Question

enue Journal; Accounts Receivable subsidiary and General Ledgers

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.

REVENUE JOURNAL PAGE 1

Date Invoice No. Account Debited Post Ref. Accts. Rec. Dr.

Fees Earned Cr.

✔

✔

✔

✔

✔

✔

✔

() ()

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.

JOURNAL PAGE 1

Date Description Post Ref. Debit Credit

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.

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

Date Item Post Ref. Dr. Cr. Balance

Account: D. Chase

Account: J. Dunlop

Account: F. Mintz

Account: T. Quinn

Account: K. Tisdale

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.

GENERAL LEDGER

Balance

Date Item Post. Ref. Dr. Cr. Dr. Cr.

Account: Accounts Receivable #12

Account: Supplies #13

Account: Fees Earned #41

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?

$

4. 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

1a. Journalize the transactions:

Date	Invoice no.	Account Debited	Post ref.	Accounts Rec Dr
				Fees earned Cr.
21-Jul	1	J. Dunlop		115
22-Jul	2	K. Tisdale		350
24-Jul	3	T. Quinn		85
27-Jul	4	F. Mintz		225
30-Jul	5	D. Chase		170
30-Jul	6	K. Tisdale		120
31-Jul	7	T. Quinn		105
				1,170

1b. Journalize (including the date) and post the appropriate transaction for July in the two-column general journal.

Date	Description	Post Ref.	Debit	Credit
25-Jul	Supplies	13	300
	Fees earned	41		300

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.

Date	Item	Post ref.	Dr.	Cr.	Balance
Account: D. Chase
30-Jul			170		170
Account: J. Dunlop
21-Jul			115		115
Account: F. Mintz
27-Jul			225		225
Account: T. Quinn
24-Jul			85		85
31-Jul			105		190
Account: K. Tisdale
22-Jul			350		350
30-Jul			120		470

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:

Date	Item	Post ref.	Dr.	Cr.	Dr.	Cr.
Account: Accounts Receivable #12
31-Jul			1,170		1,170
Account: Supplies #13			300		300
25-Jul
Account: Fees Earned #41
25-Jul				300		300
31-Jul				1,170		1,470

3a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31 = $1,170

3b. What is the balance of the accounts receivable controlling account at July 31= $1,170