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.

Tasks 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 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. columrn 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 Correct: Should be entered on a daily basis Correct: Should be entered on a daily basis Error: Should be entered at the end of the month Error: Should be entered at the end of the month Error: Should be entered at the end of the month On a Regular Basis Post Revenue Journal to Post Purchases Journal to Accounts Payable Subsidiary Ledger creditor accounts vable Subsidiary Ledger customer accounts Correct: Should be entered on a regular basis Correct: Should be entered on a regular basis 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 Error: Should be entered on a daily basis Correct: Should be entered at the end of the month Error: Should be entered on a daily basis Correct: Should be entered at the end of the month Chloe's Cleaning Services UNADJUSTED TRIAL BALANCE August 16, 2019 ACCOUNT TITLE 1Cash 2 Accounts Receivable 3 Supplies 4 Equipment 5 Accounts Payable 8,200.00 4,575.00 3,200.00 3,350.00 350.00 20,000.00 6,000.00 Wages Payable 7Chloe Sanderson, Capital & Fees Earned 9 Wages Expense 10 Insurance Expense 11 Supplies Expense 12 Repairs Expense 13 Advertising Expense 14 Utilities Expense 15 Miscellaneous Expense 16 Totals 3,600.00 100.00 1,300.00 250.00 550.00 350.00 75.00 29,700.00 29,700.00 You've received a list of the remaining August transactions from Chloe Review me transactions, and then complete the table to give Chloe instructians on how to enter the transactions in her accounting system, using the folowing abbreviations The transactiona shourd be entered ithout cansidering end-or-month posting of rotels, ejusting entries o closing entries Subsidiary Ledger Special Journal Name Abbreviation for Table General Journal Revenue Journal Cash Receipts Joumal Purchases Joumal Cash Payments Journal General Ledger Accounts Recevable Subsidiary Ledger Accounts Payable Subsidiary Ledger CR CP Month Date Amount Transaction Journalize Post to Ledger 17 1,500 Issued Invoice No. 405 to Functional Fitness Company 19 22 $1,700 Ordered supplies from Cleaning Supplies Warehouse and received invoice 23 S2,000 Recelved payment on account from Central Medical Omices, inc 31 3,600 Paid wages to employees AR GL AP GL GL $550 Paid Invoice No. 22 from Sudsy's Laundry CP Aug CR CP Subsidiary Ledger Balances Chloe has prepared the following table, 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 Central Medical Offices, Inc. Functional Fitness Company Omega Multiplex Theater Balance as of August 16 $2,500 1,275 Accounts Payable Subsidiary Ledger Balances Vendor Name Cleaning Supplies Warehouse Sudsy's Laundry Balance as of August 16 $2,750 600 Final Questions 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 computing the following amounts. Account 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 Sudsy's Laundry Wages Expense Balance as of August 31, 2019