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0. 5. Accounting Systems. 0. After studying this chapter, you should be able to:. Define an accounting system and describe its implementation. Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals. 0.

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slide1

0

5

Accounting Systems

slide2

0

After studying this chapter, you should be able to:

  • Define an accounting system and describe its implementation.
  • Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.
slide3

0

After studying this chapter, you should be able to:

  • Describe and give examples of additional subsidiary ledgers and modified special journals.
  • Apply computerized accounting to the revenue and collection cycle.
  • Describe the basic features of e-commerce.
slide4

0

5-1

Objective 1

Define an accounting system and describe its implementation.

slide5

0

5-1

Accounting Systems Growth Process

5

slide6

0

5-1

Three Step Process as a Business Grows and Changes

Step 1: Analysis

  • Identify the needs of those who use the business’s financial information.
  • Determine how the system should provide this information.
slide7

0

5-1

Step 2: Design

  • The system is designed so that it meets the users’ needs.

Step 3: Implementation

  • The system is implemented and used.
slide8

0

5-1

Feedback

Once a system has been implemented, feedback, or input from the users of the information can be used to analyze and improve the system.

slide9

0

5-1

Internal Controls

Internal controlsare policies and procedures that protect assets from misuse, ensure that business information is accurate, and ensure that laws and regulations are being followed.

slide10

0

5-1

Processing Methods

Processing methods are the means by which the system collects, summarizes, and reports accounting information. These methods may be either manualor computerized.

slide11

0

5-2

Objective 2

Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.

slide12

0

5-2

A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called a subsidiary ledger.

slide13

0

5-2

The primary ledger, which contains all of the balance sheet and income statement accounts, is called a general ledger.

slide14

0

5-2

Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account.

slide15

0

5-2

The individual customers’ accounts are arranged in alphabetical order in a subsidiary ledger called the accounts receivable subsidiary ledger orcustomers ledger.

slide16

0

5-2

The individual creditors’ accounts are arranged in alphabetical order in a subsidiary ledger called the accounts payable subsidiary ledger, orcreditors ledger.

slide17

Accounts Receivable

Subsidiary Ledger

Customer Accounts

A

B

C

D

Accounts Payable

Subsidiary Ledger

Creditor Accounts

A

B

C

D

0

5-2

General Ledger and Subsidiary Ledgers

General Ledger

Cash 11

Accts. Rec. 12

Supplies 14

Accts. Pay. 21

17

slide18

recorded in

Revenue journal

recorded in

Cash receipts journal

0

5-2

Special Journals

SELLING

Providing services on account

Receipt of cash from any source

18

slide19

recorded in

Purchases journal

BUYING

recorded in

Cash payments journal

0

5-2

Special Journals

Purchase of items on account

Payment of cash for any purpose

19

slide20

0

5-2

Special Journals

The all-purpose two-column journal, called the general journal or simply thejournalcan be used for entries that do not fit into any of the special journals.

slide21

0

5-2

The revenue journal is used for recording fees earned on account. Cash fees earned would be recorded in the cash receipts journal.

slide22

Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

0

5-2

Posting the Revenue Journal

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

22

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Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

2008

Mar. 2 R35 2,200 2,200

0

5-2

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

Accounts Receivable Subsidiary Ledger

Accessories by Claire

Date Item P.R. Debit Credit Balance

23

slide24

Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

2008

Mar. 2 R35 2,200 2,200

0

5-2

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

Accounts Receivable Subsidiary Ledger

Accessories by Claire

Date Item P.R. Debit Credit Balance

24

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Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

0

5-2

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

25

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Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

31 9 6 0 0 00

0

5-2

Exhibit 2 Revenue Journal

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

26

slide27

Revenue Journal, page 35

0

5-2

The debit total is posted from the revenue journal to Accounts Receivable in the general ledger.

Accounts Receivable

Account No. 12

ACCOUNT

Balance

Post. Ref.

Dr.

Cr.

Date

Item

Cr.

Dr.

2008

Mar. 1 Balance 3 400 00

31

9 600 00

13 000 00

R35

27

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Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

31 9 6 0 0 00

0

5-2

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

(12)

Indicates a debit posting of $9,600 to Accounts Receivable (General Ledger Account 12)

28

slide29

Revenue Journal, page 35

0

5-2

The credit total is posted from the revenue journal to Fees Earned in the general ledger.

Fees Earned

Account No. 41

ACCOUNT

Balance

Post. Ref.

Dr.

Cr.

Date

Item

Cr.

Dr.

2008

Mar. 31

R35

9 600 00

9 600 00

29

slide30

Page 35

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

1

2

3

4

5

6

2008

1

2

3

4

5

6

Mar. 2 615 Accessories by Claire 2 2 0 0 00

31 9 6 0 0 00

0

5-2

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

(41)

(12)

Indicates a credit posting of $9,600 to Fees Earned (General Ledger Account 41)

30

slide31

Example Exercise 5-1

0

5-2

The following revenue transactions occurred during December:

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.

Record these transactions in a revenue journal as illustrated in Exhibit 2.

31

slide32

Page

Revenue Journal

Invoice Post Accts. Rec. – Debit

Date No. Account Debited Ref. Fees Earned – Credit

Follow My Example 5-1

1

2

3

4

5

6

1

2

3

4

5

6

0

5-2

Dec. 5 302 Butler Company 5 0 0 0 00

9 303 JoJo Enterprises 2 1 0 0 00

15 304 Double D Inc. 3 2 5 0 00

For Practice: PE 5-1A, PE 5-1B

32

slide33

0

5-2

Cash Receipts Journal

All transactions that involve the receipt of cash are recorded in a cashreceipts journal.

Every entry recorded in the cash receipts journal will involve a debit to the “Cash Dr.” column.

slide34

CASH RECEIPTS JOURNAL

Page 14

Other Accounts

Post Accounts Receivable Cash

Date Account Credited Ref. Cr. Cr. Dr.

2008

Mar. 1 Rent Revenue 400 400

19 Web Cantina 3,400 3,400

28 Accessories by Claire 2,200 2,200

30 RapZone 1,750 1,750

2008

Mar. 1 400 400

0

5-2

Cash Receipts Journal and Postings

42

GENERAL LEDGER

ACCOUNT Rent Revenue Acct. No. 42

Date Item P.R. Debit Credit Cr. Bal.

34

CR14

slide35

2008

Mar. 1 Bal. 3,400 18 R35 2,650 6,050

0

5-2

CASH RECEIPTS JOURNAL

Page 14

Other Accounts

Post Accounts Receivable Cash

Date Account Credited Ref. Cr. Cr. Dr.

2008

42

Mar. 1 Rent Revenue 400 400

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

Web Cantina

Date Item P.R. Debit Credit Balance

35

CR14

19

3,400

2,650

slide36

0

5-2

After all journalizing and posting for the month to individual accounts is complete, the columns are totaled.

slide37

0

5-2

Posted Cash Receipts Journal

CASH RECEIPTS JOURNAL

Page 14

Other Accounts

Post Accounts Receivable Cash

Date Account Credited Ref. Cr. Cr. Dr.

2008

42

Mar. 1 Rent Revenue 400 400

19 Web Cantina 3,400 3,400

28 Accessories by Claire 2,200 2,200

30 RapZone 1,750 1,750

400 7,350 7,750

( )

(12)

(11)

A checkmark indicates that the items in this column are posted individually.

37

slide38

0

5-2

After posting, the total amount of the accounts in the accounts receivable subsidiary ledger should match the balance in the general ledger’s Accounts Receivableaccount.

slide39

0

5-2

Accounts Receivable—(Controlling)

Balance, March 1, 2008 $3,400

Total debits (from revenue journal) 9,600

Total credits (from cash receipts journal) (7,350)

Balance, March 31, 2008 $5,650

NetSolutions

Customer Balance Summary Report, March 31, 2008

Accessories By Claire $3,000

RapZone 0

Web Cantina 2,650

Total accounts receivable $5,650

39

slide40

Example Exercise 5-2

0

5-2

The debits and credits from two transactions are presented in the following customer account:

NAME Sweet Tooth Confections

ADDRESS 1212 Lombard St.

Date Item P.R. Dr. Cr. Balance

July 1 Bal. 625

7 Inv. 35 R12 86 711

31 Inv. 31 CR4 122 589

Describe each transaction and the source of each posting.

40

slide41

Follow My Example 5-2

0

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.

For Practice: PE 5-2A, PE 5-2B

41

slide42

0

5-2

The purchases journal is designed for recording all purchases on account.

slide43

2008

Mar. 3 Howard Supplies 600 600

0

5-2

Journalizing in the Purchases Journal

Page 11

PURCHASES JOURNAL

Accts. Other

Post 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. 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

43

slide44

0

5-2

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.

slide45

2008

Mar. 3 Howard Supplies 600 600

0

5-2

Page 11

PURCHASES JOURNAL

Accts. Other

Post 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. 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

45

slide46

2008

Mar. 3 Howard Supplies 600 600

7 Donnelly Supplies 420 420

12 Jewett Business Sys. 2,800 Off. Equip. 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

2008

Mar 3 600 600

0

5-2

Posting the Purchases Journal

Page 11

PURCHASES JOURNAL

Accts. Other

Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

Accounts Payable Subsidiary Ledger

Howard Supplies

Date Item P.R. Dr. Cr. Balance

P11

46

slide47

2008

Mar. 3 Howard Supplies 600 600

7 Donnelly Supplies 420 420

12 Jewett Business Sys. 2,800 Off. Equip. 18 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

0

5-2

Page 11

PURCHASES JOURNAL

Accts. Other

Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

Office Equipment (Account 18 in the general ledger) is debited for $2,800.

47

slide48

0

5-2

At the end of March, all columns are totaled and equality of debits and credits is verified. Then the total amount in the “Accounts PayableCr.” and “SuppliesDr.” columns are posted. Because Office Equipment was posted earlier, the $2,800 total is not posted.

slide49

Page 11

PURCHASES JOURNAL

Accts. Other

Post Payable Supplies Accounts Post

Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount

2008

Mar. 3 Howard Supplies 600 600

0

5-2

7 Donnelly Supplies 420 420

12 Jewett Business Sys. 2,800 Off. Equip. 18 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

31 6,230 3,430 2,800

( ) ( ) ( )

21

GENERAL LEDGER

ACCOUNT Accounts Payable No. 21

Date Item P.R. Debit Credit Balance

49

2008

Mar. 1 Bal 1,230

31

P11

6,230

7,460

slide50

Page 11

PURCHASES JOURNAL

2008

Mar. 3 Howard Supplies 600 600

0

5-2

Accts. Other

Post 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 2,800

19 Donnelly Supplies 1,450 1,450

27 Howard Supplies 960 960

31 6,230 3,430 2,800

( ) ( ) ( )

21

14

GENERAL LEDGER

ACCOUNT Supplies No. 14

Date Item P.R. Debit Credit Balance

50

2008

Mar. 1 Bal 2,500

31

P11

3,430

5,930

slide51

0

5-2

Cash Payments Journal

All transactions involving a credit to Cashare recorded in the cash payments journal.

slide52

CASH PAYMENTS JOURNAL

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

Mar. 2 150 Rent Expense 1,600 1,600

0

5-2

On March 2, issued Check 150 for rent of $1,600.

52

slide53

CASH PAYMENTS JOURNAL

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

Mar. 2 150 Rent Expense 1,600 1,600

0

5-2

15 151 Grayco Supplies 1,230 1,230

On March 15, issued Check 151 to Grayco Supplies on account, $1,230.

53

slide54

0

5-2

Let’s post to the accounts payable subsidiary ledger at this time to keep the creditors’ account current.

slide55

2008

Mar. 2 150 Rent Expense 1,600 1,600

Accounts Payable Subsidiary Ledger

Grayco Supplies

Date Item P.R. Dr. Cr. Balance

Mar. 3 Bal. 1,230

0

5-2

CASH PAYMENTS JOURNAL

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

15 151 Grayco Supplies 1,230 1,230

2008

---

15

CP7

1,230

55

slide56

CASH PAYMENTS JOURNAL

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

Mar. 2 150 Rent Expense 1,600 1,600

0

5-2

15 151 Grayco Supplies 1,230 1,230

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

Journalize the remainder of March’s cash disbursements.

56

slide57

CASH PAYMENTS JOURNAL

CASH PAYMENTS JOURNAL

PAGE 7

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

2008

Mar. 2 150 Rent Expense 1,600 1,600

Mar. 2 150 Rent Expense 1,600 1,600

0

5-2

15 151 Grayco Supplies 1,230 1,230

15 151 Grayco Supplies 1,230 1,230

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

Journalized the remainder of March’s cash disbursements.

Post to individual creditor’s accounts.

21

57

slide58

CASH PAYMENTS JOURNAL

CASH PAYMENTS JOURNAL

PAGE 7

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

2008

Mar. 2 150 Rent Expense 1,600 1,600

Mar. 2 150 Rent Expense 1,600 1,600

31 2,650 5,050 7,700

0

5-2

15 151 Grayco Supplies 1,230 1,230

15 151 Grayco Supplies 1,230 1,230

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

The journal is ruled, summed, and verified for equality of debits and the “Cash Cr.” column.

58

slide59

CASH PAYMENTS JOURNAL

CASH PAYMENTS JOURNAL

PAGE 7

PAGE 7

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

Other Accounts

Ck. Post Accounts Payable Cash

Date No. Account Debited Ref. Dr. Dr. Cr

2008

2008

Mar. 2 150 Rent Expense 1,600 1,600

Mar. 2 150 Rent Expense 1,600 1,600

( )

31 2,650 5,050 7,700

0

5-2

52

15 151 Grayco Supplies 1,230 1,230

15 151 Grayco Supplies 1,230 1,230

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

21 152 Jewett Business Sys. 2,800 2,800

22 153 Donnelly Supplies 420 420

30 154 Utilities Expense 1,050 1,050

31 155 Howard Supplies 600 600

54

Items in the “Other Accounts Dr.” column are posted. Then the totals for “Accounts Payable Dr.” and “Cash Cr.” are posted.

(21)

(11)

59

slide60

0

5-2

Accounts Payable Control and Subsidiary Ledger

Accounts Payable— (Control)

Balance, March 1, 2008 $1,230

Total credits (from purchases journal) 6,230

Total debits (from cash payments journal) (5,050)

Balance, March 31, 2008 $2,410

NetSolutions

Supplier Balance Summary Report

March 31, 2008

Donnelly Supplies $1,450

Grayco Supplies 0

Howard Supplies 960

Jewett Business Systems 0

Total $2,410

60

slide61

Example Exercise 5-4

0

5-2

The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:

NAME Lassiter Services, Inc.

ADDRESS 301 St. Bonaventure Ave.

Date Item P.R. Dr. Cr. Balance

Aug. 1 Bal. 320

12 Inv 101 CP36 200 120

22 Inv 106 P16 140 260

Describe each transaction and the source of each posting.

61

slide62

Follow My Example 5-4

0

5-2

Aug. 12 Payment of $200 to Lassiter Services, Inc. on account (Inv. 101). Amount posted from page 36 of the cash payments journal.

Aug. 22 Purchased $140 of services on account from Lassiter Services, Inc. itemized on Inv. 106. Amount posted from page 16 of the purchases journal.

For Practice: PE 5-4A, PE 5-4B

62

slide63

0

5-3

Objective 3

Describe and give examples of additional subsidiary ledgers and modified special journals.

slide64

0

5-3

Modified Special Journals

A business may modify its special journals by adding one or more columns for recording transactions that occur frequently.

slide65

0

5-3

On November 2, NetSolutions issued Invoice No. 842 to Litten Company for $4,770, which included sales taxes of $270.

slide66

Page 40

Revenue Journal

Invoice Accts. Rec. Fees Earned Sales Tax. Pay

Date No. Account Debited PR Dr. Cr. Cr.

2008

Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 00

0

5-3

Modified Revenue Journal

66

slide67

2008

Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 00

0

5-3

Page 40

Revenue Journal

Invoice Accts. Rec. Fees Earned Sales Tax. Pay

Date No. Account Debited PR Dr. Cr. Cr.

$4,770 is debited to Litten Co. in the accounts payable subsidiary ledger

67

slide68

2008

Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 00

0

5-3

Page 40

Revenue Journal

Invoice Accts. Rec. Fees Earned Sales Tax. Pay

Date No. Account Debited PR Dr. Cr. Cr.

A checkmark indicates that the amount has been posted.

68

slide69

0

5-3

On November 3, issued Invoice No. 843 to Kaufman Supply Company for $1,166, which included sales taxes of $66.

slide70

2008

Nov. 2 842 Litten Co. 4 770 00 4 500 00 270 00

0

5-3

Page 40

Revenue Journal

Invoice Accts. Rec. Fees Earned Sales Tax. Pay

Date No. Account Debited PR Dr. Cr. Cr.

3 843 Kaufmann Supply 1 166 00 1 100 00 66 00

70

slide71

0

5-4

Objective 4

Apply computerized accounting to the revenue and collection cycle.

slide72

0

5-4

Database

A databasecollects, stores, and organizes information in a retrievable format.

slide73

0

5-4

73

slide74

0

5-4

At any time, managers may request reports from the software.

  • The customer balance summary.
  • The fees earned by customer detail.
  • The cash receipts.
slide75

0

5-5

Objective 5

Describe the basic features of e-commerce.

slide76

0

5-5

e-Commerce

Using the Internet to perform business transactions is termed e-commerce.

slide77

0

5-5

B2C

When transactions are between a company and a consumer, it is termed B2C (business-to-consumer) e-commerce.

slide78

0

5-5

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)