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Exam 5: Accounting Systems

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Question 51

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If a company uses special journals,

A) it must have one for cash, receivables, and payables
B) it may have no more than four
C) the quantity and design depend on the needs of the company
D) the design must comply with the FASB requirements

E) All of the above
F) None of the above

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Question 52

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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

A) A/R, $1,375; A/P, $375
B) A/R, $525; A/P, $175
C) A/R, $875; A/P, $575
D) A/R, $750; A/P, $700

E) A) and C)
F) None of the above

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Question 53

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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.

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

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.

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

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

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

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 $\begin{array}{c}\hline&&&Post&Acct.~Rec.~Dr.\\\text { Date } & \text { Invoice No. } & \text { Account Debited } & \text { Ref. } & \text { Fees Earned } \mathrm{Cr} \\\hline \text { Apr. } 3 & 190 & \text { Hill Company } & \text { (a) } & 4,750 \\8 & 191 & \text { North Supply } & \text { (b) } & 5,025 \\13 & 192 & \text { Macon Inc. } & \text { (c) } & 2,100 \\17 & 193 & \text { White Products } & \text { (d) } & 6,000 \\25 & 194 & \text { Easton Supply } & \text { (e) } & 2,250 \\30 & 195 & \text { Karson Enterprises } & \text { (f) } & 3,750 \\30 & & & & \underline{\textbf{23,875}} \\&&&&(g)(h)\end{array}$

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

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

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)

Which of the following is not considered a special journal?

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

The goal of systems design is to

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

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

$\text { Match the transactions below with the journal or ledger in which it would be entered. }$ -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

Payton Company has the following segment revenues for the two most recent years.?? $\begin{array} { | l | r | r | } \hline \text { Segment } & \begin{array} { c } \text { Current Year } \\\text { (in millions) }\end{array} & \begin{array} { c } \text { Prior Year } \\\text { (in millions) }\end{array} \\\hline \text { United States } & \$ 825.00 & \$ 600.00 \\\hline \text { Canada } & 325.50 & 345.50 \\\hline \text { Other countries } & \underline{215.50} & \underline{168.50} \\\hline \text { Total revenues } & \mathbf {\$ 1,366.00} & \mathbf { \$ 1 , 1 1 4 . 0 0 } \\\hline\end{array}$ Prepare a horizontal analysis of the segment data. Round to one decimal place.

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