close solutoin list

Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 2016 are as follows: a. Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted. b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 2016. c. Why does Lasting Summer Inc. use a subsidiary ledger for accounts receivable?

BuyFind

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436
BuyFind

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436

Solutions

Chapter
Section
Chapter 5, Problem 10E
Textbook Problem

Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 2016 are as follows:

Chapter 5, Problem 10E, Lasting Summer Inc. has 2,510 in the October 1 balance of the accounts receivable account consisting

  1. a. Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark (✓) in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted.
  2. b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 2016.
  3. c. Why does Lasting Summer Inc. use a subsidiary ledger for accounts receivable?

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

Financial Accounting
Show all chapter solutions
Ch. 5 - The following revenue transactions occurred during...Ch. 5 - The following revenue transactions occurred during...Ch. 5 - The debits and credits from two transactions are...Ch. 5 - The debits and credits from two transactions are...Ch. 5 - The following purchase transactions occurred...Ch. 5 - The following purchase transactions occurred...Ch. 5 - The debits and credits from two transactions are...Ch. 5 - The debits and credits from two transactions are...Ch. 5 - McHale Company does business in two customer...Ch. 5 - Back Country Life, Inc., does business in two...Ch. 5 - Using the following revenue journal for Zeta...Ch. 5 - Based on the data presented in Exercise 5-1,...Ch. 5 - Assuming the use of a two-column (all-purpose)...Ch. 5 - Assuming the use of a two-column (all-purpose)...Ch. 5 - The debits and credits from three related...Ch. 5 - Global Services Company had the following...Ch. 5 - The revenue journal for Sapling Consulting Inc....Ch. 5 - The revenue and cash receipts journals for Mirage...Ch. 5 - Transactions related to revenue and cash receipts...Ch. 5 - Lasting Summer Inc. has 2,510 in the October 1...Ch. 5 - Using the following purchases journal, identify...Ch. 5 - Using the following cash payments journal,...Ch. 5 - The debits and credits from three related...Ch. 5 - Protection Services Inc. had the following...Ch. 5 - The purchases journal for Newmark Exterior...Ch. 5 - The cash payments and purchases journals for...Ch. 5 - Transactions related to purchases and cash...Ch. 5 - Happy Tails Inc. has a June 1, 2016 accounts...Ch. 5 - After Bunker Hill Assay Services Inc. had...Ch. 5 - Pinnacle Consulting Company makes most of its...Ch. 5 - The following cash receipts journal headings have...Ch. 5 - Most computerized accounting systems use...Ch. 5 - Apple Inc.s iTunes provides digital products, such...Ch. 5 - For each of the following companies, determine...Ch. 5 - Starbucks Corporation reported the following...Ch. 5 - News Corporation is one of the worlds largest...Ch. 5 - The comparative regional segment revenues for...Ch. 5 - Sage Learning Centers was established on July 20,...Ch. 5 - Transactions related to revenue and cash receipts...Ch. 5 - Sterling Forest Landscaping designs and installs...Ch. 5 - AquaFresh Water Testing Service was established on...Ch. 5 - The transactions completed by Revere Courier...Ch. 5 - Guardian Security Services was established on...Ch. 5 - Transactions related to revenue and cash receipts...Ch. 5 - Plumb Line Surveyors provides survey work for...Ch. 5 - West Texas Exploration Co. was established on...Ch. 5 - The transactions completed by AM Express Company...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - The following conversation took place between...Ch. 5 - A subsidiary ledger is used for accounts...Ch. 5 - For the past few years, your client, Omni Care,...Ch. 5 - Internet-based accounting software is a recent...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What are the underlying assumptions of Theory X and Theory Y?

Foundations of Business (MindTap Course List)

List and explain the three reasons the aggregate-demand curve slopes downward.

Brief Principles of Macroeconomics (MindTap Course List)

What is accounts receivable master data?

Accounting Information Systems

UNLEVERED BETA Harley Motors has 10 million in assets, which were financed with 2 million of debt and 8 million...

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

Who are the three parties to every check?

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

Asset turnover Comment on the results from part (1).

Survey of Accounting (Accounting I)

Why will global sourcing increase?

Purchasing and Supply Chain Management

How much labor should a firm purchase?

Economics (MindTap Course List)