Question

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: Apr. 2. Issued Invoice No. 793 to Ohr Co., $6,960. Apr. 5. Received cash from Mendez Co. for the balance owed on its account. Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $2,510. Apr. 13. Issued Invoice No. 795 to Shilo Co., $3,740. 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., $7,810. 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., $10,280. Apr. 25. Received $2,840 note receivable in partial settlement of the balance due on the Shilo Co. account. Apr. 30. Received cash from fees earned, $17,540. Post revenue and collections to the accounts receivable subsidiary ledger.

Required:

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

11	Cash	$15,790
12	Accounts Receivable	19,230
14	Notes Receivable	8,370
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.
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: Apr. 2. Issued Invoice No. 793 to Ohr Co., $6,960. Apr. 5. Received cash from Mendez Co. for the balance owed on its account. Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $2,510. Apr. 13. Issued Invoice No. 795 to Shilo Co., $3,740. 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., $7,810. Post revenue and collections to the accounts receivable subsidiary ledger. Apr. 19. Apr. 20. Apr. 22. Received cash from Ohr Co. for the balance due on invoice of April 2. Received cash from Pinecrest Co. for balance due on invoice of April 6. Issued Invoice No. 797 to Mendez Co., $10,280. Apr. 25. Received $2,840 note receivable in partial settlement of the balance due on the Shilo Co. account. Apr. 30. Received cash from fees earned, $17,540. Post revenue and collections to the accounts receivable subsidiary ledger.

Answer 1

GENERAL LEDGER 38 Date Item Post Ref. Debit Credit Balance Dr. Balance Cr. 39 40 Account; Cash 11 41 42 43 44 1-Apr Balance 30-Apr 15790 62030 46240 45 46 Account; Accounts Receivable 12 47 19230 49 2840 31300 16390 47690 18990 28700 48 1-Apr Balance 25-Apr 50 30-Apr 30-Apr 52 53 Account; Notes Receivable 14 54 55 1-Apr Balance 25-Apr Accounts Rec. 57 8370 11210 56 25 2840

59 Account; Fees Earned 14 60 61 30-Apr 62 30-Apr 17540 31300 17540 48840 63 ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER 64 65 66 67 Date Item Post Ref. Post Ref. Debit Debit Credit Balance Dr. Balance Cr. 69 Account; Mendez Co. 71 11050 1-Apr Balance 5-Apr Cash 22-Apr 11050 10280 10280 76 6960 75 Account; Ohr Co. 2-Apr 77 19-Apr Cash 78 6960 6960

80 Account; Pinecrest Co. 81 2510 8180 82 1-Apr Balance 83 6-Apr 15-Apr Cash 16-Apr 20-Apr Cash 87 88 Account; Shilo Co. 8180 10690 2510 10320 7810 85 7810 2510 3740 90 91 13-Apr 25-Apr Note Receivable 3740 900 2840 92 93 94 96 REVENUE JOURNAL Account Debited Date Invoice No. Post Ref. 97 Account Rec. Dr. Fees Earned Cr. 6960 2510 2-Apr 6-Apr 13-Apr 16-Apr 22-Apr 30-Apr 793 Ohr Co. 794 Pinecrest Co. 795 Shilo Co. 796 Pinecrest Co. 797 Mendez Co. 3740 101 102 103 7810 10280 31300

107 CASH RECEIPTS JOURNAL Post Ref. Fees Earned Cr. Accts. Rec. Cr. Date Account Credited Cash Dr. 108 109 110 111 112 5-Apr Mendez Co. 15-Apr Pinecrest Co. 19-Apr Ohr Co. 20-Apr Pinecrest Co. 30-Apr Fees earned 30-Apr 11050 8180 6960 2510 11050 8180 6960 2510 17540 46240 113 17540 17540 28700 114 115 116 117 118 119 120 Credit Journal Date Description Post Ref. 25-Apr Notes Receivable Accounts Receivable Debit 2840 2840 121 What is the sum of the customer Balances 1226) 123 124 18990 125 126 Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger? 127 128 Yes

7 Would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable ? 130 131 132 Yes