Question

Prepare Journal Entries in a Revenue Journal

Horizon Consulting Company had the following transactions during the month of October:

Oct. 2.	Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $280.
Oct. 3.	Issued Invoice No. 322 to Armor Inc. for services rendered on account, $390.
Oct. 14.	Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $140.
Oct. 24.	Issued Invoice No. 324 to Rose Co. for services rendered on account, $590.
Oct. 29.	Collected Invoice No. 321 from Pryor Corp.

a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format:

REVENUE JOURNAL
DATE	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
Oct. 2
Oct. 3
Oct. 14
Oct. 24
Oct. 31

b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October?

Accounts receivable	$
Fees earned	$

c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1?
$

Answer 1

(a) Journal Entries
Date	Invoice No	Account Dr	Post Ref.	Accounts Rec Dr. Fees Earned Cr.
2-Oct	321	Pryor Corp	PR/1/Oct	Pryor Corp A/c Dr 280 To Sales A/c            280
3-Oct	322	Armor Inc.	AR/1/OCT	Pryor Corp A/c Dr 390 To Sales A/c            390
14-Oct	323	Pryor Corp	PR/2/Oct	Pryor Corp A/c Dr 140 To Sales A/c            140
24-Oct	324	Rose Co.	RO/1/OCT	Rose Co A/c Dr       590 To Sales A/c            590
29-Oct	321	Bank	Collection/1/OCT	Bank A/c Dr.             280 To Pryor Corp. A/c 280
(b)
Total Amount posted to Account Receivable (Net Of Collection) -					1,120
Fees Earned -					1,400
(c )
October 31 balance of Pryor corp					140
(a) Journal Entries
Date	Invoice No	Account Dr	Post Ref.	Accounts Rec Dr. Fees Earned Cr.
2-Oct	321	Pryor Corp	PR/1/Oct	Pryor Corp A/c Dr 280 To Sales A/c            280
3-Oct	322	Armor Inc.	AR/1/OCT	Pryor Corp A/c Dr 390 To Sales A/c            390
14-Oct	323	Pryor Corp	PR/2/Oct	Pryor Corp A/c Dr 140 To Sales A/c            140
24-Oct	324	Rose Co.	RO/1/OCT	Rose Co A/c Dr       590 To Sales A/c            590
29-Oct	321	Bank	Collection/1/OCT	Bank A/c Dr.             280 To Pryor Corp. A/c 280
(b)
Total Amount posted to Account Receivable (Net Of Collection) -					1,120
Fees Earned -					1,400
(c )
October 31 balance of Pryor corp					140