AccountnngInformatongSystems

Chapter 7

WildgandgShaw
FundamentalgAccountnngPrinciples
24thgEditon
g
Copyright ©2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 6-2

Chapterg7gLearninngObjecties
CONCEPTUAL
C1 Identiy the principles and com祐pomnents omi accomuntnn iniomr祐atomn syste祐s.
C2 Explain special jomurnals, comntromllinn accomunts, and subsidiary ledners.

ANALYTICAL
A1 Com祐pute days’ payable omutstandinn and explain its use in assessinn pay祐ents tom suppliers

PROCEDURAL
P1ggJomurnalize and pomst transactomns usinn a sales jomurnal.
P2 Jomurnalize and pomst transactomns usinn a cash receipts jomurnal.
P3 Jomurnalize and pomst transactomns usinn a purchases jomurnal.
P4 Jomurnalize and pomst transactomns usinn a cash pay祐ents jomurnal.

© McGraw-Hill Education 2
 LearninngObjectiegC1

Identiy the principles and

com祐pomnents omi accomuntnn
iniomr祐atomn syste祐s.

© McGraw-Hill Education 3
 7-4

Exhibit
SystemgPrinciples
7.1
Accounting
information systems
collect and process
data from
transactions and
events, organize
them in reports, and
communicate results
to decisions makers.

Learning Objective C1: Identify the principles and components of accounting information © McGraw-Hill Education 4
systems.
 7-5

SystemgComponents
Increasingly, source documents are electronic
files creating a “paperless” system.
Exhibit
7.2

• Keyboards • Journals
• Scanners • Ledgers
© McGraw-Hill Education 5
 LearninngObjectiegC2

Explain special jomurnals,

comntromllinn accomunts, and
subsidiary ledners.

© McGraw-Hill Education 6
 7-7

SpecialgJournalsgandgSubsidiaryg
Sold inventory for £100 cash
Ledners Exhibit
7.3

Dr. Cash...100
Cr. Sales..100

Learning Objective C2: Explain special jomurnals, comntromllinn accomunts, and subsidiary © McGraw-Hill Education 7
ledners.
 7-8

SubsidiarygLedners
Comntromllinn
Characteristc Subsidiary Ledner
Accomunt

A祐omunts due Accomunts Accomunts Receivable

irom祐 custom祐ers Receivable Ledner

A祐omunts omwed Accomunts Accomunts Payable

tom creditomrs Payable Ledner

Subsidiary ledgers are a listing of individual

accounts with common characteristics.

Learning Objective C2: Explain special jomurnals, comntromllinn accomunts, and subsidiary © McGraw-Hill Education 8
ledners.
 7-9

AccountsgReceiiablegLedner
Exhibit
7.4

After
After all
all items
items are
are posted,
posted, the
the balance
balance in
in the
the accounts
accounts receivable
receivable controlling
controlling account
account
is
is equal
equal to to the
the sum
sum of
of the
the balances
balances in
in the
the accounts
accounts receivable
receivable subsidiary
subsidiary ledger.
ledger.

Learning Objective C2: Explain special jomurnals, comntromllinn accomunts, and subsidiary © McGraw-Hill Education 9
ledners.
 LearninngObjectiegP1

Jomurnalize and pomst

transactomns usinn a sales
jomurnal.

© McGraw-Hill Education 10
 7 - 11

SalesgJournal
Exhibit
7.5

© McGraw-Hill Education 11
Learning Objective P1: Journalize and post transactions using a sales journal.
 ProiinngthegLedners
A schedule of accounts receivable lists each
customer and the balance owed.
Exhibit
7.6

The balance of the Accounts Receivable controlling

account in the general ledger should equal the
accounts in the accounts receivable subsidiary ledger.
© McGraw-Hill Education 12
Learning Objective P1: Journalize and post transactions using a sales journal.
 7 - 13

SalesgReturnsgandgAllowances
If a company has few sales returns, they may
be recorded in the General Journal.

A company with many sales returns may use

a Sales Returns and Allowances Journal.

© McGraw-Hill Education 13
Learning Objective P1: Journalize and post transactions using a sales journal.
 LearninngObjectiegP2

Jomurnalize and pomst

transactomns usinn a cash
receipts jomurnal.

© McGraw-Hill Education 14
 7 - 15

CashgReceiptsgJournal
Exhibit
7.7

1. Cash from
credit
customers
2. Cash from
cash sales
3. Cash from
other sources

© McGraw-Hill Education 15
Learning Objective P2: Journalize and post transactions using a cash receipts
 7 - 16

Footnn,gCrossfootnn,gandgPostnn
Exhibit
7.8

© McGraw-Hill Education 16
Learning Objective P2: Journalize and post transactions using a cash receipts
 LearninngObjectiegP3

Jomurnalize and pomst

transactomns usinn a purchases
jomurnal.

© McGraw-Hill Education 17
 7 - 18

PurchasesgJournal

Exhibit
7.9

© McGraw-Hill Education 18
Learning Objective P3: Journalize and post transactions using a purchases journal.
 ProiinngthegLedner
A schedule of accounts payable lists each
supplier and the balance owed to them.

The balance of the Accounts Payable controlling

account in the general ledger should equal the
accounts in the accounts payable subsidiary ledger.
© McGraw-Hill Education 19
Learning Objective P3: Journalize and post transactions using a purchases journal.
 LearninngObjectiegP4

Jomurnalize and pomst

transactomns usinn a cash
pay祐ents jomurnal.

© McGraw-Hill Education 20
 7 - 21

CashgPaymentsgJournal

Exhibit
7.11

© McGraw-Hill Education 21
Learning Objective P4: Journalize and post transactions using a cash payments journal.
 7 - 22

GeneralgJournalgTransactons
Purchase of
plant assets
by Note Receipt of a
Payable Note
Receivable
Purchase
Returns &
Allowances
Sales
Returns &
Allowances
© McGraw-Hill Education 22
Learning Objective P4: Journalize and post transactions using a cash payments journal.
 7 - 23

Technolony-BasedgAccountnngSystems
Off-the-ShelfgSofware IntenratedgSofware
Fa祐iliar accomuntnn Actomns taken in omne part
promnra祐s such as omi the syste祐
Sane 50 and autom祐atcally afect
QuickBomomks® are related parts. Fomr
desinned tom be user instance, when a credit
iriendly and 祐enu sale is entered, several
driven. parts omi the syste祐 are
autom祐atcally updated.

© McGraw-Hill Education 23
 7 - 24

DatagProcessinngingAccountnn
 Online promcessinn enters and
promcesses data i祐祐ediately.

 Batch promcessinn accu祐ulates

iniomr祐atomn iomr a periomd omi
t祐e and then promcesses all
the data at omne t祐e (daily,
weekly, omr 祐omnthly).

© McGraw-Hill Education 24
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ComputergNetworksgingAccountnn

Computer networks are links among computers

giving users access to common databases and
programs.

© McGraw-Hill Education 25
 7 - 26

EnterprisegResourceg
PlanninngSofwareg(ERP)
Programs that manage and integrate a
company’s vital operations.

© McGraw-Hill Education 26
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CloudgComputnn
Cloud computing is the delivery of computing as
a service rather than a product.

Laptop Computer

Cloud
Computing

Cell Phone Tablet

Cloud computing uses applications via the Web instead

of installing them on one's own computer.
© McGraw-Hill Education 27
 LearninngObjectiegA1
Com祐pute days’ payable
omutstandinn and explain its use
in assessinn pay祐ents tom
suppliers.

© McGraw-Hill Education 28
 Readinns and Exercises
• Readinns: 259-270
– Chapter seven

Tutomrial exercises:
QS 7-8,QS 7-9 & 7-1,7-3

Chapter exercises:
Priority Qs 7-5, 7-6, 7-7, 7-8, 7-9, 7-10
1
Priority Ex 7-1, 7-2, 7-3, 7-4, 7-6, 7-7
2

29
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EndgofgChapterg7

© McGraw-Hill Education 30