Student VersionStudent Version
o Repetition is an important component, a key Repetition is an important component, a key part of learning. In memory, the more times part of learning. In memory, the more times patterns of thought are repeated, the more patterns of thought are repeated, the more likely you will be able to recall information.likely you will be able to recall information.
o These PowerPoint slides have been modified These PowerPoint slides have been modified from the lecture decks by making them fill-in-from the lecture decks by making them fill-in-the-blank. Why? So that you get an the-blank. Why? So that you get an opportunity to repeat a visual cue (from the opportunity to repeat a visual cue (from the lecture or the book) via completing text here.lecture or the book) via completing text here.
o In addition, most text book exhibits have In addition, most text book exhibits have been removed as they are available in your been removed as they are available in your text directly.text directly.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Accounting Accounting
SystemsSystems
Chapter 5Chapter 5Chapter 5Chapter 5
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Learning Objective
ObjectiveDefine and describe an
Define and describe an accounting system.
accounting system.
11
_________ ___________Systems_________ ___________Systems
o An accounting ____________is the methods An accounting ____________is the methods and procedures for __________, __________, and procedures for __________, __________, __________, and __________a business’s __________, and __________a business’s financial and operating information.financial and operating information.
BASIC ACCOUNTING SYSTEMSBASIC ACCOUNTING SYSTEMS
As a business grows As a business grows and changes, and changes, accounting systems accounting systems also change in the also change in the following three-step following three-step process.process.
1.1. ________________________________________________ ________________ ________________________________
2.2. ________________________________________________________________________________ ________________
3.3. ________________________________________________________________________________________________
BASIC BASIC ACCOUNTING ACCOUNTING
SYSTEMSSYSTEMS
Basic Accounting SystemsBasic Accounting Systems
o ___________ ___________ are the policies and ___________ ___________ are the policies and procedures that ___________ assets from procedures that ___________ assets from ___________ , ensure that business ___________ , ensure that business information is ___________ , and ensure information is ___________ , and ensure that laws and ___________ are being that laws and ___________ are being ___________ .___________ .
___________ Methods___________ Methods
o ___________ ___________ are the means by ___________ ___________ are the means by which the accounting system collects, which the accounting system collects, summarizes, and reports accounting summarizes, and reports accounting information. These methods may be either information. These methods may be either ___________ or ___________ .___________ or ___________ .
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Learning Objective
ObjectiveJournalize and post transactions
Journalize and post transactions
in a manual accounting system
in a manual accounting system
that uses subsidiary ledgers and
that uses subsidiary ledgers and special journals.
special journals.
22
Manual Accounting SystemsManual Accounting Systems
o Understanding a manual accounting Understanding a manual accounting system is useful in identifying system is useful in identifying relationships between accounting relationships between accounting ___________ and ___________ .___________ and ___________ .
___________ ___________ ___________ ___________
o A large number of ___________ accounts A large number of ___________ accounts with a ___________ characteristic can be with a ___________ characteristic can be grouped together in a separate ___________ grouped together in a separate ___________ called a ___________ ledger.called a ___________ ledger.
Subsidiary LedgersSubsidiary Ledgers
o The primary ___________ , which contains The primary ___________ , which contains all of the balance sheet and ___________ all of the balance sheet and ___________ ___________ accounts, is called a ___________ accounts, is called a ___________ ___________ .___________ ___________ .
___________ Ledgers___________ Ledgers
o Each ___________ ledger is represented in Each ___________ ledger is represented in the ___________ ledger by a summarizing the ___________ ledger by a summarizing account,account, called a ___________ account.called a ___________ account.
Subsidiary LedgersSubsidiary Ledgers
o The individual customer accounts are The individual customer accounts are arranged in ___________ order in a arranged in ___________ order in a subsidiary ledger called the ___________ subsidiary ledger called the ___________ ___________ ___________ ___________ ,___________ ___________ ___________ , oror ___________ ledger.___________ ledger.
Subsidiary LedgersSubsidiary Ledgers
o The individual ___________ accounts are The individual ___________ accounts are arranged in alphabetical order in a arranged in alphabetical order in a subsidiary ledger called the ___________ subsidiary ledger called the ___________ ___________ ___________ ___________ ,___________ ___________ ___________ , or or ___________ ledger.___________ ledger.
___________ Journal___________ Journal
o One method of processing transactions One method of processing transactions more efficiently in a manual system is to more efficiently in a manual system is to use ___________ ___________ . ___________ use ___________ ___________ . ___________ ___________ are designed to be used for ___________ are designed to be used for recording a single kind of transaction that recording a single kind of transaction that ___________ ___________ .___________ ___________ .
SPECIAL SPECIAL JOURNALSJOURNALS
BUYING
SELLING
Special JournalsSpecial Journals
o The ___________ two-column journal, called The ___________ two-column journal, called the ___________ ___________ or simply the the ___________ ___________ or simply the ___________ ___________ ,, can be used for entries that can be used for entries that do not fit into any of the ___________ do not fit into any of the ___________ journals.journals.
Special JournalsSpecial Journals
o The ___________ journal is used for The ___________ journal is used for recording fees earned on ___________ . recording fees earned on ___________ .
Special JournalsSpecial Journals
o Cash fees earned would be recorded in the Cash fees earned would be recorded in the ___________ ___________ ___________ .___________ ___________ ___________ .
Special JournalsSpecial Journals
o ___________ made on account (on ___________ made on account (on __________ ) are recorded in the purchases __________ ) are recorded in the purchases ___________ .___________ .
Special JournalsSpecial Journals
o All cash payments are recorded in the All cash payments are recorded in the ___________ ___________ ___________ .___________ ___________ ___________ .
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
(continued)
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
(continued)
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2014
Accounts Receivable Subsidiary Ledger
Accessories By Claire
Revenue Journal Page 35
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
Mar. 2 615 Accessories By Claire 2 2 0 0 00
(continued)
2014
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2014
Accounts Receivable Subsidiary Ledger
Accessories By Claire
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
(continued)
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
The same procedure would be used to post the other transactions to the individual accounts in the accounts receivable subsidiary ledger.
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
Revenue Journal Page 35
1
2
3
4
5
6
1
2
3
4
5
6
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
(continued)
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Next, the amount column would be totaled.
9 6 0 0 0031
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
ACCOUNT Accounts Receivable Account No. 12
Balance
Dr. Cr.Date Dr. Cr.Item
Post. Ref.
2014Mar. 1 Balance 3 400 00
31 9 600 00 13 000 00 R35
The debit total is posted from the revenue journal to Accounts Receivable in the general ledger.
Revenue Journal, page 35
(continued)
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6 (12)
Indicates a debit posting of $9,600 to Accounts Receivable (General Ledger Account 12)
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
31 9 6 0 0 00
(continued)
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
ACCOUNT Fees Earned Account No. 41
Balance
Date Dr. Cr.ItemPost.
Ref.
9 600 00 R35
The credit total is posted from the revenue journal to Fees Earned in the general ledger.
9 600 00
Dr. Cr.
(continued)
Revenue Journal, page 35
Mar. 312014
EXHIBIT 3 EXHIBIT 3 (IN STEPS)(IN STEPS)
Indicates a credit posting of $9,600 to Fees Earned (General Ledger Account 41)
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6 (12)
2014
Mar. 2 615 Accessories By Claire 2 2 0 0 00
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
31 9 6 0 0 00
(41)
___________ ___________ Journal___________ ___________ Journal
o All transactions that involve the receipt of All transactions that involve the receipt of cash are recorded in a _____ _____ _____ . cash are recorded in a _____ _____ _____ . Every entry recorded in the _____ _____ Every entry recorded in the _____ _____ journal will involve a _____ to the journal will involve a _____ to the “__________” column. “__________” column.
EXHIBIT 4 EXHIBIT 4 (IN STEPS)(IN STEPS)
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNAL
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
2014
19 Web Cantina 3,400 3,400
28 Accessories By Claire 2,200 2,200
30 RapZone 1,750 1,750
Date Item P.R. Debit Credit Cr. Bal.
ACCOUNT Rent Revenue Acct. No. 42
GENERAL LEDGER
42
CR14Mar. 12014
400
(continued)
400
EXHIBIT 4 EXHIBIT 4 (IN STEPS)(IN STEPS)
Date Item P.R. Debit Credit Balance
Web Cantina
Mar. 1 Bal. 3,400
18 R35 2,650 6,050
2014
3,400 2,650
19
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNAL
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
2014
19 Web Cantina 3,400 3,400
28 Accessories By Claire 2,200 2,200
30 RapZone 1,750 1,750
Accounts Receivable Subsidiary Ledger
CR14
(continued)
42
Cash Receipts JournalCash Receipts Journal
o After all journalizing and posting to After all journalizing and posting to individual accounts for the month is individual accounts for the month is complete, the columns are totaled.complete, the columns are totaled.
EXHIBIT 4 EXHIBIT 4 (IN STEPS)(IN STEPS)
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNAL
Other Accounts Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
2014
19 Web Cantina 3,400 3,400
28 Accessories By Claire 2,200 2,200
30 RapZone 1,750 1,750
42
400 7,350 7,750( ) ( ) ( )
A check mark indicates that items in this column are posted individually.
12 11
(continued)
31
_________ _________ Account_________ _________ Account
o The total of the accounts in the accounts The total of the accounts in the accounts receivable _________ ledger should receivable _________ ledger should _________ the balance in the _________ _________ the balance in the _________ _________ _________ _________ account._________ _________ _________ account.
_________ Journal_________ Journal
o The _________ _________ is designed for The _________ _________ is designed for recording all purchases recording all purchases on on _________ ._________ .
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2014
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
(continued)
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
PURCHASES JOURNAL Page 11
7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
Note that the March 12 purchase of office equipment for $2,800 is recorded as a debit in the “Other Accounts Dr.” column. Also note that the account title is written in for proper posting.
(continued)
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL
2014
Mar. 3 Howard Supplies 600 600
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
PURCHASES JOURNAL Page 11
7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL
2014
Mar. 3 Howard Supplies 600 600
Date Item P.R. Dr. Cr. Balance
2014
P11
(continued)
Accounts Payable Subsidiary Ledger
Howard Supplies
600Mar. 3 600
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
PURCHASES JOURNAL Page 11
7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL
2014
Mar. 3 Howard Supplies 600 600
(continued)
The other entries to the accounts payable subsidiary ledger are recorded using the same procedure.
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
PURCHASES JOURNAL Page 11
2012
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
This posting reference indicates that Office Equipment (Account 18) is debited in the general ledger for $2,800.
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount2014
18
Purchases JournalPurchases Journal
o At the end of March, all columns are At the end of March, all columns are totaled and the equality of debits and totaled and the equality of debits and credits is verified. Then the total amounts credits is verified. Then the total amounts in the “Accounts Payable Cr.” and in the “Accounts Payable Cr.” and “Supplies Dr.” columns are posted. “Supplies Dr.” columns are posted. Because Office Equipment was posted Because Office Equipment was posted earlier, the $2,800 total is not posted.earlier, the $2,800 total is not posted.
EXHIBIT 5 EXHIBIT 5 (IN STEPS)(IN STEPS)
7 Donnelly Supplies 420 420 12 Jewett Bus. Sys. 2,800 Off. Equip. 18 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
( ) ( ) ( )
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2014
Mar. 3 Howard Supplies 600 600
21
ACCOUNT Accounts Payable No. 21
GENERAL LEDGER
Date Item P.R. Debit Credit Balance
Mar. 1 Bal 1,2306,230 7,46031 P11
2014
Supplies would be debited for $3,430
and 14 written in the parentheses.
_________ Payments Journal_________ Payments Journal
o All transactions involving a credit to All transactions involving a credit to _________ are recorded in the _________ _________ are recorded in the _________ _________ _________ . _________ _________ .
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
On March 2, 2014, issued Check 150 for
rent of $1,600.
(continued)
Cash Payments JournalCash Payments Journal
o The amounts listed in the “Other Accounts The amounts listed in the “Other Accounts Dr.” column are posted on a regular basis. Dr.” column are posted on a regular basis. The $1,600 for Rent Expense is posted to The $1,600 for Rent Expense is posted to Account No. 52. Account No. 52.
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
General Ledger
Account Rent Expense
1,600 1,600
Date Item P.R. Dr. Cr. Balance
Account No. 52
52
(continued)
2014Mar. 2 CP7
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
15 151 Grayco Supplies 1,230 1,230
CASH PAYMENTS JOURNAL PAGE 7
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
2014Mar. 2 150 Rent Expense 1,600 1,600
On March 15, issued Check 151 to Grayco Supplies for $1,230.
52
(continued)
Cash Payments JournalCash Payments Journal
o Let’s post to the accounts payable Let’s post to the accounts payable subsidiary ledger at this time to keep the subsidiary ledger at this time to keep the creditors’ accounts current.creditors’ accounts current.
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23052
Accounts Payable Subsidiary Ledger
Grayco Supplies
Mar. 1 Bal. 1,230
Date Item P.R. Dr. Cr. Balance
1,230 --- 15 CP7
2014
(continued)
Cash Payments JournalCash Payments Journal
o Now, let’s journalize the remainder of Now, let’s journalize the remainder of March’s cash disbursements. Following March’s cash disbursements. Following that, let’s post to the individual creditors’ that, let’s post to the individual creditors’ accounts.accounts.
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
52
(continued)
EXHIBIT 6 EXHIBIT 6 (IN STEPS)(IN STEPS)
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23052
54
21 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
(continued)
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
Cash Payments JournalCash Payments Journal
o The journal is ruled, summed, and verified The journal is ruled, summed, and verified for the _________ of the _________ and the for the _________ of the _________ and the “_________ ” column.“_________ ” column.
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,230
31 2,650 5,050 7,700
52
54
21 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
(continued)
CASH CASH PAYMENTS PAYMENTS JOURNALJOURNAL
CASH CASH PAYMENTS PAYMENTS JOURNALJOURNAL
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2014Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
31 2,650 5,050 7,700
52
54
(21) (11)( )
The totals for “Accounts Payable Dr.” and “Cash Cr.” are posted.
(continued)
_________ _________ Account_________ _________ Account
o After all posting has been completed, the After all posting has been completed, the balances in the _______ payable _______ balances in the _______ payable _______ ledger should _______ the balance of the ledger should _______ the balance of the _______ _______ _______ account in the _______ _______ _______ account in the general ledger .general ledger .
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Learning Objective
ObjectiveDescribe and illustrate the use of
Describe and illustrate the use of
a computerized accounting
a computerized accounting system.system.
33
Computerized Accounting SystemComputerized Accounting System
o Computerized accounting systems have Computerized accounting systems have the following three main advantages over the following three main advantages over manual systems:manual systems: Computerized systems _______ the record-Computerized systems _______ the record-
keeping _______ by recording transactions in keeping _______ by recording transactions in electronic forms and, at the same time, _______ electronic forms and, at the same time, _______ them electronically to _______ and _______ them electronically to _______ and _______ ledger accounts.ledger accounts.
Computerized Accounting SystemComputerized Accounting System
Computerized systems are generally more Computerized systems are generally more ______ than _______ systems.______ than _______ systems.
Computerized systems provide management Computerized systems provide management with current _______ _______ information to with current _______ _______ information to support decision making, since account support decision making, since account balances are _______ as the transactions _______ balances are _______ as the transactions _______ ..
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Learning Objective
ObjectiveDescribe the basic features of e-
Describe the basic features of e-commerce.commerce.
44
______________________ ______________________
o Using the Internet to perform business Using the Internet to perform business transactions is termed _______ .transactions is termed _______ .
E-CommerceE-Commerce
o When transactions are between a When transactions are between a company and a consumer, it is termedcompany and a consumer, it is termed _______ _______ (________________ ) ____________ .(________________ ) ____________ .
E-COMMERCEE-COMMERCE
Three more advanced Three more advanced areas where the areas where the Internet is being used Internet is being used for business purposes for business purposes are:are:
___________________ ___________________ ______________________________________
_________________________________________________________ ___________________
____________________________________________________________________________
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Learning Objective
ObjectiveUse segment analysis in
Use segment analysis in
evaluating the operating
evaluating the operating
performance of a company.
performance of a company.
55
___________________ Analysis___________________ Analysis
o One way to report revenue is by different One way to report revenue is by different ___________________. Businesses may be ___________________. Businesses may be ___________________ by ___________________, ___________________ by ___________________, by ___________________ or by ___________________ or ___________________, or by type of ___________________, or by type of __________.__________.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Accounting Accounting
SystemsSystems
The EndThe EndThe EndThe End
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