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1
5
Accounting Accounting SystemsSystems
2
1. Define an accounting system and describe its implementation.
2. Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.
After studying this chapter, you should be able to:
3
3. Describe and give examples of additional subsidiary ledgers and modified special journals.
4. Apply computerized accounting to the revenue and collection cycle.
5. Describe the basic features of e-commerce.
After studying this chapter, you should be able to:
4
Define an accounting system and describe its
implementation.
Objective 1Objective 1Objective 1Objective 1
5-1
55
5-1Accounting Systems Growth Process
6
Identify the needs of those who use the business’s financial information.
Determine how the system should provide this information.
Step 1: Analysis
Three Step Process as a Business Grows and Changes
5-1
7
The system is designed so that it meets the users’ needs.
Step 2: Design
The system is implemented and used.
Step 3: Implementation
5-1
8
Once a system has been implemented, feedback, or input from the users of the information
can be used to analyze and improve the system.
5-1Feedback
9
Internal controls are policies and procedures that protect
assets from misuse, ensure that business information is
accurate, and ensure that laws and regulations are being
followed.
5-1Internal Controls
10
Processing methods are the means by which the system collects, summarizes, and
reports accounting information. These methods may be either
manual or computerized.
5-1Processing Methods
11
Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and
special journals.
Objective 2Objective 2Objective 2Objective 2
5-2
12
A large number of individual accounts with a common
characteristic can be grouped together in a separate ledger called
a subsidiary ledger.
5-2
13
The primary ledger, which contains all of the balance
sheet and income statement accounts, is called a
general ledger.
5-2
14
Each subsidiary ledger is represented in the general ledger by a summarizing
account, called a controlling account.
5-2
15
The individual customers’ accounts are arranged in
alphabetical order in a subsidiary ledger called the accounts
receivable subsidiary ledger or customers ledger.
5-2
16
The individual creditors’ accounts are arranged in alphabetical order in a
subsidiary ledger called the accounts payable
subsidiary ledger, or creditors ledger.
5-2
1717
Cash 11
Accts. Pay. 21
General Ledger
Accts. Rec. 12
Supplies 14
Accounts ReceivableSubsidiary Ledger
A B C D
Customer Accounts
Accounts PayableSubsidiary Ledger
A B C D
Creditor Accounts
General Ledger and Subsidiary Ledgers 5-2
1818
SELLING SELLING
Providing services on account
Revenue journalRevenue journalrecorded inrecorded in
Receipt of cash from any source
Cash receipts journalCash receipts journalrecorded inrecorded in
Special Journals 5-2
1919
BUYING BUYING
Purchase of items on account
Purchases journalPurchases journalrecorded inrecorded in
Payment of cash for any purpose
Cash payments journalCash payments journalrecorded inrecorded in
5-2Special Journals
20
The all-purpose two-column journal, called the general journal or simply the journal can be used for entries that do not fit into any
of the special journals.
Special Journals 5-2
21
The revenue journal is used for recording fees earned on account. Cash fees earned would be recorded
in the cash receipts journal.
5-2
2222
Posting the Revenue Journal
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
5-2
2323
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
Accessories by Claire
Mar. 2 R35 2,200 2,2002008
5-2
2424
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
Accounts Receivable Subsidiary Ledger
Date Item P.R. Debit Credit Balance
Accessories by Claire
Mar. 2 R35 2,200 2,2002008
5-2
2525
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
5-2
2626
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
31 9 6 0 0 00
5-2Exhibit 2 Revenue Journal
2727
ACCOUNT Accounts Receivable Account No. 12
Balance
Dr. Cr.Date Dr. Cr.ItemPost. Ref.
2008Mar. 1 Balance 3 400 00
31 9 600 00 13 000 00 R35
The debit total is posted from the revenue journal to Accounts
Receivable in the general ledger.
Revenue Journal, page 35
5-2
2828
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
31 9 6 0 0 00
(12)
Indicates a debit posting of $9,600 to Accounts Receivable (General Ledger Account 12)
5-2
2929
ACCOUNT Fees Earned Account No. 41
BalanceDate Dr. Cr.Item
Post. Ref.
2008Mar. 31 9 600 00 R35
The credit total is posted from the revenue journal to Fees Earned in
the general ledger.
Revenue Journal, page 35
5-2
9 600 00
Dr. Cr.
3030
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page 35
1
2
3
4
5
6
1
2
3
4
5
6
6 616 RapZone 1 7 5 0 00
18 617 Web Cantina 2 6 5 0 00
27 618 Accessories by Claire 3 0 0 0 00
2008
Mar. 2 615 Accessories by Claire 2 2 0 0 00
31 9 6 0 0 00
(12)
Indicates a credit posting of $9,600 to Fees Earned (General Ledger Account 41)
(41)
5-2
31
Example Exercise 5-1
The following revenue transactions occurred during December:
31
Record these transactions in a revenue journal as illustrated in Exhibit 2.
5-2
Dec. 5 Invoice No. 302 to Butler Company for services provided on account, $5,000.
Dec. 9 Invoice No. 303 to JoJo Enterprises for services provided on account, $2,100.
Dec. 15 Invoice No. 304 to Double D, Inc. for services provided on account, $3,250.
32For Practice: PE 5-1A, PE 5-1B 32
Follow My Example 5-1
5-2
Revenue Journal Invoice Post Accts. Rec. – Debit Date No. Account Debited Ref. Fees Earned – Credit
Page
1
2
3
4
5
6
1
2
3
4
5
6
9 303 JoJo Enterprises 2 1 0 0 00
15 304 Double D Inc. 3 2 5 0 00
Dec. 5 302 Butler Company 5 0 0 0 00
33
All transactions that involve the receipt of cash are recorded in a
cash receipts journal.
Every entry recorded in the cash receipts journal will involve a debit
to the “Cash Dr.” column.
5-2Cash Receipts Journal
3434
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2008
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750
Date Item P.R. Debit Credit Cr. Bal.
ACCOUNT Rent Revenue Acct. No. 42
Mar. 1 400 4002008
GENERAL LEDGER
42
CR14
Cash Receipts Journal and Postings 5-2
3535
Date Item P.R. Debit Credit Balance
Web Cantina
Mar. 1 Bal. 3,40018 R35 2,650 6,050
2008
3,400 2,650
19
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2008
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750
Accounts Receivable Subsidiary Ledger
42
CR14
5-2
36
After all journalizing and posting for the month to
individual accounts is complete, the columns are totaled.
5-2
3737
Mar. 1 Rent Revenue 400 400
CASH RECEIPTS JOURNALOther Accounts
Post Accounts Receivable CashDate Account Credited Ref. Cr. Cr. Dr.
Page 14
2008
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750
42
400 7,350 7,750
( ) (12) (11)
Posted Cash Receipts Journal 5-2
A checkmark indicates that the items in this column are posted individually.
A checkmark indicates that the items in this column are posted individually.
38
After posting, the total amount of the accounts in the accounts receivable subsidiary ledger should match the
balance in the general ledger’s Accounts Receivable account.
5-2
3939
Accounts Receivable—(Controlling)
Balance, March 1, 2008 $3,400Total debits (from revenue journal) 9,600Total credits (from cash receipts journal) (7,350)Balance, March 31, 2008 $5,650
NetSolutionsCustomer Balance Summary Report, March 31, 2008Accessories By Claire $3,000RapZone 0Web Cantina 2,650Total accounts receivable $5,650
5-2
40
Example Exercise 5-2
The debits and credits from two transactions are presented in the following customer account:
40
Describe each transaction and the source of each posting.
NAME Sweet Tooth ConfectionsADDRESS 1212 Lombard St.
July 1 Bal. 6257 Inv. 35 R12 86 711
31 Inv. 31 CR4 122 589
Date Item P.R. Dr. Cr. Balance
5-2
41For Practice: PE 5-2A, PE 5-2B 41
Follow My Example 5-2
July 7 Provided $86 services on account to Sweet Tooth Confections, itemized on invoice 35. Amount posted from page 12 of the revenue journal.
July 31 Cash of $122 was collected from Sweet Tooth Confections (invoice 31). Amount posted from page 4 of the cash receipts journal.
5-2
42
The purchases journal is designed for recording all
purchases on account.
5-2
4343
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
Journalizing in the Purchases Journal
2008
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Business Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
5-2
44
Note that the March 12 purchase of office equipment for $2,800 is recorded as a debit in the “Other
Accounts Dr.” column. Also note that the account title is written in
for proper posting.
5-2
45
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2008
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Business Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
5-2
45
4646
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2008
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Business Sys. 2,800 Off. Equip. 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
Posting the Purchases Journal
Date Item P.R. Dr. Cr. Balance
Mar 3 600 6002008
Accounts Payable Subsidiary Ledger
Howard Supplies
5-2
P11
4747
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2008
Mar. 3 Howard Supplies 600 600 7 Donnelly Supplies 420 420
12 Jewett Business Sys. 2,800 Off. Equip. 18 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 960
5-2
Office Equipment (Account 18 in the general ledger) is debited for $2,800.
48
At the end of March, all columns are totaled and equality of debits and credits is verified.
Then the total amount in the “Accounts Payable Cr.” and “Supplies Dr.” columns are
posted. Because Office Equipment was posted earlier, the $2,800 total is not posted.
5-2
4949
7 Donnelly Supplies 420 420 12 Jewett Business Sys. 2,800 Off. Equip. 18 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
( ) ( ) ( )
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL Page 11
2008
Mar. 3 Howard Supplies 600 600
21
ACCOUNT Accounts Payable No. 21
GENERAL LEDGER
Date Item P.R. Debit Credit Balance
Mar. 1 Bal 1,2306,230 7,46031 P11
5-2
2008
50
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
7 Donnelly Supplies 420 420 12 Jewett Business Sys. 2,800 Off. Equip. 18 2,80019 Donnelly Supplies 1,450 1,45027 Howard Supplies 960 96031 6,230 3,430 2,800
( ) ( ) ( )
PURCHASES JOURNAL Page 11
2008
Mar. 3 Howard Supplies 600 600
21
ACCOUNT Supplies No. 14
GENERAL LEDGER
Date Item P.R. Debit Credit Balance
Mar. 1 Bal 2,5003,430 5,93031 P11
14
5-2
502008
51
Example Exercise 5-3
The following purchase transactions occurred during October for Helping Hand Cleaners:
Oct. 11 Purchased cleaning supplies for $235, on account, from General Supplies.
19 Purchased cleaning supplies for $110, on account, from Hubble Supplies.
24 Purchased office equipment for $850, on account,from Office Warehouse.
Record these transactions in a purchases journal as illustrated at the top of Exhibit 5.
51
5-2
52
PURCHASES JOURNAL
For Practice: PE 5-3A, PE 5-3B 52
Follow My Example 5-3
5-2
Accts. OtherPost Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. AmountOct. 11 General Supplies 235 235
19 Hubble Supplies 110 110 24 Office Warehouse 850 Off. Equip. 18 850
53
All transactions involving a credit to Cash are recorded in the cash payments journal.
5-2Cash Payments Journal
5454
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
On March 2, issued Check 150 for rent of $1,600.
5-2
5555
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
On March 15, issued Check 151 to Grayco Supplies on account, $1,230.
15 151 Grayco Supplies 1,230 1,230
5-2
56
Let’s post to the accounts payable subsidiary ledger at
this time to keep the creditors’ account current.
5-2
5757
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,230
Accounts Payable Subsidiary LedgerGrayco Supplies
Mar. 3 Bal. 1,230
Date Item P.R. Dr. Cr. Balance
1,230 --- 15 CP7
5-2
2008
5858
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
Journalize the remainder of March’s cash disbursements.
5-2
5921
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
Journalized the remainder of March’s cash disbursements.
59
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
Post to individual creditor’s accounts.
5-2
6060
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
The journal is ruled, summed, and verified for equality of debits and the “Cash Cr.” column.
The journal is ruled, summed, and verified for equality of debits and the “Cash Cr.” column.
31 2,650 5,050 7,700
5-2
6161
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
CASH PAYMENTS JOURNAL
Other AccountsCk. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008Mar. 2 150 Rent Expense 1,600 1,600
15 151 Grayco Supplies 1,230 1,23021 152 Jewett Business Sys. 2,800 2,80022 153 Donnelly Supplies 420 42030 154 Utilities Expense 1,050 1,05031 155 Howard Supplies 600 600
31 2,650 5,050 7,700Items in the “Other Accounts Dr.”
column are posted. Then the totals for “Accounts Payable Dr.” and
“Cash Cr.” are posted.
Items in the “Other Accounts Dr.” column are posted. Then the totals
for “Accounts Payable Dr.” and “Cash Cr.” are posted.
(21) (11)( )
52
54
5-2
6262
Accounts Payable Control and Subsidiary Ledger
Accounts Payable— (Control)
Balance, March 1, 2008 $1,230Total credits (from purchases journal) 6,230Total debits (from cash payments journal) (5,050)Balance, March 31, 2008 $2,410
NetSolutionsSupplier Balance Summary Report
March 31, 2008Donnelly Supplies $1,450Grayco Supplies 0Howard Supplies 960Jewett Business Systems 0Total $2,410
5-2
63
Example Exercise 5-4
The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:
63
Describe each transaction and the source of each posting.
NAME Lassiter Services, Inc.ADDRESS 301 St. Bonaventure Ave.
Aug. 1 Bal. 32012 Bill 101 CP36 200 12022 Bill 106 P16 140 260
Date Item P.R. Dr. Cr. Balance
5-2
64For Practice: PE 5-4A, PE 5-4B 64
Follow My Example 5-4
Aug. 12 Paid $200 to Lassiter Services, Inc. on account (Bill 101). Amount posted from page CP36 of the cash payments journal.
Aug. 22 Purchased $140 of services on account from Lassiter Services, Inc. itemized on Bill 106. Amount posted from page P16 of the purchases journal.
5-2
65
Describe and give examples of additional subsidiary ledgers and
modified special journals.
Objective 3Objective 3Objective 3Objective 3
5-3
66
A business may modify its special journals by adding one or more
columns for recording transactions that occur frequently.
5-3Modified Special Journals
67
On November 2, NetSolutions issued Invoice No. 842 to Litten Company for $4,770, which included
sales taxes of $270.
5-3
6868
5-3Modified Revenue Journal
Revenue Journal Page 40
Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 002008
Invoice Accts. Rec. Fees Earned Sales Tax. PayDate No. Account Debited PR Dr. Cr. Cr.
6969
Revenue JournalInvoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No. Account Debited PR Dr. Cr. Cr.
Page 40
Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 002008
5-3
$4,770 is debited to Litten Co. in the accounts
payable subsidiary ledger
$4,770 is debited to Litten Co. in the accounts
payable subsidiary ledger
7070
Revenue Journal Page 40
Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 002008
5-3
A checkmark indicates that the amount has
been posted.
A checkmark indicates that the amount has
been posted.
Invoice Accts. Rec. Fees Earned Sales Tax. PayDate No. Account Debited PR Dr. Cr. Cr.
71
On November 3, issued Invoice No. 843 to Kaufman Supply Company for $1,166, which included sales taxes of $66.
5-3
72
5-3
Revenue Journal Page 40
Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 002008
3 843 Kaufmann Supply 1 166 00 1 100 00 66 00
72
Invoice Accts. Rec. Fees Earned Sales Tax. PayDate No. Account Debited PR Dr. Cr. Cr.
73
Example Exercise 5-5
The state of Tennessee has a 7% sales tax. Volunteer Services, Inc., a Tennessee company, had two revenue transactions as follows:Aug. 3 Issued Invoice No. 58 to Helena Company for
services provided on account, $1,400, plus sales tax.
19 Issued Invoice No. 59 to K-Jam Enterprises forservices provided on account, $900, plus sales tax.
Record these transactions in a revenue journal as illustrated in the previous section.
73
5-3
74For Practice: PE 5-5A, PE 5-5B 74
Follow My Example 5-5
5-3
Revenue Journal
Aug. 3 58 Helena Company 1 498 00 1 400 00 98 0019 59 K-Jam Enterprises 963 00 900 00 63 00
Invoice Accts. Rec. Fees Earned Sales Tax. PayDate No. Account Debited PR Dr. Cr. Cr.
75
Apply computerized accounting to the revenue
and collection cycle.
Objective 4Objective 4Objective 4Objective 4
5-4
76
A database collects, stores, and organizes
information in a retrievable format.
5-4Database
77
5-4
77
78
At any time, managers may request reports from the software.
1) The customer balance summary.
2) The fees earned by customer detail.
3) The cash receipts.
5-4
79
Describe the basic features of e-commerce.
Objective 5Objective 5Objective 5Objective 5
5-5
80
Using the Internet to perform business
transactions is termed e-commerce.
5-5e-Commerce
81
When transactions are between a company and a consumer, it is termed B2C (business-to-
consumer) e-commerce.
5-5B2C
82
Three more advanced areas where the Internet is being used for business purposes are: Supply chain management (SCM) Consumer relationship management
(CRM) Product life-cycle management
(PLM)
5-5