Question
All case studies MUST be in APA format and a minimum of 1 page. The following is an excerpt from a telephone conversation between Ben
All case studies MUST be in APA format and a minimum of 1 page.
The following is an excerpt from a telephone conversation between Ben Simpson, president of Main Street Co., and Tami Lundgren, owner of Reliable Employment Co.:
Ben:
Tami, youre going to have to do a better job of finding me a new computer programmer. That last guy was great at programming, but he didnt have any common sense.
Tami:
What do you mean? The guy had a masters degree with straight As.
Ben:
Yes, well, last month he developed a new financial reporting system. He said we could do away with manually preparing an end-of-period spreadsheet and financial statements. The computer would automatically generate our financial statements with a push of a button.
Tami:
So whats the big deal? Sounds to me like it would save you time and effort.
Ben:
Right! The balance sheet showed a minus for supplies!
Tami:
Minus supplies? How can that be?
Ben:
Thats what I asked.
Tami:
So, what did he say?
Ben:
Well, after he checked the program, he said that it must be right. The minuses were greater than the pluses.
Tami:
Didnt he know that Supplies cant have a credit balanceit must have a debit balance?
Ben:
He asked me what a debit and credit were.
Tami:
I see your point.
Comment on (a) the desirability of computerizing Main Street Co.s financial reporting system, (b) the elimination of the end-of-period spreadsheet in a computerized accounting system, and (c) the computer programmers lack of accounting knowledge.
Explain to the programmer why Supplies could not have a credit balance
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