Question
For each of the following three data flows, show the journal entry (in debit/ credit journal entry format with no dollar amounts) that would result
For each of the following three data flows, show the journal entry (in debit/ credit journal entry format with no dollar amounts) that would result under all of the five situations below that would apply. Make and state any assumptions you think are necessary. Data Flows: A. GL inventory received update (show both debit and credit entries, even if they originate in a process other than AP/CD) B. GL payable update C. GL cash disbursements update Situations: 1. Merchandise is purchased, and a periodic inventory process is used. 2. Merchandise is purchased, and a perpetual inventory process is used. 3. Office supplies are purchased. 4. Plant assets are purchased. 5. Legal services are purchased.
P13-5 Figure 12.4 (pg. 448) and Figure 13.3 (pg. 486) show three data flows running to the general ledger (GL) for the purpose of updating the general ledger master data. For each of the following three data flows, show the journal entry (in debit/ credit journal entry format with no dollar amounts) that would result under all of the five situations below that would apply. Make and state any assumptions you think are necessary. Data Flows: A. GL inventory received update (show both debit and credit entries, even if they originate in a process other than AP/CD) B. GL payable update C. GL cash disbursements update Situations: 1. Merchandise is purchased, and a periodic inventory process is used. 2. Merchandise is purchased, and a perpetual inventory process is used. 3. Office supplies are purchased. 4. Plant assets are purchased. 5. Legal services are purchased. P13-5 Figure 12.4 (pg. 448) and Figure 13.3 (pg. 486) show three data flows running to the general ledger (GL) for the purpose of updating the general ledger master data. For each of the following three data flows, show the journal entry (in debit/ credit journal entry format with no dollar amounts) that would result under all of the five situations below that would apply. Make and state any assumptions you think are necessary. Data Flows: A. GL inventory received update (show both debit and credit entries, even if they originate in a process other than AP/CD) B. GL payable update C. GL cash disbursements update Situations: 1. Merchandise is purchased, and a periodic inventory process is used. Purchase account debit To account payable 2. Merchandise is purchased, and a perpetual inventory process is used. Inventory account debit To account payable 3. Office supplies are purchased. Office supplies debit To cash 4. Plant assets are purchased. Plant account debited To Cash 5. Legal services are purchased. Legal service expense debit To cash In 3, 4 and 5 it is assumed that cash is paid. If it is not paid than account payable is creditStep by Step Solution
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