close solutoin list

Manual vs. computerized accounting systems 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

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 5, Problem 5.2CP
Textbook Problem

Manual vs. computerized accounting systems

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?

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 5 Solutions

Accounting (Text Only)
Show all chapter solutions
Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Segment analysis McHale Company does business in...Ch. 5 - Segment analysis Back Country Life, Inc., does...Ch. 5 - Identify postings from revenue journal Using the...Ch. 5 - Accounts receivable ledger Based on the data...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify transactions in accounts receivable...Ch. 5 - Prepare journal entries in a revenue journal...Ch. 5 - Posting a revenue journal The revenue journal for...Ch. 5 - Accounts receivable subsidiary ledger The revenue...Ch. 5 - Revenue and cash receipts journals Transactions...Ch. 5 - Revenue and cash receipts journals Lasting Summer...Ch. 5 - Identify postings from purchases journal Using the...Ch. 5 - Identify postings from cash payments journal Using...Ch. 5 - Identify transactions in accounts payable...Ch. 5 - Prepare journal entries in a purchases journal...Ch. 5 - Posting a purchases journal The purchases journal...Ch. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Purchases and cash payments journals Transactions...Ch. 5 - Purchases and cash payments journals Happy Tails...Ch. 5 - Error in accounts payable subsidiary ledger After...Ch. 5 - Identify postings from special journals Pinnacle...Ch. 5 - Cash receipts journal The following cash receipts...Ch. 5 - Computerized accounting systems Most computerized...Ch. 5 - Computerized accounting systems and e-commerce...Ch. 5 - E-commerce For each of the following companies,...Ch. 5 - Segment revenue horizontal analysis Starbucks...Ch. 5 - Segment revenue vertical analysis News Corporation...Ch. 5 - Segment revenue horizontal and vertical analyses...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable subsidiary account,...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Problems: Series B Revenue journal; accounts...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - Manual vs. computerized accounting systems The...Ch. 5 - Accounts receivable and accounts payable A...Ch. 5 - Design of accounting systems For the past few...Ch. 5 - Communication Internet-based accounting software...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
How can you prevent multimedia presentation software from stealing your thunder?

Essentials of Business Communication (MindTap Course List)

Describe the three approaches to performance feedback interviews.

Foundations of Business (MindTap Course List)

What is inflation and what causes it?

Essentials of Economics (MindTap Course List)

Briefly describe five advantages of the corporate form of business organization. Describe two disadvantages.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Assume that the risk-free rate increases, but the market risk premium remains constant. What impact would this ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

MIRR Refer to Problem 11-1. What is the projects MIRR?

Fundamentals of Financial Management (MindTap Course List)

How do the receipts and expenditures of a state-operated lottery affect GDP?

Economics: Private and Public Choice (MindTap Course List)