CHAPTER 5
ACCOUNTING SYSTEMS
EYE OPENERS
1. The individual accounts receivable ledger
accounts provide business managers information on the status of individual customer
accounts, which is necessary for managing
collections. Managers need to know which
customers owe money, how much they owe,
and how long the amount owed has been
outstanding.
2. The major advantages of the use of special
journals are substantial savings in recordkeeping expenses and a reduction of
record-keeping errors.
3. a. 400
b. None
4. a. 250
b. 1
5. a. Sometime following the end of the
current month, one of two things may
happen: (1) an overdue notice will be
received from Kelly Co., and/or (2) a letter will be received from Kelley Co., informing the buyer of the overpayment. (It
is also possible that the error will be discovered at the time of making payment if
the original invoice is inspected at the
time the check is being written.)
b. The schedule of accounts payable would
not agree with the balance of the accounts payable account. The error might
also be discovered at the time the invoice is paid.
c. The creditor will call the attention of the
debtor to the unpaid balance of $800.
d. The error will become evident during the
verification process at the end of the
month. The total debits in the purchases
journal will be less than the total credits
by $3,600.
6. a. No, the error will not cause the trial balance totals to be unequal.
b. No, the sum of the balances in the creditors ledger will not agree with the balance of the accounts payable account in
the general ledger.
7. a. Purchases journal
b. Cash payments journal
c. Purchases journal
d. Cash payments journal
e. Cash payments journal
8. An electronic form is a software window that
provides the inputs for a particular transaction. For example, a check form provides the
inputs (payee, amount, date) for a cash
payment transaction. An electronic invoice
provides the inputs (customer, amount sold,
item sold) for recording revenues earned on
account.
9. The use of controlling accounts to verify the
accuracy of subsidiary accounts is used in a
manual system. In a computerized system, it
is assumed that the computer will accurately
sum the individual transactions in the subsidiary accounts in determining the aggregate
balance.
10. For automated systems that use electronic
forms, the special journals are not used to
record original transactions. Rather, electronic forms capture the original transaction
detail from an invoice, for example, and automatically post the transaction details to the
appropriate ledger accounts.
11. E-commerce can be used by a business to
conduct transactions directly with customers.
Thus, an order can be received directly from
the customer’s Internet input and cash can
be received from the credit card. Many
times, the cash is received prior to actually
shipping the product, resulting in a faster
revenue/collection cycle. Reducing paperwork throughout the cycle also improves the
efficiency of the process. For example, all of
the accounting transactions can be fed automatically from the initial Web-based
inputs.
301
PRACTICE EXERCISES
PE 5–1A
REVENUE JOURNAL
Invoice
No.
Date
Feb.
6
9
15
78
79
80
Account Debited
Howard Co. ............................
Hitchcock Inc. .......................
David Inc. ...............................
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.
490
240
515
PE 5–1B
REVENUE JOURNAL
Invoice
No.
Date
Aug.
7
15
21
121
122
123
Account Debited
Lincoln Co. ............................
Triple A Inc. ...........................
Bailey Co. ..............................
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.
5,410
2,360
4,140
PE 5–2A
Mar. 10.
Provided $920 services on account to XTREME Products Inc., itemized
on Invoice No. 127. Amount posted from page 29 of the revenue journal.
19.
Collected cash of $690 from XTREME Products Inc. (Invoice No. 106).
Amount posted from page 52 of the cash receipts journal.
PE 5–2B
May 14.
Collected cash of $125 from Airwave Communications Inc. (Invoice No.
564). Amount posted from page 92 of the cash receipts journal.
22.
Provided $90 of services on account to Airwave Communications Inc.,
itemized on Invoice No. 527. Amount posted from page 127 of the revenue journal.
302
PE 5–3A
PURCHASES JOURNAL
Date
Oct.
Account Credited
Post.
Ref.
4 Office-to-Go Inc. .....................
16 Zell Computer Inc. .................
23 Office Mate Inc. ......................
Accounts
Payable
Cr.
105
2,460
190
Office
Supplies
Dr.
105
.............
190
Other
Accounts
Dr.
............................
Office Equipment
............................
Post.
Ref. Amount
............
2,460
............
PE 5–3B
PURCHASES JOURNAL
Date
May
Account Credited
11 Party Zone Supplies Inc. .......
19 Party Time Supplies Inc. .......
21 Office Space Inc. ....................
Post.
Ref.
Accounts
Payable
Cr.
420
290
2,160
303
Party
Supplies
Dr.
420
290
.............
Other
Accounts
Dr.
............................
............................
Office Furniture
Post.
Ref. Amount
............
............
2,160
PE 5–4A
Nov. 11.
Paid $47 to Carnation Inc. on account (Invoice No. 128). Amount posted
from page 71 of the cash payments journal.
18.
Purchased $88 of services on account from Carnation Inc., itemized on
Invoice 139. Amount posted from page 43 of the purchases journal.
PE 5–4B
July 19.
Purchased $3,520 of services on account from Da Vinci Computer Services Inc., itemized on Invoice No. 75. Amount posted from page 21 of
the purchases journal.
21.
Paid $5,960 to Da Vinci Computer Services Inc. on account (Invoice No.
43). Amount posted from page 46 of the cash payments journal.
PE 5–5A
REVENUE JOURNAL
Invoice
No.
Date
Aug.
7
21
121
122
Post.
Ref.
Account Debited
Manly Inc.
Tel Optics Inc.
Accts.
Rec.
Dr.
Fees
Earned
Cr.
Sales Tax
Payable
Cr.
1,266
2,321
1,200
2,200
66
121
PE 5–5B
REVENUE JOURNAL
Invoice
No.
Date
Dec.
1
3
862
863
Post.
Ref.
Account Debited
Matrix Inc.
James Lawhorn
Accts.
Rec.
Dr.
425
85
304
Fees
Earned—
Commercial
Cr.
Fees
Earned—
Residential
Cr.
425
85
EXERCISES
Ex. 5–1
1. General ledger accounts: (e)
2. Subsidiary ledger accounts: (a), (b), (c), (d)
Ex. 5–2
a., b., and c.
Accounts Receivable
Nov.
1 Bal.
620
Nov. 30
6,240
Nov. 30 Bal.
6,860
Eco-Systems
Nov. 18
Environmental Safety Co.
1,600
Nov.
Nov. 30 Bal. 1,600
1
Nov. 30 Bal.
Jenkins Co.
Nov. 10
2,625
2,625
TEK Corp.
1,050
Nov.
Nov. 30 Bal. 1,050
1 Bal.
Nov. 27
620
965
Nov. 30 Bal. 1,585
d.
ALPHA SERVICES INC.
Accounts Receivable Subsidiary Ledger
November 30, 2010
Eco-Systems ...............................................................................................
Environmental Safety Co. ..........................................................................
Jenkins Co. .................................................................................................
TEK Corp. ...................................................................................................
Total accounts receivable .........................................................................
305
$1,600
2,625
1,050
1,585
$6,860
Ex. 5–3
a. Cash receipts journal
f.
Cash receipts journal
b. General journal (not a revenue transaction)
g. Cash receipts journal
c. Cash receipts journal
h. Cash receipts journal
d. General journal
i.
Cash receipts journal
e. General journal
j.
Revenue journal
Ex. 5–4
a. Cash payments journal
g. General journal
b. General journal
h. General journal
c. General journal
i.
Purchases journal
d. Cash payments journal
j.
Purchases journal
e. Cash payments journal
k. Purchases journal
f.
Cash payments journal
Ex. 5–5
Nov. 3.
6.
13.
Provided service on account; posted from revenue journal page 36.
Granted allowance or corrected error related to sale of November 3;
posted from general journal page 11.
Received cash for balance due; posted from cash receipts journal page
47.
306
Ex. 5–6
a.
REVENUE JOURNAL
Invoice
No.
Date
June
2
3
12
22
30
b. $1,450
c.
201
202
203
204
Account Debited
Thomas Corp. .......................
Mid States Inc. ......................
Thomas Corp. .......................
Parker Co. .............................
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.
290
410
145
605
1,450
Debit to Accounts Receivable [from revenue journal column total in
(a)].
$1,450
Credit to Fees Earned [from revenue journal column total in (a)].
$145
($0 + $290 + $145 – $290)
307
Ex. 5–7
a. and b.
Accounts Receivable—Arnott Co.
Accounts Receivable—Brown Co.
Feb. 1 Bal. 1,050
16
Bal.
Feb. 4
2,430
22
2,650
1,710
2,760
Bal.
5,080
Accounts Receivable—Life Star Inc.
Feb. 9
3,640
Bal.
3,640
c.
Accounts Receivable—Control
Fees Earned
Feb. 1 Bal. 1,050
28
Bal.
10,430
Feb. 28
10,430
Bal.
10,430
11,480
d.
HI PERFORMANCE CONSULTING INC.
Accounts Receivable Subsidiary Ledger
February 28, 2010
Arnott Co. ............................................................................................
Brown Co. ...........................................................................................
Life Star Inc. ........................................................................................
Total accounts receivable ..................................................................
$ 2,760
5,080
3,640
$ 11,480
The total in the schedule above agrees with the T account balance for the accounts receivable control account in part (c).
308
Ex. 5–8
ECLIPSE PRODUCTIONS INC.
Accounts Receivable Subsidiary Ledger
April 30, 2010
Alpha Communications Inc. .....................................................................
Best Studios Inc. .......................................................................................
Crown Broadcasting Co. ...........................................................................
Gold Coast Media Inc. ...............................................................................
Total accounts receivable .........................................................................
$2,040
1,250
2,450
0
$5,740
Accounts Receivable
(Control)
Balance, April 1, 2010 ................................................................................
Total debits (from revenue journal) ..........................................................
Total credits (from cash receipts journal) ................................................
Balance, April 30, 2010 ..............................................................................
$ 4,710
12,640
(11,610)
$ 5,740
Ex. 5–9
REVENUE JOURNAL
Date
2010
Mar.
2
8
12
22
31
Date
2010
Mar.
4
19
27
29
31
31
Invoice
No.
512
513
514
515
Account Debited
Browne Co. ...........................
Gabriel Co. ...........................
Deacon Inc. ..........................
Electronic Central Inc. ..........
Total .......................................
CASH RECEIPTS JOURNAL
Fees
Post. Earned
Account Credited
Ref.
Cr.
CMI Inc. ......................
Deacon Inc. ................
Fees Earned ...............
Browne Co. ................
Fees Earned ...............
Total ............................



309
............
............
90
............
75
165
PAGE 8
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.




820
265
690
150
1,925
PAGE 12
Accts.
Rec.
Cr.
Cash
Dr.
195
610
............
820
............
1,625
195
610
90
820
75
1,790
Ex. 5–10
a.
REVENUE JOURNAL
Date
2010
Oct. 3
10
18
28
31
Date
2010
Oct. 5
15
23
30
31
Invoice
No.
622
623
624
625
Account Debited
Phillips Corp. .......................
Sunstream Aviation Inc. .....
Amex Services Inc. ..............
Tower Co. .............................
Total ......................................
PAGE 19
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.




CASH RECEIPTS JOURNAL
Fees
Post. Earned
Account Credited
Ref.
Cr.
Charles Co. ....................
Tower Co. .......................
Phillips Corp. .................
Fees Earned ...................
Total ................................




2,150
3,720
2,600
2,190
10,660
PAGE 25
Accts.
Rec.
Cr.
940
1,110
2,150
90
90
4,200
Cash
Dr.
940
1,110
2,150
90
4,290
b.
LEO CORP.
Accounts Receivable Subsidiary Ledger
October 31, 2010
Amex Services Inc. .............................................................................
Sunstream Aviation Inc. .....................................................................
Tower Co. .............................................................................................
Total accounts receivable ..................................................................
$2,600
3,720
2,190
$8,510
The total of the customer accounts on October 31, 2010, $8,510, equals the balance of
the accounts receivable control account, shown as follows:
Accounts Receivable—Control
Oct.
1 Bal.
31
Oct. 31 Bal.
2,050 Oct. 31
10,660
8,510
310
4,200
_____
3,640
Ex. 5–11
1. General ledger account: (c), (e), (h), (j), (k), (l)
2. Subsidiary ledger account: (a), (b), (d), (f), (g), (i)
3. No posting required: (m)
Ex. 5–12
1. General ledger account: (b), (c), (d), (f), (g), (i), (k), (l)
2. Subsidiary ledger account: (a), (e), (h)
3. No posting required: (j)
Ex. 5–13
Oct. 6.
11.
16.
Purchased services, supplies, equipment, or other commodities on account; posted from purchases journal page 39.
Received allowance or corrected error related to purchase of October 6;
posted from general journal page 12.
Paid balance owed; posted from cash payments journal page 56.
311
Ex. 5–14
a.
PURCHASES JOURNAL
Date
Nov.
Account Credited
4
8
12
21
30
b. $2,705
c.
Office Universe Inc. .............
Best Equipment, Inc. ...........
Office Universe Inc. .............
Paper-to-Go Inc. ..................
Total ......................................
Post.
Ref.
Accounts
Payable
Cr.
480
1,900
130
195
2,705
Office
Supplies
Dr.
480
.......
130
195
805
Other
Accounts
Dr.
..............................................
Office Equipment
..............................................
..............................................
..............................................
Credit to Accounts Payable [from purchases journal column total in (a)].
$805
Debit to Office Supplies [from purchases journal column total in (a)].
$130
($0 + $480 + $130 – $480)
312
Post.
Ref.
Amount
........
1,900
........
........
1,900
Ex. 5–15
a. and b.
Accounts Payable—Crystal Cleaning
Supplies Inc.
Jan. 4
375
26
Accounts Payable—Lawson Co.
Jan. 1 Bal. 295
330
Bal.
15
705
250
Bal.
545
Accounts Payable—Office Mate Inc.
Jan. 21
2,400
Bal.
2,400
c.
Accounts Payable—Control
Jan. 1 Bal.
31
Bal.
Cleaning Supplies
295
3,355
Jan. 31
955
Bal.
955
3,650
d.
SEE-THRU WINDOW CLEANERS INC.
Accounts Payable Subsidiary Ledger
January 31, 2010
Crystal Cleaning Supplies Inc. ..........................................................
Lawson Co. .........................................................................................
Office Mate Inc. ...................................................................................
Total supplier account balances........................................................
$
705
545
2,400
$ 3,650
The total in the schedule above agrees with the T account balance for the accounts payable control account in (c).
313
Ex. 5–16
NATURAL CREATION LANDSCAPING CO.
Accounts Payable Subsidiary Ledger
April 30, 2010
Augusta Sod Co. ........................................................................................
Cooke Equipment Co. ................................................................................
Kimble Lumber Co. ...................................................................................
Schott’s Fertilizer .......................................................................................
Total accounts payable ..............................................................................
$ 6,310
2,400
3,195
0
$11,905
Accounts Payable
(Control)
Balance, April 1, 2010 ................................................................................
Total credits (from purchases journal) .....................................................
Total debits (from cash payments journal) ..............................................
Balance, April 30, 2010 ..............................................................................
314
$ 3,140
17,950
(9,185)
$11,905
Ex. 5–17
PURCHASES JOURNAL
Date
2010
May
Account Credited
3
12
17
20
31
Industrial Products Inc. .......
Porter Products Inc. .............
Liquid Klean Supplies Inc. ...
Maryville Laundry Service ....
Total .......................................
Post.
Ref.
Accounts
Payable
Cr.




Other
Accounts
Dr.
Cleaning
Supplies
Dr.
140
205
265
100
710
140
205
265
.....
610
..............................................
..............................................
..............................................
Laundry Service Expense
..............................................
CASH PAYMENTS JOURNAL
Date
2010
May 1
8
15
25
31
31
Ck.
No.
57
58
59
60
61
Account Debited
Liquid Klean Supplies Inc.
Equipment ...........................
Maryville Laundry Service ..
Industrial Products Inc. .....
Salary Expense....................
Total .....................................
Post.
Ref.

18


51
PAGE 36
PAGE 41
Other
Accounts
Dr.
Accounts
Payable
Dr.
Cash
Cr.
.............
2,400
.............
.............
4,600
7,000
235
............
120
140
............
495
235
2,400
120
140
4,600
7,495
315
Post.
Ref.
53
Amount
......
......
......
100
100
Ex. 5–18
a.
PURCHASES JOURNAL
Date
2010
Dec.
4
11
19
27
31
Account Credited
Post.
Ref.
Accounts
Payable
Cr.
Pet
Supplies
Dr.
Other
Accounts
Dr.
Best Friend Supplies Inc. ....
Poodle Pals Inc. ...................
Office Helper Inc. .................
Pets Mart Inc. .......................
................................................





250
660
2,000
380
3,290
250
660
........
380
1,290
..............................................
..............................................
Office Equipment
..............................................
CASH PAYMENTS JOURNAL
Date
2010
Dec. 6
18
23
30
31
PAGE 16
Ck.
No.
345
346
347
348
Account Debited
Larrimore Inc. .....................
Pets Mart Inc. ......................
Best Friend Supplies Inc. ..
Cleaning Expense ...............
..............................................
Post.
Ref.
54
Other
Accounts
Dr.
.............
.............
.............
50
50
316
PAGE 22
Accounts
Payable
Dr.
405
210
250
865
Cash
Cr.
405
210
250
50
915
Post.
Ref.
13
Amount
........
........
2,000
........
2,000
Ex. 5–18
Concluded
b.
HAPPY TAILS INC.
Accounts Payable Subsidiary Ledger
December 31, 2010
Pets Mart Inc. ......................................................................................
Poodle Pals Inc. ..................................................................................
Office Helper Inc. .................................................................................
Total supplier (creditor) accounts .....................................................
$ 380
660
2,000
$3,040
The total of the creditor accounts on December 31, 2010, $3,040, equals the balance of the accounts payable control account, shown as follows:
Accounts Payable—Control
Dec. 31
865 Dec. 1 Bal.
___
31
Bal.
615
3,290
3,040
Ex. 5–19
a.
Two errors were made in balancing the accounts in the subsidiary ledger:
(1) The Perez Mining Co. transaction of July 27 should have resulted in a
balance of $2,950 instead of $1,950.
(2) The Cheyenne Minerals Inc. transaction of July 7 should have resulted in
a balance of $14,100 instead of $14,200, and the account balance at July
31 should have been $8,000 instead of $8,100.
b.
SIERRA ASSAY SERVICES INC.
Accounts Payable Subsidiary Ledger
July 31, 2010
C. D. Greer and Son ...................................................................................
Cheyenne Minerals Inc. .............................................................................
Cutler and Powell .......................................................................................
Perez Mining Co. ........................................................................................
Valley Power ...............................................................................................
Total accounts payable ..............................................................................
317
$ 13,750
8,000
9,100
2,950
3,150
$ 36,950
Ex. 5–20
Revenue journal: (d), (i)
Cash receipts journal: (a), (e)
Purchases journal: (g), (h)
Cash payments journal: (b), (f)
General journal: (c), (j)
Ex. 5–21
1. The Cash column is for debits (not credits).
2. The Other Accounts column is for credits (not debits).
3. A better order of columns would be to place the Other Accounts Cr. column
to the left of the Fees Earned Cr. column.
A recommended and corrected cash receipts journal is as follows:
Date
CASH RECEIPTS JOURNAL
Fees
Post. Earned
Account Credited
Ref.
Cr.
PAGE 12
Accts.
Rec.
Cr.
Cash
Dr.
Ex. 5–22
a.
REVENUE JOURNAL
Date
June
16
19
21
22
26
28
30
Invoice
No.
1
2
3
4
5
6
Post.
Ref.
Account Debited






A. Sommerfeld
R. Mendoza
J. Knight
D. Jeffries
J. Knight
R. Mendoza
318
Accts.
Rec.
Dr.
378
168
84
147
273
63
1,113
(12)
PAGE 1
Fees
Earned
Cr.
360
160
80
140
260
60
1,060
(41)
Sales Tax
Payable
Cr.
18
8
4
7
13
3
53
(22)
Ex. 5–22
Continued
JOURNAL
Date
2010
June 24
PAGE 1
Post.
Ref.
Description
Office Supplies .......................................
Fees Earned .......................................
Sales Tax Payable ..............................
14
41
22
Debit
Credit
105
100
5
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
D. Jeffries
Date
2010
June
Post.
Ref.
Item
22 ............................................
Dr.
Cr.
Balance
R1
147
.............
147
R1
R1
84
273
.............
.............
84
357
R1
R1
168
63
.............
.............
168
231
R1
378
.............
378
J. Knight
2010
June
21 ............................................
26 ............................................
R. Mendoza
2010
June
19 ............................................
28 ............................................
A. Sommerfeld
2010
June
16 ............................................
319
Ex. 5–22
Concluded
b.
GENERAL LEDGER
Accounts Receivable
Item
Post.
Ref.
Dr.
Cr.
Dr.
..........................................
R1
1,113
..........
1,113
Date
2010
June 30
12
Balance
Cr.
Office Supplies
2010
June 24
..........................................
14
J1
105
..........
105
Sales Tax Payable
2010
June 24
30
..........................................
..........................................
..........................................
..........................................
..........
22
J1
R1
..........
..........
5
53
..........
..........
Fees Earned
2010
June 24
30
..........
5
58
41
J1
R1
c. 1. $1,113 ($147 + $357 + $231 + $378)
2. $1,113
320
..........
..........
100
1,060
..........
..........
100
1,160
Ex. 5–23
a. In the electronic invoice form from QuickBooks shown above, typical fields
for data input can be identified as follows:
1.
2.
3.
4.
Customer name and address
Date and invoice number
Description of item sold
Amount of revenue
b. The customer Accounts Receivable is debited, and Fees Earned is credited. A
computerized accounting system does not require posting to a separate accounts receivable control account. In this case, the total accounts receivable
reported on the balance sheet is merely the sum of the balances of the individual customer account balances.
321
Ex. 5–23
Concluded
c. Controlling accounts are not posted at the end of the month in a computerized accounting system. In addition, special journals are not normally used
to accumulate transactions. Transactions are recorded through data input into electronic forms (or for infrequent transactions, by an electronic general
journal). Balances of affected accounts are automatically posted and updated
from the information recorded on the form. If desired, the computer can provide a printout of the monthly transaction history for a particular account,
which provides the same information as a journal. In addition, the controlling
account is not separately posted. In a manual system, separate posting to the
controlling account provides additional control by reconciling the controlling
account balance against the sum of the individual customer account balances. However, in a computerized accounting system, there are no separate
postings to a controlling account because the computer is not going to make
posting or mathematical errors. Therefore, there is no need for the additional
control provided by posting a journal total to a controlling account.
Ex. 5–24
a. Amazon.com
b. Dell Inc.
c. W.W. Grainger, Inc.
d. L.L. Bean, Inc.
e. Smurfit-Stone
Container
Corporation
f. Intuit Inc.
B2C. Sells books, DVDs, and other products to individual
consumers.
B2C and B2B. Sells computer products to both individuals and corporations. Its site separates individual and
corporate sales.
B2B. Sells maintenance, repair, and operating supplies to
manufacturing companies.
B2C. Consumer clothes e-retailer.
B2B. One of the largest providers of corrugated containers and boxes.
B2C and B2B. Arranges its site for both individuals and
businesses, since its products are divided this way.
322
Ex. 5–25
a.
2007
2006
Increase (Decrease)
(in millions) (in millions) Amount
Percent
United States ..............................
Other countries ..........................
32.4%
Total revenues ............................
$7,679
$6,478
1,733
$1,201
1,309
18.5%
424
$9,412
$7,787
$1,625
20.9%
b.
2007
Amount
United States ................................................
Other countries ............................................
Total revenues ..............................................
$7,679
1,733
$9,412
2006
Percent Amount Percent
81.6%
18.4%
100.0%
$6,478
1,309
$7,787
83.2%
16.8%
100.0%
c. The horizontal analysis indicates that the total revenues of Starbucks increased nearly 21% (20.9%) from fiscal years 2006 to 2007. This increase can
be explained by an increase of 18.5% from U.S. operations and a strong increase in revenues of 32.4% from other countries. The vertical analysis indicates that the percent of U.S. revenues to total revenues declined from 83.2%
in 2006 to 81.6% in 2007. In this same period, the percent of other country
revenues to total revenues increased from 16.8% in 2006 to 18.4% in 2007.
Both analyses indicate that Starbucks is experiencing very strong revenue
growth both in the U.S. and in other countries. However, the growth in other
countries is faster than the growth in the United States. This is probably the
result of Starbucks beginning to saturate the U.S. market. Starbucks may be
focusing on store growth outside of the United States in order to maintain its
total revenue growth in the future.
323
Ex. 5–26
a.
For the Year Ended
June 30, 2007
(in millions)
Percent
Major Product Segments
Filmed Entertainment.................................................
Television ....................................................................
Cable Network Programming ....................................
Direct Broadcast Satellite Television .......................
Magazines and Inserts ...............................................
Newspapers ................................................................
Book Publishing .........................................................
Other............................................................................
Total revenues ............................................................
$ 6,734
5,705
3,902
3,076
1,119
4,486
1,347
2,286
$28,655
23.5%
19.9
13.6
10.7
3.9
15.7
4.7
8.0
100.0%
b. News Corporation is very diversified. The Filmed Entertainment segment has
the largest percent of revenues to total revenues at 23.5%. This is a low percent for a single segment, suggesting little concentration. In addition, there
are four additional segments that have a percent of revenues to total revenues in excess of 10% (Television, Cable Network Programming, Direct
Broadcast Satellite Television, and Newspapers). The three smallest segments total 16.6% (3.9% + 4.7% + 8.0%) of revenues to total revenues. Overall,
News Corporation is a highly diversified entertainment company, deriving
significant revenues from multiple sources.
324
PROBLEMS
Prob. 5–1A
1. and 2.
REVENUE JOURNAL
Invoice
No.
Date
2010
Aug. 18
20
22
27
28
30
31
31
1
2
3
4
5
6
7
Account Debited
Jacob Co. ..............................
Qwik-Mart Co. .......................
Hawke Co. .............................
Carson Co..............................
Bower Co. .............................
Qwik-Mart Co. .......................
Hawke Co. .............................
PAGE 1
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.







325
260
545
450
100
115
230
2,025
(12) (41)
JOURNAL
Date
2010
Aug. 28
PAGE 1
Post.
Ref.
Description
Supplies ..................................................
Fees Earned .......................................
325
14
41
Debit
Credit
80
80
Prob. 5–1A
Continued
1.
ACCOUNTS RECEIVABLE LEDGER
Bower Co.
Date
2010
Aug.
Post.
Ref.
Item
28 ............................................
Dr.
Cr.
Balance
R1
100
.............
100
R1
450
.............
450
R1
R1
545
230
.............
.............
545
775
R1
325
.............
325
R1
R1
260
115
.............
.............
260
375
Carson Co.
2010
Aug.
27 ............................................
Hawke Co.
2010
Aug.
22 ............................................
31 ............................................
Jacob Co.
2010
Aug.
18 ............................................
Qwik-Mart Co.
2010
Aug.
20 ............................................
30 ............................................
326
Prob. 5–1A
Concluded
2.
GENERAL LEDGER
Accounts Receivable
Item
Post.
Ref.
Dr.
Cr.
Dr.
..........................................
R1
2,025
..........
2,025
Date
2010
Aug. 31
12
Balance
Cr.
Supplies
2010
Aug. 28
14
..........................................
J1
80
..........
80
Fees Earned
2010
Aug. 28
31
..........
..........................................
..........................................
..........
41
J1
R1
..........
..........
80
2,025
..........
..........
80
2,105
3. a. $2,025 ($100 + $450 + $775 + $325 + $375)
b. $2,025
4. The single money column in the revenue journal can be replaced with three
columns for (1) Accounts Receivable Dr., (2) Fees Earned Cr., and (3) Sales
Tax Payable Cr.
327
Prob. 5–2A
1. and 5.
GENERAL LEDGER
Cash
11
Date
2010
Nov.
1
30
Item
Post.
Ref.
Balance.............................

.......................................... CR36
Balance
Cr.
Dr.
Cr.
Dr.
..........
6,630
..........
..........
17,240
23,870
Accounts Receivable
2010
Nov.
1
30
30
30
12
Balance.............................

..........................................
J1
.......................................... R40
.......................................... CR36
..........
..........
4,095
..........
..........
1,500
..........
3,230
2,020
520
4,615
1,385
Office Equipment
2010
Nov.
1
30
Balance.............................
..........................................
..........
..........
..........
..........
18

J1
..........
1,500
..........
..........
31,500
33,000
Fees Earned
2010
Nov. 30
30
..........
..........
..........
..........
41
.......................................... R40
.......................................... CR36
328
..........
..........
4,095
3,400
..........
..........
4,095
7,495
Prob. 5–2A
Continued
2. and 4.
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
AGI Co.
Date
2010
Nov.
Post.
Ref.
Item
1 Balance...............................
3 ............................................
23 ............................................
Dr.
Cr.
Balance

CR36
R40
............
............
670
.............
1,340
.............
1,340
—
670

R40
CR36
R40
CR36
............
400
............
275
............
.............
.............
680
.............
400
680
1,080
400
675
275
R40
J1
1,940
............
.............
1,500
1,940
440
R40
CR36
810
............
.............
810
810
—
Phoenix Development Co.
2010
Nov.
1
7
14
16
20
Balance...............................
............................................
............................................
............................................
............................................
Ridge Communities
2010
Nov.
10 ............................................
30 ............................................
Yee Co.
2010
Nov.
2 ............................................
19 ............................................
329
Prob. 5–2A
Concluded
3., 4., and 5.
REVENUE JOURNAL
Date
2010
Nov.
2
7
10
16
23
30
Date
2010
Nov.
3
14
19
20
30
30
Invoice
No.
717
718
719
720
721
PAGE 40
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.
Account Debited





Yee Co. .................................
Phoenix Development Co. ...
Ridge Communities ..............
Phoenix Development Co. ...
AGI Co....................................
810
400
1,940
275
670
4,095
(12) (41)
CASH RECEIPTS JOURNAL
Fees
Post. Earned
Account Credited
Ref.
Cr.
AGI Co. .......................
Phoenix Development
Co. ............................
Yee Co. .......................
Phoenix Development
Co. ............................
Fees Earned ...............
PAGE 36
Accts.
Rec.
Cr.
Cash
Dr.

............
1,340
1,340


............
............
680
810
680
810


............
3,400
3,400
(41)
400
............
3,230
(12)
400
3,400
6,630
(11)
JOURNAL
Date
2010
Nov. 30
Description
Office Equipment ........................................
Accounts Receivable—Ridge
Communities ......................................
PAGE 1
Post.
Ref.
Debit
18
1,500
12/
Credit
1,500
The subsidiary account for Ridge Communities must also be posted for a $1,500
credit.
6. The subsidiary ledger is in agreement with the controlling account. Both have
balances of $1,385 ($670 + $275 + $440).
330
Prob. 5–3A
1. and 4.
GENERAL LEDGER
Field Supplies
Item
Post.
Ref.
Dr.
Cr.
Dr.
Balance.............................
..........................................

P30
..........
13,365
..........
..........
5,100
18,465
Date
2010
Oct.
1
31
14
Balance
Cr.
Office Supplies
2010
Oct.
1
31
Balance.............................
..........................................
15

P30
..........
805
..........
..........
1,170
1,975
Office Equipment
2010
Oct.
1
19
Balance.............................
..........................................
1
31
Balance.............................
..........................................
..........
..........
18

P30
..........
6,780
..........
..........
17,200
23,980
Accounts Payable
2010
Oct.
..........
..........
..........
..........
21

P30
331
..........
..........
..........
20,950
..........
..........
4,375
25,325
Prob. 5–3A
Continued
2. and 3.
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Eskew Co.
Date
2010
Oct.
Post.
Ref.
Item
1 Balance...............................
19 ............................................
Dr.
Cr.
Balance

P30
............
............
.............
6,780
3,400
10,180

P30
P30
............
............
............
.............
375
170
580
955
1,125

P30
............
............
.............
260
395
655
P30
P30
P30
............
............
............
3,600
1,910
2,500
3,600
5,510
8,010
P30
P30
............
............
2,505
2,850
2,505
5,355
J-Mart Co.
2010
Oct.
1 Balance...............................
15 ............................................
26 ............................................
Lassiter Co.
2010
Oct.
1 Balance...............................
3 ............................................
Sure Measure Supplies
2010
Oct.
8 ............................................
23 ............................................
30 ............................................
Wendell Co.
2010
Oct.
1 ............................................
12 ............................................
332
Prob. 5–3A
Concluded
3. and 4.
PURCHASES JOURNAL
Account Credited
Post.
Ref.
Wendell Co. ....................
Lassiter Co. ....................
Sure Measure Supplies ..
Wendell Co. ....................
J-Mart Co. .......................
Eskew Co. ........................
Sure Measure Supplies. .
J-Mart Co. .......................
Sure Measure Supplies ..









Date
2010
Oct.
1
3
8
12
15
19
23
26
30
31
Accounts
Field
Payable Supplies
Cr.
Dr.
Office
Supplies
Dr.
2,505
260
3,600
2,850
375
6,780
1,910
170
2,500
20,950
(21)
.............
260
.............
.............
375
.............
.............
170
.............
805
(15)
2,505
.............
3,600
2,850
.............
.............
1,910
.............
2,500
13,365
(14)
5. a. $25,325 ($10,180 + $1,125 + $655 + $8,010 + $5,355)
b. $25,325
333
PAGE 30
Other
Accounts
Dr.
............................
............................
............................
............................
............................
Office Equipment
............................
............................
............................
Post.
Ref. Amount
18
............
............
............
............
............
6,780
............
............
............
6,780
()
Prob. 5–4A
1., 2., and 3.
PURCHASES JOURNAL
Date
2010
Mar. 16
17
20
28
30
30
31
Account Credited
Post.
Ref.
PMI Sales Inc. .................
Culver Supply Co. ..........
A-One Office Supply Co.
A-One Office Supply Co.
PMI Sales Inc. .................
Culver Supply Co. ..........






Accounts
Field
Payable Supplies
Cr.
Dr.
29,400
9,320
1,110
2,670
34,540
11,900
88,940
(21)
.............
9,320
.............
.............
22,340
11,900
43,560
(14)
334
PAGE 1
Office
Supplies
Dr.
Other
Accounts
Dr.
.............
.............
1,110
2,670
.............
.............
3,780
(15)
Field Equipment
............................
............................
............................
Office Equipment
............................
Post.
Ref. Amount
17
18
29,400
............
............
............
12,200
............
41,600
()
Prob. 5–4A
Continued
1. and 2.
JOURNAL
Date
2010
Mar. 31
PAGE 1
Post.
Ref.
Description
Prepaid Rent ...........................................
Field Equipment .................................
16
17
Debit
Credit
12,000
12,000
1., 2., and 3.
CASH PAYMENTS JOURNAL
Ck.
No.
Date
2010
Mar. 16
18
24
26
28
30
31
31
Post.
Ref.
Account Debited
1 Rent Expense .....................
2 Field Supplies .....................
Office Supplies ...................
3 PMI Sales Inc. .....................
4 Culver Supply Co. ..............
5 Land ....................................
6 A-One Office Supply Co. ....
7 Salary Expense...................
Total ....................................
335
71
14
15


19

61
PAGE 1
Other
Accounts
Dr.
Accounts
Payable
Dr.
5,000
2,180
450
.............
.............
170,000
.............
26,000
203,630
()
............
5,000
............
2,180
............
450
29,400 29,400
9,320
9,320
............ 170,000
1,110
1,110
............ 26,000
39,830 243,460
(21)
(11)
Cash
Cr.
Prob. 5–4A
Continued
1.
ACCOUNTS PAYABLE LEDGER
A-One Office Supply Co.
Date
2010
Mar.
Post.
Ref.
Item
20 ............................................
28 ............................................
30 ............................................
Dr.
Cr.
Balance
P1
P1
CP1
............
............
1,110
1,110
2,670
.............
1,110
3,780
2,670
P1
CP1
P1
............
9,320
............
9,320
.............
11,900
9,320
—
11,900
P1
CP1
P1
............
29,400
............
29,400
.............
34,540
29,400
—
34,540
Culver Supply Co.
2010
Mar.
17 ............................................
26 ............................................
30 ............................................
PMI Sales Inc.
2010
Mar.
16 ............................................
24 ............................................
30 ............................................
336
Prob. 5–4A
Continued
2. and 3.
GENERAL LEDGER
Cash
11
Item
Post.
Ref.
Dr.
..........................................
CP1
..........
Date
2010
Mar. 31
Cr.
243,460
Dr.
Balance
Cr.
..........
Field Supplies
2010
Mar. 18
31
..........................................
..........................................
14
CP1
P1
2,180
43,560
..........
..........
2,180
45,740
Office Supplies
2010
Mar. 18
31
..........................................
..........................................
..........................................
CP1
P1
450
3,780
..........
..........
450
4,230
..........................................
..........................................
J1
12,000
..........
12,000
..........................................
P1
J1
29,400
..........
..........
12,000
29,400
17,400
..........
..........
18
P1
12,200
..........
12,200
Land
2010
Mar. 28
..........
17
Office Equipment
2010
Mar. 30
..........
..........
16
Field Equipment
2010
Mar. 16
31
..........
..........
15
Prepaid Rent
2010
Mar. 31
243,460
..........
19
..........................................
CP1
337
170,000
..........
170,000
..........
Prob. 5–4A
Concluded
GENERAL LEDGER
Accounts Payable
Item
Dr.
Cr.
..........................................
..........................................
P1
CP1
..........
39,830
88,940
..........
Date
2010
Mar. 31
31
21
Post.
Ref.
Balance
Dr.
Cr.
..........
..........
Salary Expense
2010
Mar. 31
61
..........................................
CP1
26,000
..........
26,000
Rent Expense
2010
Mar. 16
88,940
49,110
..........
71
..........................................
CP1
5,000
..........
5,000
..........
4.
BLACK GOLD EXPLORATION CO.
Accounts Payable Subsidiary Ledger
March 31, 2010
A-One Office Supply Co. ....................................................................
Culver Supply Co. ...............................................................................
PMI Sales Inc. ......................................................................................
Total accounts payable .......................................................................
$ 2,670
11,900
34,540
$ 49,110*
*The total of the schedule of accounts payable is equal to the balance of the accounts payable control account.
338
Prob. 5–5A
1., 3., and 4.
GENERAL LEDGER
Cash
11
Date
2010
May
Item
1
31
31
Post.
Ref.
Balance.............................

.......................................... CR31
.......................................... CP34
Dr.
Cr.
Dr.
Balance
Cr.
..........
..........
61,300
73,230
.......... 134,530
.......... 110,385 24,145
Accounts Receivable
2010
May
1
31
31
12
Balance.............................

.......................................... R35
.......................................... CR31
..........
32,810
..........
..........
..........
31,630
26,430
59,240
27,610
Maintenance Supplies
2010
May
1
20
31
Balance.............................
..........................................
..........................................
1
31
31
Balance.............................
..........................................
..........................................

J1
P37
..........
..........
3,630
..........
2,400
..........
6,580
4,180
7,810
1
3
Balance.............................
..........................................

CP34
P37
..........
450
2,760
..........
..........
..........
3,150
3,600
6,360
1
Balance.............................
..........
..........
..........
16

P37
..........
520
..........
..........
15,390
15,910
Accumulated Depreciation—Office Equipment
2010
May
..........
..........
..........
15
Office Equipment
2010
May
..........
..........
..........
14
Office Supplies
2010
May
..........
..........
..........

339
..........
..........
17
..........
..........
..........
3,450
Prob. 5–5A
Continued
GENERAL LEDGER
Vehicles
18
Item
Post.
Ref.
Dr.
Cr.
Balance.............................
..........................................
..........................................

P37
CP34
..........
22,300
22,400
..........
..........
..........
Date
2010
May
1
2
16
Balance
Dr.
Cr.
57,000
79,300
101,700
Accumulated Depreciation—Vehicles
2010
May
1
Balance.............................
19

..........
..........
..........
Accounts Payable
2010
May
1
31
31
Balance.............................
..........................................
..........................................
1
Balance.............................

P37
CP34
..........
..........
24,985
..........
29,210
..........
..........
..........
..........
..........................................

..........
..........
..........
CP34
3,240
..........
3,240
..........
41
.......................................... CR31
.......................................... CR31
.......................................... R35
..........
..........
..........
18,900
20,700
32,810
..........
..........
..........
Rent Revenue
2010
May 18
148,775
32
Fees Earned
2010
May 16
31
31
2,165
31,375
6,390
31
J. Li, Drawing
2010
May 27
15,460
21
J. Li, Capital
2010
May
..........
..........
..........
18,900
39,600
72,410
42
.......................................... CR31
340
..........
2,000
..........
2,000
Prob. 5–5A
Continued
GENERAL LEDGER
Driver Salaries Expense
Item
Dr.
Cr.
..........................................
CP34
27,690
..........
Date
2010
May 30
51
Post.
Ref.
Balance
Dr.
Cr.
27,690
Maintenance Supplies Expense
2010
May 20
52
..........................................
J1
2,400
..........
2,400
Fuel Expense
2010
May
9
..........................................
..........................................
CP34
670
..........
670
1
..........................................
CP34
18,600
..........
18,600
..........................................
CP34
1,000
..........
1,000
..........................................
..........
63
CP34
7,250
..........
7,250
Miscellaneous Administrative Expense
2010
May 17
..........
62
Advertising Expense
2010
May 20
..........
61
Rent Expense
2010
May
..........
53
Office Salaries Expense
2010
May 31
..........
CP34
341
..........
64
4,100
..........
4,100
..........
Prob. 5–5A
Continued
2., 4.
PURCHASES JOURNAL
Date
2010
May
Account Credited
2
3
18
19
21
31
Accounts Maintenance Office
Post. Payable
Supplies
Supplies
Ref.
Cr.
Dr.
Dr.





22,300
520
1,680
4,000
710
29,210
(21)
............
............
1,680
1,950
............
3,630
(14)
CASH RECEIPTS JOURNAL
Other
Post. Accounts
Account Credited
Ref.
Cr.
Date
2010
May
McIntyre Sales Co. ..........
Office Mate Inc. ..............
Bastille Co. .....................
Master Supply Co. ..........
Office City ........................
Total .................................
6
10
12
16
18
25
31
Baker Co. ...................
Sanchez Co. ...............
Martin Co. ...................
Fees Earned ...............
Rent Revenue.............
Baker Co. ...................
Fees Earned ...............
Total ............................
PAGE 37



41
42

41
............
............
............
18,900
2,000
............
20,700
41,600
()
Vehicles
Office Equipment
............................
............................
............................
PAGE 31
Accounts
Receivable
Cr.
5,610
8,920
5,200
............
............
11,900
............
31,630
(12)
342
.............
.............
.............
2,050
710
2,760
(15)
Other
Accounts
Dr.
Cash
Dr.
5,610
8,920
5,200
18,900
2,000
11,900
20,700
73,230
(11)
Post.
Ref. Amount
18
16
22,300
520
............
............
............
22,820
()
Prob. 5–5A
Continued
2., 4.
REVENUE JOURNAL
Invoice
No.
Date
2010
May
5
7
11
24
25
31
91
92
93
94
95
Account Debited
PAGE 35
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.





Martin Co. .............................
Trent Co. ................................
Jarvis Co................................
Sanchez Co. .........................
Trent Co. ................................
Total .......................................
5,200
8,150
6,540
7,890
5,030
32,810
(41) (12)
CASH PAYMENTS JOURNAL
Ck.
No.
Date
2010
May 1
9
10
10
11
13
16
17
20
26
27
30
31
31
31
205
206
207
208
209
210
211
212
213
214
215
216
217
218
Post.
Ref.
Account Debited
Rent Expense ...................
Fuel Expense ....................
Office City .........................
Bastille Co. .......................
Porter Co. .........................
McIntyre Sales Co. ...........
Vehicles ............................
Misc. Admin. Expense .....
Advertising Expense ........
Office Mate Inc. ...............
J. Li, Drawing....................
Driver Salaries Expense ..
Office Salaries Expense ..
Office Supplies .................
Total ..................................
62
53




18
64
63

32
51
61
15
PAGE 34
Other
Accounts
Dr.
Accounts
Payable
Dr.
1,000
670
.............
.............
.............
.............
22,400
4,100
7,250
.............
3,240
27,690
18,600
450
85,400
()
............
1,000
............
670
490
490
1,350
1,350
325
325
22,300 22,300
............ 22,400
............
4,100
............
7,250
520
520
............
3,240
............ 27,690
............ 18,600
............
450
24,985 110,385
(21)
(11)
JOURNAL
Date
2010
May 20
PAGE 1
Post.
Ref.
Description
Maintenance Supplies Expense ............
Maintenance Supplies .......................
343
Cash
Cr.
52
14
Debit
Credit
2,400
2,400
Prob. 5–5A
Concluded
5.
OVER-NITE EXPRESS COMPANY
Unadjusted Trial Balance
May 31, 2010
Debit
Credit
Balances Balances
Cash ....................................................................................
Accounts Receivable .........................................................
Maintenance Supplies .......................................................
Office Supplies ...................................................................
Office Equipment ...............................................................
Accumulated Depreciation—Office Equipment ...............
Vehicles...............................................................................
Accumulated Depreciation—Vehicles ..............................
Accounts Payable ..............................................................
J. Li, Capital ........................................................................
J. Li, Drawing ......................................................................
Fees Earned ........................................................................
Rent Revenue .....................................................................
Driver Salaries Expense ....................................................
Maintenance Supplies Expense ........................................
Fuel Expense ......................................................................
Office Salaries Expense ....................................................
Rent Expense .....................................................................
Advertising Expense ..........................................................
Miscellaneous Administrative Expense ...........................
24,145
27,610
7,810
6,360
15,910
3,450
101,700
15,460
6,390
148,775
3,240
72,410
2,000
27,690
2,400
670
18,600
1,000
7,250
4,100
248,485
6. Balance of accounts receivable control account, $27,610.
Balance of accounts payable control account, $6,390.
344
248,485
Prob. 5–1B
1. and 2.
REVENUE JOURNAL
Date
2010
Jan. 21
22
24
27
28
30
31
31
Invoice
No.
1
2
3
4
5
6
7
Account Debited
J. Dunlop ...............................
K. Todd ..................................
T. Morris ................................
F. Mintz ..................................
D. Bennett ..............................
K. Todd ..................................
T. Morris ................................
PAGE 1
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.







75
280
65
180
155
120
85
960
(12) (41)
JOURNAL
Date
2010
Jan. 25
PAGE 1
Post.
Ref.
Description
Supplies ..................................................
Fees Earned .......................................
345
13
41
Debit
Credit
100
100
Prob. 5–1B
Continued
ACCOUNTS RECEIVABLE LEDGER
D. Bennett
Date
2010
Jan.
Post.
Ref.
Item
28 ............................................
Dr.
Cr.
Balance
R1
155
.............
155
R1
75
.............
75
R1
180
.............
180
R1
R1
65
85
.............
.............
65
150
R1
R1
280
120
.............
.............
280
400
J. Dunlop
2010
Jan.
21 ............................................
F. Mintz
2010
Jan.
27 ............................................
T. Morris
2010
Jan.
24 ............................................
31 ............................................
K. Todd
2010
Jan.
22 ............................................
30 ............................................
346
Prob. 5–1B
Concluded
2.
GENERAL LEDGER
Accounts Receivable
12
Date
Item
Post.
Ref.
2010
Jan. 31
..........................................
R1
Dr.
960
Cr.
..........
Dr.
Balance
Cr.
960
Supplies
2010
Jan. 25
13
..........................................
J1
100
..........
100
Fees Earned
2010
Jan. 25
31
..........
..........................................
..........................................
..........
41
J1
R1
..........
..........
100
960
..........
..........
100
1,060
3. a. $960 ($155 + $75 + $180 + $150 + $400)
b. $960
4. The single money column in the revenue journal can be replaced with three
columns for (1) Accounts Receivable Dr., (2) Fees Earned Cr., and (3) Sales
Tax Payable Cr.
347
Prob. 5–2B
1. and 5.
GENERAL LEDGER
Cash
11
Date
2010
Sept.
1
30
Item
Post.
Ref.
Balance.............................

.......................................... CR36
Balance
Cr.
Dr.
Cr.
Dr.
..........
33,210
..........
..........
12,970
46,180
Accounts Receivable
2010
Sept.
1
25
30
30
12
Balance.............................

..........................................
J1
.......................................... R40
.......................................... CR36
..........
..........
23,610
..........
..........
1,800
..........
21,640
14,570
12,770
36,380
14,740
Notes Receivable
2010
Sept.
1
25
Balance.............................
..........................................
..........
..........
..........
..........
14

J1
..........
1,800
..........
..........
5,000
6,800
Fees Earned
2010
Sept. 30
30
..........
..........
..........
..........
41
.......................................... R40
.......................................... CR36
348
..........
..........
23,610
11,570
..........
..........
23,610
35,180
Prob. 5–2B
Continued
2. and 4.
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Mendez Co.
Date
2010
Sept.
Post.
Ref.
Item
1 Balance...............................
5 ............................................
22 ............................................
Dr.
Cr.
Balance

CR36
R40
............
............
7,830
.............
8,420
.............
8,420
—
7,830
R40
CR36
5,200
............
.............
5,200
5,200
—

R40
CR36
R40
CR36
............
1,870
............
6,000
............
.............
.............
6,150
.............
1,870
6,150
8,020
1,870
7,870
6,000
R40
J1
2,710
............
.............
1,800
2,710
910
Morton Co.
2010
Sept.
2 ............................................
19 ............................................
Pinnacle Co.
2010
Sept.
1
6
15
16
20
Balance...............................
............................................
............................................
............................................
............................................
Shilo Co.
2010
Sept. 13 ............................................
25 ............................................
349
Prob. 5–2B
Concluded
3., 4., and 5.
REVENUE JOURNAL
Date
2010
Sept.
2
6
13
16
22
30
Date
2010
Sept.
5
15
19
20
30
30
Invoice
No.
793
794
795
796
797
PAGE 40
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.
Account Debited





Morton Co. ............................
Pinnacle Co. ..........................
Shilo Co. ................................
Pinnacle Co. ..........................
Mendez Co. ...........................
CASH RECEIPTS JOURNAL
Fees
Post. Earned
Account Credited
Ref.
Cr.
Mendez Co. ................
Pinnacle Co. ...............
Morton Co. .................
Pinnacle Co. ...............
Fees Earned ...............





............
............
............
............
11,570
11,570
(41)
5,200
1,870
2,710
6,000
7,830
23,610
(12) (41)
PAGE 36
Accts.
Rec.
Cr.
Cash
Dr.
8,420
6,150
5,200
1,870
.........
21,640
(12)
8,420
6,150
5,200
1,870
11,570
33,210
(11)
JOURNAL
Date
2010
Sept. 25
PAGE 1
Post.
Ref.
Description
Notes Receivable ...................................
Accounts Receivable—Shilo Co. .....
14
12/
Debit
Credit
1,800
1,800
The subsidiary account of Shilo Co. must also be posted for a $1,800 credit.
6. The subsidiary ledger is in agreement with the controlling account. Both have
balances of $14,740 ($7,830 + $6,000 + $910).
350
Prob. 5–3B
1. and 4.
GENERAL LEDGER
Field Supplies
Item
Post.
Ref.
Dr.
Cr.
Dr.
Balance.............................
..........................................

P30
..........
11,095
..........
..........
6,450
17,545
Date
2010
May
1
31
14
Balance
Cr.
Office Supplies
2010
May
1
31
Balance.............................
..........................................
15

P30
..........
980
..........
..........
890
1,870
Office Equipment
2010
May
1
5
Balance.............................
..........................................
1
31
Balance.............................
..........................................
..........
..........
18

P30
..........
5,340
..........
..........
14,900
20,240
Accounts Payable
2010
May
..........
..........
..........
..........
21

P30
351
..........
..........
..........
17,415
..........
..........
1,165
18,580
Prob. 5–3B
Continued
2. and 3.
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Executive Office Supply Co.
Date
2010
May
Post.
Ref.
Item
1 Balance...............................
9 ............................................
29 ............................................
Dr.
Cr.
Balance

P30
P30
............
............
............
.............
325
275
390
715
990

P30
............
............
.............
380
775
1,155
P30
P30
P30
............
............
............
3,210
3,950
1,100
3,210
7,160
8,260
P30
............
5,340
5,340
P30
P30
............
............
1,390
1,445
1,390
2,835
Lawson Co.
2010
May
1 Balance...............................
2 ............................................
Nickle Co.
2010
May
14 ............................................
24 ............................................
31 ............................................
Peach Computers Co.
2010
May
5 ............................................
Yamura Co.
2010
May
13 ............................................
17 ............................................
352
Prob. 5–3B
Concluded
3. and 4.
PURCHASES JOURNAL
Date
Account Credited
2010
May 2
5
9
13
14
17
24
29
31
31
Lawson Co. ............................
Peach Computers Co. ..........
Executive Office Supply Co.
Yamura Co. ............................
Nickle Co. ..............................
Yamura Co. ............................
Nickle Co. ..............................
Executive Office Supply Co.
Nickle Co. ..............................
.................................................
Post.
Ref.









Accounts
Field
Payable Supplies
Cr.
Dr.
Office
Supplies
Dr.
380
5,340
325
1,390
3,210
1,445
3,950
275
1,100
17,415
(21)
380
.............
325
.............
.............
.............
.............
275
.............
980
(15)
.............
.............
.............
1,390
3,210
1,445
3,950
.............
1,100
11,095
(14)
5. a. $18,580 ($990 + $1,155 + $8,260 + $5,340 + $2,835)
b. $18,580
353
PAGE 30
Other
Accounts
Dr.
............................
Office Equipment
............................
............................
............................
............................
............................
............................
............................
Post.
Ref. Amount
18
............
5,340
............
............
............
............
............
............
............
5,340
()
Prob. 5–4B
1., 2., and 3.
PURCHASES JOURNAL
Date
2010
Sept. 16
16
17
23
30
30
30
Account Credited
Post.
Ref.
Hydro Supply Co. ...........
Test-Rite Equipment Co.
Baker Supply Co. ...........
Baker Supply Co. ...........
Hydro Supply Co. ...........
Test-Rite Equipment Co.






Accounts
Field
Payable Supplies
Cr.
Dr.
Office
Supplies
Dr.
4,130
15,400
265
400
5,100
4,200
29,495
(21)
.............
.............
265
400
.............
.............
665
(15)
4,130
.............
.............
.............
5,100
700
9,930
(14)
354
PAGE 1
Other
Accounts
Dr.
............................
Field Equipment
............................
............................
............................
Field Equipment
Post.
Ref. Amount
17
17
............
15,400
............
............
............
3,500
18,900
()
Prob. 5–4B
Continued
CASH PAYMENTS JOURNAL
Ck.
No.
Date
2010
Sept. 16
19
23
24
26
30
30
30
Post.
Ref.
Account Debited
1 Rent Expense ...................
2 Field Supplies ...................
Office Supplies .................
3 Land ..................................
4 Hydro Supply Co ..............
5 Test-Rite Equipment Co. .
6 Baker Supply Co. .............
7 Salary Expense.................
Total ..................................
71
14
15
19



61
PAGE 1
Other
Accounts
Dr.
Accounts
Payable
Dr.
1,400
2,380
275
33,000
.............
.............
.............
20,700
57,755
()
............
............
............
............
4,130
15,400
265
............
19,795
(21)
Cash
Cr.
1,400
2,380
275
33,000
4,130
15,400
265
20,700
77,550
(11)
1. and 2.
JOURNAL
Date
2010
Sept. 30
PAGE 1
Post.
Ref.
Description
Land ........................................................
Field Equipment .................................
355
19
17
Debit
Credit
6,500
6,500
Prob. 5–4B
Continued
1.
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Baker Supply Co.
Date
Post.
Ref.
Item
2010
Sept. 17 ............................................
23 ............................................
30 ............................................
Dr.
Cr.
Balance
P1
P1
CP1
............
............
265
265
400
.............
265
665
400
P1
CP1
P1
............
4,130
............
4,130
.............
5,100
4,130
—
5,100
P1
CP1
P1
............
15,400
............
15,400
.............
4,200
15,400
—
4,200
Hydro Supply Co.
2010
Sept. 16 ............................................
24 ............................................
30 ............................................
Test-Rite Equipment Co.
2010
Sept. 16 ............................................
26 ............................................
30 ............................................
356
Prob. 5–4B
Continued
2. and 3.
GENERAL LEDGER
Cash
11
Item
Post.
Ref.
Dr.
Cr.
Dr.
..........................................
CP1
..........
77,550
..........
Date
2010
Sept. 30
Balance
Cr.
Field Supplies
2010
Sept. 19
30
..........................................
..........................................
14
CP1
P1
2,380
9,930
..........
..........
2,380
12,310
Office Supplies
2010
Sept. 19
30
..........................................
..........................................
..........................................
..........................................
..........................................
CP1
P1
275
665
..........
..........
275
940
P1
P1
J1
15,400
3,500
..........
..........
..........
6,500
15,400
18,900
12,400
..........
..........
..........
19
..........................................
..........................................
CP1
J1
33,000
6,500
..........
..........
33,000
39,500
Accounts Payable
2010
Sept. 30
30
..........
..........
17
Land
2010
Sept. 23
30
..........
..........
15
Field Equipment
2010
Sept. 16
30
30
77,550
..........................................
..........................................
..........
..........
21
P1
CP1
357
..........
19,795
29,495
..........
..........
..........
29,495
9,700
Prob. 5–4B
Concluded
GENERAL LEDGER
Salary Expense
Item
Dr.
Cr.
..........................................
CP1
20,700
..........
Date
2010
Sept. 30
61
Post.
Ref.
Balance
Dr.
Cr.
20,700
..........
Rent Expense
2010
Sept. 16
71
..........................................
CP1
1,400
..........
1,400
..........
4.
TELLICO SPRINGS WATER TESTING SERVICE
Accounts Payable Subsidiary Ledger
September 30, 2010
Baker Supply Co. .......................................................................................
Hydro Supply Co. ......................................................................................
Test-Rite Equipment Co. ...........................................................................
Total accounts payable ..............................................................................
$ 400
5,100
4,200
$9,700*
*The total of the schedule of accounts payable is equal to the balance of the accounts payable control account.
358
Prob. 5–5B
1., 3., and 4.
GENERAL LEDGER
Cash
11
Date
2010
July
Item
1
31
31
Post.
Ref.
Balance.............................

.......................................... CR31
.......................................... CP34
Dr.
Cr.
Dr.
Balance
Cr.
..........
.......... 155,300
48,030
.......... 203,330
.......... 112,885 90,445
Accounts Receivable
2010
July
1
31
31
12
Balance.............................

.......................................... R35
.......................................... CR31
..........
19,870
..........
..........
..........
15,030
12,690
32,560
17,530
Maintenance Supplies
2010
July
1
20
31
Balance.............................
..........................................
..........................................
1
31
31
Balance.............................
..........................................
..........................................

J1
P37
..........
..........
3,450
..........
3,000
..........
9,150
6,150
9,600
1
6
Balance.............................
..........................................

CP34
P37
..........
750
930
..........
..........
..........
4,200
4,950
5,880
1
Balance.............................
..........
..........
..........
16

P37
..........
4,100
..........
..........
24,000
28,100
Accumulated Depreciation—Office Equipment
2010
July
..........
..........
..........
15
Office Equipment
2010
July
..........
..........
..........
14
Office Supplies
2010
July
..........
..........
..........

359
..........
..........
17
..........
..........
..........
5,800
Prob. 5–5B
Continued
GENERAL LEDGER
Vehicles
18
Item
Post.
Ref.
Dr.
Cr.
Balance.............................
..........................................
..........................................

P37
CP34
..........
30,200
37,300
..........
..........
..........
Date
2010
July
1
5
16
Balance
Dr.
Cr.
82,300
112,500
149,800
Accumulated Depreciation—Vehicles
2010
July
1
Balance.............................
19

..........
..........
..........
Accounts Payable
2010
July
1
31
31
Balance.............................
..........................................
..........................................
1
Balance.............................

P37
CP34
..........
..........
39,425
..........
38,680
..........
..........
..........
..........
..........................................

..........
..........
..........
265,015
32
CP34
2,500
..........
2,500
Fees Earned
2010
July 16
31
31
5,125
43,805
4,380
31
J. Bourne, Drawing
2010
July 24
11,700
21
J. Bourne, Capital
2010
July
..........
..........
..........
..........
41
.......................................... CR31
.......................................... CR31
.......................................... R35
360
..........
..........
..........
16,300
16,700
19,870
..........
..........
..........
16,300
33,000
52,870
Prob. 5–5B
Continued
GENERAL LEDGER
Driver Salaries Expense
Item
Dr.
Cr.
..........................................
CP34
16,150
..........
Date
2010
July 30
51
Post.
Ref.
Balance
Dr.
Cr.
16,150
Maintenance Supplies Expense
2010
July 20
52
..........................................
J1
3,000
..........
3,000
Fuel Expense
2010
July
9
..........................................
..........................................
CP34
810
..........
810
1
..........................................
CP34
7,880
..........
7,880
..........................................
CP34
6,200
..........
6,200
..........................................
..........
63
CP34
1,625
..........
1,625
Miscellaneous Administrative Expense
2010
July 17
..........
62
Advertising Expense
2010
July 20
..........
61
Rent Expense
2010
July
..........
53
Office Salaries Expense
2010
July 30
..........
CP34
361
..........
64
245
..........
245
..........
Prob. 5–5B
Continued
2., 3., and 4.
PURCHASES JOURNAL
Date
2010
July
Account Credited
5
6
18
19
23
31





Accounts Maintenance Office
Payable
Supplies
Supplies
Cr.
Dr.
Dr.
30,200
4,100
1,630
2,250
500
38,680
(21)
.............
.............
1,630
1,820
.............
3,450
(14)
CASH RECEIPTS JOURNAL
Other
Post. Accounts
Account Credited
Ref.
Cr.
Date
2010
July
Browning Transportation ..
Austin Computer Co. .........
Crowne Supply Co. ............
McClain Co. .......................
Office To Go Inc. ...............
Post.
Ref.
3
10
12
16
25
31
31
Perkins Co. ................
Sing Co. .....................
Capps Co. ..................
Fees Earned ...............
Perkins Co. ................
Fees Earned ...............
Total ............................



41

41
PAGE 37
............
............
............
16,300
............
16,700
33,000
()
Vehicles
Office Equipment
............................
............................
............................
PAGE 31
Accounts
Receivable
Cr.
5,150
3,720
2,340
............
3,820
............
15,030
(12)
362
.............
.............
.............
430
500
930
(15)
Other
Accounts
Dr.
Cash
Dr.
5,150
3,720
2,340
16,300
3,820
16,700
48,030
(11)
Post.
Ref. Amount
18
16
30,200
4,100
............
............
............
34,300
()
Prob. 5–5B
Continued
2. and 4.
REVENUE JOURNAL
Invoice
No.
Date
2010
July
2
6
10
24
25
31
940
941
942
943
944
Account Debited
PAGE 35
Post. Accounts Rec. Dr.
Ref.
Fees Earned Cr.





Capps Co. .............................
Darr Co. .................................
Joy Co. ..................................
Sing Co. ................................
Darr Co. .................................
2,340
5,240
1,210
5,000
6,080
19,870
(12) (41)
2., 3., and 4.
CASH PAYMENTS JOURNAL
Ck.
No.
Date
2010
July 1
9
10
11
11
13
16
17
20
24
26
30
Post.
Ref.
Account Debited
610
611
612
613
614
615
616
617
618
619
620
621
Rent Expense ...................
Fuel Expense ....................
Office To Go Inc. ..............
Crowne Supply Co. ..........
Porter Co. ..........................
Browning Transportation
Vehicles ............................
Misc. Admin. Expense .....
Advertising Expense ........
J. Bourne, Drawing ..........
Austin Computer Co. ......
Driver Salaries Expense ..
Office Salaries Expense ..
31 622 Office Supplies .................
31
363
62
53




18
64
63
32

51
61
15
PAGE 34
Other
Accounts
Dr.
Accounts
Payable
Dr.
6,200
810
.............
.............
.............
.............
37,300
245
1,625
2,500
.............
16,150
7,880
750
73,460
()
............
6,200
............
810
880
880
3,520
3,520
725
725
30,200 30,200
............ 37,300
............
245
............
1,625
............
2,500
4,100
4,100
............ 16,150
............
7,880
............
750
39,425 112,885
(21)
(11)
Cash
Cr.
Prob. 5–5B
Concluded
2. and 3.
JOURNAL
Date
2010
July 20
Description
Maintenance Supplies Expense............
Maintenance Supplies .......................
PAGE 1
Post.
Ref.
Debit
52
14
Credit
3,000
3,000
5.
COURTESY COURIER DELIVERY COMPANY
Unadjusted Trial Balance
July 31, 2010
Debit
Credit
Balances Balances
Cash ....................................................................................
Accounts Receivable .........................................................
Maintenance Supplies .......................................................
Office Supplies ...................................................................
Office Equipment ...............................................................
Accumulated Depreciation—Office Equipment ...............
Vehicles...............................................................................
Accumulated Depreciation—Vehicles ..............................
Accounts Payable ..............................................................
J. Bourne, Capital ...............................................................
J. Bourne, Drawing ............................................................
Fees Earned ........................................................................
Driver Salaries Expense ....................................................
Maintenance Supplies Expense ........................................
Fuel Expense ......................................................................
Office Salaries Expense ....................................................
Rent Expense .....................................................................
Advertising Expense ..........................................................
Miscellaneous Administrative Expense ...........................
90,445
17,530
9,600
5,880
28,100
5,800
149,800
11,700
4,380
265,015
2,500
52,870
16,150
3,000
810
7,880
6,200
1,625
245
339,765
6. Balance of accounts receivable control account, $17,530.
Balance of accounts payable control account, $4,380.
364
339,765
SPECIAL ACTIVITIES
Activity 5–1
a. The half-price offer is a normal business practice, so long as it is not the result of price collusion with other competitors or considered ―unfair pricing‖
according to federal statutes. Many businesses will offer low initial offers to
entice customers to a subscription service. For example, cable and satellite
companies will often offer premium channels, such as HBO, for free for the
first several months of service. The business objective of low initial pricing is
to demonstrate the value of the service so that customers will elect to continue the service at the full subscription price. Thus, there is nothing inherently
unethical about such a practice, and it would be considered a fairly typical
business practice.
b. Customer ―lock in‖ can be unethical if it is the result of price fixing or acquiring competitors in order to achieve monopolistic concentration within an industry. However, in this case, the customer ―lock in‖ is a function and nature
of the product. Namely, the data that are created by the product cannot be easily migrated to another application. Note, Web Books is not denying the customer ownership of the data, rather it is making it costly to switch. Such ―lock
in‖ is not considered an unethical business practice. Indeed, we see such
―lock in‖ characteristics in many settings. For example:
Razor blades are designed to be used only by the handle of the manufacturer.
Thus, customers become locked in to the razor blades of the handle manufacturer. This is such a common strategy in many arenas that it has been termed the
―razor blade strategy.‖
Movie theaters prevent customers from walking in with refreshments, thus locking theater goers in to the popcorn and refreshment stand of the theater. Theater
pricing of refreshments reflects this ―lock in.‖
Sony designs video games so that they only work on its Play Station® equipment.
Therefore, the games are locked in to the consoles. This allows Sony and its licensees to limit and control competition for games.
Many manufacturers control replacement parts for equipment by custom designing the parts. Customers then become locked into the original manufacturer for
replacement parts.
Apple Computer’s iTunes can only be played on an iTunes player. Thus, Apple
reduces competition for songs for its player and locks customers into its music
platform. Apple employs the same ―lock in‖ strategy for its Mac operating system.
365
Activity 5–2
Ken is missing some of the principal benefits of the computerized system. There
are three primary advantages of a computerized system. First, the computerized
system is much more efficient and accurate at transaction processing. In the
computerized system, once the transaction data have been input, the information
is simultaneously recorded in the electronic journal (file) and posted to the ledger
accounts. This saves a significant amount of time in recording and posting transactions. Second, the computerized environment is less prone to mathematical,
posting, and recording errors. The computer does not make these types of mistakes. Thus, the computerized environment should require less time correcting
errors. Third, the computerized system provides more timely information to management because account balances are always kept current. Under the manual
system, ledger accounts will only be as current as the latest posting date, but the
computerized system posts every transaction when it is journalized or recorded
on a form. Thus, management has more current information with which to make
decisions.
As an additional note, Ken may be reacting out of some fear of the unknown. This
is a common reaction to change. Thus, Ken may be overreacting to the new computer environment because it will require significant change in the way the job is
done as compared to the manual approach.
Activity 5–3
One of the major reasons businesses have transactions ―on account‖ is to control the disbursement and receipt of cash. The cash of the business does not belong to the employees. Thus, the cash transaction is separated from the decision
to purchase or sell. This provides for separation of duties between the sale (or
purchase) event and the cash receipt (or payment) event. This prevents possible
embezzlement and fraud by employees. As an example, if an employee selling the
service also received the cash, then it would be possible to hide the sale event by
not reporting it and then pocketing the cash. However, with a sale on account, the
person providing the service invoices the customer. The customer then remits
payment to a different function in the firm according to the terms of the invoice.
In this case, there is very little possibility that a single person would be able to
defraud Manor Company. These issues do not arise with individuals because the
person controlling the cash also owns the cash in the checking account. Thus,
there is no control problem because it is not possible to embezzle cash from
oneself.
366
Activity 5–4
1. Special journals are used to reduce the processing time and expense to record transactions. A special journal is usually created when a specific type of
transaction occurs frequently enough so that the use of the traditional twocolumn journal becomes cumbersome. The frequency of transactions for
CMG would probably justify the following special journals:
Purchases journal
Cash payments journal
Revenue journal
Cash receipts journal
Note to Instructors: The number and nature of the special journals to be established for CMG involve judgment. Differences of opinion may exist as to
whether all the preceding special journals are necessary or cost-efficient. You
may wish to use this time to comment further on the costs of establishing
special journals and the potential benefits of reducing the processing time to
record transactions.
367
Activity 5–4
Concluded
2.
PURCHASES JOURNAL
Date
Account Credited
Post.
Ref.
Accounts Medical
Payable Supplies
Cr.
Dr.
PAGE 1
Office
Supplies
Dr.
Other
Accounts
Dr.
Post.
Ref. Amount
REVENUE JOURNAL
Date
Invoice
No.
Account Debited
Post.
Ref.
Accts.
Rec.
Dr.
Fees
Earned
Cr.
Sales Tax
Payable
Cr.
Note: The Sales Tax Payable Cr. column is included because fees earned are subject to a sales tax, which is
collected by the business. The sales tax must then be periodically remitted to the state or local government.
Many states do not charge sales tax on services.
3. The business should maintain subsidiary ledgers for customer accounts receivable, supplier accounts payable, and medical equipment.
368
Activity 5–5
MEMORANDUM
To:
Senior Management
From: Student
Re:
Web-based accounting software
A new approach to automating our accounting processing is now available. It is
called Web-based accounting using an application service provider (ASP). Rather
than purchasing our accounting software and loading it on our own computers,
Web-based accounting software is rented and resides on the provider’s computers. Our data, along with the accounting software, stay with the provider. There
are several advantages to this approach.
1. We don’t need to administer the application or data on our own computers.
This becomes the job of the service provider, thus saving us computer system personnel costs. All we need is a desktop computer and browser to use
the software.
2. Our people can work with our data anytime or anyplace. We don’t need to rely
on our own internal computer network for accounting-related work. Instead,
the Web-based product is available on the Internet. This means that we can
enter transactions and access our accounting data from anywhere in the
world, rather than having to be plugged into our corporate network. This also
will save us network support costs.
3. We never need to purchase and load software upgrades. All upgrades are
provided on the provider’s server when they are available. Thus, we are always using the latest version.
4. Providers promise a highly secure environment for our data.
5. An Internet-based accounting system should help us when passing data,
such as orders, between ourselves and our customers and suppliers.
There are also a number of disadvantages we need to consider.
1. The cost of the software is recurring. Thus, we are trading off the recurring
costs of maintaining our system infrastructure for the recurring cost of the
service. A financial analysis should be conducted to determine if the service
is cost effective.
2. The Internet can be slow. During busy times, we may experience slow response times.
3. Our data physically reside with the service provider. Thus, we don’t control
the security of our own data; the provider does. Our data are our lifeblood, so
confidence in the provider’s controls is paramount.
4. Once we begin, we will become ―locked in‖ to the provider. It will be hard to
change our mind at a later date. However, this is also true for purchased
software to some extent.
369
Activity 5–6
Note to Instructors: While the list of functions can be quite large, the key functions are identified below. The purpose of these functions will be fairly advanced
for most students. The activity asks for a listing rather than an explanation because most students would have very limited experience by which to provide
much explanation. Use this case to demonstrate the scope and basic nature of
these application tools.
Selected I2 Supply Chain Management Solutions (New Generation)
•
Collaborative material management
•
Collaborative replenishment
•
Collaborative supply chain execution
•
Collaborative supply execution
•
Consolidated procurement
•
Customer order management
•
Forecast optimization
•
Inventory optimization
•
Multi-enterprise interactive
•
Replenishment planner
•
Supply chain visibility
Salesforce.com Customer Relationship Management Solution
•
Provide the sales force with real-time information about all customer contacts
with the firm in order to improve the effectiveness of the sales call.
•
Provide real-time forecast estimation and accumulation tools.
•
Support promotion plans and integrate the plans with forecasting and manufacturing.
•
Decision tools for evaluating marketing campaign effectiveness.
•
Tools to support call center responsiveness.
370