Chloe has done the accounting through August 16, the first sixteen days of business for her company. She has given you her trial balance as of August 16, 2016 below.

Chloes Cleaning Services

UNADJUSTED TRIAL BALANCE

August 16, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	7,810.00
2	Accounts Receivable	4,575.00
3	Supplies	3,200.00
4	Equipment	7,500.00
5	Accumulated Depreciation-Equipment
6	Accounts Payable		3,450.00
7	Wages Payable		360.00
8	Chloe Sanderson, Capital		20,000.00
9	Chloe Sanderson, Drawing
10	Income Summary
11	Fees Earned		5,500.00
12	Wages Expense	3,600.00
13	Insurance Expense	100.00
14	Supplies Expense	1,300.00
15	Repairs Expense	250.00
16	Advertising Expense	550.00
17	Utilities Expense	350.00
18	Depreciation Expense-Equipment
19	Miscellaneous Expense	75.00
20	Totals	29,310.00	29,310.00

Chloe Sanderson, a friend of yours from business school, decided to be her own boss and start a business cleaning homes and offices after graduation. Although she was a general business major in college, she always enjoyed accounting; but shes a little uncertain about what type of accounting system might be best for her fledgling business. She has already hired two employees to work for her, so she would like your help as soon as possible to set things up correctly.

Chloe already has three clients and two vendors, so shed like to use two subsidiary ledgers: one for accounts receivable and one for accounts payable.

In addition, since would like to streamline her accounting by using four special journals she recalls from business school: a revenue journal, cash receipts journal, purchases journal, and cash payments journal.

CHART OF ACCOUNTS

Chloes Cleaning Services

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
16	Equipment
17	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
23	Wages Payable

	EQUITY
31	Chloe Sanderson, Capital
32	Chloe Sanderson, Drawing
33	Income Summary

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
52	Insurance Expense
53	Supplies Expense
54	Repairs Expense
55	Advertising Expense
56	Utilities Expense
57	Depreciation Expense-Equipment
59	Miscellaneous Expense

Using what she remembers from business school, Chloe has prepared a list of accounting tasks for her business, and would like you to review it.

Determine whether each item should be on a given list. If so, select Correct. If not, select Error, choosing the correct list for the item.

On a Daily Basis
Enter cash receipts in the Cash Receipts Journal	Correct: Should be entered on a daily basis
Enter invoices in the Revenue Journal
Post the total of the Cash Cr. column of the Cash Payments Journal to the cash general ledger account Cr. column
Post the total of the Accounts Receivable Cr. column of the Cash Receipts Journal to the accounts receivable general ledger account Cr. column
Post the total of the Accounts Receivable Dr. column of the Revenue Journal to the accounts receivable general ledger account Dr. column

On a Regular Basis
Post Revenue Journal to Accounts Receivable Subsidiary Ledger customer accounts
Post Purchases Journal to Accounts Payable Subsidiary Ledger creditor accounts

At the End of the Month
Enter cash payments in the Cash Payments Journal
Post the total of the Cash Dr. column of the Cash Receipts Journal to the cash general ledger account Dr. column
Enter purchases on account in the Purchases Journal
Post the total of the Accounts Payable Cr. column of the Purchases Journal to the accounts payable general ledger Cr. column

Chloe has prepared the table below, showing the balances as of August 16 for her Accounts Receivable Subsidiary Ledger and Accounts Payable Subsidiary Ledger.

Accounts Receivable Subsidiary Ledger Balances
Customer Name	Balance as of August 16
Central Medical Offices, Inc.	$2,500
Functional Fitness Company	$800
Omega Multiplex Theater	$1,275

Accounts Payable Subsidiary Ledger Balances
Vendor Name	Balance as of August 16
Cleaning Supplies Warehouse	$2,850
Sudsys Laundry	$600

Youve received a list of the remaining August transactions from Chloe.

Review the transactions, and then complete the table to give Chloe instructions on how to enter the transactions in her accounting system, using the following abbreviations. The transactions should be entered without considering end-of-month posting of totals, adjusting entries, or closing entries..

Subsidiary Ledger/Special Journal Name	Abbreviation for Table
General Journal	GJ
Revenue Journal	R
Cash Receipts Journal	CR
Purchases Journal	P
Cash Payments Journal	CP
General Ledger	GL
Accounts Receivable Subsidiary Ledger	AR
Accounts Payable Subsidiary Ledger	AP

Month

Date

Amount

Transaction

Journalize

Post to Ledger

Aug.

17

$1,500

Issued Invoice No. 405 to Functional Fitness Company

Aug.

19

$550

Paid Invoice No. 22 from Sudsys Laundry

CP

Aug.

22

$1,700

Ordered supplies from Cleaning Supplies Warehouse and received invoice

Aug.

23

$2,000

Received payment on account from Central Medical Offices, Inc.

Aug.

31

$3,600

Paid wages to employees

Now that the remaining August transactions have been entered, Chloe feels confident enough to complete the end-of-month totals and posting.

Help Chloe finish her accounting for the month by calculating the amounts below.

Account	Balance as of August 31, 2016
Cash
Accounts Receivable
Accounts Payable
Accounts Receivable Subsidiary Ledger for Central Medical Offices, Inc.
Accounts Receivable Subsidiary Ledger for Functional Fitness Company
Accounts Receivable Subsidiary Ledger for Omega Multiplex Theater
Accounts Payable Subsidiary Ledger for Cleaning Supplies Warehouse
Accounts Payable Subsidiary Ledger for Sudsys Laundry
Wages Expense