Acctg_Info_Systems_Solutions - Chapter 7 Homework These...

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Chapter 7 Homework These problems are not in My Accounting Lab. They can be found in the Textbook Material beginning on page 379. Complete homework using Excel or PDF Working papers (below). Check your work against the homework solutions (below). Turn in your printed homework in class. Practice Problems: Quick Check #1-10 Assigned Problems: E7-13, 19, 20, P7-26A, P7-28A (14 points) Extra Credit: P7-29A (2 points) 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 1. Cash receipts during November.. $6,134 2. Cash collections on account: Nov. 14 ....................................... $ 900 22 ....................................... 300 Total ..................................... 1,200 Total discounts ............................. 35 Decrease in accounts receivable $1,235 3. Cash sales during November…… $3,172 (5 min.) S 7-10 1. Inventory purchases on account…………... $1,706 2.
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