Assignment: Handout

Assignment 7.1 Handout

1. In Motion, your T-shirt business, is growing fast, and you need a better accounting system.

Consider the features of an effective system. Which features are most important? Why? Which

feature must you consider if your financial resources are limited?

2. Match each component of a computerized accounting system with its meaning.

3. Complete the crossword puzzle that follows.

4. Assign account numbers (from the list that follows) to the accounts of Clarke Logistics.

5. Use the following abbreviations to indicate the journal in which you would record transactions a

Through n.

6. The cash receipts journal of Sironia Plastics follows.

Sironia’s general ledger includes the following selected accounts, along with their account

numbers:

Requirements

Indicate whether each posting reference (a) through (j) should be a:

• Check mark (_) for a posting to a customer account in the accounts receivable subsidiary

ledger.

• Account number for a posting to an account in the general ledger. If so, give the account

number.

• Letter (x) for an amount not posted.

7. During April, Shannon Donut Distributors completed these credit purchase

transactions:

Record these transactions first in the general journal—with explanations—

and then in the purchases journal. Omit credit terms and posting references.

Which procedure for recording transactions is quicker? Why?

8. During August, Berryhill Stamp Company had the following transactions:

Requirements

R1. Prepare a cash payments journal similar to the one illustrated in this chapter. Omit the check

number (Ck. No.) and posting reference (Post. Ref.) columns.

R2. Record the transactions in the cash payments journal.

R3. Total the amount columns of the journal. Determine that total debits equal total credits.