Lecture 16 Chapter 5 Accounting Systems and Internal Controls.
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Transcript of Lecture 16 Chapter 5 Accounting Systems and Internal Controls.
Lecture 16 Lecture 16 Chapter Chapter 55
Accounting Systems and Accounting Systems and Internal ControlsInternal Controls
1. Define an accounting system and describe its implementation.
2. List the three objectives of internal control, and define and give examples of the five elements of internal control.
3. Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.
AnalysisAnalysis
FFEEEEDDBBAACCKK
Objectives of Internal Objectives of Internal ControlControl
Objectives of Internal Objectives of Internal ControlControl
1. assets are safeguarded and used for business purposes.
2. business information is accurate.3. employees comply with laws and
regulations.
To provide reasonable assurance that:1. assets are safeguarded and used for
business purposes.2. business information is accurate.3. employees comply with laws and
regulations.
Elements of Internal ControlElements of Internal Control1. Control environment2. Risk assessment3. Control procedures4. Monitoring5. Information and communication
1. Control environment2. Risk assessment3. Control procedures4. Monitoring5. Information and communication
Elements of Internal ControlElements of Internal Control
Management philosophy and operating style influences the
control environment.
Management philosophy and operating style influences the
control environment.
1. Control environment2. Risk assessment3. Control procedures4. Monitoring5. Information and communication
Once risks are identified, they can be analyzed to estimate their significance, to assess their likelihood of occurring, and to determine actions that will minimize them.
Once risks are identified, they can be analyzed to estimate their significance, to assess their likelihood of occurring, and to determine actions that will minimize them.
1. Control environment2. Risk assessment3. Control procedures4. Monitoring5. Information and communication
Control ProceduresControl ProceduresControl ProceduresControl Procedures
Competent Personnel Rotating Duties Mandatory Vacations Separating Responsibilities for
Related Operations Separating Operations, Custody
of Assets, and Accounting Proofs and Security Measures
Control ProceduresControl ProceduresControl ProceduresControl Procedures
Competent Personnel Rotating Duties Mandatory Vacations Separating Responsibilities for
Related Operations Separating Operations,
Custody of Assets, and Accounting
Proofs and Security Measures
1. Orders may be placed on the basis of friendship with a supplier, rather than on price, quality, and other objective factors.
2. The quantity and quality of supplies received may not be verified, thus causing payment for supplies not received or poor-quality supplies.
3. Supplies may be stolen by the employee.4. The validity and accuracy of invoices may be
verified carelessly.
Control ProceduresControl ProceduresControl ProceduresControl Procedures
Competent Personnel Rotating Duties Mandatory Vacations Separating Responsibilities for
Related Operations Separating Operations,
Custody of Assets, and Accounting
Proofs and Security Measures
Independent check
Independent check
Independent check
Custody of Custody of AssetsAssets
AccountingAccountingOperationsOperationsOperationsOperations
1. Control environment2. Risk assessment3. Control procedures4. Monitoring5. Information and communication
Clues to Potential ProblemsClues to Potential ProblemsClues to Potential ProblemsClues to Potential Problems
1. Abrupt changes in lifestyle.2. Close social relationships with suppliers.3. Refusing to take a vacation.4. Frequent borrowing from other employees.5. Excessive use of alcohol or drugs.
Warning signs with regard to people:
1. Missing documents or gaps in transaction numbers.
2. An unusual increase in customer refunds.
3. Differences between daily cash receipts and bank deposits.
4. Sudden increase in slow payments.5. Backlog in recording transactions.
Warning signs from the accounting system:
Review of Lecture
End of Lecture 16
Lecture 17 Lecture 17 Chapter Chapter 55
Accounting SystemsAccounting Systems
Review of Lecture
Manual Accounting Systems
Running Balance Method of Ledgers
Cash 11
Accts. Pay. 21
General Ledger
Accts. Rec. 12
Supplies 14
Accounts ReceivableSubsidiary Ledger
A B C D
Customer Accounts
Accounts PayableSubsidiary Ledger
A B C D
Creditor Accounts
BUYING BUYING
SELLING SELLING
Special Journals
Providing services on account
Revenue journalRevenue journalrecorded inrecorded in
Receipt of cash from any source
Cash receipts journalCash receipts journalrecorded inrecorded in
Purchase of items on account
Purchases journalPurchases journalrecorded inrecorded in
Payment of cash for any purpose
Cash payments journalCash payments journalrecorded inrecorded in
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
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2010
Mar. 2 615 MyMusicClub.com 2 2 0 0
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
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Mar. 2 615 MyMusicClub.com 2 2 0 02010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
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Mar. 2 615 MyMusicClub.com 2 2 0 02010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
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Mar. 2 615 MyMusicClub.com 2 2 0 0
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
MyMusicClub.com
Mar. 2 R35 2,200 2,2002010
2010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
MyMusicClub.com
Mar. 2 R35 2,200 2,2002010
This procedure is repeated for each posting This procedure is repeated for each posting to the accounts receivable subsidiary ledger.to the accounts receivable subsidiary ledger.
2010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
6 616 Zone.com 1 7 5 0
18 617 Web Cantina 2 6 5 0
27 618 MyMusicClub.com 3 0 0 0
2010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
6 616 Zone.com 1 7 5 0
18 617 Web Cantina 2 6 5 0
27 618 MyMusicClub.com 3 0 0 0 31 9 6 0 0
2010
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
6 616 Zone.com 1 7 5 0
18 617 Web Cantina 2 6 5 0
27 618 MyMusicClub.com 3 0 0 031 9 6 0 0
2010
ACCOUNT Accounts Receivable Account No. 12
Balance
Dr. Cr.Date Dr. Cr.Item
Post. Ref.
2010Mar. 1 Balance 3 400
GENERAL LEDGER
31 9 600 13 000 R35
Revenue Journal, page 35
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
6 616 Zone.com 1 7 5 0
18 617 Web Cantina 2 6 5 0
27 618 MyMusicClub.com 3 0 0 031 9 6 0 0
(12)(41)
2010
ACCOUNT Fees Earned Account No. 41
Balance
Dr. Cr.Date Dr. Cr.Item
Post. Ref.
GENERAL LEDGER
2010Mar. 31 R35 9 6 0 0 9 6 0 0
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
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Mar. 2 615 MyMusicClub.com 2 2 0 0
6 616 Zone.com 1 7 5 0
18 617 Web Cantina 2 6 5 0
27 618 MyMusicClub.com 3 0 0 031 9 6 0 0
(12)(41)
Placing “41” here indicates that Rs.9,600 has been posted to the credit side of Fees
Earned in the general ledger.
2010
End of Lecture 17
Lecture 18 Lecture 18 Chapter Chapter 55
Accounting SystemsAccounting Systems
The Cash Receipts JournalThe Cash Receipts Journal
All transactions that involve the receipt of cash
are recorded in the cash receipts journal.
All transactions that involve the receipt of cash
are recorded in the cash receipts journal.
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2010
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
Page 14
2010
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
19 Web Cantina 3,400 3,400
28 MyMusicClub.com 2,200 2,200
30 RapZone.com 1,750 1,750
Page 14
2010
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
Web Cantina
Mar. 1 Bal. 3,40018 R35 2,650 6,050
2006
3,400 2,650
2006
19
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
Web Cantina
Mar. 1 Bal. 3,40018 R35 2,650 6,050
2006
3,40019 CR14 2,650
2006
After all journalizing and posting to the accounts
receivable subsidiary ledger for the month is complete, the
columns are totaled.
After all journalizing and posting to the accounts
receivable subsidiary ledger for the month is complete, the
columns are totaled.
Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 31 400 7,350 7,750
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2010
Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 31 400 7,350 7,750
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
The three circled items are The three circled items are posted to the general ledger. posted to the general ledger.
Let’s post Let’s post Accounts ReceivableAccounts Receivable..
The three circled items are The three circled items are posted to the general ledger. posted to the general ledger.
Let’s post Let’s post Accounts ReceivableAccounts Receivable..
2006
Account: Accounts Receivable No. 12
GENERAL LEDGER
Date Item P.R. Debit Credit Balance
Mar. 1 Bal 3,40031 R35 9,600 13,000
2006
Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 31 400 7,350 7,750
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2010
Account: Accounts Receivable No. 12
GENERAL LEDGER
Date Item P.R. Debit Credit Balance
Mar. 1 Bal 3,40031 R35 9,600 13,000
2010
7,350 5,65031 CR14
Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,400 3,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 31 400 7,350 7,750
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2010
( ) (12)
The Rs.7,750 total in the Cash Debit column is
posted to Cash in a similar manner.
The Rs.7,750 total in the Cash Debit column is
posted to Cash in a similar manner.
The Rs.400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.
The Rs.400 credit to Rent Revenue could have been posted earlier, but posting it at the same time as other general ledger accounts is proper.
A completely posted cash receipts journal is shown
in the next slide.
A completely posted cash receipts journal is shown
in the next slide.
Mar. 1 Rent Revenue 400 400 19 Web Cantina 3,4003,400 28 MyMusicClub.com 2,200 2,200 30 RapZone.com 1,750 1,750 31 400 7,350 7,750
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
42
( ) (12) (11)
2010
Accounts Accounts Receivable Receivable
Control Control AccountAccount
If the accounts receivable account in the general ledger only shows summary totals,
where are the individual customer balances?
ACCOUNT Accounts Receivable No. 12
GENERAL LEDGER
Date Item P.R. Debit Credit BalanceMar. 1 Bal 3,400
31 R35 9,600 13,0007,350 5,65031 CR14
Date Item P.R. Debit Credit Balance
RapZone.com
3/6 R35 1,750 1,7503/30 CR14 1,750 ----
Date Item P.R. Debit Credit Balance
Web CantinaDate Item P.R. Debit Credit Balance
3/2 R35 2,200 2,2003/27 R35 3,000 5,2003/28 CR14 2,200 3,0003,000
3/1 Bal. 3,4003/18 R35 2,650 6,0503/19 CR14 3,400 2,6502,650
Accounts Receivable Subsidiary
Ledger
Accounts Accounts Receivable Receivable
Control Control AccountAccount
MyMusicClub.com
ACCOUNT Accounts Receivable No. 12
GENERAL LEDGER
Date Item P.R. Debit Credit BalanceMar. 1 Bal 3,400
31 R35 9,600 13,0007,350 5,65031 CR14
End of Lecture 18
Lecture 19 Lecture 19 Chapter Chapter 55
Accounting SystemsAccounting Systems
The purchases journal is designed for recording all
purchases on account.
The purchases journal is designed for recording all
purchases on account.
On March 3, 2003, NetSolutions On March 3, 2003, NetSolutions purchased supplies from Howard purchased supplies from Howard
Supplies, $600.Supplies, $600.
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
To keep the accounts payable To keep the accounts payable subsidiary ledger current, this entry subsidiary ledger current, this entry
is posted on March 3.is posted on March 3.
Mar. 3 Howard Supplies 600 600 2006
Accounts Payable Subsidiary Ledger
Date Item P.R. Dr. Cr. Balance
Howard Supplies
Mar 3 600 6002006
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
On March 7, NetSolutions On March 7, NetSolutions purchased supplies from Donnelly purchased supplies from Donnelly
Supplies, $420.Supplies, $420.
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 420
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 420
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
On March 12, NetSolutions purchased On March 12, NetSolutions purchased office equipment from Jewett Business office equipment from Jewett Business
Systems, $2,800.Systems, $2,800.
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,800
Because there isn’t a special column for Because there isn’t a special column for Office EquipmentOffice Equipment, this purchase was , this purchase was recorded under “Other Accounts Dr.”recorded under “Other Accounts Dr.”
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,800
Now, let’s look at the rest of March’s entries Now, let’s look at the rest of March’s entries (assume that all postings to the accounts payable (assume that all postings to the accounts payable
subsidiary ledger have been made).subsidiary ledger have been made).
19 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,800
At the end of March, all columns are totaled At the end of March, all columns are totaled and equality of debits and credits is verified. and equality of debits and credits is verified. At the end of March, all columns are totaled At the end of March, all columns are totaled
and equality of debits and credits is verified. and equality of debits and credits is verified.
19 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
The next step is to post to the The next step is to post to the general journal.general journal.
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
ACCOUNT Accounts Payable No. 21
GENERAL LEDGER
Date Item P.R. Debit Credit BalanceMar. 1 Bal 1,230
6,230 7,46031 P11
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2003
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
ACCOUNT Accounts Payable No. 21
GENERAL LEDGER
Date Item P.R. Debit Credit BalanceMar. 1 Bal 1,230
6,230 7,46031 P11
(21)
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2003
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
(21) (14)
18
PURCHASES JOURNALAccts. Other
Post Payable Supplies Accounts PostDate Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Page 11
Mar. 3 Howard Supplies 600 600 2006
7 Donnelly Supplies 420 42012 Jewett Bus. Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
(21) (14)
18
( )
The Cash Payments Journal
All payments are recorded in the cash payments journal.
NetSolutions makes all payments by check.
All payments are recorded in the cash payments journal.
NetSolutions makes all payments by check.
Let’s make all of the cash payment journal
entries for March.
Let’s make all of the cash payment journal
entries for March.
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,600
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 151 Grayco Supplies 1,230 1,230
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 151 Grayco Supplies 1,230 1,230
Accounts Payable Subsidiary LedgerGrayco Supplies
Mar. 3 Bal. 1,230
Date Item P.R. Dr. Cr. Balance
1,230 --- 15 CP7
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,800
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies. 420 420
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 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 1,050
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 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
2006
Mar. 2 150 Rent Expense 1,600 1,60015 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 60031 2,650 5,050 7,700
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2006
Mar. 2 150 Rent Expense 1,600 1,60015 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 60031 2,650 5,050 7,700
(21) (11)
52
54
( )
Accounts PayableAccounts Payable
Donnelly SuppliesDate Item P.R. Debit Credit Balance
Grayco SuppliesDate Item P.R. Debit Credit Balance
Howard SuppliesDate Item P.R. Debit Credit Balance
Mar 2 P11 420 42019 P11 1,450 1,87022 CP7 420 1,450Accounts
Payable Subsidiary
Ledger
ACCOUNT Accounts Payable No. 12
GENERAL LEDGER
Date Item P.R. Debit Credit BalanceMar. 1 Bal 1,230
31 P11 6,230 7,46031 CP7 5,050 2,410
Mar 1 Bal. 1,23015 CP7 1,230 0--
Mar 3 P11 600 60027 P11 960 1,56031 CP7 600 960
Advantages of a Computerized Accounting System Over a Manual Accounting System
Advantages of a Computerized Accounting System Over a Manual Accounting System
1. Computerized systems simplify the record-keeping process.
2. Computerized systems are generally more accurate.
3. Computerized systems provide management current account balance information to support decision making.
The Revenue and Collection Cycle in QuickBooks
The Revenue and Collection Cycle in QuickBooks
From Exhibit 10, page 203 of textbook
Mail invoice to customer
The Revenue and Collection Cycle in QuickBooks Continued
The Revenue and Collection Cycle in QuickBooks Continued
From Exhibit 10, page 203 of textbook
The Revenue and Collection Cycle in QuickBooks Continued
The Revenue and Collection Cycle in QuickBooks Continued
From Exhibit 10, page 203 of textbook
Supply chain management (SCM)
Customer relationship management (CRM)
Product life-cycle management (PLM)
End of Lecture 19