Complete Case 2.1 On Page 44 Bar Harbor Blueberry Farm

Complete Case 2 1 On Page 44 Bar Harbor Blueberry Farm In The Acco

Complete Case 2-1 on page 44 - Bar Harbor Blueberry Farm - in the Accounting Information Systems textbook. Read the entire case and answer the questions posed by the author. Homework Notes - First, you'll want to read and study the Overview of Accounting Journals and Ledgers in Doc Sharing. This review will give you a basis for this assignment. You're required to record the vendor invoices in the Purchases Journal and update the Subsidiary Ledger accounts.

After you update the Subsidiary Ledger for a particular invoice, you'll place a check mark in the Posting Reference column of the Purchases Journal. Second, after all the vendor invoices have been recorded in the Purchases Journal, you'll have to total the amounts and post the total to the General Ledger accounts for Accounts Payable and Purchases. Finally, you'll reconcile the total in Accounts Payable to the total of the Subsidiary Ledger accounts. If you do not remember the process, you may need to reference a Principle of Accounting text - look under the section that covers special journals and subsidiary ledgers. Use Excel for this project.

Paper For Above instruction

The case of Bar Harbor Blueberry Farm presented in Romney and Steinbart's Accounting Information Systems serves as an exemplary scenario to practice fundamental accounting cycle processes, particularly focusing on recording vendor invoices, updating subsidiary ledgers, and reconciling major ledger accounts. This exercise underscores the essential role of accurate journal entries, ledger updates, and reconciliation to maintain the integrity of financial reporting and internal controls within small business contexts.

The initial step in this process involves recording all vendor invoices in the Purchases Journal. The Purchases Journal is a specialized journal used specifically for recording credit purchases, simplifying data entry, and facilitating subsequent posting to the general ledger. When entering invoices, it is critical to include accurate information such as invoice date, vendor name, purchase amount, and applicable account codes. This systematic recording ensures that each transaction is captured consistently and makes subsequent postings more straightforward.

Updating the Subsidiary Ledger for each invoice is equally vital. The subsidiary ledger for Accounts Payable maintains individual balances owed to each vendor, enabling detailed tracking of liabilities. Upon recording an invoice, the corresponding vendor’s subsidiary account must be updated—adding the invoice amount to the existing balance. This process allows the business to monitor due amounts separately per vendor, which is invaluable for managing vendor relationships and ensuring timely payments.

Once the subsidiary accounts are updated, the accountant or bookkeeper checks the Posting Reference (PR) column of the Purchases Journal, placing a check mark to indicate that the transaction has been posted to the subsidiary ledger. This step ensures accountability and acts as a control measure, helping to prevent double recording or omissions.

After all vendor invoices for a period have been recorded and posted, the total of the Purchases Journal is calculated. The aggregated amount is posted to the general ledger accounts—specifically the Purchases account and Accounts Payable. This posting updates the summary accounts that reflect the total purchases made and the total liabilities owed to vendors, respectively. Properly posting these totals ensures that financial statements accurately depict the company’s financial position.

Reconciliation of the Accounts Payable account follows. The total of the Accounts Payable subsidiary ledger accounts should match the balance in the general ledger's Accounts Payable account. Any discrepancies indicate errors that require investigation and correction. Regular reconciliation is fundamental for maintaining reliable financial reports and internal controls, especially for audits and financial analysis.

In executing these steps within Excel, attention to detail and procedural accuracy are paramount. Creating separate sheets for the Purchases Journal, Subsidiary Ledger, and General Ledger allows for organized data handling. Formulas, such as SUM for totaling transactions, and cross-referencing cells facilitate reconciliation procedures. Utilizing Excel’s features enhances efficiency and accuracy, minimizing manual errors.

The process outlined by Romney and Steinbart emphasizes the importance of segregating duties, maintaining proper documentation, and ensuring controls are in place during data entry, posting, and reconciliation activities. This case of Bar Harbor Blueberry Farm encapsulates these principles within a practical small business scenario, illustrating how systematic accounting procedures underpin reliable financial reporting.

In conclusion, mastering the recording, posting, and reconciliation processes through exercises like the Bar Harbor Blueberry Farm case fosters a strong foundation for understanding accounting systems. These skills are vital for accounting professionals, especially in small-business environments where internal controls may be less formalized. The use of Excel as a tool in this practice provides a scalable platform for applying these concepts in real-world settings, reinforcing the importance of accuracy, control, and thoroughness in accounting operations.

References

Romney, M. B., & Steinbart, P. J. (2022). Accounting Information Systems, 12th Edition. Pearson Learning Solutions.

Botting, N., & Strader, T. (2019). Advanced Accounting with QuickBooks Pro 2020. McGraw-Hill Education.

Albrecht, W. S., & Albrecht, C. C. (2019). Auditing and Assurance Services, 15th Edition. Cengage Learning.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate Accounting, 16th Edition. Wiley.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis. Wiley.

Schneider, A. (2021). Excel for Accounting. Routledge.

Boynton, W. C., & Johnson, R. N. (2018). Modern Auditing & Assurance Services. Wiley.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2021). Financial Accounting, 11th Edition. Wiley.

IAES (International Association of Electronic Systems). (2020). Internal Controls for Small Business. IAES Publications.

Gibson, C. H. (2017). Financial Reporting & Analysis, 12th Edition. Cengage Learning.