Question

Sage Learning Centers was established on July 20 to provide educational services. The services provided during the remainder of the month are as follows:

July 21.	Issued Invoice No. 1 to J. Dunlop for $115 on account.
July 22.	Issued Invoice No. 2 to K. Tisdale for $350 on account.
July 24.	Issued Invoice No. 3 to T. Quinn for $85 on account.
July 25.	Provided educational services, $300, to K. Tisdale in exchange for educational supplies.
July 27.	Issued Invoice No. 4 to F. Mintz for $225 on account.
July 30.	Issued Invoice No. 5 to D. Chase for $170 on account.
July 30.	Issued Invoice No. 6 to K. Tisdale for $120 on account.
July 31.	Issued Invoice No. 7 to T. Quinn for $105 on account.

Required:

1a. Journalize the transactions (in chronological order as it appears in the data) for July, using a single-column revenue journal. If an amount box does not require an entry, leave it blank.

1b. Journalize (including the date) and post the appropriate transaction for July in the two-column general journal. If an amount box does not require an entry, leave it blank. Posting references will be recorded in part 2.

1c. Post to the following customer accounts in the accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale.

For those boxes in which no entry is required, leave the box blank.

2. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings:

12	Accounts Receivable
13	Supplies
41	Fees Earned

For those boxes in which no entry is required, leave the box blank.

3a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31?

3b. What is the balance of the accounts receivable controlling account at July 31?

Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. All of the following are benefits of the computerized system over the manual system EXCEPT:

Answer 1

1.a.

Revenue Journal
	Account Debited		Post. Ref.	Accounts Receivable Dr. Sales Cr.
Date		Inv.No.
July.21	J.Dunlop	1		115
July.22	K.Tisdale	2		350
July.24	T.Quinn	3		85
July.27	F.Mintz	4		225
July.30	D.Chase	5		170
July.30	K.Tisdale	6		120
July.31	T.Quinn	7		105
July.31	Total			1170

1.b.

Sage Learning Centres
General Journal
Date	Account Title	Debit	credit
July.25	Supplies	300
	Fee Earned		300
	(Educational services for supplies)

1.c.

Accounts Receivable Subsidiary Ledger
Date	Item	Post Ref	Debit	Credit	Balance
Account: D.Chase
July.1					0
July.30	Sale		170		170
					170
Account: J.Dunlop.
July.1	Balance				0
July.21	Sale		115	0	115
					115
Account: F.Mintz
July.1	Balance				0
July.27	Sale		225		225
					225
					225
Account: T.Quinn
July.1	Balance				0
July.24	Sale		85		85
July.31	Sale		105		190
Account: K.Tisdale
July.1	Balance				0
July.22	Sale		350		350
July.30	Sale		120		470

2.

General Ledger
Account : Accounts Receivable #12
					Balance
Jul-22	Item	Post Ref	Debit	Credit	Debit	credit
July.1	Balance				0
July.31	Sales		1170		1170
					1170
Account : Supplies #13
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
July.1	Balance				0
July.25	Fee Earned	P30	300		300
Account : Fee Earned #41
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
July.1	Balance				0
July.25	Supplies			300	300
					300

3.a. Sum of the balance of the customeraccounts as at July 31 is $1,170.

Schedule of Accounts Receivable as at July 31
Customer Name	Amount
D.Chase	170
J.Dunlop	115
F.Mintz	225
T.Quinn	190
K.Tisdale	470
Total	1170

3.b. the balance in the account receivable control account is $1,170.

Account : Accounts Receivable #12
					Balance
Jul-22	Item	Post Ref	Debit	Credit	Debit	credit
July.1	Balance				0
July.31	Sales		1170		1170
					1170