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Exam 5: Accounting Systems

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Question 51

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

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B) False

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Question 52

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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.

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​May 14Collected cash of $625 from Roswe...

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Question 53

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

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

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.

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

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

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.

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 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

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

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

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

If a company uses special journals,

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

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)

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

The goal of systems design is to