CheckPoint: Accounting Information Systems and Special Journals
QS 7-1 and 7-3 and Exercises 7-1, 7-4, 7-7, and 7-10
Place the letter of each system principle in the blank next to its best description.
A. Control principle D. Flexibility principle
B. Relevance principle E. Cost-benefit principle
C. Compatibility principle
1. The principle prescribes the accounting information system to change in response to technological advances and competitive pressures. D. Flexibility principle
2. The principle prescribes the accounting information system to help monitor activities. A. Control principle
3. The principle prescribes the accounting information system to provide timely ...view middle of the document...
The following transactions occur in the month of March:
Mar. 2 Sold merchandise costing $300 to B. Fager for $450 cash, invoice no. 5703.
5 Purchased $2,300 of merchandise on credit from Marsh Corp.
7 Sold merchandise costing $800 to J. Dryer for $1,150, terms 2_10, n_30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $200 to R. Land for $320, terms n_30, invoice no. 5705.
16 Received $1,127 cash from J. Dryer to pay for the purchase of March 7.
19 Sold used store equipment for $900 cash to Malone, Inc.
25 Sold merchandise costing $350 to T. Burton for $550, terms n_30, invoice no. 5706.
Prepare headings for a sales journal like the one in Exhibit 7.5. Journalize the March transactions that should be recorded in this sales journal.
Sales Journal Page 1 |
Date | Account Debited | Invoice Number | PR | Accounts Receivable Dr. Sales CR. | Cost of Goods Sold Dr. Inventory Cr. |
Mar. 7 | J. Dryer | 5704 | | 1,150 | 800 |
12 | R. Land | 5705 | | 320 | 200 |
25 | T. Burton | 5706 | | 550 | 350 |
31 | Totals | | | 2,020 | 1350 |
| | | | | |
Moeder Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.
Nov. 3 Purchased $3,100 of merchandise on credit from Hargrave Co., terms n_20.
7 Sold merchandise costing $840 on credit to J. York for $900, subject to a $18 sales discount
if paid by the end of the month.
9 Borrowed $2,750 cash by signing a note payable to the bank.
13 J. Emling, the owner, contributed $4,000 cash to the company.
18 Sold merchandise costing $130 to B. Box for $230 cash.
22 Paid Hargrave Co. $3,100 cash for the merchandise purchased on November 3.
27 Received $882 cash from J. York in payment of the November 7 purchase.
30 Paid salaries of $1,600 in cash.
Prepare headings for a cash receipts journal like the one in Exhibit 7.7. Journalize the November
transactions that should be recorded in the cash receipts journal.
Cash Receipts Journal Page 1 | | | | |
Date | Account Credited | Explanation | PR | Cash Dr. | Sales Discount Dr. | Accounts Receivable Cr. | Sales Cr. | Other Accounts Cr. | Cost of Goods Sold Dr. Inventory Cr. |
Nov. 9 | Notes Payable | Note to bank | | 2,750 | | | | 2,750 | |
13 | J. Emling, Capital | Contribution | | 4,000 | | | | 4,000 | |
18 | Sales | Cash sale | | 230 | | | 230 | | 130 |
27 | J. York | Invoice 11/7 | | 882 | 18 | 900 | | | |
30 | Totals | | | 7,862 | 18 | 900 | 230 | 6,750 | 130 |
| | | | | | | | | |
Redmon Company uses a sales journal, a purchases...