Exam 5: Accounting Systems

Two transactions were posted to the following customer account:NAME: Roswell Communications, Inc.Address: 345 Alien Way​ Describe each transaction and the source of each posting.

An account for each supplier of merchandise will appear in the accounts payable subsidiary ledger.

Accounting systems evolve through a three-step process: analysis, design, and feedback.

Transactions must first be recorded in the general journal before they can be entered in specialized journals.

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 -Purchased supplies on account

$\text { Match the transactions below with the journal or ledger in which it would be entered. }$ -Cash payment posting to an individual vendor account a. Purchases journal b. Revenue journal c. Cash receipts journal d. Cash payments journal e. Accounts receivable subsidiary ledger f. Accounts payable subsidiary ledger g. General journal

Which of the following is not considered a special journal?

The posting references in the following revenue journal are indicated by letters. Identify each posting reference [ (a) through (h)] as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledger account, or (3) that no posting is required. $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ REVENUE JOURNAL $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ Page 25 Post Acct.\nobreakspaceRec.\nobreakspaceDr. Date Invoice No. Account Debited Ref. Fees Earned Apr. 3 190 Hill Company (a) 4,750 8 191 North Supply (b) 5,025 13 192 Macon Inc. (c) 2,100 17 193 White Products (d) 6,000 25 194 Easton Supply (e) 2,250 30 195 Karson Enterprises (f) 3,750 30 (g)(h)

When there are a large number of individual accounts with a common characteristic, it is common to place them in a separate ledger called a (n)

List the four most common special journals used in accounting and describe the transactions recorded in each journal.

Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system's invoice data: Using horizontal analysis, determine the percentage change in revenues for the North region.Round to one decimal place.

Payton Company has the following segment revenues for the two most recent years.?? Segment Current Year (in millions) Prior Year (in millions) United States \ 825.00 \ 600.00 Canada 325.50 345.50 Other countries Total revenues Prepare a horizontal analysis of the segment data. Round to one decimal place.

Designing a system to meet user needs is the final phase in the creation or revision of an accounting system.

Most accounting systems evolve as the business grows and requires changes in its methods for collecting, accumulating, and reporting information.

If a company uses special journals,

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 advertising expense

Using the Internet to perform business transactions is called e-commerce.

If the individual subsidiary ledger accounts contained the following data:Cadence Company, Vendor, $200, credit balanceFranklin Enterprises, Customer, $750, debit balanceMarcelo Construction, Client, $125, debit balancePeyton Supplies, Supplier, $375, credit balance​The accounts receivable (A/R) control account and the accounts payable (A/P) control account balances would be

The goal of systems design is to

An owner transfers a personal automobile to the company with a fair market value of $12,000. The entry will be made in the