evenue and cash receipts journals; accounts receivable subsidiary and general le

Question

evenue and cash receipts journals; accounts receivable subsidiary and general ledgers

Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 2–30 are as follows:

Required:

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

After completing the recording of the transactions in the journals in part 3, 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. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

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

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger in chronological order, 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. If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

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.

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 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.

If an amount box does not require an entry, leave it blank.

6. What is the sum of the customer balances?
$

Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?
  

7. Would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?

Apr. 2. Issued Invoice No. 793 to Ohr Co., $7,580. Apr. 5. Received cash from Mendez Co. for the balance owed on its account. Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $2,730. Apr. 13. Issued Invoice No. 795 to Shilo Co., $4,070. Post revenue and collections to the accounts receivable subsidiary ledger. Apr. 15. Received cash from Pinecrest Co. for the balance owed on April 1. Apr. 16. Issued Invoice No. 796 to Pinecrest Co., $8,500.
Post revenue and collections to the accounts receivable subsidiary ledger. Apr. 19. Received cash from Ohr Co. for the balance due on invoice of April 2. Apr. 20. Received cash from Pinecrest Co. for balance due on invoice of April 6. Apr. 22. Issued Invoice No. 797 to Mendez Co., $11,190. Apr. 25. Received $3,090 note receivable in partial settlement of the balance due on the Shilo Co. account. Apr. 30. Received cash from fees earned, $19,090.
Post revenue and collections to the accounts receivable subsidiary ledger.

Explanation / Answer

INVOICE

NO.

ACCOUNTS RECIEVABLE SUBSIDIARY LEDGER

REVENUE JOURNAL

CASH RECIEPT JOURNAL

GENERAL LEDGER

ALL FIGURES ARE IN DOLLORS.

DATE

INVOICE

NO.

          PARTICULARS DEBIT($) CREDIT($) APRIL,2 793 OHR. CO. 7580 TO REVENUE 7580 APRIL,5 794 CASH 11890 TO MENDEZ CO. 11890 APRIL,6 795 PINCREST 2730 TO REVENUE 2730 APRIL,13 796 SHILO CO. 4070 TO REVENUE 4070 APRIL, 15 CASH RECIEPT 8800 TO PINECREST 8800 APRIL, 16 797 PINECREST CO. 8500 TO REVENUE 8500 APRIL,19 CASH 7580 TO OHR. CO. 7580 APRIL,20 CASH 2730 TO PINCREST CO. 2730 APRIL,22 798 MENDEZ CO. 11190 TO REVENUE 11190 APRIL,25 NOTES RECIEVABLE 3090 TO SHILO CO. 3090 APRIL,30 CASH 19090 TO FEES EARNED 19090

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