Ch 5 HW help

Identify Postings from Revenue Journal

Using the following revenue journal for Zeta Services Inc., identify each of the posting references, indicated by a letter, as representing (1) posting to general ledger accounts or (2) posting to subsidiary ledger accounts.

Identify Journals

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the transactions should be recorded:

Identify Journals

Assuming the use of a two-column (all-purpose) general journal, a purchases journal, and a cash payments journal, indicate the journal in which each of the following transactions should be recorded:

Cash Receipts Journal

The following cash receipts journal headings that have been suggested for a small service firm contain errors.

Indicate whether each of the headings is correct.

Computerized Accounting Systems

Most computerized accounting systems use electronic forms to record transaction information, such as the invoice form illustrated at the top of Exhibit 7.

a.  Which of the following would NOT be a key input field (space) in an electronic invoice form.

b.  What accounts are posted from an electronic invoice?   _________________  

c.  Are special journal totals posted to control accounts at the end of the month in an electronic accounting system?

E-commerce

For each of the following companies, determine if their e-commerce strategy is primarily business-to-consumer (B2C), business-to-business (B2B), or both. Use the Internet to investigate each company's site in conducting your research.

a.  Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place.

b.  Prepare a vertical analysis of the segment data. Round all percents to one decimal place.

Segment Revenue Vertical Analysis

Newton Corporation is one of the world's largest entertainment companies that includes Gravity films, Apple Broadcasting, Gravity News, the GR, and various satellite, cable, and publishing properties. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows:

a.  Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues. Round all percents to one decimal place.

b.  Are the revenues of Newton Corporation diversified or concentrated within a product segment?   _________________  

Which statement best describes Newton Corporation's major product segments?

Revenue Journal; Accounts Receivable Subsidiary and General Ledgers

Newton Learning Centers was established on May 20, 2014, to provide educational services. The services provided during the remainder of the month are as follows:

Required:

1a.  Journalize the transactions (in chronological order) for May, using a single-column revenue journal. If an amount box does not require an entry, leave it blank.

1b.  Journalize (including the date) and post the appropriate transaction for May, in the two-column general journal. If an amount box does not require an entry, leave it blank. Posting references will be recorded in part 2.

1c.  Post to the following customer accounts in the accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Patrick; K. Todd.

For those boxes in which no entry is required, leave the box blank.

2.  Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings:

For those boxes in which no entry is required, leave the box blank.

3a.  What is the sum of the balances of the customer accounts in the subsidiary ledger at May 31? $   _________________  

3b.  What is the balance of the accounts receivable controlling account at May 31? $   _________________  

4.  Assume Newton Learning Centers began using a computerized accounting system to record the sales transactions on June 1. All of the following are benefits of the computerized system over the manual system EXCEPT:

Revenue Journal and Cash Receipts Journals; Accounts Receivable subsidiary and General Ledgers

Transactions related to revenue and cash receipts completed by Aspen Architects Co. during the period June 2–30, 2014, are as follows:

Required:

1.  Insert the following balances in the general ledger as of June 1:

After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank.

2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1:

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger in chronological order, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt. If an amount box does not require an entry, leave it blank.

3.  Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees.

4.  Using the two special journals and the two-column general journal (p. 1), journalize the transactions in chronological order for June. Post to the accounts receivable subsidiary ledger (in part 2), and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt.

5.  Total each of the columns of the special journals, and post the individual entries and totals to the general ledger (in part 1). Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

6.  What is the sum of the customer balances? $   _________________   Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?      _________________  

7.  Would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?

Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger

English Garden Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by English Garden Landscaping during January 2014 are as follows:

Note: Posting references have been provided.

Required:

1.  Insert the following balances in the general ledger as of January 1:

After completing the recording of transactions in part 3, post the purchases journal to the accounts in the general ledger. If an amount box does not require an entry, leave it blank.

2.  Insert the following balances in the accounts payable subsidiary ledger as of January 1:

After completing the recording of transactions in part 3, post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. If an amount box does not require an entry, leave it blank.

3.  Journalize the transactions for January (in chronological order), using the purchases journal below (p. 30) similar to the one illustrated in this chapter. Post to the creditor accounts in the accounts payable subsidiary ledger (in part 2) immediately after each entry.

4.  Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank.

If no other account is needed in the "Other Accounts Dr." column select "No entry required".

5a.  What is the sum of the creditor balances in the subsidiary ledger at January 31? $   _________________  

5b.  What is the balance of the account payable controlling account at January 31? $   _________________  

6.  What type of e-commerce application would be used to plan and coordinate transactions with suppliers?   _________________