Monday, February 24, 2020
EX 5-22 Computerized Accounting Systems Essay Example | Topics and Well Written Essays - 750 words - 1
EX 5-22 Computerized Accounting Systems - Essay Example Control accounts are prepared from other financial statements and before the control accounts can be closed, a reconciliation statement is usually prepared to ensure that all the totals of all values agree (Warren, Reeve & Duchac, 2012). The perpetual inventory system updates the accounts as seen fit as compared to the periodic inventory system where accounts are updated periodically. Thus in the perpetual inventory system, the updates are made after every transaction thus giving more accurate figures.The figure presented as the gross profit will thus change if a perpetual system was used. This is due to the fact that all transactions made would have already been recorded. Why aren’t special journal totals posted to control accounts at the end of the month in an electronic accounting system? An electronic accounting system calls for posting of all the accounts and totals on the computer system. However, there are some special journals that do not call for posting of the totals at the end of the month is due to possibilities of errors. Control accounts are prepared from other financial statements and before the control accounts can be closed, a reconciliation statement is usually prepared to ensure that all the totals of all values agree (Warren, Reeve & Duchac, 2012). The following data were extracted from the accounting records of Danhof Company for the year ended June 30, 2012:  Merchandise inventory, July 1, 2011, $ 250,000  Merchandise inventory, June 30, 2012, 325,000 Purchases                                                                  2,100,000 Purchases returns and allowances                                 50,000 Purchases discounts                                                      39,000 Sales                                                                         3,250,000 Freight in                                                                       12,500
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