Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

تمرين 6

NNH V Cable TV operates cable TV systems in larger cities in the northern two-thirds of New Hampshire and Vermont. The franchise agreement with the cities requires an annual reporting to each city council of operating profit in that city. Thirty-three company expense categories, such as cable system repairs, repair truck depreciation, truck repairs, truck operating cost, and repair personnel costs, must be allocated to city-level income statements based on population calculated to a percentage that includes one decimal place. Cities currently served by NNH V and their populations are:

Depreciation on the repair trucks Is 88.000 per month. To record the monthly depreciation, five accounts are debited and a single credit is made to Accumulated Depreciation-Trucks.
Required:
a. Calculate the amount of depreciation to be allocated to the respective city-level income statements.
b. How might entries made to the 33 accounts of NNH V be automated to save on data-entry costs?
c. Assuming that the number of transactions and monthly adjustments that must be allocated is 55, how many debits or credits can be saved by the solution you recommended in b?