A company uses four special journals: purchases,sales,cash receipts,and cash disbursements (perpetual inventory method).The following transactions were incurred during August: \[ \begin{array}{|l|l|l|} \hline \text { Aug. }&1&\text{Purchased merchandise from Able Co. for \$ 2,000 terms 2 / 10,} \mathrm{n} / 30 ,\text{ Invoice dated }\\ &&\text{August 1.}\\ \hline&4&\text{Sold merchandise on credit to Coe Co. for \$ 4,000 , terms 2 / 10, n / 30, invoice no. }\\ &&\text{245. Cost of the goods sold is \$ 2,320 .}\\ \hline&5&\text{Sold merchandise on credit to Delta Corp. for \$ 3,000 , terms 2 / 10,} \mathrm{n} / 30 \text{, invoice no.}\\ &&\text{246. Cost of the goods sold is \$ 1,740 .}\\ \hline&7&\text{Paid salaries accrued on July 31, \$2,100 to manager Ms. Krenz, check no. 756.}\\ \hline&9&\text{Returned merchandise costing \$ 200 to Able Co. from August 1 purchase.}\\ \hline&11&\text{Paid Able Co. for the August 1 purchase, check no. 757.}\\ \hline&12&\text{Accepted merchandise returned by Coe Co. from August 4 sale. Issued credit}\\ &&\text{memorandum for \$ 500 . Cost of the goods returned is \$ 290 .}\\ \hline&13&\text{Received cash payment from Coe Co. for August 4 sale.}\\ \hline&19&\text{Received cash payment in full from Delta Corp. for the August 5 sale.}\\ \hline&28&\text{Recorded cash sales for the month, \$ 9,000 . Cost of the goods sold is \$ 5,220 .}\\ \hline&29&\text{Paid cash to Incite Telephone Co for monthly telephone bill \$ 250 , check no. 758}\\ \hline \end{array} \] Record these transactions in the appropriate special journals below: \[\begin{array}{l} \text { Sales Journal }\\ \begin{array} { | l | l | l | l | l | l | } \hline \text { Date } & \begin{array} { l } \text { Account } \\ \text { Debited } \end{array} & \text { Invoice Number } & \text { PR } & \begin{array} { l } \text { Accounts } \\ \text { Receivable Dr. } \\ \text { Sales Cr. } \end{array} & \begin{array} { l } \text { Cost of Goods Sold Dr. } \\ \text { Inventory Cr. } \end{array} \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{array} \end{array}\] \[\begin{array}{l} \text { Purchases Journal }\\ \begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Date } & \text { Account } & \begin{array} { l } \text { Date of } \\ \text { Invoice } \end{array} & \text { Terms } & \text { PR } & \begin{array} { l } \text { Accounts } \\ \text { Payable } \\ \text { Cr. } \end{array} & \begin{array} { l } \text { Inventory } \\ \text { Dr. } \end{array} & \begin{array} { l } \text { Office } \\ \text { Supplies } \\ \text { Dr. } \end{array} & \begin{array} { l } \text { Other } \\ \text { Accounts } \\ \text { Dr } \end{array} \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline \end{array} \end{array}\] \[ \begin{array}{ll} \text { Cash Receipts Journal }\\ \begin{array} { | l | l | l | l | l | l | l | l | l | l|} \hline&&&&&&&&&\text{Cost of}\\ &&&&&&&&&\text{Goods}\\ && & &&\text{Sales}&\text {Accounts }&&\text { Other }&\text{Sold Dr.}\\ & \text{Account} && &\text{Cash}& \text{Discount}& \text{Receivable}&\text{Sales}&\text{Accounts}&\text{Inventory}\\ \text{Date} &\text{Credited} & \text { Explanation } & \text{PR} &\text{Dr.} & \text{Dr.}&\text{Cr.}&\text{Cr.} & \text{Cr.}& \text{Cr.}\\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline \end{array} \end{array}\\\] \[\begin{array}{l} \text { Cash Disbursements Journal }\\ \begin{array} { | l | l | l | l | l | l | l | l | l | } \hline \text { Date } & \begin{array} { l } \text { Ck. } \\ \text { No. } \end{array} & \text { Payee } & \begin{array} { l } \text { Account } \\ \text { Debited } \end{array} & \text { PR } & \begin{array} { l } \text { Cash } \\ \text { Cr. } \end{array} & \begin{array} { l } \text { Irventory } \\ \text { Cr. } \end{array} & \begin{array} { l } \text { Other }\\ \text { Accounts } \\ \text { Dr. } \end{array} & \begin{array} { l } \text { Accounts } \\ \text { Payable } \\ \text { Dr. } \end{array} \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline \end{array} \end{array}\] \[ \begin{array}{ll} \text { General Journal }\\ \begin{array} { | l | l | l |l|} \hline \quad\quad\quad&\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad &\quad\quad &\quad\quad \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{array} \end{array}\\\]

@#IMG-DLM&_TB6312_00_TB6312_00 @#IMG-DLM&_TB6312_0

The following information is available for some of a company's segments (all amounts are in millions): $\begin{array}{|l|r|r|r|} \hline& \text { North } & & \text { Latin } \\ & \text { America }&\text { Africa }&\text{America}\\ \hline\text { Segment sales }&\$ 6,264 & \$ 694 & \$ 2,089 \\ \hline\text { Segment operating income }& 1,494 & 224 & 1,033 \\ \hline\text { Segment average assets }& 4,869 & 541 & 1,443 \\ \hline \end{array}$ a.Determine the segment return on assets for each geographic segment b.Comment on the results.How do the segments compare with respect to profitability?

a. @#IMG-DLM&_TB6312_00_TB6312_00 b.Lat

Exam 25: Accounting With Special Journals

Identify the accounting information system principle below that applies to each of these situations: A. Flexibility B. Compatibility C. Control D. Cost-benefit E. Relevance $\underline{\quad\quad\quad\quad\quad}$ 1. Global Company has designed its accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales, and controlling costs $\underline{\quad\quad\quad\quad\quad}$ 2. Global Company's accounting information system has policies to ensure that financial statements are reliable, assets are protected, and relevant laws and regulations are complied with. $\underline{\quad\quad\quad\quad\quad}$ 3. Global Company's accounting information system can be improved markedly for a cost of about $\$ 30,000,000$ . However, the incremental benefits from such improvements are not expected to outweigh this cost. $\underline{\quad\quad\quad\quad\quad}$ 4. Global Company has worldwide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing. $\underline{\quad\quad\quad\quad\quad}$ 5. Global Company has designed its accounting information system to be adaptable to changes in technology, the business environment, and the needs of decision makers

(Short Answer)

4.9/5

(28)

Question 41

When the sales journal's column for accounts receivable and sales is totaled at the end of the month,its total is:

(Multiple Choice)

4.9/5

(47)

Question 42

A subsidiary ledger that contains a separate account for each supplier of the company is a(n):

(Multiple Choice)

4.8/5

(39)

Question 43

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

(True/False)

4.9/5

(42)

Question 44

The control principle for accounting information systems requires that the:

(Multiple Choice)

4.8/5

(37)

Question 45

The accounts receivable ledger:

(Multiple Choice)

4.7/5

(42)

Question 46

The use of an Accounts Payable controlling account:

(Multiple Choice)

4.9/5

(36)

Question 47

Information processors:

(Multiple Choice)

4.8/5

(39)

Question 48

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

(True/False)

4.8/5

(31)

Question 49

A company uses four special journals: purchases,sales,cash receipts,and cash disbursements (perpetual inventory method).The following transactions were incurred during August: Aug. 1 Purchased merchandise from Able Co. for \ 2,000 terms 2 / 10, /30, Invoice dated August 1. 4 Sold merchandise on credit to Coe Co. for \ 4,000 , terms 2 / 10, n / 30, invoice no. 245. Cost of the goods sold is \ 2,320 . 5 Sold merchandise on credit to Delta Corp. for \ 3,000 , terms 2 / 10, /30 , invoice no. 246. Cost of the goods sold is \ 1,740 . 7 Paid salaries accrued on July 31, \2 ,100 to manager Ms. Krenz, check no. 756. 9 Returned merchandise costing \ 200 to Able Co. from August 1 purchase. 11 Paid Able Co. for the August 1 purchase, check no. 757. 12 Accepted merchandise returned by Coe Co. from August 4 sale. Issued credit memorandum for \ 500 . Cost of the goods returned is \ 290 . 13 Received cash payment from Coe Co. for August 4 sale. 19 Received cash payment in full from Delta Corp. for the August 5 sale. 28 Recorded cash sales for the month, \ 9,000 . Cost of the goods sold is \ 5,220 . 29 Paid cash to Incite Telephone Co for monthly telephone bill \ 250 , check no. 758 Record these transactions in the appropriate special journals below: Sales Journal Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. Purchases Journal Date Account Date of Invoice Terms PR Accounts Payable Cr. Inventory Dr. Office Supplies Dr. Other Accounts Dr \begin{array}{ll} \text { Cash Receipts Journal }\\ \begin{array} { | l | l | l | l | l | l | l | l | l | l|} \hline&&&&&&&&&\text{Cost of}\\ &&&&&&&&&\text{Goods}\\ && & &&\text{Sales}&\text {Accounts }&&\text { Other }&\text{Sold Dr.}\\ & \text{Account} && &\text{Cash}& \text{Discount}& \text{Receivable}&\text{Sales}&\text{Accounts}&\text{Inventory}\\ \text{Date} &\text{Credited} & \text { Explanation } & \text{PR} &\text{Dr.} & \text{Dr.}&\text{Cr.}&\text{Cr.} & \text{Cr.}& \text{Cr.}\\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline \end{array} \end{array}\\ Cash Disbursements Journal Date Ck. No. Payee Account Debited PR Cash Cr. Irventory Cr. Other Accounts Dr. Accounts Payable Dr. \begin{array}{ll} \text { General Journal }\\ \begin{array} { | l | l | l |l|} \hline \quad\quad\quad&\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad &\quad\quad &\quad\quad \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{array} \end{array}\\

(Essay)

4.8/5

(35)

Question 50

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________ and for each sale that is used in the perpetual system but not in the periodic.

(Short Answer)

4.8/5

(42)

Question 51

Posting debits from the sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

(True/False)

4.7/5

(37)

Question 52

The following information is available for some of a company's segments (all amounts are in millions): North Latin America Africa America Segment sales \ 6,264 \ 694 \ 2,089 Segment operating income 1,494 224 1,033 Segment average assets 4,869 541 1,443 a.Determine the segment return on assets for each geographic segment b.Comment on the results.How do the segments compare with respect to profitability?

(Essay)

4.9/5

(32)

Question 53

The Accounts Payable account in the general ledger is:

(Multiple Choice)

4.8/5

(36)

Question 54

Input devices are the means to make accounting information available to users.

(True/False)

5.0/5

(37)

Question 55

A company entered into the following transactions.For each transaction,indicate the appropriate journal in which it would be recorded. Transaction Record in Journal 1. Borrowed cash from the bank. 2. Purchased merchandise for cash. 3. Paid cash to settle the utility bill. 4. Customer sent in cash to settle an account receivable. 5. Purchased merchandise on credit. 6. Recorded depreciation for the period. 7. Sold merchandise on credit. 8. Sold merchandise for cash. 9. Bought store supplies for cash. 10. Owner invested more cash in the business.

(Essay)

4.8/5

(29)

Question 56

The basic components of an accounting information system include all but which of the following?

(Multiple Choice)

4.8/5

(36)

Question 57

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

(True/False)

4.8/5

(30)

Question 58

The ledger that contains the financial statement accounts of a company is the:

(Multiple Choice)

4.8/5

(44)

Question 59

A customer who had purchased $60,000 worth of merchandise on account returns 10% of this order to the seller because she is not satisfied with the quality of the goods.How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

(Multiple Choice)

4.8/5

(38)

Question 60

Exam 25: Accounting With Special Journals

When the sales journal's column for accounts receivable and sales is totaled at the end of the month,its total is:

A subsidiary ledger that contains a separate account for each supplier of the company is a(n):

A schedule of accounts receivable is a listing of all creditor accounts and account balances.

The control principle for accounting information systems requires that the:

The accounts receivable ledger:

The use of an Accounts Payable controlling account:

Information processors:

Accounting information systems are so accurate that decision makers in practice do not need a basic knowledge of how the systems work.

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record ___________________________ and __________________ for each sale that is used in the perpetual system but not in the periodic.

Posting debits from the sales journal to Accounts Receivable twice-once to the general ledger account Accounts Receivable and once to the customer's subsidiary account-violates the accounting equation of debits equal credits.

The Accounts Payable account in the general ledger is:

Input devices are the means to make accounting information available to users.

The basic components of an accounting information system include all but which of the following?

If the total balance of the accounts receivable ledger equals the total of the controlling Accounts Receivable account,then the accounts are presumed to be correct.

The ledger that contains the financial statement accounts of a company is the:

A customer who had purchased $60,000 worth of merchandise on account returns 10% of this order to the seller because she is not satisfied with the quality of the goods.How would this entry be recorded on the books of the seller if historically the seller has had very few returns of this nature?

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

The difference in the sales journal between the perpetual and periodic inventory systems is a column to record _________ and for each sale that is used in the perpetual system but not in the periodic.