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Exam 5: Accounting Systems

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Question 31

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

A) Cash receipts journal
B) Cash payments journal
C) Revenue journal
D) Purchases journal
E) General journal

F) B) and C)
G) A) and E)

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Question 32

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The principal ledger that contains all the balance sheet and income statement accounts is the general ledger.

A) True
B) False

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Question 33

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Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in the cash receipts journal. If a transaction should not be recorded in the cash receipts journal, indicate where it should be posted. (a)On January 3, a one-year insurance policy was purchased for $2,400. The account number for Prepaid Insurance is 16. (b)On January 5, Davidson, Inc. received a payment on account from Pasher Industries of $625. (c)On January 12, Davidson, Inc. made sales on account of $3,500 and sales for cash of $2,300. The account number for Fees Earned is 41. (d)On January 26, Davidson, Inc. received $1,250 in rent revenue from a tenant who leases a portion of its building. The account number for Rent Revenue is 44. (e)On January 29, Davidson, Inc. received a payment on account from Gooden, Inc. for $2,000.? $\begin{array} { | c | c | c | c | c | c | } \hline \text { Date } & \begin{array} { c } \text { Account } \\\text { Credited }\end{array} & \begin{array} { c } \text { Post. } \\\text { Ref. }\end{array} & \begin{array} { c } \text { Other } \\\text { Accounts } \\\text { Cr. }\end{array} & \begin{array} { c } \text { Accounts } \\\text { Receivable } \\\text { Cr. }\end{array} & \begin{array} { c } \text { Cash } \\\text { Dr. }\end{array} \\\hline & & & & & \\\hline & & & & & \\\hline & & & & & \\\hline & & & & & \\\hline & & & & & \\\hline\end{array}$

Connie's Specialties Inc. offers exclusive interior design services. The following revenue information was determined from Connie's records.​Current YearPrior YearConsultation services$1,000,000$ 800,000Design services1,800,0001,500,000​Using a horizontal analysis, which is correct?

Utilizing the revenue journal below, journalize the following five transactions of Porshe Creations: (a)On March 20, Porshe sells 25 cell phone covers to Xtreme at $4.50 per cover on Invoice No. 887. (b)On March 21, Porshe sells 5 cell phone covers to Sidekick for $7.50 per cover on Invoice No. 908. (c)On March 22, Porshe sells 18 cell phone covers to Rock-On at $4.25 per cover on Invoice No. 938. (d)On March 26, Porshe sells 200 cell phone covers to Micro at $3.75 each on Invoice No. 959. (e)On March 29, Porshe sells 6 cell phone covers to Charmers for $8.35 each on Invoice No. 997.?

Voyager Electronic Services has three customers in its accounts receivable subsidiary ledger with beginning balances as follows: Fred Yao Ming, $1,150.00 Kohl Townson, $850.00 Chandra Jahi, $1,075.00 ?Record the following transactions in a general journal. Then post to the accounts receivable account in the general ledger and to the customer accounts in the accounts receivable subsidiary ledger .June 3 Kohl Townson paid $325.00 on account. 10 Chandra Jahi purchased $475.00 on account. 15 Fred Yao Ming paid $395.00 on account. 16 Fred Yao Ming purchased $685.00 on account. 23 Kohl Townson purchased $155.00 on account.? $\quad\quad\quad\quad\quad\quad\quad\quad\textbf { General Journal } \quad \quad\quad\textbf { Page 41}$ $\begin{array}{|c|c|c|c|c|}\hline \text { Date } & \text { Description } & \begin{array}{c}\text { Post. } \\\text { Ref. }\end{array} & \text { Debit } & \text { Credit } \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline\end{array}$ GENERAL LEDGER

When Richard Miller purchases a fishing pole through Amazon.com, he is utilizing

Briefly describe the three-step process of accounting system development.

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 a payment on account

Which of the following is recorded in the cash receipts journal?

Minnie Co. does business in three segments: Theme Parks, Movie Production, and Merchandise. The following information from the current year is available:​ ​Prepare a vertical analysis of the segment data. Round percentages to two decimal places.​

Sales of office supplies for cash, at cost, to a neighboring business as an accommodation are recorded in the revenue journal.

Two transactions were posted to the following customer account:NAME: Gen-X Products, Inc.Address: 123 My Way​ Describe each transaction and the source of each posting.

A (n) ____ system is the methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating information.

Business may be segmented by all of the following except

In which journal would adjusting entries be found?

$\text { Match the transactions below with the journal or ledger in which it would be entered. }$ -Cash receipt posting to an individual customer 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

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

The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. What problems do you see with these headings? $\begin{array}{|c|c|c|c|c|c|c|}\hline \text { Date } & \begin{array}{c}\text { Account } \\\text { Credited }\end{array} & \begin{array}{c}\text { Post. } \\\text { Ref. }\end{array} & \begin{array}{c}\text { Accounts } \\\text { Payable Dr. }\end{array} & \begin{array}{c}\text { Accounts } \\\text { Receivable } \\\text { Cr. }\end{array} & \begin{array}{c}\text { Cash } \\\text { Cr. }\end{array} & \begin{array}{c}\text { Other } \\\text { Accounts } \\\text { Dr. }\end{array} \\\hline & & & & & & \\\hline\end{array}$

In which journal would you find cash revenues recorded?