Question: Requirement 1: During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it 1. An invoice

Requirement 1: During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it 1. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier. 2. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger. 3. An invoice for equipment of $4,800 was recorded as $4,000. 4. The Accounts Payable column of the purchases joumal was overstated by $3,600. How will each enror come to the bookkeeper's altention, other than by chance discovery? Requirement 2: The following conversation took place between Durable Construcion Ca's bookkeeper, kyle Byers. and the accounting supervisor, Sarah Nelson: Sarah: Kyle, Im thinking about bringing in a new computerized accounting system to teplace our manual system. I guess this means that you will need to learn how to do compulerized accounting. Kyle: What does computerized accounting mean? Sarah: Im not sure; but youll need to prepare tor this new way of doing business. Kyle: im not so sure we need a computerized system. Tve been looking at some of the sample repons from the software vendor. It looks to me as if the computer will not add much to what we are already doing. Sarah: What do you mean? Kyle: Well, look at these reports. This Sales by Customer Report looks like our revenue journal, and the Deposit Detail Report looks like our cash receipts joumal. Granted, the computer types them, so they look much neater than my special joumals, but I don' see that we're gaining much from this change. Sarah: Nell, surely there's more to it than nice-looking reports. Ive got to believe that a computerized syste vill save us time and effort someplace. don't see how. We still need to key transactions into the computer. If anything, there may be more ork when it's all said and done. Do you agree with Kyle? Now that you are almost a QuickBooks expert, please explain why a computerized erivironment be preferred over the mantual system
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
