1. Lecture 21 Chapter 5 Accounting Systems

2. Review of Lecture Special Journal Special Journal Subsidiary Ledger Subsidiary Ledger Revenue Journal Revenue Journal Cash Receipt Journal Cash Receipt Journal Purchase Journal Purchase Journal

3. The Cash Payments Journal

4. All payments are recorded in the cash payments journal. Opportunities Inc. makes all payments by check.

5. Let’s make all of the cash payment journal entries for March.

6. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600

7. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230

8. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 

9. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 Accounts Payable Subsidiary Ledger Grayco Supplies Mar. 3Bal. 1,230 DateItemP.R. Dr.Cr.Balance 1,230 --- 15CP7 

10. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800  

11. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies.420420  

12. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies.420420 30154Utilities Expense1,0501,050   

13. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies.420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600   

14. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies.420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600 312,6505,0507,700    

15. CASH PAYMENTS JOURNAL OtherAccounts Ck.PostAccounts PayableCash DateNo.Account DebitedRef.Dr.Dr.Cr PAGE 7 2010 Mar. 2150Rent Expense1,6001,600 15151Grayco Supplies1,2301,230 21152Jewett Business Sys.2,8002,800 22153Donnelly Supplies.420420 30154Utilities Expense1,0501,050 31155Howard Supplies600600 312,6505,0507,700 (21)(11) 52 54     ( )  

16. Accounts Payable

17. Donnelly Supplies DateItemP.R. DebitCreditBalance Grayco Supplies DateItemP.R. DebitCreditBalance Howard Supplies DateItemP.R. DebitCreditBalance Mar 2P11420420 19P111,4501,870 22CP74201,450 Accounts Payable Subsidiary Ledger ACCOUNT Accounts Payable No. 12 GENERAL LEDGER DateItemP.R. DebitCreditBalance Mar. 1Bal1,230 31P116,2307,460 31CP75,0502,410 Mar 1Bal.1,230 15CP71,2300- -  Mar 3 P11600600 27P119601,560 31CP7600960

18. Computerized Accounting System

19. Advantages of a Computerized Accounting System Over a Manual Accounting System 1.Computerized systems simplify the record- keeping process. 2.Computerized systems are generally more accurate. 3.Computerized systems provide management current account balance information to support decision making.

20. The Revenue and Collection Cycle in QuickBooks From Exhibit 10, page 203 of textbook Mail invoice to customer

21. The Revenue and Collection Cycle in QuickBooks Continued From Exhibit 10, page 203 of textbook

22. The Revenue and Collection Cycle in QuickBooks Continued From Exhibit 10, page 203 of textbook

23. Supply chain management (SCM) Customer relationship management (CRM) Product life-cycle management (PLM)

24. Review of Lecture Internal Control Internal Control Special Journal Special Journal Subsidiary Ledger Subsidiary Ledger Revenue Journal Revenue Journal Cash Receipt Journal Cash Receipt Journal Purchase Journal Purchase Journal Cash Payment Journal Cash Payment Journal Computerized Accounting Computerized Accounting

26. End of Lecture 21