Exam 5: Accounting Systems

The presence of a subsidiary ledger requires the presence of a summarizing control account in the general ledger.

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 rent

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

Two transactions were posted to the following supplier's (creditor's) account:NAME: Banner Computer Services, Inc.Address: 890 Novice Lane? Date Item Post. Ref. Debit Credit Balance July 1 Balance 5,645 19 Invoice No. 45 P16 1,755 7,400 26 Invoice No. 39 CP36 3,500 3,900 Describe each transaction and the source of each posting.

Processing methods are the means by which the system collects, summarizes, and reports accounting information.

Which of the following general ledger accounts normally has a subsidiary ledger?

Services performed for cash should be recorded in the

Sunrise Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal. Record the following transactions for the first two weeks in March, total the columns, and include the posting references. A partial chart of accounts is given below. After recording the transactions, indicate if there are any additional columns you would add to this journal.? \textbf { Cash Receipts Journal }\\ \begin{array}{|c|c|c|c|c|c|c|} \hline \text { Date } & \begin{array}{c} \text { Account } \\ \text { Credited } \end{array} & \begin{array}{c} \text { Post. } \\ \text { Ref. } \end{array} & \begin{array}{c} \text { Other } \\ \text { Accounts } \\ \text { Cr. } \end{array} & \begin{array}{c} \text { Beverage } \\ \text { Revenue } \\ \text { Cr. } \end{array} & \begin{array}{c} \text { Food } \\ \text { Revenue } \\ \text { Cr. } \end{array} & \begin{array}{c} \text { Cash } \\ \text { Cr. } \end{array} \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{array} Mar. 1Cash received for beverages, $375. 1Cash received for food, $250. 1Cash received for customer sales of Sunrise's signature coffee mugs, $130. 7Cash received for beverages, $480. 7Cash received for food, $325. 7Cash received for customer sales of Sunrise's signature coffee mugs, $115. 10Cash received on account from Central.com, $900. $~~~~~~~~~~~~~~~~~~~~~~~~$ Chart of Accounts (Partial) 10 Cash 41 Beverage Revenue 12 Accounts Receivable 42 Food Revenue 15 Retail Items 43 Retail Revenue

E-commerce

Maximilian Corporation provided revenue disclosures for the current year by its major product segments in the notes to its financial statements as follows:? Maj or Product Segments Current Year (in millions) Petrol eum-based products \ 10,450 Industrial chemicals 9,460 Refined chemical products 8,575 Food additives 7,325 Emulsifiers 6,900 Pesticides 5,870 Salts 4,545 Wetting agents 3,215 Total revenues Prepare a vertical analysis. Round to one decimal place.

When a large number of individual accounts with a common characteristic are grouped together in a separate ledger, the summarizing account in the general ledger is called a control account.

The phase of accounting system installation in which the information needs of people in the organization are taken into account is

$\text { Match the transactions below with the journal or ledger in which it would be entered. }$ -Payment for supplies bought on account

Define and describe an accounting system.

When posting the column totals of a cash payments journal, a debit should be posted to

Specialized journals are books of original entry.

Each individual entry in the revenue journal is posted to the

The format and number of specialized journals that a business uses depend upon the legal organization of the business.

The term B2C refers to transactions conducted between two companies.

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