Exam 5: Accounting Systems

When using a purchases journal,

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 purchase of supplies

The basic procedure of posting from a revenue journal is to make all postings at the end of the month.

When specialized journals are used, the general journal is not necessary.

The total on the "Cash Receipts" report generated by QuickBooks^® software at January 31 would be equal to the

Harris, Inc. incurred the following transactions during the month of February. Record the appropriate ones in the cash payments journal. Include posting references. If a transaction should not be recorded in the cash payments journal, indicate where it should be posted. (a)On February 3, the company purchased $650 worth of supplies on account. The supplies account number is 15. (b)On February 5, Harris, Inc. made a payment on account to Sanders Industries in the amount of $1,215 (Check No. 2214). (c)On February 14, Harris, Inc. bought a one-year insurance policy for $1,500. The prepaid insurance account number is 14 (Check No. 2215). (d)On February 22, Harris, Inc. paid monthly rent of $2,000. The rent expense account number is 63 (Check No. 2216). (e)On February 26, Harris, Inc. purchased equipment making a down payment of $3,000 (Check No. 2217) and agreeing to pay the $4,000 balance in 30 days. The equipment account number is 18.? Date Ck. No. Account Debited Post. Ref. Other Accounts Dr. Accounts Payable Dr. Cash Cr.

For each of the following businesses, explain how a purchases journal might be modified for the specific business. 1. North County Medical Center 2. Tri-County Farms, Inc. 3. Prescott's Quick Lube and Tire Store

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 -Paid for the equipment purchased on account

Snelling 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 South region.Round to one decimal place.

The columns included in special journals are standardized for all businesses.

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 -Received a check from a customer for payment on account

Which of the following journals is called an all-purpose journal?

Some of the more common subsidiary ledgers are

When using a revenue journal,

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 equipment on account

$\text { Match the transactions below with the journal or ledger in which it would be entered. }$ -Record purchase on account from vendor 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

After an accounting system has been set up, what is the next step?

Generally, subsidiary ledgers are used for general ledger accounts that consist of a large number of individual items.

Beach Hut Snack Bar, Restaurant, and Lounge

Explain what subsidiary ledgers are and give examples of three types of subsidiary ledgers that a business might use.