The World of Accounting: Is Anyone Listening? Situation #3

Friday, November 16, 2007

Is Anyone Listening? Situation #3

Our assignment is to analyze one of the four situations provided and explain if it is ethical or not.

Situation # 3

Lynette Tillar and Bob Rebold are co-workers and good friends. Their supervisor, George Parton, has previously reprimanded them for spending too much time chatting on the phone and visiting. George has decided to access their e-mail to see if they are wasting company time with personal online communications as well.

George's actions are not ethical because:

George should not go through other people's e-mails without their permission. It is invasion of privacy.
Personal e-mail accounts do not have anything to do with the business field. George should not have a reason to go through their personal information.
Lynette and Bob should have the right to talk to each other whenever they want to as long as they do their work; it is a free country.

1 comment:

DIVA said...: Today you will begin to post Purchases and Sales transactions to the general ledger and Subsidiary ledgers. This process is nothing new. Proving the journal, proving cash..........You have done it all before. The new task will be to create a Schedule of Accounts Payable and Receivable. Let me know if you have questions.; November 26, 2007 at 11:08 AM

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Chapter 12 - Posting to General and Subsidiary Ledgers

1. Explain what a subsidiary ledger is and list the ones that we will be using as we post transactions from the journal to the ledgers.
Subsidiary Ledger - a ledger that is summarized in a single general ledger account.
We will be using Accounts Receivable Vendor's name and Accounts Payable Customer's name subsidiary ledgers.

2. Explain what a controlling account is list the ones that we will be using.
Controlling Account - an account in a general ledger that summarizes all accounts in a subsidiary ledger.
We will use the Accounts Receivable and Accounts Payable subsidiary ledgers.

3. Explain where controlling accounts are maintained.
They are maintained in the subsidiary ledger

4. What is the relationship between a controlling account and a subsidiary ledger?
The Subsidiary ledger has the names of all of the vendors/customers involved in the Accounts Payable and Accounts Receivable transactions. The Controlling accounts are the titles which include "Accounts Payable" and "Accounts Receivable".

5. Identify in writing the two schedules that we will prepare.
Schedule of Accounts Receivable and Schedule of Accounts Payable

6. List the rules for posting a journal's column totals.
General amount column totals are not posted
Special amount column totals are posted.

7. Explain why the 3-column account form used in an accounts receivable ledger has a debit balance column.
The Accounts Receivable accounts have a normal balance on the debit side because they are assets. Assets have a normal debit balance

8. What is the title of the balance amount column of the accounts payable ledger form and why is that title used?
The normal balance column is the credit side because it is a liability.

9. List the steps for starting a new page in the accounts payable ledger.
1. Write the vendor name.
2. Write the vendor number on the Vendor No. line.
3. Write the date in the date column.
4. Write the word Balance in the item column.
5. Place a check mark in the Post. Ref. column to show that the amount has been carried forward from a previous page rather than posted from a journal.
6. Write the account balance in the proper column.

10. List the steps for posting to the accounts receivable ledger.
1. Write the date in the Date column of the account.
2. Write the journal page number in the Post. Ref. column of the account.
3. Write the amount in the debit/credit column of the account.
4. Add the amount in the debit/credit column to the previous balance in the Debit/Credit Balance column. Write the new account balance in the Debit/Credit Balance column.
5. Write the customer number in the Post. Ref. column of the journal.

The World of Accounting

Friday, November 16, 2007

Is Anyone Listening? Situation #3

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Chapter 12 - Posting to General and Subsidiary Ledgers