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Exam 5: Accounting Systems

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Question 21

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The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments (CP), revenue (R), purchases (P), and general (G). Assume that it uses accounts receivable and accounts payable subsidiary ledgers as well as a general ledger. Indicate by letters which journal would be used for each transaction and whether or not the entry requires a posting to a subsidiary ledger. a. CR, no subsidiary posting b. CP, no subsidiary posting c. $R$ , no subsidiary posting d. P, no subsidiary posting e. $G$ , no subsidiary posting f. CR, subsidiary posting g. CP, subsidiary posting h. R, subsidiary posting i. P, subsidiary posting j. G, subsidiary posting -Issued check for salary

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Question 22

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Which of the following is always recorded in the general journal?

A) rendering services for cash
B) purchases of supplies on account
C) rendering services on account
D) closing entries

E) B) and D)
F) None of the above

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Question 23

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In which journal is the receipt of a promissory note from a customer on account recorded?

If a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal are used, indicate the journal in which each of the following transactions should be recorded: (a)Payment of rent (b)Purchase of supplies on account (c)Purchase of computer on account (d)Purchase of supplies for cash (e)Advance payment of a one-year fire insurance policy on the office (f)Adjustment to record accrued salaries at the end of the period (g)Adjustment to record depreciation at the end of the month (h)Payment of an account payable

What is a business segment? How can business segments be analyzed?

The Other Accounts column in the cash payments journal is used for recording debits to any account for which there is no specialized debit column.

The Internet creates opportunities for improving the speed and efficiency of transactions. Name and describe three key areas besides e-commerce where the Internet is being used for business purposes.

Posting from a revenue journal to the customer account is normally done only at the end of the month.

Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its operations. If the company records the cash sale of food for $18, which is the correct entry?

123 Kids TV operates in five major international segments.?? $\begin{array} { | l | r | r | } \hline \text { Segment } & \begin{array} { c } \text { Current Year } \\\text { (in millions) }\end{array} & \begin{array} { c } \text { Prior Year } \\\text { (in millions) }\end{array} \\\hline \text { United States } & \$ 9,132 & \$ 8,528 \\\hline \text { Canada } & 8,248 & 6,391 \\\hline \text { England } & 4,734 & 4,141 \\\hline \text { China } & 11,700 & 13,299 \\\hline \text { Brazil } & \underline{5,645} & \underline{6,391} \\\hline { \text { Total revenues } } & \mathbf { \$ 3 9 , 4 5 9 } & \mathbf { \$ 3 8 , 7 5 0 } \\\hline\end{array}$ Prepare a horizontal analysis of the segment data. Round percentages to two decimal places.

Read each transaction and identify the appropriate journal in which it should be recorded.​ 1. Owner withdrew supplies 2. Sale made on account 3. Payment to vendor on account 4. Payment received from customer on account 5. Purchases on account 6. Adjusting journal entry for supplies used 7. Owner withdrew cash 8. Company borrows money from bank 9. Record monthly depreciation 10. Close revenue accounts at month's end

If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded: (a)Investment of additional cash in the business by the owner (b)Rendering of services for cash (c)Rendering of services on account (d)Receipt of cash on account from a customer (e)Sale of office supplies for cash, at cost, to a neighboring business (f)Adjustment to record supplies used at the end of the year (g)Closing of drawing account at the end of the year

A computerized accounting system will not allow which of the following types of journalizing errors?

Payton Company has the following segment revenues for the two most recent fiscal years.?? $\begin{array} { | l | r | r | } \hline \text { Segment } & \begin{array} { c } \text { Current Y ear } \\\text { (in millions) }\end{array} & \begin{array} { c } \text { Prior Y ear } \\\text { (in millions) }\end{array} \\\hline \text { China } & \$ 775.00 & \$ 650.00 \\\hline \text { Canada } & 325.50 & 245.50 \\\hline \text { Other countries } & 215.50 & 168.50 \\\hline \text { Total revenues } & \underline{\$ 1,316 .00} & \underline{ \$ 1,064.00 }\\\hline\end{array}$ Prepare a vertical analysis of the segment data. Round to one decimal place.?

A purchase of supplies for cash is recorded in the

Adjusting journal entries are recorded in a special journal.

Which of the following is recorded in the cash payments journal?

Which of the following is not one of the three phases needed when changing an accounting system, either in its entirety or in part?

Down-Under, an aquatic supply store, makes the following five payments during August. Journalize them in the cash payments journal as appropriate. (a)On August 2, Down-Under paid Pondmaster, Inc. with Check No. 6420 for 6 pumps at $435.00 each. The pumps had been purchased in July on account. (b)On August 10, Down-Under purchased $785.00 of office supplies from Business Systems with Check No. 6421. (c)On August 15, Down-Under paid Aqua Magic $215.00 on account with Check No. 6422. (d)On August 27, Down-Under paid an invoice for merchandise received earlier from Spindrifter, Inc. for 8 drains at $73.50 each with Check No. 6423. (e)On August 31, Down-Under purchased $65.00 of koi clay from The Natural Wonder Company by writing Check No. 6424. (Record in Pond Supplies Expense.)? $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\textbf { Cash Payments Journal } \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \textbf { Page } 17$ $\begin{array}{|c|c|c|c|c|c|c|}\hline \text { Date } & \begin{array}{c}\text { Ck. } \\\text { No. }\end{array} & \text { Account Debited } & \begin{array}{c}\text { Post. } \\\text { Ref. }\end{array} & \begin{array}{c}\text { Other } \\\text { Accounts } \\\text { Dr. }\end{array} & \begin{array}{c}\text { Accounts } \\\text { Payable } \\\text { Dr. }\end{array} & \begin{array}{c}\text { Cash } \\\text { Cr. }\end{array} \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline & & & & & & \\\hline\end{array}$

In which journal would an adjustment for an overcharge by a creditor be recorded?