Full Name: Natalie Jimenez

Exercise Set A

EA1. LO 7.1 For each of the following, indicate if the statement reflects an input component,
output component, or storage component of an accounting information system.
• A credit card scanner at a grocery store.
• A purchase order for 1,000 bottles of windshield washing fluid received by
a manufacturer from an auto parts store.
• A report of patients who missed appointments at a doctor’s office.
• A list of the day’s cash and credit sales.
• Electronic files containing a list of current customers.
Solution
A. input
B. input
C. output
D. output
E. storage

EA2. LO 7.1 All of the following information pertains to Green’s Grocery. Match each of the
following parts of Green’s accounting information system in the left-hand column with the
appropriate item(s) from the right-hand column. You may use items in the right-hand column
more than once or not at all. There may be several answers for each item in the left-hand
column. Write the roman numerals from the right column next to the items in the left column.
Solution
• Source document: ii, iv
• Check written for office supplies
• Output device: viii, xii
• Invoice from a supplier of inventory ii
• Input device: vi, vii
• Payroll check
• Data and information storage: ix, x, xi
• Time card iv
• Information processing: v
• Computer software v

• Keyboard vi

• Grocery store bar code scanner vii

• Printer viii

• Flash drive ix

• Hard drive x

• The cloud xi
• Computer screen xii
EA3. LO 7.2 Match the special journal you would use to record the following transactions. Write
the roman numerals from the right column next to the items in the left column.
Solution
Select from the following:
• cash receipts journal: i, iii, vi
• Sold inventory for cash i
• cash disbursements journal: iv, v, vii, ix, x
• Sold inventory on account ii
• sales journal: ii
• Received cash a week after selling items on credit iii
• purchases journal: none
• Paid cash to purchase inventory iv
• general journal: viii,
• Paid a cash dividend to shareholders v

• Sold shares of stock for cash vi

• Bought equipment for cash vii

• Recorded an adjusting entry for supplies viii

• Paid for a purchase of inventory on account within the discount period ix

• Paid for a purchase of inventory on account after the discount period has
passed x

EA4. LO 7.2 For each of the transactions, state which journal (sales journal, cash receipts
journal, cash disbursements journal, purchases journal, or general journal) and which subsidiary
ledger (Accounts Receivable, Accounts Payable, or neither) would be used in recording the
transaction.
• Paid utility bill
• Sold inventory on account
• Received but did not pay phone bill
• Bought inventory on account
• Borrowed money from a bank
• Sold old office furniture for cash
• Recorded depreciation
• Accrued payroll at the end of the accounting period
• Sold inventory for cash
• Paid interest on bank loan
Solution
A. CD, neither
B. SJ, AR
C. GJ, neither
D. PJ, AP
E. CR, neither
F. CR, neither
G. GJ, neither
H. GJ, neither
I. CR, neither
J. CD, neither

EA5. LO 7.3 Catherine’s Cookies has a beginning balance in the Accounts Payable control total
account of $8,200. In the cash disbursements journal, the Accounts Payable column has total
debits of -$6,800 for November. The Accounts Payable credit column in the purchases journal
reveals a total of +$10,500 in purchases for the current month. Based on this information, what is
the ending balance in the Accounts Payable account in the general ledger?
Solution
$11,900

EA6. LO 7.3 Record the following transactions in the sales journal:

Jan. 15
Invoice # 325, sold goods on credit for $2,400, to Maroon 4, account # 4501
Jan. 22
Invoice #326, sold goods on credit for $3,500 to BTS, account # 5032
Jan. 27
Invoice #327, sold goods on credit for $1,250 to Imagine Fireflies, account # 3896
Solution
SALES JOURNAL
Page 27
Date
Account
Invoice No.
Ref.
DR Accts. Receivable
CR Sales

2019

Jan. 15
Maroon 4
325
#4501
$2,400

Jan. 22
BTS
326
 #5032
$3,500

Jan. 27
Imagine Fireflies
327
#3896
$1,250

EA7. LO 7.3 Record the following transactions in the cash receipts journal.
Jun. 12
Your company received payment in full from Jolie Inc. in the amount of $1,225 for merchandise
purchased on June 4 for $1,250, invoice number #1032. Jolie Inc. was offered terms of 2/10,
n/30. Record the payment.
Jun. 15
Portman Inc. mailed you a check for $2500. The company paid for invoice #1027, dated June 1,
in the amount of $2,500, terms offered 3/10, n/30.
Jun. 17
Your company received a refund check (its check #12440) from the State Power Company
because you overpaid your electric bill. The check was in the amount of $72. The Utility
Expense account number is #450. Record receipt of the refund.
Solution
CASH RECEIPTS JOURNAL
Page 24
Date
Account
Invoice No.
Ref.
Cash DR
Sales Discounts DR
Accounts Receivable, Sales, or other account CR
2019

Jun. 12
Jolie Inc.
1032

$1,225
$25
$1,250
Jun. 15
Portman Inc.
1027

$2,500

$2,500
Jun. 17
State Power Company

$72

$72

EA8. LO 7.4 Maddie Inc. has the following transactions for its first month of business.
May 1
Credit sale to Green Lantern Inc. for $1,999
May 2
Credit sale to Wonder Woman Inc. for $2,000
May 3
Credit sale to Flash Inc. for $3,050
May 4
Received $1,000 on account from Green Lantern Inc.
May 5
Credit sale to Black Panther Inc. for $1,875
May 6
Received the full amount from Flash Inc.
What are the individual account balances, and the total balance, in the accounts receivable
subsidiary ledger?

Solution
Accounts Receivable Subsidiary Ledger
Green Lantern owes
$999
Wonder Woman owes
$2,000
Black Panther owes
$1,875
Total balance in AR subsidiary ledger
$4,874
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