PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 7 A CCOUNTING I NFORMATION S YSTEMS

7 - 2 C OMPONENTS OF A CCOUNTING S YSTEMS C1 Keyboards Scanners Modems Bar-Code Reader Keyboards Scanners Modems Bar-Code Reader Hardware Software Professional Judgment Hardware Software Professional Judgment Increasingly, source documents are electronic files creating a “paperless” system.

7 - 3 C OMPONENTS OF A CCOUNTING S YSTEMS C1 CD/DVD Hard Drive Tape Paper Document CD/DVD Hard Drive Tape Paper Document Printer Monitor Projectors Web communications Printer Monitor Projectors Web communications

7 - 4 S PECIAL J OURNALS IN A CCOUNTING C2

7 - 5 S UBSIDIARY L EDGERS Subsidiary ledgers are a listing of individual accounts with common characteristics. Characteristic Controlling Account Subsidiary Ledger Amounts due from customers Accounts Receivable Accounts Receivable Ledger Amounts owed to creditors Accounts Payable Accounts Payable Ledger C3

7 - 6 A CCOUNTS R ECEIVABLE L EDGER equal to After all items are posted, the balance in the accounts receivable controlling account is equal to the sum of the balances in the accounts receivable subsidiary ledger. C3

7 - 7 S ALES J OURNAL P1

7 - 8 P ROVING THE L EDGERS P2 The balance of the Accounts Receivable controlling account in the general ledger should equal the accounts in the accounts receivable subsidiary ledger. A schedule of accounts receivable lists each customer and the balance owed.

7 - 9 S ALES T AXES P1 Governmental agencies often require sellers to collect sales taxes from customers and to periodically send these taxes to the appropriate agency.

P1 Cash Receipts Types 1.Cash from credit customers 2.Cash from cash sales 3.Cash from other sources

F OOTING, C ROSSFOOTING, AND P OSTING P1

P1

P ROVING THE L EDGER P2 The balance of the Accounts Payable controlling account in the general ledger should equal the accounts in the accounts payable subsidiary ledger. A schedule of accounts payable lists each supplier and the balance owed to them.

P1

G ENERAL J OURNAL T RANSACTIONS Adjusting Entries Purchase Returns & Allowances ClosingEntriesClosingEntries P1 Sales Returns & Allowances

E ND OF C HAPTER 7