...The advantage of special journals is that they save time by making one-line entries possible. Only totals, not 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...
Words: 334 - Pages: 2
...transaction in a journal (JOURNALIZE) Journals: a. sales – all sales on account/credit sales (SALES TRANSACTION FILE) b. purchases-all purchases on account/credit 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 ...
Words: 302 - Pages: 2
...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...
Words: 362 - Pages: 2
...Journal Entries in an ERP This assignment reviews basic accounting entries for a series of transactions, emphasizes the integration of journals to the financial statements, and introduces students to these journal entries in SAP ERP Journal Entries in an ERP This assignment reviews basic accounting entries for a series of transactions, emphasizes the integration of journals to the financial statements, and introduces students to these journal entries in SAP ERP ProductSAP ERP GBIRelease 6.04LevelUndergraduateGraduateBeginnerFocusAccounting 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...
Words: 6282 - Pages: 26
...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...
Words: 13228 - Pages: 53
...The advantage of special journals is that they save time by making one-line entries possible. Only totals, not 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...
Words: 334 - Pages: 2
...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...
Words: 2302 - Pages: 10
...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...
Words: 5526 - Pages: 23
...sorted into debits and 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...
Words: 466 - Pages: 2
...million (Johnston, 2008) ACC 250 Week 2 Bellwether Garden Supply CheckPoint.pdf This work comprises ACC 250 Week 2 Bellwether Garden Supply CheckPoint ACC 250 Week 2 DQs. You have just completed training for your new position in a large accounting firm. The trainer has covered the difference between manual accounting and computerized accounting. What questions do you have regarding the differences? What are the advantages of computerized accounting versus manual accounting? What was the most challenging aspect of the material covered this week? What aspects did you find most beneficial? ACC 250 Week 3 Assignment Bellwether Garden Supply Customer Ledgers.pdf This file includes ACC 250 Week 3 Assignment Bellwether Garden Supply Customer Ledgers ACC 250 Week 3 Assignment Bellwether Garden Supply Invoice Register.pdf This document includes ACC 250 Week 3 Assignment Bellwether Garden Supply Invoice...
Words: 1279 - Pages: 6
...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...
Words: 1532 - Pages: 7
...The time frames we provide are a guide only. It may take you more or less time to complete each step. Your grading |Your grading outcome (still in progress) | | |Awarded |Total | |Points (prior to this page) |212 |238 | |Points (on this page) |183 |219 | |Points (after this page) |− |824 | |Total |395 |1,281 | | | Information from previous pages ▪ General instructions ▪ Policies and procedures ▪ All transactions ▪ Adjusting entries information ▪ Trial balance - May ▪ Schedules of accounts - May ▪ Inventory cards - May ▪ Bank reconciliation - May ▪ Bank statement - June ▪ Special printing information ▪ Journals and ledgers instructions ▪ Inventory cards instructions You are now instructed to record transactions that occurred throughout the second week of June into the company's books. The week 2 transactions are listed below: |Week 2 | | |Date |Transaction description | | |11 |Made payment of $1,232 to Integer Energy...
Words: 2725 - Pages: 11
...of: identifying, journalizing, posting, trail balance, adjusted entries, adjusted trial balance, preparing financial statements, closing, post-closing trial balance, reversing entries, and financial statements (Kieso, Weygandt, & Warfield, 2007, Chapter 3). Identifying a transaction or event is the first step in the cycle; businesses engage in various activities on a daily basis, as a result, determining when to record and activity is crucial. Once the activity has been identified as a transaction that must be recorded, then the next step is to journalize the transaction. The journalizing process can be done in a variety of ways; the most common method is the general journal, although some companies keep other special journals. The next step in the accounting cycle is posting, which is “the procedure of transferring journal entries...
Words: 815 - Pages: 4
...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...
Words: 703 - Pages: 3
...first step of the accounting cycle would be to identify and analyze the transaction and events that need to be accounted for. Even though the generally accepted accounting principles (GAAP) has guidelines there are no rules to what events or transaction a company is required to record. A company should record every sale or purchase no matter how big or small it is. Once these transactions or events have been analyzed, they are recorded in the next step which is journalizing the transactions. There are several different places these transactions are recorded. Some of these places are the general journal, cash receipts journal, cash disbursements journal, purchases journal, sales journal and other special journals depending on the company (Kieso, Weygandt, & Warfield, 2012). Then these transactions will be posted into the general ledger which usually occurs monthly and subsidiary ledgers which are usually done daily. Once this is done a trial balance is prepared. After the trial balance is done, adjustments are made for such things as accruals, prepayments as well as any estimated items. Once these adjustments have been made, an adjusted trial balance is prepared. When the adjusted trial...
Words: 746 - Pages: 3
