Week 7 Problems and Discussion Question-strayer fin100

Question 1

Benji Borke has prepared the following list of statements about accounting information systems.

Identify each statement as true or false.

1. The accounting information system includes each of the steps of the accounting cycle, the documents that provide

evidence of transactions that have occurred, and the accounting records.

2. The benefits obtained from information provided by the accounting information system need not outweigh the cost of

providing that information.

3. Designers of accounting systems must consider the needs and knowledge of various users.

4. If an accounting information system is cost­effective and provides useful output, it does not need to be flexible.

Question 2

Identify in what ledger (general or subsidiary) each of the following accounts is shown.

Accounts Ledger

(a) Rent Expense

(b) Accounts Receivable—Cabrera

(c) Notes Payable

(d) Accounts Payable—Pacheco

Question 3

Identify the journal in which each of the following transactions is recorded.

Transactions Journals

(a) Cash sales

(b) Owner withdrawal of cash

(c) Cash purchase of land

(d) Credit sales

(e) Purchase of merchandise on account

(f) Receipt of cash for services performed

Question 4

Rauch Computer Components Inc. uses a multi­column cash receipts journal.

Indicate which column(s) is/are posted only in total, only daily, or both in total and daily.

Accounts Column in Cash Journal Receipts

(a) Accounts Receivable

(b) Sales Discounts

(c) Cash

(d) Other Accounts

Question 511/22/2014 Print Assignment: Homework Ch07 ::true

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Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1, 2014. The subsidiary ledger contains three

accounts: Hale Company, balance $3,000? Janish Company, balance $1,875? and Valdez Company. During January, the following payable­related

transactions occurred.

Purchases Payments Returns

Hale Company $6,750 $6,000 $ ­0­

Janish Company 5,250 1,875 2,250

Valdez Company 6,375 6,750 ­0­

What is the January 1 balance in the Valdez Company subsidiary account?

Balance in the Valdez Company subsidiary account $

What is the January 31 balance in the control account?

Balance in the control account $

Compute the balances in the subsidiary accounts at the end of the month.

The balances in the subsidiary accounts at the end of the month.

Hale $

Janish

Valdez

Which January transaction would not be recorded in a special journal?

Question 6

R. Santiago Co. uses special journals and a general journal. The following transactions occurred during May 2014.

May 1 R. Santiago invested $40,000 cash in the business.

2 Sold merchandise to Lawrie Co. for $6,300 cash. The cost of the merchandise sold was $4,200.

3 Purchased merchandise for $7,700 from J. Moskos using check no. 101.

14 Paid salary to H. Rivera $700 by issuing check no. 102.

16 Sold merchandise on account to K. Stanton for $900, terms n/30. The cost of the merchandise sold was $630.

22 A check of $9,000 is received from M. Mangini in full for invoice 101? no discount given.

Prepare a multiple­column cash receipts journal and record the transactions for May that should be journalized. (Record entries in the order presented in the problem statement.)

R. SANTIAGO CO.

Cash Receipts Journal

Date

Account

Credited Ref

Cash

Dr.

Sales

Discounts

Dr.

Accounts

Receivable

Cr.

Sales

Revenue

Cr.

Prepare a multiple­column cash payments journal and record the transactions for May that should be journalized. (Record entries in the order presented in the problem statement.)

R. SANTIAGO CO.

Cash Payments Journal

Date Ck. No. Account Debited Ref Other Accounts Dr. Accounts Payable Dr. Inventory Cr.11/22/2014 Print Assignment: Homework Ch07 ::true

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Question 7

Selected account balances for Hulse Company at January 1, 2014, are presented below.

Accounts Payable $14,000

Accounts Receivable 22,000

Cash 17,000

Inventory 13,500

Hulse’s sales journal for January shows a total of $110,000 in the selling price column, and its one­column purchases journal for January shows a

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