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The following conversation took place between Durable Construction Co.’s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson: Sarah: Kyle, I’m thinking about bringing in a new computerized accounting system to replace our manual system. I guess this means that you will need to learn how to do computerized accounting. Kyle: What does computerized accounting mean? Sarah: I’m not sure, but you’ll need to prepare for this new way of doing business. Kyle: I’m not so sure we need a computerized system. I’ve been looking at some of the sample reports 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 journal. Granted, the computer types them, so they look much neater than my special journals, but I don’t see that we’re gaining much from this change. Sarah: Well, surely there’s more to it than nice-looking reports. I’ve got to believe that a computerized system will save us time and effort someplace. Kyle: I don’t see how. We still need to key transactions into the computer. If anything, there may be more work when it’s all said and done. Do you agree with Kyle? Why might a computerized environment be preferred over the manual system?

BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter
Section
Chapter 5, Problem 4CP
Textbook Problem

The following conversation took place between Durable Construction Co.’s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson:

Sarah: Kyle, I’m thinking about bringing in a new computerized accounting system to replace our manual system. I guess this means that you will need to learn how to do computerized accounting.

Kyle: What does computerized accounting mean?

Sarah: I’m not sure, but you’ll need to prepare for this new way of doing business.

Kyle: I’m not so sure we need a computerized system. I’ve been looking at some of the sample reports 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 journal. Granted, the computer types them, so they look much neater than my special journals, but I don’t see that we’re gaining much from this change.

Sarah: Well, surely there’s more to it than nice-looking reports. I’ve got to believe that a computerized system will save us time and effort someplace.

Kyle: I don’t see how. We still need to key transactions into the computer. If anything, there may be more work when it’s all said and done.

Do you agree with Kyle? Why might a computerized environment be preferred over the manual system?

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Chapter 5 Solutions

Financial Accounting
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