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
48.5%
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%
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
Nov. 16
Nov. 19
3.
E
7.
B
10.
D
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
2,000
Date
Explanation
PR
Debit
Credit
Balance
Jan. 19
S1
1,600
1,600
Date
Explanation
PR
Debit
Credit
Balance
Jan. 23
S1
2,500
2,500
1,200
8,100
8,100
3,200
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
445
Quick Study 7-7 (10 minutes)
May 1
Purchases Journal
8
Sales Journal
Purchases Journal
Purchases Journal
Cash Receipts Journal
Cash Disbursements Journal
Cash Disbursements Journal
Quick Study 7-8 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE LEDGER
Eric Horner
Hong Jiang
July 8
11,100
July 14
20,500
July 2
July 10
13,400
11,200
72,100
Part 3
WARTON COMPANY
Schedule of Accounts Receivable
July 31
Eric Horner …………………………………………………
$11,100
Mary Mack …………………………..……………………..
Troy Wilson ………………………………………………..
Total accounts receivable …………………………..
$72,100
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]
2.
3.
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
7
Sales Journal
8
Cash Receipts Journal
Sales Journal
Cash Receipts Journal
Cash Receipts Journal
T. Taylor …………………………..
5706
500
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
Sales …………………………..
Cash sale
330
Exercise 7-4 (10 minutes)
November 3
Purchases Journal
Cash Receipts Journal
Cash Disbursements Journal
Cash Disbursements Journal
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
Date
Explanation
PR
Debit
Credit
Balance
Jan. 22
P1
(2) General Journal
GENERAL JOURNAL
Accounts Payable
Date
Explanation
PR
Debit
Credit
Balance
26,800
26,800
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
212
Lite …………………………..
Lite …………………………..
Exercise 7-7 (10 minutes)
April 3
Purchases Journal
9
Cash Disbursements Journal
Cash Disbursements Journal
Purchases Journal
Cash Disbursements Journal
Cash Disbursements Journal
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.
451
Exercise 7-10 (30 minutes)
Part 1
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Anna Page
Sara Reed
Aaron Reckers
May 17
May 10
Part 2
GENERAL LEDGER
Accounts Receivable
Sales
Sales Returns and
Allowances
May 31
Part 3
MOUNTAIN VIEW
Schedule of Accounts Receivable
May 31
Anna Page ………………………………………
$ 1,500
Aaron Reckers …………………………..
Total debit……………………………………………
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%
31.8%
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
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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
Gabel Company …………………………..
3/3
✓
Office Equip./Spell Supply …………………….
3/9
21,850
The CD Company …………………………..
2/10, n/30
✓
32,625
32,625
Totals …………………………………………………….
76,225
Jovita Albany …………………………..
856
✓
5,600
2,900
Jovita Albany …………………………..
857
✓
14,910
7,220
Linda Witt …………………………………………..
858
✓
Totals …………………………………………………
51,825
27,600
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
Min Cho …………………………..
Invoice, 3/2 …………………………..
16,464
Linda Witt …………………………..
Invoice 3/3 …………………………..
Sales …………………………..
Cash sales …………………………..
34,680
34,680
Jovita Albany …………………………..
Invoice, 3/10 …………………………..
5,600
Sales …………………………..
Cash sales …………………………..
30,180
Totals …………………………..
64,860
82,000
(101)
(413)
(502/119)
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
417
Payroll …………………………..
18,300
418
The CD Co. …………………………..
The CD Company …………………………..
✓
29,596
604
30,200
419
Payroll …………………………..
Totals …………………………..
73,800
455
Problem 7-1A (Continued)
Parts 1 and 2—continued
GENERAL JOURNAL
Page 2
Mar. 17
Accounts Payable—CD Co. …………………………..
201/✓
2,425
Accounts Payable—Spell Supply ………………………..
201/✓
GENERAL LEDGER
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
R2
178,808
178,808
D2
69,884
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
S2
51,825
51,825
R2
19,225
Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
10,000
17
G2
2,425
7,575
31
1,476
31
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
P2
456
Problem 7-1A (Continued)
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar. 9
P2
21,850
21,850
G2
21,220
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Mar. 17
G2
2,425
(2,425)
G2
(3,055)
P2
98,020
73,800
24,220
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 6
82,000
82,000
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
64,860
Sales Discounts
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
37,030
37,030
Mar. 31
S2
27,600
64,630
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
Mar. 15
18,300
18,300
18,300
36,600
457
Problem 7-1A (Continued)
ACCOUNTS RECEIVABLE LEDGER
Jovita Albany
Date
Explanation
PR
Debit
Credit
Balance
Mar. 10
S2
5,600
5,600
S2
Min Cho
Date
Explanation
PR
Debit
Credit
Balance
Mar. 2
S2
Linda Witt
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
S2
S2
4,315
4,315
ACCOUNTS PAYABLE LEDGER
CD Company
Date
Explanation
PR
Debit
Credit
Balance
Mar. 14
P2
32,625
32,625
30,200
Date
Explanation
PR
Debit
Credit
Balance
Mar. 3
P2
P2
Mar. 9
P2
21,850
21,850
21,220
Date
Explanation
PR
Debit
Credit
Balance
Mar. 1
P2
43,600
43,600
458
Problem 7-1A (Concluded)
Part 3
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Cash ……………………………………………………….
$ 69,884
Accounts receivable ……………………………………..
Accounts payable …………………………………………
Sales discounts…………………………………………….
Sales salaries expense …………………………..
36,600
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany ………………………………………………….
$14,910
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company ………………………………………………
$ 3,000
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
Nic Nelson ………………………………………….
7,000
Page Alistair …………………………..
763
✓
5,100
3,600
Paula Kohr …………………………………………
764
✓
3,170
2,520
Nic Nelson ………………………………………….
765
✓
Totals …………………………………………………
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
Paula Kohr …………………………..
Sale of 4/5
✓
7,840
8,000
Sales …………………………..
Cash Sales
✓
Note to bank
Nic Nelson …………………………..
Sale of 4/11
✓
Page Alistair …………………………..
Sale of 4/13
✓
4,998
5,100
Sales …………………………..
Cash sales
Totals …………………………..
126,815
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
298,863
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
Apr. 30
S3
98,075
Long-Term Notes Payable
Acct. No. 251
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
110,000
Apr. 18
170,000
B. Wiset, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Mar. 31
100,000
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
37,470
164,285
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
S3
26,925
26,925
94,780
121,705