LO 7.1For each of the following, indicate if the statement reflects an input component, output component, or storage component of the accounting information system for a bank.
- Online customer check ordering system.
- Approved loan applications.
- Report of customers with savings accounts over $5,000.
- Desktop hard drive on computer used by bank president’s administrative assistant.
- List of the amount of money withdrawn from all of the bank’s ATMs on a given day.
LO 7.1The following information pertains to Crossroads Consulting, Inc. Match each of the following parts of Crossroad’s accounting information system in the left-hand column with the appropriate item(s) from the right-hand column. You may use items in the right-hand column more than once or not at all. There may be several answers for each item in the left-hand column. You may choose items in the right-hand column more than once.
| A. Source document | i. Sales invoice from cleaning company |
| B. Output device | ii. Printed check to be mailed to phone company |
| C. Input device | iii. Dropbox (online storage) |
| D. Data and information storage | iv. Voice-to-text software |
| E. Information processing | v. QuickBooks Accounting Software |
| vi. Keyboard | |
| vii. Printer | |
| viii. Bar code scanner | |
| ix. Computer screen | |
| x. Flash drive | |
| xi. Text scanner | |
| xii. Computing interest on a loan |
LO 7.2Match the special journal you would use to record the following transactions.
| A. Cash Receipts Journal | i. Took out a loan from the bank |
| B. Cash Disbursements Journal | ii. Paid employee wages |
| C. Sales Journal | iii. Paid income taxes |
| D. Purchases Journal | iv. Sold goods with credit terms 1/10, 2/30, n/60 |
| E. General Journal | v. Purchased inventory with credit terms n/90 |
| vi. Sold inventory for cash | |
| vii. Paid the phone bill | |
| viii. Purchased stock for cash | |
| ix. Recorded depreciation on the factory equipment | |
| x. Returned defective goods purchased on credit to the supplier. The company had not yet paid for them. |
LO 7.2For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction.
- Sold inventory for cash
- Issued common stock for cash
- Received and paid utility bill
- Bought office equipment on account
- Accrued interest on a loan at the end of the accounting period
- Paid a loan payment
- Bought inventory on account
- Paid employees
- Sold inventory on account
- Paid monthly insurance bill
LO 7.3Catherine’s Cookies has a beginning balance in the Accounts Receivable control total account of $8,200. $15,700 was credited to Accounts Receivable during the month. In the sales journal, the Accounts Receivable debit column shows a total of $12,000. What is the ending balance of the Accounts Receivable account in the general ledger?
LO 7.3Record the following transactions in the purchases journal:
| Feb. 2 | Purchased inventory on account from Pinetop Inc. (vendor account number 3765), Purchase Order (PO) # 12345 in the amount of $3,456. |
| Feb. 8 | Purchased inventory on account from Sherwood Company (vendor account number 5461), PO# 12346, in the amount of $2,951. |
| Feb. 12 | Purchased inventory on account from Green Valley Inc. (vendor #4653), PO# 12347, in the amount of $4,631. |
LO 7.3Record the following transactions in the cash disbursements journal:
| Mar. 1 | Paid Duke Mfg (account number D101) $980 for inventory purchased on Feb. 27 for $1,000. Duke Mfg offered terms of 2/10, n/30, and you paid within the discount period using check #4012. |
| Mar. 3 | Paid Emergency Plumbing $450. They just came to fix the leak in the coffee room. Give them account number E143. Use check #4013 and debit the Repairs and Maintenance account, #655. |
| Mar. 5 | Used check #4014 to pay Wake Mfg (account number W210) $1,684 for inventory purchased on Feb. 25, no terms offered. |
LO 7.4Piedmont Inc. has the following transactions for its first month of business:
| Jun. 1 | Purchased inventory from Montana Inc. on credit for $4,500 |
| Jun. 2 | Purchased inventory from Payton Inc. on credit for $2,400 |
| Jun. 3 | Purchased inventory from Montana Inc. on credit for $1,800 |
| Jun. 4 | Paid $2,000 on account to Montana Inc. |
| Jun. 8 | Purchased inventory on credit from Taylor Inc. for $2,000 |
| Jun. 9 | Paid Payton |
- What are the individual account balances, and the total balance, in the accounts payable subsidiary ledger?
- What is the balance in the Accounts Payable general ledger account?