Question

venue 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: Apr. 2. Issued Invoice No. 793 to Ohr Co., $4,680. Apr. 5. Received cash from Mendez Co. for the balance owed on its account. Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $1,990. Apr. 13. Issued Invoice No. 795 to Shilo Co., $3,450. 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., $5,500. 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., $7,470. Apr. 25. Received $3,200 note receivable in partial settlement of the balance due on the Shilo Co. account. Apr. 30. Received cash from fees earned, $12,890. Post revenue and collections to the accounts receivable subsidiary ledger.

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

11	Cash	$11,350
12	Accounts Receivable	14,830
14	Notes Receivable	6,000
41	Fees Earned	-

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.

1)create general ledger

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

Mendez Co.	$8,710
Ohr Co.	-
Pinecrest Co.	6,120
Shilo Co.	-

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.

2) create accounts receivable subsidiary ledger

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 balance?

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

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

Answer 1

1.

General Ledger
Account : Cash #11
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
Apr.1	Balance				11350
Apr.5	A/R		8710		20060
Apr.15	A/R		6120		26180
Apr.19	A/R		4680		30860
Apr.20	A/R		1990		32850
Apr.30	Fee Earned		12890		45740
Account : Accounts Receivable #12
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
Apr.1	Balance				14830
Apr.13	Sale		10120		24950
Apr.13	Cash			8710	16240
Apr.16	Sale		5500		21740
Apr.16	Cash			6120	15620
Apr.30	Sale		7470		23090
Apr.30	Cash			9870	13220
Account : Notes Receivable #14
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
Apr.1	Balance				6000
Apr.25	A/R		3200		9200
					9200
Account : Fee Earned # 41
					Balance
Date	Item	Post Ref	Debit	Credit	Debit	credit
Apr.1	Balance					0
Apr.30	Cash			12890		12890
						12890

2.

Accounts Receivable Subsidiary Ledger
Date	Item	Post Ref	Debit	Credit	Balance
Account: Mendez Co.
Apr.1	Balance				8710
Apr.5	Cash			8710	0
Apr.22	Sales		7470		7470
Account: Ohr Co.
Oct.1	Balance				0
Apr.2	Sale		4680		4680
Apr.19	Cash			4680	0
Account: Pinecrest Co.
Oct.1	Balance				6120
Apr.6	Sale		1990		8110
Apr.15	Cash			6120	1990
Apr.16	Sale		5500		7490
Apr.20	Cash			1990	5500
					5500
Account: Shilo Co.
Apr.1	Balance				0
Apr.13	Sales		3450		3450
Apr.25	Note Rec.			3200	250

Date	Acount Title	Debit	Credit
Apr.25	Note Receivable	3200
	Account Receivable		3200
	(Note receivable received from Shilo Co.)
Apr.30	Cash Received	12890
	Fee Earned		12890
	(Cash received from fee earned)

REVENUE JOURNAL				PAGE 40
				Accounts Receivable Dr.
		Account Debited	Post. Ref.
Date	Invoice No.
				Fee Earned Cr
Apr.2	793	Ohr Co.	✔	4680
Apr.6	794	Pinecrest Co.	✔	1990
Apr.13	795	Shilo	✔	3450
Apr.16	796	Pinecrest Co.	✔	5500
Apr.22	797	Mendez co.	✔	7470
Apr.30		Total		23090