Computerized Accounting Systems Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are: 1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers. 2. This system is more accurate compared to the manual one. 3. It provides the management about the status of accounts (balances) that helps the management in proper decision making. E-Commerce Use of internet in performing the business transactions is called e-commerce. To identify: The kind of e-commerce application described by the Company A.

Question

Apple Inc.’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as the iPhone® and iPad®. Purchases from iTunes are made with credit cards that are on file with the credit card processing company.Such transactions are considered cash transactions. Once the purchases are made, consumers can download the requested digital products to their portable devices for their enjoyment and the charges will show up on their credit card bills.a. What kind of e-commerce application is described by Apple iTunes?b. Assume you purchased 12 songs for $1.25 each on iTunes. Provide the journal entry generated by Apple’s e-commerce application.c. If a special journal were used, what type of special journal would be used to record this sales transaction?d. If an electronic form were used, what type of electronic form would be used to record this sales transaction?e. Would it be appropriate for Apple to use either special journals or…

Answer 1

Question

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

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Apple Inc.’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as the iPhone® and iPad®. Purchases from iTunes are made with credit cards that are on file with the credit card processing company.Such transactions are considered cash transactions. Once the purchases are made, consumers can download the requested digital products to their portable devices for their enjoyment and the charges will show up on their credit card bills.a. What kind of e-commerce application is described by Apple iTunes?b. Assume you purchased 12 songs for $1.25 each on iTunes. Provide the journal entry generated by Apple’s e-commerce application.c. If a special journal were used, what type of special journal would be used to record this sales transaction?d. If an electronic form were used, what type of electronic form would be used to record this sales transaction?e. Would it be appropriate for Apple to use either special journals or…

How can a customer pay an emailed QuickBooks Online invoice via credit card? A. Send a message via the message feature with their credit card number B. Select Review and pay > Apply for account > Pay C. Print off a form and then enter and send their credit card details and authorization D. Select Review and pay > Enter payment details > Pay

How can you get your purchase receipts into QuickBooks Online for automatic categorization and matching to your bank feed? O Convert the physical receipts to CSV or TXT files. O Use the Import tool. Set up a transfer for each purchase. O Upload images of them using the built-in receipt capture feature.

Answer 2

Question

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

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Answer 3

Question

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Answer 6

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

Answer 7

Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

Answer 8

(b)

To determine

To provide: The journal entry for the transaction.

Answer 9

(b)

To determine

To provide: The journal entry for the transaction.

Answer 10

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

Answer 11

(c)

To determine

To explain: The type of special journal to be used to record this sales transaction.

Answer 12

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

Answer 13

(d)

To determine

To explain: The type of electronic form to be used to record this sales transaction.

Answer 14

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Answer 15

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Answer 16

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Answer 17

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Answer 27

Ch. 5 - Why would a company maintain separate accounts...Ch. 5 - What are the major advantages of the use of...Ch. 5 - Prob. 3DQ Ch. 5 - How many postings to Fees Earned for the month...Ch. 5 - During the current month, the following errors...Ch. 5 - Prob. 6DQ Ch. 5 - What is an electronic form, and how is it used in...Ch. 5 - When are transactions posted in a computerized...Ch. 5 - What happens to the special journal in a...Ch. 5 - Prob. 10DQ

Solution Summary: The author explains the advantages of computerized accounting systems over manual systems. They explain the type of electronic form to be used to record the sales transaction.

To provide: The journal entry for the transaction.

To explain: The type of special journal to be used to record this sales transaction.

To explain: The type of electronic form to be used to record this sales transaction.

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.

Chapter 5 Solutions