Strayer ACC100 homework chapter 07

Brief Exercise 7-3
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.

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True
False

2.

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

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True
False

3.

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

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True
False

4.

If an accounting information system is cost-effective and
provides useful output, it does not need to be flexible.

Brief Exercise 7-5
Identify in what ledger
(general or subsidiary) each of the following accounts is shown.

Accounts

Ledger

(a)

Rent Expense

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General Ledger
Subsidiary Ledger

(b)

Accounts Receivable—Cabrera

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General Ledger
Subsidiary Ledger

(c)

Notes Payable

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General Ledger
Subsidiary Ledger

(d)

Accounts Payable—Pacheco

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General Ledger
Subsidiary Ledger

Brief Exercise 7-6
Identify the journal in which
each of the following transactions is recorded.

Transactions

Journals

(a)

Cash sales

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Cash Receipts Journal
Cash Payments Journal
Sales Journal
Purchases Journal
General Journal

(b)

Owner withdrawal of cash

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Sales Journal
Purchases Journal
General Journal
Cash Receipts Journal
Cash Payments Journal

(c)

Cash purchase of land

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Cash Receipts Journal
Cash Payments Journal
Sales Journal
Purchases Journal
General Journal

(d)

Credit sales

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Sales Journal
General Journal
Purchases Journal
Cash Payments Journal
Cash Receipts Journal

(e)

Purchase of merchandise on account

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General Journal
Cash Receipts Journal
Sales Journal
Cash Payments Journal
Purchases Journal

(f)

Receipt of cash for services performed

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Sales Journal
Purchases Journal
Cash Payments Journal
General Journal
Cash Receipts Journal

Brief Exercise 7-10
Rauch Computer Components Inc.
uses a multi-column 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

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Only daily
Both in total and daily
In total

(b)

Sales Discounts

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In total
Both in total and daily
Only daily

(c)

Cash

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Both in total and daily
In total
Only daily

(d)

Other Accounts

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In total
Both in total and daily
Only daily

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Exercise 7-5
(Part level Submission)
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 payable-related 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-

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(a)

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

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What is the January 31 balance in the control account?

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

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

Exercise 7-7 (Part
level Submission)
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.

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(a)

Prepare
a multiple-column 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

CR1

Date

Account
Credited

Ref

Cash
Dr.

Sales
Discounts
Dr.

Accounts
Receivable
Cr.

Sales
Revenue
Cr.

Other
Accounts
Cr.

Cost
of Goods Sold
Dr.
Inventory Cr.

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May 1
May 2
May 3
May 14
May 16
May 22

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M. Mangini
Owner’s Cap.

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May 1
May 2
May 3
May 14
May 16
May 22

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Owner’s Cap.
M. Mangini

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May 1
May 2
May 3
May 14
May 16
May 22

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M. Mangini
Owner’s Cap.

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Exercise 7-14
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 one-column purchases journal for January shows a total of
$77,000.

The column totals in Hulse’s cash receipts journal are: Cash Dr. $61,000; Sales
Discounts Dr. $1,100; Accounts Receivable Cr. $45,000; Sales Revenue Cr.
$6,000; and Other Accounts Cr. $11,100.

The column totals in Hulse’s cash payments journal for January are: Cash Cr.
$55,000; Inventory Cr. $1,000; Accounts Payable Dr. $46,000; and Other Accounts
Dr. $10,000. Hulse’s total cost of goods sold for January is $63,600.

Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are
not involved in the “Other Accounts” column in either the cash receipts or cash
payments journal, and are not involved in any general journal entries.

Compute the January 31 balance for Hulse in the following accounts.

(a)

Accounts Payable

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(b)

Accounts Receivable

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(c)

Cash

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(d)

Inventory

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(e)

Sales Revenue

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