Chapter_7_Solutions - Chapter 7 Accounting Information...

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Chapter 7 Accounting Information Systems Quick Check Answers: 1. a 3. b 5. b 7. d 9. c 2. d 4. c 6. d 8. a 10. b Explanations: 5. b. Gross profit = $2,505 (Sales revenue $4,319 – Cost of goods sold $1,814) Chapter 6 Accounting Information Systems 201
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Short Exercises (5 min.) S 7-1 Control is the most important feature because a business must safeguard its assets. Favorable cost-benefit relationship must be considered if financial resources are limited. (5 min.) S 7-2 D Electronic linkages that allow different computers to share the same information A. Server C Electronic equipment B. Software B Programs that drive a computer C. Hardware A Main computer in a networked system D. Network Accounting 7/e Solutions Manual 202
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(5-10 min.) S 7-3 4 H 5 F A L 3 S E R V E R O D X 1 C F W 6 C O T A R 2 N E T W O R K E T A E D R R I O 7 B E N E F I T L S (5 min.) S 7-4 Inventory. ................................................ 151 Accounts Payable. ................................. 201 Jan Marks, Capital. ................................ 301 Jan Marks, Withdrawals. ....................... 311 Service Revenue. ................................... 411 Depreciation Expense. .......................... 531 Chapter 6 Accounting Information Systems 203
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(5 min.) S 7-5 Formula for B4: = B2 – B3 Column: A B C Row: 1 Income Statement: 2 Revenues 150,000 = B2* 1.08 3 Expenses 90,000 = B3* 1.06 4 Net Income 60,000 = C2 – C3 5 Cursor is on cell B4 Accounting 7/e Solutions Manual 204
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(5 min.) S 7-6 J = General journal S = Sales journal CR = Cash receipts journal P = Purchases journal CP = Cash payments journal Transactions: CP a. Cash purchase of inventory CR b. Collection of dividend revenue earned on an investment CP c. Prepayment of insurance CR d. Borrowing money on a long-term note payable P e. Purchase of equipment on account S f. Cost of goods sold along with a credit sale CR g. Cash sale of inventory CP h. Payment of rent J i. Depreciation of computer equipment P j. Purchase of inventory on account CR k. Collection of accounts receivable J l. Expiration of prepaid insurance S m. Sale on account CP n. Payment on account Chapter 6 Accounting Information Systems 205
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(5 min.) S 7-7 1. $2,071 Inventory account in the General Ledger 2. $4,319 Posted to Sales Revenue on November 30 3. $ 907 Susan Levy account in the Accounts Receivable Subsidiary Ledger 4. $4,319 Accounts Receivable account in the General Ledger (5 min.) S 7-8 1. Accounts Receivable Subsidiary Ledger 2. General Ledger Accounts Receivable debit balance. ........... $4,319 From the Accounts Receivable Subsidiary Ledger Customer Balance Maria Galvez. ................................................. $ 935 Brent Harmon. ............................................... 694 Susan Levy. ................................................... 907 Clay Schmidt. ................................................ 1,783 Total accounts receivable. ........................... $4,319 Accounting 7/e Solutions Manual 206
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(10 min.) S 7-9
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This note was uploaded on 05/05/2010 for the course BUSINESS 71395 taught by Professor Brown during the Spring '09 term at Miss. College.

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Chapter_7_Solutions - Chapter 7 Accounting Information...

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