Chapter 5 1. EX.05.02 2. EX.05.03 eBook Show Me How 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., $4,680. 3. PR.05.01A Apr. 5. Received cash from Mendez Co. for the balance owed on its account. 4. PR.05.02A 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. Apt. 16. Received cash from Pinecrest Co. for the balance owed on April 1. Issued Invoice No. 796 to Pinecrest Co., $5,500. Apr. 19. Post revenue and collections to the accounts receivable subsidiary ledger. Received cash from Ohr Co. for the balance due on invoice of April 2. Apt. 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. Apt. 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. Required: 1. Insert the following balances in the general ledger as of April 1: 11 Cash 12 Accounts Receivable 14 Notes Receivable $11,350 14,830 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 "1", Cash Receipts begin with "CR" and Revenue Journal begins with "R". For example journal/ Cash Receipts/ Revenue Journal, page 1/36/40 respectively. POST. REF. is simply 31, CR36, and R40. Chapter 5 1. EX.05.02 2. EX.05.03 3. PR.05.01A 4. PR.05.02A eBook Show Me How 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 Revenue Journal begins with "R". For example journal/ Cash Receipts/ Revenue Journal, page 1/36/40 respectively. POST. REF. is simply 31, CR36, and R40. Date Account: Cash # 11 Apr. 1 Apr. 30 GENERAL LEDGER Item Post. Ref. Debit Credit Balance Dr. Balance Cr. Balance Account: Accounts Receivable # 12 Apr. 1 Balance Apr. 21 Account: Notes Receivable #14 Apr. 11 Balance Account: Fees Earned #41 17,240 X 12,890 X 45,740 V 2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1: Mendez Co. $8,710 Ohr Co. Chapter 5 1. EX.05.02 2. EX.05.03 3. PR.05.01A eBook Show Me How 2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1: Mendez Co. Ohr Co. $8,710 Pinecrest Co. 4. PR.05.02A Shilo Co. 6,120 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 "3", Cash Receipts begin with "CR" and Revenue Journal begins with "R". For example journal/ Cash Receipts/ Revenue Journal, page 1/36/40 respectively. POST. REF. is simply 31, CR36, and R40. Date Account: Mendez Co. ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Item Apr. 1 Balance Apr. 5 Apr. 22 Account: Ohr Co. Apr. 21 Apr. 19 Account: Pinecrest Co. Apr. 1 Balance Apr. 6 Apr. 15 Post. Ref. Debit Credit Balance 888 Chapter 5 1. EX.05.02 2. EX.05.03 3. PR.05.01A 4. PR.05.02A eBook Apr. 6 Apr. 15 Apr. 16 Apr. 20 Account: Shilo Co. Apr. 13 Apr. 25 Show Me How 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. Apr. 21 Apr. 6 REVENUE JOURNAL PAGE 40 Accounts Rec. Dr. Date Invoice No. Account Debited Post. Ref. Fees Earned Cr. Ohr Co. Pinecrest Co. Apr. 13 Shilo Co. Pinecrest Co. Apr. 16 Apr. 22 Apr. 30 Mendez Co. Chapter 5 1. EX.05.02 2. EX.05.03 eBook Show Me How CASH RECEIPTS JOURNAL PAGE 36 Date Account Credited Post. Ref. Fees Earned Accts. Rec. Cr. Cash Dr. Cr. 3. PR.05.01A Apr. 5 Mendez Co. 4. PR.05.02A Apr. 15 Pinecrest Co. Apr. 19 Ohr Co. Apr. 201 Pinecrest Co. Apr. 301 Fees Earned Apr. 30 Apr. 25. JOURNAL PAGE 1 Date Description Post. Ref. Debit Credit: Notes Receivable Accounts Receivable-Shilo Co. 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? Yes 7. Would an automated system omit postings to a controlling account as performed in part (5) for Accounts Receivable? Yes