...Paint Company General Ledger As Of 12/14/11 Account 11-Cash Balance Forward General General General General General General General General General General General General General General General 12-Payroll Cash General General General General General General General 9-Oct 9-Oct 23-Oct 23-Oct 6-Nov 6-Nov 13-Nov Payroll General Payroll General Payroll General Payroll $ 11,065.41 $ 11,065.41 Cr $ 11,065.41 $ $ 11,135.57 $ 11,135.57 Cr $ 11,135.57 $ $ 10,900.93 $ 10,900.93 Cr $ 10,900.93 $ $ 1,409.53 $ 1,409.53 Cr 9-Oct 20-Oct 23-Oct 4-Nov 6-Nov 6-Nov 13-Nov 16-Nov 16-Nov 18-Nov 20-Nov 3-Dec 4-Dec 9-Dec 14-Dec General General General General General General General General General General General General General General General $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,065.41 434.82 11,135.57 444.70 32.00 10,900.93 1,409.53 6,432.51 1,105.15 497.67 8,246.07 388.08 9,728.39 32.00 1,306.90 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 199,846.33 188,780.92 188,346.10 177,210.53 176,765.83 176,733.83 165,832.90 164,423.37 157,990.86 156,885.71 156,388.04 148,141.97 147,753.89 138,025.50 137,993.50 136,686.60 Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Journal Date Refer. Debit Credit Balance General General General General General General General 20.1-FICA Taxes Payable--OASDI General General General General General General General General General General General General General General General 20.2-FICA Taxes Payable--HI General General General General General General General General 13-Nov 20-Nov...
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...General Journal Date | Description | Debit | Credit | Feb 1 | Bank | 50 000 | | | Van | 20 000 | | | Capital | | 70 000 | 1 | Cash | 30 000 | | | Bank | | 30 000 | 1 | Rent | 6 000 | | | Cash | | 6 000 | | Prepaid rent | 4 000 | | | Rent | | 4 000 | 2 | Office equipment | 5 700 | | | Cash | | 5 700 | 2 | Furniture | 10 000 | | | Account payable – Court Mamoth | | 10 000 | 3 | Carriage inwards | 150 | | | Bank | | 150 | 4 | Purchases | 11 250 | | | Account payable – Sasbadi Sdn Bhd | | 11 250 | 4 | Purchases | 6 800 | | | Account payable – Kumpulan Media Karangkraf Sdn Bhd | | 6 800 | 5 | Advertisement | 1700 | | | Bank | | 1 700 | 7 | Account receivable – Aisyah Tuition Centre | 3 700 | | | Sales | | 3 700 | 8 | Purchases | 4 500 | | | Cash | | 4 500 | 8 | Account payable – Sasbadi Sdn Bhd | 2 500 | | | Return outwards | | 2 500 | 9 | Account payable – Kumpulan Media Karangkraf Sdn Bhd | 150 | | | Discount received | | 150 | | Account payable – Kumpulan Media Karangkraf Sdn Bhd | 1 400 | | | Cash | | 1 400 | 9 | Cash | 2 000 | | | Sales | | | 10 | Cash | 3 000 | | | Discount allowed | 100 | | | Sales | | 3 100 | 12 | Purchases | 11 330 | | | Cash | | 10 922 | | Discount received | | 408 | 13 | Bank | 50 000 | | | Loan from CIMB Bank | | 50 000 | 13...
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...individual entries are posted to the general ledger. They free the general ledger of details. They help locate errors in individual accounts. And only one person can concentrate or specialize on sales journal entries, making possible a division of labor. Special journals are needed whenever you need to keep track of similar transactions from multiple sources. To support information in a general ledger control account we will use a subsidiary ledger. A subsidiary ledger is a group of accounts that share a common characteristic (for example, accounts receivable). It is in addition to, and an expansion of, the general ledger(Weygandt, Kimmel, & Kieso., 2008). The purpose of subsidiary ledgers is so you do not have to list every customer’s account in the general ledger, which would take up a lot of space. All the information from the subsidiary ledger is entered as one figure in the general ledger. All the details are found in the subsidiary ledger. To keep a general ledger free of details we will use a control account; which is a summary account in the general ledger. Details of each transaction of a specific type of account(for example a control account could be accounts receivable) would be itemized on the control account and then entered into the general ledger for the time period the general ledger reflects. Entries would be total accounts receivable for that day, week, or month as opposed to every specific amount received. The two most common general ledger accounts which may act as control...
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...purchases (PURCHASES TRANSACTION FILE) c. cash receipts-all transaction where any cash was received even if it is only part of the transaction (CASH RECEIPTS TRANSACTION FILE) d. cash disbursement-all cash paid (checks even if it is only part of the transaction) (CASH DISBURSEMENTS TRANSACTION FILE) e. general journal – everything else (e.g., adjusting entries, closing entries, reversing entries and any transaction that doesn’t belong in the other journals. (GENERAL (JOURNAL) TRANSACTION FILE) F. payroll journal (all payroll transactions) (PAYROLL TRANSACTION FILE) 2. Record the transaction in the Ledger (general and subsidiary) i.e. POST Posting is equivalent to a (master) file update in a computerized (AIS), That is, the transaction in the transaction file are incorporated into the master file balances. General ledger (general ledger master file) Accounts receivable subsidiary ledger (accounts receivable master file) Accounts payable subsidiary ledger (accounts payable master file) Inventory subsidiary ledger (inventory master file) Payroll or employee earnings subsidiary ledger (payroll master file) (Your Waren case project also has a ) Fixed assets subsidiary ledger (fixed assets master file) Etc. 3.prepare a trial balance 4. Record adjusting journal entries Four types of adjusting journal entries i. Reapportioning recorded costs Template: debit expense Credit asset (or contra asset) ii. Reapportioning unearned revenues ...
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...Recording Transactions With sophisticated accounting software and inexpensive computers, it is no longer practical for most businesses to manually enter transactions into journals and then to post to the general ledger accounts and subsidiary ledger accounts. Today, software such as QuickBooks* will update the relevant accounts and provide more information with a minimum of data entry. *QuickBooks is a registered trademark of Intuit Inc. AccountingCoach LLC is not affiliated with Intuit Inc. and does not receive any affiliate marketing commissions from Intuit. In this section we will highlight how the accounting software will capture financial transactions and then automatically update the general ledger and store the information for management's future use. Accounts payable When accounting software is used to enter the invoices received from suppliers (vendor invoices), the software will update Accounts Payable and will require that the account or accounts that should be debited be entered as well. The accounting software's vendor files also allow a company to prepare purchase orders, receiving tickets and to pay the vendors' invoices. A company should have internal controls so that only legitimate invoices are recorded and paid. Check writing When the accounting software is used to write checks, the software will automatically credit the Cash account and will require that another account be designated for the debit. An additional benefit is that the amounts will move...
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...compensation usually associated with executives, managers, professionals, office employees, etc. whose pay is stated on an annual or on a monthly basis. (On the other hand, "wages" is usually associated with employees whose pay is stated on an hourly basis.) Sales A revenue account that reports the sales of merchandise. Sales are reported in the accounting period in which title to the merchandise was transferred from the seller to the buyer. Secured creditor A lender such as a bank who has placed a lien on a borrower's assets. As a result, the lender has collateral until the loan amount is repaid. Subsidiary ledger A record of the details to support a general ledger account. The general ledger account is often referred to as the control account. For example, the accounts receivable subsidiary ledger provides the details to support the balance in the general ledger control account Accounts Receivable. Simple regression Regression analysis with only one independent variable. Social Security taxes One component of the payroll tax referred to as FICA. (The other component of the FICA tax is the Medicare tax.) The Social Security tax is levied by the U.S. government on both the employee and the employer. In 2012 the Social Security portion of FICA (excluding Medicare) to be withheld from the first $110,100 of each employee's annual salary or wages is 4.2%. In addition, the employer incurs Social Security expense of 6.2% and as a result must remit 10.4% of the first $110...
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...individual entries are posted to the general ledger. They free the general ledger of details. They help locate errors in individual accounts. And only one person can concentrate or specialize on sales journal entries, making possible a division of labor. Special journals are needed whenever you need to keep track of similar transactions from multiple sources. To support information in a general ledger control account we will use a subsidiary ledger. A subsidiary ledger is a group of accounts that share a common characteristic (for example, accounts receivable). It is in addition to, and an expansion of, the general ledger(Weygandt, Kimmel, & Kieso., 2008). The purpose of subsidiary ledgers is so you do not have to list every customer’s account in the general ledger, which would take up a lot of space. All the information from the subsidiary ledger is entered as one figure in the general ledger. All the details are found in the subsidiary ledger. To keep a general ledger free of details we will use a control account; which is a summary account in the general ledger. Details of each transaction of a specific type of account(for example a control account could be accounts receivable) would be itemized on the control account and then entered into the general ledger for the time period the general ledger reflects. Entries would be total accounts receivable for that day, week, or month as opposed to every specific amount received. The two most common general ledger accounts which may act as control...
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...04LevelUndergraduateGraduateBeginnerFocusAccounting Entries in Manual and Automated SystemsIntegration of Accounting JournalsAuthorsJim MenschingNancy JonesContributorsPatti BrownVersion1.0 | MOTIVATIONThis assignment is a review of general financial accounting principles and procedures. In the first part of the assignment, you will create general journal entries for a series of transactions in Excel. For the last part of the assignment you will enter your “manual” journal entries into the SAP ERP system. The SAP system will then be used to produce a set of financial statements (balance sheet and income statement). Primary learning objectives are: * Review the concepts of the beginning financial accounting course * Review the accounting cycle * Work with a manual accounting information systemSecondary learning objective: * Review basic Excel skills | | PREREQUISITESBefore you use this case study, you should be familiar with navigation in the SAP system.You should also be familiar with Excel or other spreadsheet programs.Prior completion of the sample problem provided with this assignment is also recommended..NOTESThis case study uses the Global Bike Inc. (GBI) data set, which has exclusively been created for SAP UA global curricula. | Assignment Overview This assignment is a review of general financial accounting principles and...
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...ACC 444 EXAM 1 Chapter 1 * Introduction * System: set of two or more interrelated components that interact to achieve a goal. (systems consist of subsystems that support the larger system) * Goal conflict: when subsystem is inconsistent with the goals of another subsystem or with the system as a whole * Goal congruence: when a subsystem achieves its goals while contributing to the organization’s overall goal * Data: facts that are collected, recorded, stored and processed by an information system (activities, resource, people) * Information: data that have been organized and processed to provide meanings and improve the decision-making process (better decisions quantity and quality of information increase) * Information overload: when limits to the amount of information human mind can absorb and process are passes, resulting in a decline in decision making quality and increase in cost of providing that information * Information technology(IT): information designers use to help decision makers more effectively filter and condense information * Value of information: the benefit produced by the information minus the cost of producing it * Seven characteristics of useful information: relevant, reliable, complete, timely, understandable, verifiable, accessible (RRCTUVA) * Information needs and business process * Business process: a set of related, coordinated and structured activities and tasks that are performed by a person or by...
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...HEM: Chapters 1 and 2 All required readings must be completed before attending class What is Accounting? The process of identifying, measuring, recording and communicating economic information to assist users to make economic decisions. Users of Accounting Information The users are internal and external decision makers. Internal: owner and manager External: investors, creditors, banks and government Management Accounting Providing information to management to help them plan, control and make decisions. Users are internal. Financial Accounting Reporting information about the entity’s performance and financial position to external users to help them make decisions. The financial statements produced for the external users are known as General Purpose Financial Reports (GPFR) and include: Balance Sheet Income Statement Statement of Changes in Equity Statement of Cash Flows (not covered in Accounting 1A) The information in the GPFR must abide by accounting standards and are produced for a wide variety of different users to ensure that accounting information is RELIABLE Ethics Ethics is a system of moral principles...
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...Subsidiary Ledgers and Special Journals In accounting, every journal has its separate place. There are four special journals in accounting that has special advantage. These journals are sales journal, cash receipts journal, purchases journal, and payments journal. The sales journal secures all transactions that belong to sales for the business. This includes sales of possessions and the service provided by a business. The sales journal produces a thorough image of the history of all sales for the establishment and reveals the activity in a consecutive manner that allows for an easier way to examine the data. The Cash Receipts Journal secures all items that contain a receipt of funds, which includes cash sales for goods and collections of accounts receivables. The sales, Receipts, and Purchases journals decrease the number of items recorded to the General Ledger. The Purchase Journal contains each purchase of goods for an industry. The journal entry debits products or supplies and credits accounts payable for supplier. This journal includes all the debits that are combined for each period for the General Ledger. This allows for the Purchase Journal to act as the sole source of detailed information about purchases. The Cash Payment Journal includes disbursements and also followed by pre-numbered system of checks. This journal also keeps the General Ledger clean and free of untidiness and acts as the only source for the payment made by the...
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... 12.0 focused on Financials 12.1 focused on everything else including HR Utilizes role-based access control requiring role grants from the user management responsibility Setup reports in diagnostics can help you find missing setups 3 FINANCIALS - GL 4 Financials - GL Legal Entities have significant functionality in R12 Should reflect legal corporate structure Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account Balancing segment is associated with legal entity – not ledger Bank account is owned by legal entity Align your Ledger structure with your business plan Operating units are associated with ledgers in R12 – not LE Position your business to accommodate growth Design ledgers to satisfy non-GAAP accounting requirements Secondary Ledgers can be utilized for statutory, management, and/or consolidation reporting Mapping from Primary to Secondary Ledger(s) is defined in General Ledger and is assigned in the Accounting Setup Manager 5 Financials - GL Consider...
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...Objectives 1.1 To describe the documents and records that are usually found in the purchases and payment cycle. 1.2 To state the general audit procedures for the test of internal controls of this cycle. 1.3 To mention the substantive tests used for the trade creditors. [pic] 2. Documents and Records 2.1 Purchase requisition (請購單) – a form detailing the request for goods or services by an authorized employee of the user department and it is then passed from the user department to the purchase department. For example, order of materials by a factory/storeroom supervisor. [pic] 2.2 Purchase order (訂購單) – a document from a company to the supplier recording the description, quantity and amount of the goods or services ordered and it should be properly authorized by the company. [pic] 2.3 Goods received note (收貨單) – a document prepared by the supervisor of the storeroom/receiving department at the time the goods are received. It shows the description, quantity, condition and date of the goods received. [pic] 2.4 Purchase invoice – a document received from vendor which indicates the date, description, quantity and the total amount of goods and services the company has received. 2.5 Purchase journal and ledgers (a) A journal (day book) for recording the purchases of goods or services. (b) Vendors’ accounts in the purchase ledger will also be updated with the remittance advice/receipts when payments are made to vendors. 2.6 Payment voucher – an internally...
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...credits that will be entered into accounting records. These transactions are identified through an original source document i.e. invoice, time card, purchase order). Journalizing “A company records in accounts those transactions and events that affect its assets, liabilities, and equities” (Kieso, Weygandt, & Warfield, 2007, p. 69). Journals include sales, purchases, cash receipts, general and cash payment journals; these in which are kept in chronological order. Posting This occurs when transferring the journal entries to the ledger accounts. Ledgers are kept by account; these include T-account forms or balances. A “general ledger is usually monthly while subsidiary ledgers are usually done daily” (Kieso, Weygandt, & Warfield, 2007, p. 68). Trial Balance A calculation that verifies the total of debits is equal to the total of credits. An unbalanced trial balance can help balance if they did not agree. This step is done at the end of an accounting period. Adjusting Entries “Done at the end of the accounting period as well this prepare and post accrued and deferred items to journals and ledger T-accounts” (Professor Cram, 2004). Adjusted Trial Balance This step makes sure the debits are still equal to the credits after making the period end...
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...INFS7004 Accounting Information Systems Lecture 4 Transaction Cycles: The Revenue Cycle 1 The Conceptual System The Revenue Cycle The revenue cycle is the set of activities in a business which brings about the exchange of goods or services with customers for cash. Most business transactions are conducted on a credit basis. Cash is received after goods are shipped to the customer. 2 Sales Order 1 Credit / Customer Service 2 REVENUE CYCLE (SUBSYSTEM) Cash Receipts/ Collections 6 Shipping 3 Billing/ Accounts Receivable 4/5 Journal Vouchers/Entries: How do we get them? Billing Dept. prepares a journal voucher: Accounts Receivable Sales DR CR Inventory Control Dept. prepares a journal voucher: Cost of Goods Sold Inventory DR CR Cash Receipts Dept. prepares a journal voucher: Cash Accounts Receivable DR CR 4 Sales Order Procedures Sales order procedures include the task involved in receiving and processing a customer order, filling the order and shipping products to the customer at the proper time, and correctly accounting for transaction. 5 Receive Order At this point, sale process begins indicating the type and quantity of merchandise desired by customer. It may or may not be a physical document Orders may arrive by mail, by telephone, or from a field representative who visited the customer After creating the sales order, a copy of it is placed in the customer open order file. 6 Check Credit For...
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