All of the following events at a sandwich shop are transactions except
- a. A customer purchases a sandwich.
- b. A delivery of coffee beans purchased on account from the local roaster is received.
- c. A representative from the local university contacts the manager of the shop to get a list of catering services.
- d. The accountant for the sandwich shop pays the electric bill.
To identify: Which of the given option is not considered as an event.
Answer to Problem 1QC
c. A representative from the local university contacts the manager of the shop to get a list of catering services.
Explanation of Solution
A transaction is a business event which has a monetary value that creates an impact on the business. The process of identifying the economic effects of each transaction of the business is known as transaction analysis. Transactions always has two sides, they are,
- Something is given, and
- Something is received in return
Option “a, b, and d” are not correct answer as per above explanation, only option “c” is correct answer as per above explanation. Hence, the correct answer is option c.
Therefore, the correct option is (c), a representative from the local university contacts the manager of the shop to get a list of catering services.
Want to see more full solutions like this?
Chapter 2 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Intermediate Accounting (2nd Edition)
Horngren's Accounting (12th Edition)
Cost Accounting (15th Edition)
Managerial Accounting (4th Edition)
- For each of the following, indicate if the statement reflects an input component, output component, or storage component of an accounting information system. A. A credit card scanner at a grocery store. B. A purchase order for 1,000 bottles of windshield washing fluid to be used as inventory by an auto parts store. C. A report of patients who missed appointments at a doctors office. D. A list of the days cash and credit sales. E. Electronic files containing a list of current customers.arrow_forwardDescribe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.arrow_forwarda customer purchases a milkshake from epic burger and pays with a credit card. the journal entries that epic burger makes to record this transaction will include a: a. debit to cash b. credit to COGS c. Credit to Sales d. Debit to inventoryarrow_forward
- Companies recognize revenue as earned and record the revenue when __________. A. the customer's order is received B. the return period is over C. the order is delivered D. the order is shipped Miranda Corp. received an order from a customer on October 1. The toys were shipped on October 15. The customer sent a check for full payment on November 5. Miranda received the check on November 10 and deposited it in the bank account. Miranda should record sales revenue related to this series of transactions on ____arrow_forwardThe following procedures are used by Complete Wholesale Incorporated.a. All sales are made on account, with each sale being indicated on a sequentially numberedsales invoice.b. Customer payments are received in the mail by the office receptionist, who sends the checksto a cashier for deposit and the remittance advices to the accounting department for recordingagainst the customer’s account balance.c. The office receptionist is assigned the job of handling all customer complaints.d. When a customer has a legitimate complaint about goods sold to the customer on account, thereceptionist will phone the accounting department to request that the customer’s account becredited for the sales allowance.e. The company’s inventory is stored in a locked warehouse that is monitored by surveillancecameras.f. Payments to the company’s suppliers are made only after the supplier’s invoice is received andcompared to the receiving report.Required:1. Indicate whether each procedure represents a strength or…arrow_forwardIdentify the DFD in the following narrative: Hemant buys a new scooter at a local shop and pays with his debit card. The sales clerk enters the transaction in the cash register. At the time of closing, the sales clerk gives the register tape and the debit card PIN tape to his manager.arrow_forward
- Joanne is part of the accounts payable team at a local furniture store, responsible for recording invoices received by the business and payments made by the business. The furniture store receives an invoice for internet usage for the amount of $450. The invoice states that payment is due in 30 days, therefore Joanne records the transaction accordingly and sets a calendar reminder to pay on the due date. Based on this information, the journal entry in the furniture store's accounting system would include:arrow_forwardFor each of the following items, indicatewhether that item would be considered to be a transaction at Gerbig Pet Grooming Corporation.a. A customer, Layne Gracen, gives Gerbig a check for $620 to prepay for her dog’sgrooming appointments for the upcoming year.b. Gerbig pays $310 for last month’s electric bill.c. Gerbig selects a new supplier for its shampoos and conditioners.d. The controller for Gerbig pays the bill for a catered lunch at its annual training event foremployees.e. Gerbig files its articles of incorporation with the state.f. Gerbig acquires a new stainless steel tub by signing a note payable with PetStar, a supplier of pet grooming supplies and products.g. Maggie Cramer, a customer, signs a contract for next year’s dog grooming with Gerbig.h. Gerbig pays its employees an annual bonus on December 31.arrow_forwardThe following procedures are used by The Taco Shop.a. Customers pay cash for all food orders. Cash is placed in a cash register and a receipt is issuedupon request by the customer.b. At the end of each day, the cashier counts the cash, prepares a cash count sheet, and has themanager count the cash and review and sign the cash count sheet.c. At three times during the day, excess cash is removed from the cash registers and placed in avault until it is taken for night deposit at the local bank.d. Orders for drink cups, straws, condiments, and other supplies are written on prenumbered purchase order forms and are approved by the manager before being sent to an authorized supplier.e. When supplies are received, they are stacked just inside the back door to the kitchen, which isleft unlocked because part-time employees frequently arrive and leave at various times duringthe day.Required:1. Indicate whether each procedure represents a strength or weakness. Explain your reasons.2. For each…arrow_forward
- You are in charge of the checking account for a small business. One morning, your accounting supervisor enters your office and asks you for a check for $150 for expenses that he tells you he incurred entertaining a client last night. He submits receipts from a restaurant and lounge. Later, your supervisor’s girlfriend stops by to pick him up for lunch, and you overhear her telling the receptionist what a great time she had at dinner and dancing with your supervisor the night before. What would you do and why?arrow_forwardRead the following scenarios and answer the questions that follow: i) A young graduate has just been employed as the Receivable Officer, responsible for billing of customers, maintaining customers’ accounts and preparing monthly control accounts. Management has found out that the officer has not been straightforward and honest in the discharge of his duties. He was found to be “cutting corners” and connives with the customers to understate their bills and accounts in order to enrich himself. Management has fired him sadly. ii) You met a friend in church recently and she was looking very flashy, showing clearly that she got a good job. Upon a short conversation, she indicated that she is blessed to be in charge of the payroll of the company. In fact, she told you exactly how much your four other mates working in that organisation are earning. She went further to inform you that the new car driven by Jojo, a popular mate back in school, was a loan of GHc100,000 he took from a bank and…arrow_forwardPart of the Fry’s Electronics, Inc. ’s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations. Requirements Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect? Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect? What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.arrow_forward
- Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE LIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub