accounting-Benji Borke has prepared the following list of statements

QUESTION

Brief Exercise 7-3
Benji
Borke has prepared the following list of statements about accounting
information systems.

Identify each statement as true or false.

1.

The accounting information system includes each of the steps of
the accounting cycle, the documents that provide evidence of transactions
that have occurred, and the accounting records.

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2.

The benefits obtained from information provided by the
accounting information system need not outweigh the cost of providing that
information.

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3.

Designers of accounting systems must consider the needs and
knowledge of various users.

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4.

If an accounting information system is cost-effective and
provides useful output, it does not need to be flexible.

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Brief Exercise 7-5
Identify
in what ledger (general or subsidiary) each of the following accounts is shown.

Accounts

Ledger

(a)

Rent Expense

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(b)

Accounts Receivable—Cabrera

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(c)

Notes Payable

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(d)

Accounts Payable—Pacheco

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Brief Exercise 7-6
Identify
the journal in which each of the following transactions is recorded.

Transactions

Journals

(a)

Cash sales

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(b)

Owner withdrawal of cash

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(c)

Cash purchase of land

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(d)

Credit sales

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(e)

Purchase of merchandise on account

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(f)

Receipt of cash for services performed

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Brief Exercise 7-10
Rauch
Computer Components Inc. uses a multi-column cash receipts journal.

Indicate which column(s) is/are posted only in total, only daily, or both in
total and daily.

Accounts

Column in Cash Journal Receipts

(a)

Accounts Receivable

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(b)

Sales Discounts

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(c)

Cash

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(d)

Other Accounts

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Exercise 7-5
(Part level Submission)
Pennington
Company has a balance in its Accounts Payable control account of
$8,599 on January 1, 2014. The subsidiary ledger contains three
accounts: Hale Company, balance $2,960; Janish Company, balance $1,859;
and Valdez Company. During January, the following payable-related
transactions occurred.

Purchases

Payments

Returns

Hale Company

$6,873

$5,904

$
-0-

Janish Company

5,394

1,859

2,786

Valdez Company

6,355

6,196

-0-

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(a)

What is the
January 1 balance in the Valdez Company subsidiary account?

Balance in the Valdez Company
subsidiary account $.0/msohtmlclip1/01/clip_image001.gif” alt=”Description: http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

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(b)

The parts of this question must be
completed in order. This part will be available when you complete the
part above.

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(c)

The parts of this question must be
completed in order. This part will be available when you complete the
part above.

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(d)

The parts of this question must be
completed in order. This part will be available when you complete the
part above.

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Exercise 7-7 (Part
level Submission)
R. Santiago
Co. uses special journals and a general journal. The following
transactions occurred during May 2014.

May
1

R. Santiago invested $54,593 cash
in the business.

2

Sold merchandise to Lawrie Co. for
$6,098 cash. The cost of the merchandise sold was $4,587.

3

Purchased merchandise for $7,198
from J. Moskos using check no. 101.

14

Paid salary to H. Rivera $793 by
issuing check no. 102.

16

Sold merchandise on account to K.
Stanton for $855, terms n/30. The cost of the merchandise sold was
$616.

22

A check of $8,914 is received from
M. Mangini in full for invoice 101; no discount given.

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(a)

Prepare a
multiple-column cash receipts journal and record the transactions for May
that should be journalized. (Record entries
in the order presented in the problem statement.)

R. SANTIAGO CO.
Cash Receipts Journal

CR1

Date

Account
Credited

Ref

Cash
Dr.

Sales
Discounts
Dr.

Accounts
Receivable
Cr.

Sales
Revenue
Cr.

Other
Accounts
Cr.

Cost of Goods Sold
Dr.
Inventory Cr.

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(b)

The parts of this question must be completed
in order. This part will be available when you complete

Exercise 7-14
Selected
account balances for Hulse Company at January 1, 2014, are presented below.

Accounts Payable

$14,080

Accounts Receivable

21,730

Cash

17,157

Inventory

14,068

Hulse’s sales journal for January shows a total of $111,202 in the selling
price column, and its one-column purchases journal for January shows a total of
$77,096.

The column totals in Hulse’s cash receipts journal are: Cash Dr. $61,090; Sales
Discounts Dr. $1,968; Accounts Receivable Cr. $44,970; Sales Revenue Cr.
$6,634; and Other Accounts Cr. $11,454.

The column totals in Hulse’s cash payments journal for January are: Cash Cr.
$55,756; Inventory Cr. $1,419; Accounts Payable Dr. $45,640; and Other Accounts
Dr. $11,535. Hulse’s total cost of goods sold for January is $62,801.

Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are
not involved in the “Other Accounts” column in either the cash receipts or cash
payments journal, and are not involved in any general journal entries.

Compute the January 31 balance for Hulse in the following accounts.

(a)

Accounts Payable

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(b)

Accounts Receivable

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(c)

Cash

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(d)

Inventory

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(e)

Sales Revenue

$.0/msohtmlclip1/01/clip_image001.gif” alt=”Description: http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

 

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