© 2016 pearson education, inc. appendix c accounting information systems
TRANSCRIPT
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© 2016 Pearson Education, Inc.
Appendix CAccounting Information
Systems
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Learning Objectives
1. Describe an effective accounting information system
2. Journalize and post sales and cash receipts in a manual accounting information system using special journals and subsidiary ledgers
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Learning Objectives
3. Journalize and post purchases, cash payments, and other transactions in a manual accounting information system using special journals and subsidiary ledgers
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Learning Objectives
4. Describe how transactions are recorded in a computerized accounting information system
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Learning Objective 1
Describe an effective accounting information system
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What Is an Accounting Information System?
• An accounting information system (AIS) provides information that is useful for decision makers.
• An AIS:– Collects– Records– Stores– Processes accounting data
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What Is an Accounting Information System?
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Effective Accounting Information Systems
• An effective accounting information system provides: – Control– Compatibility– Flexibility– Relevance– Positive cost/benefit relationship
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Components of an Accounting Information System
• An accounting information system has three basic components:– Source documents and input devices
• Purchase invoices, bank checks, sales invoices
– Processing and storage• A server allows employees to access information from
anywhere in the world.
– Outputs• Reports, such as the financial statements
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Learning Objective 2
Journalize and post sales and cash receipts in a manual accounting information system using special journals and subsidiary ledgers
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How Are Sales and Cash Receipts Recorded in a Manual Accounting Information System?
• Manual accounting information systems are covered in this course because:– The accounting is the same regardless of the
system.– Few small businesses have computerized all of
their accounting.– Learning a manual system helps you master
accounting.
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Special Journals
• A special journal is an accounting journal designed to record one specific type of transaction.
• The four special journals are:– Sales journal– Cash receipts journal– Purchases journal– Cash payments journal
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Special Journals
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Subsidiary Ledgers
• Accounting information systems use subsidiary ledgers.
• There are two common subsidiary ledgers:• Accounts receivable subsidiary ledger• Accounts payable subsidiary ledger
• The sum of the balances in a group of related accounts in a subsidiary ledger is called a control account.
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Accounts Receivable Subsidiary Ledger
• The accounts receivable subsidiary ledger includes a receivable account for each customer.
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Accounts Payable Subsidiary Ledger
• The accounts payable subsidiary ledger lists:– Vendors in alphabetical order– Amounts paid– Amounts owed
• The total of the individual balances in the subsidiary ledger equal the Accounts Payable (control account) balance in the general ledger.
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The Sales Journal
• Most merchandisers sell inventory on account.
• The credit sales are entered in a sales journal.
• The sale of merchandise inventory for cash is not recorded in the sales journal.
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The Sales Journal
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The Sales Journal
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The Sales Journal
• Instead of the sale transaction being recorded in the general journal, it is recorded in the sales journal.
• Note all items appear on a single line.
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The Cash Receipts Journal
• The cash receipts journal records the collection of cash receipts.
• Every transaction in the cash receipts journal is a cash receipt; no payments are recorded.
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The Cash Receipts Journal
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The Cash Receipts Journal
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Learning Objective 3
Journalize and post purchases, cash payments, and other transactions in a manual accounting information system using special journals and subsidiary ledgers
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How Are Purchases, Cash Payments, and Other Transactions Recorded in a Manual
Accounting Information System?
• A merchandising business purchases merchandise inventory and other items on account.
• The purchases journal handles these transactions.
• Cash purchases are not recorded in the purchases journal; they are recorded in the cash payments journal.
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The Purchases Journal
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The Purchases
Journal
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The Cash Payments Journal
• Businesses make most payments by check.
• All cash and check payments are recorded in the cash payments journal.
• This special journal is also called the check register and the cash disbursements journal.
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The Cash Payments Journal
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The Cash Payments
Journal
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The General Journal
• Not all transactions can be recorded in a special journal.
• The general journal is used to record all other transactions, such as:– Adjusting entries for depreciation– Expiration of prepaid insurance– Accrual of salaries payable– Adjustments for sales returns and allowances
and purchase returns and allowances
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The General Journal
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Learning Objective 4
Describe how transactions are recorded in a computerized accounting information system
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How Are Transactions Recorded in a Computer Accounting Information Systems?
• A computerized accounting information system has two basic components: – Hardware is the electronic equipment, such as
computers, monitors, printers, and the network that connects them.
– Software is the set of programs that drives the computer.
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Entry-Level Software
• Two popular computerized accounting information systems for small businesses are:– QuickBooks– Sage 50 Accounting
• These programs allow businesses to:
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Enter sales transactions
Record expenses
Produce reports
Organize finances
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Enterprise Resource Planning (ERP) Systems
• Larger companies often use an enterprise resource planning (ERP) system to manage their data.
• ERP systems are compatible with cloud computing.
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Advantages•Reduce operating costs.•Help companies adjust to change.•Integrate separate software systems.
Disadvantages•Major installations are expensive.•Implementation requires large commitment of time and people.
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QuickBooks
• On June 23, Smart Touch Learning performed $3,000 of services for Richard Michura on account.
• Smart Touch Learning needs to create an invoice for Richard. • In a computerized accounting system, the
business does not have to record the transaction in debit and credit format.
• The software automatically posts to the appropriate general ledger accounts.
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QuickBooks
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QuickBooks
• The Vendors tab of QuickBooks is used to record bills received.
• On June 25, Smart Touch Learning received a $580 bill for utilities.
• The company records the bill in QuickBooks, and all items will post automatically to the appropriate general ledger accounts.
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QuickBooks
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QuickBooks
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