"The only place where success comes before workis in dictionary"Vidal Sassoon<br />
Results<br />
Principles Of Accounting (2)<br />Chapter 1<br />Accounting Information System<br />Mohamed Mahmoud<br />mmahmoud@eelu.edu...
Objectives :<br />Summary of Accounting Cycle<br />Describe the nature of a subsidiary ledger.<br />Uses of special journa...
1. Summary of the Accounting Cycle<br />1. Analyze business transactions<br />2. Journalize the transactions <br />9. Prep...
2. Subsidiary Ledger <br />Two common subsidiary ledgers are:<br />Accounts receivable (customers’) <br />Accounts payable...
3. Special Journal<br />
3. Special Journal (continued)<br />3.1 Sales Journal<br />
3. Special Journal (continued)<br />3.2 Purchases Journal<br />
3. Special Journal (continued)<br />3.3 Cash Receipts Journal<br />
3. Special Journal (continued)<br />3.4 Cash Payment Journal<br />
Exercises<br />
Exercise 1<br />On December 1, the accounts receivable control account balance in the general ledger of the Titus Company ...
Exercise 1 (continued)<br />Requirements:-<br /> Using T-accounts for Accounts Receivable Control and the detail customer ...
Solution<br />
Solution<br />
Exercise 2<br />Goren Company uses a single-column purchases journal, a cash payments journal, and a general journal to re...
Exercise 2 (continued)<br />Oct. 13 Granted a reduction of $3,000 to Adler Corporation for merchandise purchased on Octobe...
Solution<br />
Solution<br />
Solution<br />
Section 1
Section 1
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Principles of Accounting 2
Chapter 1: Accounting Information System

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Section 1

  1. 1. "The only place where success comes before workis in dictionary"Vidal Sassoon<br />
  2. 2. Results<br />
  3. 3. Principles Of Accounting (2)<br />Chapter 1<br />Accounting Information System<br />Mohamed Mahmoud<br />mmahmoud@eelu.edu.eg<br />Tel: (+202) 33318449<br />
  4. 4. Objectives :<br />Summary of Accounting Cycle<br />Describe the nature of a subsidiary ledger.<br />Uses of special journals in journalizing. 3.1 Sales Journal3.2 Purchases Journal3.3 Cash Receipts Journal 3.4 Cash payment Journal <br />
  5. 5. 1. Summary of the Accounting Cycle<br />1. Analyze business transactions<br />2. Journalize the transactions <br />9. Prepare a post-closing trial balance<br />8. Journalize and post closing entries<br />3. Post to ledger accounts<br />7. Prepare financial statements<br />4. Prepare a trial balance<br />6. Prepare an adjusted trial balance<br />5. Journalize and post adjusting entries<br />
  6. 6. 2. Subsidiary Ledger <br />Two common subsidiary ledgers are:<br />Accounts receivable (customers’) <br />Accounts payable (creditors’)<br />
  7. 7. 3. Special Journal<br />
  8. 8. 3. Special Journal (continued)<br />3.1 Sales Journal<br />
  9. 9. 3. Special Journal (continued)<br />3.2 Purchases Journal<br />
  10. 10. 3. Special Journal (continued)<br />3.3 Cash Receipts Journal<br />
  11. 11. 3. Special Journal (continued)<br />3.4 Cash Payment Journal<br />
  12. 12. Exercises<br />
  13. 13. Exercise 1<br />On December 1, the accounts receivable control account balance in the general ledger of the Titus Company was $9,000. <br />The accounts receivable subsidiary ledger contained the following detailed customer balances: Abel $1,500, Dole $2,100, Fabb $2,600, and Hall $2,800. <br />The following information is available from the company's special journals for the month of December:<br />Cash Receipts Journal: Cash received from Fabb $1,900, from Abel $1,600, from Reese $1,700, and from Dole $1,800.<br />Sales Journal: Sales to Reese $4,300, to Fabb $1,700, to Abel $2,300, and to Hall $2,400.<br />Additionally, Fabb returned defective merchandise for credit for $900. Abel returned defective merchandise for $600 which he had purchased for cash.<br />
  14. 14. Exercise 1 (continued)<br />Requirements:-<br /> Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December.<br /> Reconcile the accounts receivable control account.<br />
  15. 15. Solution<br />
  16. 16. Solution<br />
  17. 17. Exercise 2<br />Goren Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals.<br />Transactions:-<br />Oct. 5 Purchased merchandise on account for $20,000 from Hendry Company. Terms: 2/10, n/30; FOB shipping point.<br />Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy.<br />Oct. 8 Purchased store supplies on account for $700 from Flint Supply Company. Terms: 2/10, n/30.<br />Oct. 11 Purchased merchandise on account for $14,000 from Adler Corporation. Terms: 2/10, n/30; FOB shipping point.<br />
  18. 18. Exercise 2 (continued)<br />Oct. 13 Granted a reduction of $3,000 to Adler Corporation for merchandise purchased on October 11 and returned because of damage<br />Oct. 15 Paid Hendry Company for merchandise purchased on October 5, less discount.<br />Oct. 16 Purchased merchandise for $8,000 cash from Clifford Company.<br />Oct. 21 Paid Adler Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount.<br />Oct. 25 Purchased merchandise on account for $22,000 from Eaton Company. Terms: 2/10, n/30; FOB shipping point.<br />Oct. 31 Purchased office equipment for $30,000 cash from Pate Office Supply Company.<br />
  19. 19. Solution<br />
  20. 20. Solution<br />
  21. 21. Solution<br />

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