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.

ing 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	Correct: Should be entered on a daily basis
Post the total of the Cash Cr. column of the Cash Payments Journal to the cash general ledger account Cr. column	Error: Should be entered at the end of the month
Post the total of the Accounts Receivable Cr. column of the Cash Receipts Journal to the accounts receivable general ledger account Cr. column	Error: Should be entered at the end of the month
Post the total of the Accounts Receivable Dr. column of the Revenue Journal to the accounts receivable general ledger account Dr. column	Error: Should be entered at the end of the month

On a Regular Basis
Post Revenue Journal to Accounts Receivable Subsidiary Ledger customer accounts	Correct: Should be entered on a regular basis
Post Purchases Journal to Accounts Payable Subsidiary Ledger creditor accounts	Correct: Should be entered on a regular basis

At the End of the Month
Enter cash payments in the Cash Payments Journal	Error: Should be entered on a daily basis
Post the total of the Cash Dr. column of the Cash Receipts Journal to the cash general ledger account Dr. column	Correct: Should be entered at the end of the month
Enter purchases on account in the Purchases Journal	Error: Should be entered on a daily basis
Post the total of the Accounts Payable Cr. column of the Purchases Journal to the accounts payable general ledger Cr. column	Correct: Should be entered at the end of the month

ounting Systems

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
14	Supplies
18	Equipment
19	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Wages Payable

	EQUITY
31	Chloe Sanderson, Capital
32	Chloe Sanderson, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
52	Repairs Expense
53	Supplies Expense
54	Depreciation Expense-Equipment
55	Insurance Expense
56	Utilities Expense
57	Advertising Expense
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	Correct: Should be entered on a daily basis
Post the total of the Cash Cr. column of the Cash Payments Journal to the cash general ledger account Cr. column	Error: Should be entered at the end of the month
Post the total of the Accounts Receivable Cr. column of the Cash Receipts Journal to the accounts receivable general ledger account Cr. column	Error: Should be entered at the end of the month
Post the total of the Accounts Receivable Dr. column of the Revenue Journal to the accounts receivable general ledger account Dr. column	Error: Should be entered at the end of the month

On a Regular Basis
Post Revenue Journal to Accounts Receivable Subsidiary Ledger customer accounts	Correct: Should be entered on a regular basis
Post Purchases Journal to Accounts Payable Subsidiary Ledger creditor accounts	Correct: Should be entered on a regular basis

At the End of the Month
Enter cash payments in the Cash Payments Journal	Error: Should be entered on a daily basis
Post the total of the Cash Dr. column of the Cash Receipts Journal to the cash general ledger account Dr. column	Correct: Should be entered at the end of the month
Enter purchases on account in the Purchases Journal	Error: Should be entered on a daily basis
Post the total of the Accounts Payable Cr. column of the Purchases Journal to the accounts payable general ledger Cr. column	Correct: Should be entered at the end of the month

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, 2019, as follows.

Chloes Cleaning Services

UNADJUSTED TRIAL BALANCE

August 16, 2019

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	8,200.00
2	Accounts Receivable	4,575.00
3	Supplies	3,200.00
4	Equipment	7,500.00
5	Accounts Payable		3,350.00
6	Wages Payable		350.00
7	Chloe Sanderson, Capital		20,000.00
8	Fees Earned		6,000.00
9	Wages Expense	3,600.00
10	Insurance Expense	100.00
11	Supplies Expense	1,300.00
12	Repairs Expense	250.00
13	Advertising Expense	550.00
14	Utilities Expense	350.00
15	Miscellaneous Expense	75.00
16	Totals	29,700.00	29,700.00

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

Help Chloe finish her accounting for the month by computing the following amounts.!

Account	Balance as of August 31, 2019
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

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	$2,750
Sudsys Laundry	600