Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

(b) What is the least frequent score?

Answered: 1 week ago

Question

6. Have you used solid reasoning in your argument?

Answered: 1 week ago