Revenue journal; accounts receivable subsidiary and general ledgers
Guardian Security Services was established on January 15 to provide security services. The services provided during the remainder of the month are as follows:
Jan. 18. | Issued Invoice No. 1 to Murphy Co. for $490 on account. |
20. | Issued Invoice No. 2 to Qwik-Mart Co. for $340 on account. |
24. | Issued Invoice No. 3 to Hopkins Co. for $750 on account. |
27. | Issued Invoice No. 4 to Carson Co. for $680 on account. |
28. | Issued Invoice No. 5 to Amber Waves Co. for $120 on account. |
28. | Provided security services, $100, to Qwik-Mart Co. in exchange for supplies. |
30. | Issued Invoice No. 6 to Qwik-Mart Co. for $200 on account. |
31. | Issued Invoice No. 7 to Hopkins Co. for $295 on account. |
Instructions
1. Journalize the transactions for January, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger and insert the balance immediately after recording each entry: Amber Waves Co.; Carson Co.; Hopkins Co.; Murphy Co.; Qwik-Mart Co.
2 Post the revenue journal to the following accounts in the general ledger, inserting the account balances only after the last postings:
12 Accounts Receivable
14 Supplies
41 Fees Earned
3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger at January 31?
b. What is the balance of the accounts receivable controlling account at January 31?
4. Assume Guardian Security Services began using a computerized accounting system to record the sales transactions on February 1. What are some of the benefits of the computerized system over the manual system?
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Chapter 5 Solutions
Accounting, Chapters 14-26
- Maddie Inc. has the following transactions for its first month of business. A. What are the individual account balances, and the total balance, in the accounts receivable subsidiary ledger? B. What is the balance in the accounts receivable general ledger (control) account?arrow_forwardTransactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 230 are as follows: Post revenue and collections to the accounts receivable subsidiary ledger. Instructions 1. Insert the following balances in the general ledger as of April 1: 2. Insert the following balances in the accounts receivable subsidiary ledger as of April 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 April. 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 customers 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 balances agrees with the accounts receivable controlling account in the general ledger. 7. Why would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?arrow_forwardTransactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: 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.arrow_forward
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- On September 1, the balance of the Accounts Receivable control account in the general ledger of Ivanhoe Company was $10,790. The customers' subsidiary ledger contained account balances as follows: Hurley $1,320, Andino $2,710, Fowler $2,020, and Sogard $4,740. At the end of September, the various journals contained the following information. Sales journal: Cash receipts journal: General journal: Sales to Sogard $840, to Hurley $1,130, to Giambi $1,390, and to Fowler $1,210. Cash received from Fowler $1,370, from Sogard $2,300, from Giambi $280, from Andino $1,770, and from Hurley $1,100. An allowance is granted to Sogard $320. (a) (b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) Accounts Receivable Date Explanation Ref. Sept. 1 Balance Debit Credit Balance V 10,790 S CRarrow_forwardRevenue and Cash Receipts Journals Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Mar. 2. Issued Invoice No. 512 to Santorini Co., $725. Mar. 4. Received cash from CMI Inc., on account, for $180. Mar. 8. Issued Invoice No. 513 to Gabriel Co., $255. Mar. 12. Issued Invoice No. 514 to Yarnell Inc., $640. Mar. 19. Received cash from Yarnell Inc., on account, $485. Mar. 20. Issued Invoice No. 515 to Electronic Central Inc., $140. Mar. 28. Received cash from Marshall Inc. for services provided, $100. Mar. 29. Received cash from Santorini Co. for Invoice No. 512 of March 2. Mar. 31. Received cash from McCleary Co. for services provided, $60. Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Enter the transactions in chronological order. REVENUE JOURNAL PAGE 8 DATE Invoice No. Account Debited Post. Ref. Accounts Rec. Dr.Fees Earned Cr.…arrow_forwardRevenue and Cash Receipts Journals Lasting Summer Inc. has $2,360 in the October 1 balance of the accounts receivable account consisting of $1,090 from Champion Co. and $1,270 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows: Oct. 3. Issued Invoice No. 622 for services provided to Palace Corp., $2,480. 5. Received cash from Champion Co., on account, for $1,090. 8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $4,270. 12. Received cash from Wayfarer Co., on account, for $1,270. 18. Issued Invoice No. 624 for services provided to Amex Services Inc., $3,000. 23. Received cash from Palace Corp. for Invoice No. 622 of October 3. 28. Issued Invoice No. 625 to Wayfarer Co., on account, for $2,530. 30. Received cash from Rogers Co. for services provided, $90. a. Prepare a single-column revenue journal to record these transactions.…arrow_forward
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