Accounting Information Systems Module 1 Financial Accounting Review Practice Set Individual Assignment Important Points of the Assignment These slides are designed to supplement the slides that you use in your standard textbook lectures. The contents of this slide set is intended to cover material not typically covered in the textbook material and to highlight the learning objectives of the assignment. Accounting Information Systems

Accounting Information Systems Slide Set Contents 1. Learning Objectives Review of Accounting Cycle Important Accounting Concepts Journal Entries Computerized AIS The SAP System Overview of the Case Study Accounting Information Systems

Primary Learning Objectives Review beginning financial accounting concepts Review the accounting cycle Work on manual accounting system Begin using a computerized accounting information system Review basic Excel skills Begin work on the SAP ERP system Accounting Information Systems

Accounting Information Systems Accounting Cycle Accounting Cycle Steps Journal entries Posting from journal to general ledger Create trial balance Adjusting journal entries Adjusted trial balance Financial statements Closing entries Accounting Information Systems

Important Accounting Concepts Matching principle – Matching revenues and expenses Primarily a timing issue Involves accruals and deferrals Realization of an accounting transaction Usually the representation of a legal business transaction Goods change hands Money is paid or received Important concept in a real time system, since the system recognizes business events immediately Classification of transactions Based on the chart of accounts Accounting Information Systems

Accounting Information Systems Journal Entries The journal is the book of original entry The assignment involves looking at a series of business transactions and determining the appropriate journal entries for the Cottonwood case study This should be a review of your beginning financial accounting class Sample transactions and their associated journal entries are in the Tucker Boats case study that is provided with the assignment You are to enter the journal entries into a general journal contained within an Excel spreadsheet Accounting Information Systems

Accounting Information Systems Journal Entries The journal entries will then be linked to post them to general ledger T-accounts or another spreadsheet The T-accounts will then link to the trial balance on a different spreadsheet A model for building the spreadsheets is in the sample solution for the Tucker Boats sample case Building the spreadsheets take primarily beginning level Excel skills Remedial videos are provided that illustrate the Excel functions that are needed for the case study Accounting Information Systems

Accounting Information Systems Computerized AIS Computerized accounting information systems can change the way a business functions Modern computerized systems are real time systems This means that the financial dealings of the firm reflect the most current status of the business We will be using a highly integrated system that not only involves the accounting transactions, but transactions made in all areas of the company This is the SAP ERP system which is classified as an enterprise resource planning system (ERP) Accounting Information Systems

Accounting Information Systems The SAP R/3 System The SAP ERP system is designed to be used in many different types of businesses It is a very comprehensive system that processes transactions in all of the functional areas of an organization For this case study we will concentrate on only using the system to handle general journal entries In subsequent assignments we will use the more powerful capabilities of the system Accounting Information Systems

Overview of the Case Study The case study deals with the business transactions of hypothetical company, the Cottonwood Company There are two separate assignments for the case study The first assignment deals with journal entries for transactions in the first half of the month The second assignment deals with journal entries for transactions in the second half of the month For both assignments you will be making the journal entries, posting them to T-accounts and then carry the ledger balances into a trial balance Only for the second assignment will you be also entering the journal entries into the SAP ERP system Accounting Information Systems