vehicles
Cash
Dr.
CASH RECEIPTS JOURNAL
7,950
10,000
Account Credited
Other
Accounts
Cr.
Accounts
Receivable
Cr.
CHAPTER 5 Accounting Systems
Prob. 5–5B (Continued)
2. and 4.
Page 35
5 91 Ellis Co. 9
Page 34
1 205 Rent Expense 62 2,450
9 206 Fuel Expense 53 820
REVENUE JOURNAL
Date
CASH PAYMENTS JOURNAL
Cash
Cr.
Other
Accounts
Dr.
Accounts Rec. Dr.
Fees Earned Cr.
Post.
Ref.
2,450
Accounts
Payable
Dr.
7,000
Mar.
Invoice
No.
Account Debited
Date
Account Debited
Post.
Ref.
Ck.
No.
820
2014
2014
Mar.
CHAPTER 5 Accounting Systems
Prob. 5–5B (Concluded)
3. Page 1
2014
5.
Debit Credit
Balances Balances
Cash 25,885
Accounts Receivable 32,540
JOURNAL
Date Description
Post.
Ref.
March 31, 2014
Debit Credit
AM EXPRESS COMPANY
Unadjusted Trial Balance
CHAPTER 5 Accounting Systems
CP 5–1
a. The half-price offer is a normal business practice, so long as it is not the result
of price collusion with other competitors or considered “unfair pricing”
b. Customer “lock in” can be unethical if it is the result of price fixing or acquiring
competitors in order to achieve monopolistic concentration within an industry.
However, in this case, the customer lock in is a function and nature of the
product. Namely, the data that are created by the product cannot be easily
migrated to another application. Note, Netbooks is not denying the
customer ownership of the data; rather it is making it costly to switch. Such
lock in is not considered an unethical business practice. Indeed, we see such
lock in characteristics in many settings. For example:
●Razor blades are designed to be used only by the handle of the
manufacturer. Thus, customers become locked in to the razor blades of the
CASES & PROJECTS
CP 5–2
Kyle is missing some of the principal benefits of the computerized system. There are
three primary advantages of a computerized system. First, the computerized system
is much more efficient and accurate at transaction processing. In the computerized
system, once the transaction data have been input, the information is simultaneously
recorded in the electronic journal (file) and posted to the ledger accounts. This saves
CP 5–3
a. The accounts receivable and accounts payable accounts consist of transactions
CHAPTER 5 Accounting Systems
CP 5–4
1. Special journals are used to reduce the processing time and expense to record
transactions. A special journal is usually created when a specific type of
transaction occurs frequently enough so that the use of the traditional two-
column journal becomes cumbersome. The frequency of transactions for Omni Care
CHAPTER 5 Accounting Systems
CP 5–4 (Concluded)
2.
Page 1
Office
Supplies
Dr.
Other
Accounts
Dr.
Accounts
Payable
Cr.
Date
PURCHASES JOURNAL
Post.
Ref.
Account Credited
Post.
Ref.
Amount
Medical
Supplies
Dr.
CHAPTER 5 Accounting Systems
CP 5–5
To: Senior Management
From: Student
Re: Internet-based (cloud computing) accounting software
A new approach to automating our accounting requirements is now available. It
is called Internet-based accounting using a cloud computing provider.
Rather than purchasing our accounting software and loading it on our own
computers, Internet-based accounting software is rented and resides on the
provider’s computers. Our data, along with the accounting software, stay with
the provider. There are several advantages to this approach.
1. We don’t need to administer the application or data on our own computers.
2. Our people can work with our data anytime or anyplace. We don’t need to rely
on our own internal computer network for accounting-related work. Instead,
3. We never need to purchase and load software upgrades. All upgrades are
There are also a number of disadvantages we need to consider.
1. The cost of the software is recurring. Thus, we are trading off the recurring
3. Our data physically reside with the service provider. Thus, we don’t control
4. Once we begin, we will become “locked in” to the provider. It will be hard to
MEMORANDUM
CHAPTER 5 Accounting Systems
CP 5–6
Note to Instructors: While the list of functions and services can be quite large, the key
services are identified below. The purpose of these services will be fairly
advanced for most students. The activity asks for a listing rather than an
explanation because most students would have very limited experience by
which to provide much explanation. Use this case to demonstrate the scope
and basic nature of these application tools.
Selected JDA Supply Chain Management Solutions
●Demand management
●Factory planning and scheduling
●Merchandise operations
Selected Salesforce.com Customer Relationship Management Solutions
●Provide the sales force with real-time information about all customer