1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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