Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 2–30, 2016, are as follows: Instructions 1. Insert the following balances in the general ledger as of June 1: 2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1: 3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark (¸) in the Post. Ref. column when recording cash fees. 4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt. 5. Total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. 6. Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger. 7. Why would an automated system omit postings to a control account as performed in step 5 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 2PB
Textbook Problem

Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 2–30, 2016, are as follows:

Chapter 5, Problem 2PB, Transactions related to revenue and cash receipts completed by Sterling Engineering Services during , example  1

Instructions

  1. 1. Insert the following balances in the general ledger as of June 1:

Chapter 5, Problem 2PB, Transactions related to revenue and cash receipts completed by Sterling Engineering Services during , example  2

  1. 2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1:

Chapter 5, Problem 2PB, Transactions related to revenue and cash receipts completed by Sterling Engineering Services during , example  3

  1. 3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark (¸) in the Post. Ref. column when recording cash fees.
  2. 4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt.
  3. 5. Total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting.
  4. 6. Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger.
  5. 7. Why would an automated system omit postings to a control account as performed in step 5 for Accounts Receivable?

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Chapter 5 Solutions

Financial Accounting
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