Revenue 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?

Revenue 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?

D. Vader opens a Web consulting business called Starworks and completes the following transactions in its first month of operations.

April 1 Vader invested $95,000 cash along with office equipment valued at $22,800 in the company in exchange for common stock.

April 1 The company prepaid $7,200 cash for 6 months’ rent for office space.

April 1 The company paid $6,000 cash for the premium on a 12-month insurance policy

April 1 The company agreed to do a special six-month web design course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance.

April 3 The company made credit purchases for $11,400 in office equipment and $2,280 in office supplies. Payment is due within 10 days.

April 6 The company completed services for a client and immediately received $2,000 cash.

April 9 The company completed a $7,600 project for a client, who must pay within 30 days.

April 13 The company paid cash to settle the account payable created on April 3.

April 22 The company received $6,080 cash as partial payment for the work completed on April 9.

April 25 The company completed work for another client for $2,640 on credit.

April 28 The company paid $6,200 cash in dividends.

April 29 The company purchased $760 of additional office supplies with a 3 months note.

30 The company paid $700 cash for this month’s utility bill.

Use the following information

a. At the end of the month, $1,600 of office supplies are still available.

b. This month’s depreciation on the computer equipment is $500.

c. Employees earned $1,300 of unpaid and unrecorded salaries as of month-end.

d. The company earned $1,750 of commissions that are not yet billed at month-end.

Required:

1. Prepare journal entries to record the transactions for April and post them to the ledger accounts

2. Prepare an unadjusted trial balance as of April 30.

3. Journalize all the adjusting entries necessary for the month and prepare the adjusted trial balance.

D. Vader opens a Web consulting business called Starworks and completes the following transactions in its first month of operations.

April 1 Vader invested $95,000 cash along with office equipment valued at $22,800 in the company in exchange for common stock.

Apr,1 The company prepaid $7,200 cash for 6 months’ rent for office space.

Apr,1 The company paid $6,000 cash for the premium on a 12-month insurance policy

Apr,1 The company agreed to do a special six-month web design course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance.

Apr, 3 The company made credit purchases for $11,400 in office equipment and $2,280 in office supplies. Payment is due within 10 days.

Apr, 6 The company completed services for a client and immediately received $2,000 cash.

Apr, 9 The company completed a $7,600 project for a client, who must pay within 30 days.

Apr, 13 The company paid cash to settle the account payable created on April 3.

Apr, 22 The company received $6,080 cash as partial payment for the work completed on April 9.

Apr, 25 The company completed work for another client for $2,640 on credit.

Apr, 28 The company paid $6,200 cash in dividends.

Apr, 29 The company purchased $760 of additional office supplies with a 3 months note.

Apr, 30 The company paid $700 cash for this month’s utility bill.

Use the following information

a. At the end of the month, $1,600 of office supplies are still available.

b. This month’s depreciation on the computer equipment is $500.

c. Employees earned $1,300 of unpaid and unrecorded salaries as of month-end.

d. The company earned $1,750 of commissions that are not yet billed at month-end.

Required:

1. Prepare journal entries to record the transactions for April and post them to the ledger accounts

2. Prepare an unadjusted trial balance as of April 30.

3. Journalize all the adjusting entries necessary for the month and prepare the adjusted trial balance.

Air France Case

Air France KLM, A franco-dutch company, prepares its financial statements according to International Financial reporting standards. AF;’s financial statements and disclosures notes for the year ended December 31, 2015 are provided in connect. This material is also available under the Finance link at the company’s website. ( www.airfranceklm-finance.com)

Required:

What are the primary classification into which AF’s cash inflows and cash outflows are separated? Is this classification the same as or different from cash flow statements prepared in accordance with US GAAP?

How are cash inflows from dividends and interest and cash outflows for dividends and interest classified in AF’s cash flow statements? Is this classification the same as or different from cash flow statements prepared in accordance with US GAAP?

What is the genetic condition in which the heterozygous individual has a different phenotype from the homozygous individual?

Consider the following statistical study and: a) Identify the population and the population parameter of interest. b) Describe the sample and sample statistic for the study. c) Identify the type of study. d) Discuss what additional facts you would like to know before you believed the study or acted on the results of the study. A study done at the Center for AIDS and STD at the University of Washington tracked the survival rates of 17,517 asymptomatic North American patients with HIV who started drug therapy at different points in the progression of the infection. It was discovered that asymptomatic patients who postponed antiretroviral treatment until their disease was more advanced faced a higher risk of dying than those who had initiated drug treatment earlier (New England Journal of Medicine).

Scenario 1:

The elected officials in a west coast university town are concerned about the "exploitative" rents being charged to college students. The town council is contemplating the imposition of a $350 per month rent ceiling on apartments in the city. An economist at the university estimates the demand and supply curves as:

            QD = 5600 - 8P    QS = 500 + 4P,               

where P = monthly rent, and Q = number of apartments available for rent. For purposes of this analysis, apartments can be treated as identical.

Consider Scenario 1 in the Supplement. Which of the following would vote for this price ceiling to be imposed? (Mark all that apply)

Consider Scenario 1 in th Supplement. Which of the following things are likely to happen as a direct result of implementing the price ceiling? (mark all that apply)

The role of accounting education is a challenging question. Is the purpose of university accounting education to prepare students for professional practice? Or is the role of university accounting education to understand accounting?

Should the focus be conceptual, contextual or technical? Or a mix of all.

From you own work experience in accounting, what is the relationship between the technical or conceptual education you have experienced and the practice of accounting?