Accounting Chapter 7 Homework Output devices provide the means by which information is taken from the

subject Type Homework Help
subject Pages 14
subject Words 2392
subject Textbook Fundamental Accounting Principles 23rd Edition
subject Authors Barbara Chiappetta, John Wild, Ken Shaw
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Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Chapter 7
Accounting Information Systems
QUESTIONS
1. The five components of an accounting system are: source documents, input
devices, information processors, information storage, and output devices.
2. Source documents contain data about business transactions or events that are put
3. The five fundamental principles of accounting information systems are: (a) control
4. An input device is used to transfer data from source documents to the information
5. Data stored "off-line" are not immediately available to the information processor(s),
6. Output devices provide the means by which information is taken from the
accounting system and made available for use.
9. The double posting does not cause the trial balance to be out of balance because
10. When copies of the sales invoices are used as a sales journal, each invoice total is
posted to the proper customer account in the subsidiary Accounts Receivable
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11. Both kinds of credits must not be placed in the same column because the sum of the
credits to the customer accounts must be posted to the Accounts Receivable
12. Immediate recording and posting of credit sales and cash receipts from customers
13. In its note 11 (Segment Information and Geographic Data), Apple discusses its
14. In its note 16 (Information about Segments and Geographic Areas), Google
discusses its reportable segments. The Company’s three reportable geographical
15.
Segment
Operating
Income
Net Sales
Operating Income /
Net Sales
Americas ..............................
$31,186
$93,864
33.2%
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Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
443
QUICK STUDIES
Quick Study 7-1 (15 minutes)
1.
B
5.
C
8.
A
Quick Study 7-2 (10 minutes)
Quick Study 7-3 (10 minutes)
a. Sales Journal
Quick Study 7-4 (15 minutes)
General Journal
Nov. 2
[In Purchases Journal]
Nov. 12
Automobiles .............................................................
17,000
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444
Quick Study 7-5 (15 minutes)
a) Accounts Receivable Ledger
ACCOUNTS RECEIVABLE LEDGER
Stern Company
Date
Explanation
PR
Debit
Credit
Balance
Jan. 10
S1
4,000
4,000
Quick Study 7-6 (20 minutes)
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
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445
Quick Study 7-7 (10 minutes)
May 1
Purchases Journal
8
Sales Journal
Quick Study 7-8 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE LEDGER
Eric Horner
Hong Jiang
July 8
11,100
July 14
20,500
Part 3
WARTON COMPANY
Schedule of Accounts Receivable
July 31
Eric Horner .........................................................
$11,100
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446
Quick Study 7-9 (15 minutes)
Product
Product Sales
Percent of Total Sales*
iPhone ............................................
$ 155,041
66.3%
Quick Study 7-10 (15 minutes)
General Journal
1.
[In Purchases Journal]
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Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
447
EXERCISES
Exercise 7-1 (15 minutes)
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
Exercise 7-2 (10 minutes)
May 2
Cash Receipts Journal
5
Purchases Journal
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448
Exercise 7-3 (20 minutes)
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
Exercise 7-4 (10 minutes)
November 3
Purchases Journal
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449
Exercise 7-5 (15 minutes)
(1) Accounts Payable Ledger
ACCOUNTS PAYABLE LEDGER
Bailey Company
Date
Explanation
PR
Debit
Credit
Balance
Jan. 9
P1
14,000
14,000
Johnson Brothers
Date
Explanation
PR
Debit
Credit
Balance
Jan. 18
P1
(2) General Journal
GENERAL JOURNAL
Accounts Payable
Date
Explanation
PR
Debit
Credit
Balance
Exercise 7-6 (25 minutes)
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
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Exercise 7-7 (10 minutes)
April 3
Purchases Journal
9
Cash Disbursements Journal
Exercise 7-8 (10 minutes)
1. B When crossfooting the Purchases Journal.
Exercise 7-9 (10 minutes)
a. (i) The June 5 purchase would be recorded in the Purchases Journal.
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451
Exercise 7-10 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Anna Page
Sara Reed
Aaron Reckers
Part 2
GENERAL LEDGER
Accounts Receivable
Sales
Sales Returns and
Allowances
Part 3
MOUNTAIN VIEW
Schedule of Accounts Receivable
May 31
Anna Page .............................................
$ 1,500
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452
Exercise 7-11 (20 minutes)
Segment Income
(in $ mil.)
Segment Assets
(in $ mil.)
Segment Return
on Assets
Segment
2017
2016
2017
2016
2017
Specialty
Skiing Group ..............
$ 72
$ 68
$ 591
$ 450
13.8%
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Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
453
PROBLEM SET A
Problem 7-1A (100 minutes)
Parts 1 and 2
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Mar. 2
Min Cho .....................................................
854
✓
16,800
8,400
3
Linda Witt ..................................................
855
✓
10,200
5,800
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Mar. 1
Van Industries ................................
3/1
2/15, n/30
✓
43,600
43,600
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454
Problem 7-1A (Continued)
Parts 1 and 2—continued
CASH RECEIPTS JOURNAL
Page 2
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.
Mar. 6
L.T. Notes Pay. ................................
Note to bank................................
251
82,000
82,000
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Mar. 13
416
Van Industries ................................
Van Industries ................................
✓
42,728
872
43,600
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455
Problem 7-1A (Continued)
Parts 1 and 2—continued
GENERAL JOURNAL
Page 2
Mar. 17
Accounts Payable—CD Co. ................................
201/✓
2,425
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
R2
178,808
178,808
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
S2
51,825
51,825
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
10,000
17
G2
2,425
7,575
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456
Problem 7-1A (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar. 9
P2
21,850
21,850
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Mar. 17
G2
2,425
(2,425)
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Z. Church, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
10,000
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
S2
51,825
51,825
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
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457
Problem 7-1A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date
Explanation
PR
Debit
Credit
Balance
Mar. 10
S2
5,600
5,600
Min Cho
Date
Explanation
PR
Debit
Credit
Balance
Linda Witt
Date
Explanation
PR
Debit
Credit
Balance
ACCOUNTS PAYABLE LEDGER
CD Company
Date
Explanation
PR
Debit
Credit
Balance
Mar. 14
P2
32,625
32,625
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458
Problem 7-1A (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Cash ................................................................
$ 69,884
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany ..........................................................
$14,910
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company ......................................................
$ 3,000
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459
Problem 7-2A (70 minutes)
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
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
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460
Problem 7-2A (Continued)
Parts 2 and 3
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
85,000
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
37,470
37,470
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
125,000
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
B. Wiset, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance

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