ACCT 352 Business Info Systems Lab Complete Case 2-1 ✓ Solved

ACCT 352 Business Info Systems w/Lab Complete Case 2-1 on

Read the entire case and answer the questions posed by the author. You are required to record the vendor invoices in the Purchases Journal and update the Subsidiary Ledger accounts. After updating the Subsidiary Ledger for a particular invoice, place a check mark in the Posting Reference column of the Purchases Journal. After all the vendor invoices have been recorded in the Purchases Journal, total the amounts and post the total to the General Ledger accounts for Accounts Payable and Purchases. Finally, reconcile the total in Accounts Payable to the total of the Subsidiary Ledger accounts. Use Excel for this project.

Paper For Above Instructions

In this assignment, we will explore the case study of Bar Harbor Blueberry Farm, as described in the Accounting Information Systems textbook by Romney and Steinbart. The primary focus will be on performing the required accounting tasks, which encompass recording vendor invoices, updating subsidiary ledgers, and reconciling accounts. This process resides at the heart of accounting practices within business information systems, and mastering it is critical for effective financial management.

Understanding Accounting Journals and Ledgers

Before diving into the case study, it’s essential to understand the function and structure of accounting journals and ledgers. An accounting journal records transactions in chronological order, serving as the initial point of entry for financial data. The Purchases Journal specifically tracks purchases made on credit and includes necessary details such as vendor names, invoice numbers, and amounts.

Once recorded in the Purchases Journal, the information must be posted to the corresponding subsidiary ledgers. A subsidiary ledger contains detailed information about a specific account, which in this case pertains to vendor accounts that are part of Accounts Payable. This division allows for better management of accounts while maintaining the general ledger's summary-level view.

Step-by-Step Process

The assignment tasks can be broken down into several key steps:

  1. Recording Vendor Invoices: Each vendor invoice will be documented in the Purchases Journal. This entry will involve details such as the invoice date, vendor name, invoice number, and amount due.
  2. Updating Subsidiary Ledgers: After recording each transaction, the next step is to update the associated subsidiary ledger accounts. For the Bar Harbor Blueberry Farm case, this will involve tracking how much is payable to each vendor.
  3. Posting Reference Marking: Once the subsidiary ledger has been updated, a check mark should be placed in the Posting Reference column of the Purchases Journal, indicating that the entry has been successfully posted.
  4. Totals Posting: After documenting all invoices and updating subsidiary accounts, it’s crucial to sum the values recorded in the Purchases Journal and post these totals to the General Ledger.
  5. Reconciliation: The final task involves reconciling the total in Accounts Payable against the total recorded in the subsidiary ledgers. This process ensures that all data is accurate and consistent.

Importance of Reconciliation

Reconciliation is an integral part of the accounting process, as it involved verifying that two sets of records (the general ledger and subsidiary ledger) agree. This is vital for maintaining accurate financial statements and ensuring compliance with accounting principles. Errors such as omissions, duplicates, or misclassifications can lead to significant discrepancies, which may impact financial reporting and business decisions.

Using Excel for Accounting Tasks

Utilizing Excel for this assignment not only enhances efficiency but provides a practical means for managing complex data. Excel’s formulas can automate calculations, making it easier to total purchases or generate reports. Functions like SUM can simplify the process of tallying vendor amounts, and conditional formatting can highlight inconsistencies or required follow-ups.

Conclusion

The case of Bar Harbor Blueberry Farm serves as a valuable exercise in understanding accounting information systems and their application in real-world scenarios. By accurately recording, classifying, and reconciling financial data, accountants can provide decision-makers with timely and relevant information necessary for effective management. The skills developed through this exercise are pivotal for students pursuing careers in accounting, finance, or related fields. Engaging with these accounting practices early in their education prepares students for the challenges they will encounter in professional settings.

References

  • Romney, M. B., & Steinbart, P. J. (2018). Accounting Information Systems (12th ed.). Pearson Learning Solutions.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Accounting Principles (11th ed.). Wiley.
  • Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2013). Introduction to Financial Accounting (10th ed.). Pearson.
  • Needles, B. E., & Powers, M. (2016). Principles of Accounting (12th ed.). Cengage Learning.
  • Reimers, J. L., & Kreuze, J. D. (2019). Financial Accounting (3rd ed.). Pearson.
  • Cheyette, O., & Benuzillo, S. (2017). Accounting Systems: Tools for Business Management. Business Expert Press.
  • Gilbert, L. R. (2015). Fundamentals of Accounting. South-Western Cengage Learning.
  • Spiceland, J. D., Nelson, D. E., & Wayne, S. (2013). Financial Accounting (4th ed.). McGraw-Hill Education.
  • Wild, J. J., & Shaw, K. W. (2017). Fundamentals of Financial Accounting (6th ed.). McGraw-Hill Education.
  • Halsey, R. (2016). Understanding Accounting Information Systems. Journal of Accounting Education.

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