Session:7 Accounting Information Systems
Exercise Set A
Principles of Accounting, Volume 1: Financial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-financial-accounting
EA 1.
LO 7.1For each of the following, indicate if the statement reflects an input component, output component, or storage component of an accounting information system.
- A credit card scanner at a grocery store.
- A purchase order for 1,000 bottles of windshield washing fluid to be used as inventory by an auto parts store.
- A report of patients who missed appointments at a doctor’s office.
- A list of the day’s cash and credit sales.
- Electronic files containing a list of current customers.
EA 2.
LO 7.1All of the following information pertains to Green’s Grocery. Match each of the following parts of Green’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.
| A. Source document | i. Check written for office supplies |
| B. Output device | ii. Invoice from a supplier of inventory |
| C. Input device | iii. Payroll check |
| D. Data and information storage | iv. Time card |
| E. Information processing | v. Computer software |
| vi. Keyboard | |
| vii. Grocery store bar code scanner | |
| viii. Printer | |
| ix. Flash drive | |
| x. Hard drive | |
| xi. The cloud | |
| xii. Computer screen |
EA 3.
LO 7.2Match the special journal you would use to record the following transactions. Select from the following:
| A. cash receipts journal | i. Sold inventory for cash |
| B. cash disbursements journal | ii. Sold inventory on account |
| C. sales journal | iii. Received cash a week after selling items on credit |
| D. purchases journal | iv. Paid cash to purchase inventory |
| E. general journal | v. Paid a cash dividend to shareholders |
| vi. Sold shares of stock for cash | |
| vii. Bought equipment for cash | |
| viii. Recorded an adjusting entry for supplies | |
| ix. Paid for a purchase of inventory on account within the discount period | |
| x. Paid for a purchase of inventory on account after the discount period has passed |
EA 4.
LO 7.2For each of the 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, or neither) would be used in recording the transaction.
- Paid utility bill
- Sold inventory on account
- Received but did not pay phone bill
- Bought inventory on account
- Borrowed money from a bank
- Sold old office furniture for cash
- Recorded depreciation
- Accrued payroll at the end of the accounting period
- Sold inventory for cash
- Paid interest on bank loan
EA 5.
LO 7.3Catherine’s Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?
EA 6.
LO 7.3Record the following transactions in the sales journal:
| Jan. 15 | Invoice # 325, sold goods on credit for $2,400, to Maroon 4, account # 4501 |
| Jan. 22 | Invoice #326, sold goods on credit for $3,500 to BTS, account # 5032 |
| Jan. 27 | Invoice #327, sold goods on credit for $1,250 to Imagine Fireflies, account # 3896 |
EA 7.
LO 7.3Record the following transactions in the cash receipts journal.
| Jun. 12 | Your company received payment in full from Jolie Inc. in the amount of $1,225 for merchandise purchased on June 4 for $1,250, invoice number #1032. Jolie Inc. was offered terms of 2/10, n/30. Record the payment. |
| Jun. 15 | Portman Inc. mailed you a check for $2500. The company paid for invoice #1027, dated June 1, in the amount of $2,500, terms offered 3/10, n/30. |
| Jun. 17 | Your company received a refund check (its check #12440) from the State Power Company because you overpaid your electric bill. The check was in the amount of $72. The Utility Expense account number is #450. Record receipt of the refund. |
EA 8.
LO 7.4Maddie Inc. has the following transactions for its first month of business.
| May 1 | Credit sale to Green Lantern Inc. for $1,999 |
| May 2 | Credit sale to Wonder Woman Inc. for $2,000 |
| May 3 | Credit sale to Flash Inc. for $3,050 |
| May 4 | Received $1,000 on account from Green Lantern Inc. |
| May 5 | Credit sale to Black Panther Inc. for $1,875 |
| May 6 | Received the full amount from Flash Inc. |
- What are the individual account balances, and the total balance, in the accounts receivable subsidiary ledger?
- What is the balance in the accounts receivable general ledger (control) account?