Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. 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 230 are as follows:

    Apr. 2. Issued Invoice No. 793 to Ohr Co., $5,260.
    Apr. 5. Received cash from Mendez Co. for the balance owed on its account.
    Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $1,890.
    Apr. 13. Issued Invoice No. 795 to Shilo Co., $2,820.
    Post revenue and collections to the accounts receivable subsidiary ledger.
    Apr. 15. Received cash from Pinecrest Co. for the balance owed on April 1.
    Apr. 16. Issued Invoice No. 796 to Pinecrest Co., $5,890. Post revenue and collections to the accounts receivable subsidiary ledger.
    Apr. 19. Received cash from Ohr Co. for the balance due on invoice of April 2.
    Apr. 20. Received cash from Pinecrest Co. for balance due on invoice of April 6.
    Apr. 22. Issued Invoice No. 797 to Mendez Co., $7,760.
    Apr. 25. Received $2,140 note receivable in partial settlement of the balance due on the Shilo Co. account.
    Apr. 30. Received cash from fees earned, $13,240. 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 $12,180
    12 Accounts Receivable 14,840
    14 Notes Receivable 6,460
    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 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 J1, CR36, and R40.

    GENERAL LEDGER
    Date Item Post. Ref. Debit Credit Balance Dr. Balance Cr.
    Account: Cash # 11
    Apr. 1 Balance fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4

    fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10
    Account: Accounts Receivable # 12
    Apr. 1 Balance fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14

    fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20

    fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26

    fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32
    Account: Notes Receivable # 14
    Apr. 1 Balance fill in the blank 33 fill in the blank 34 fill in the blank 35 fill in the blank 36

    fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42
    Account: Fees Earned # 41

    fill in the blank 44 fill in the blank 45 fill in the blank 46 fill in the blank 47 fill in the blank 48

    fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 fill in the blank 54

    2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1:

    Mendez Co. $8,530
    Ohr Co. -
    Pinecrest Co. 6,310
    Shilo Co. -

    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 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 J1, CR36, and R40.

    ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
    Date Item Post. Ref. Debit Credit Balance
    Account: Mendez Co.
    Apr. 1 Balance fill in the blank 55 fill in the blank 56 fill in the blank 57
    fill in the blank 59 fill in the blank 60 fill in the blank 61 fill in the blank 62

    fill in the blank 64 fill in the blank 65 fill in the blank 66 fill in the blank 67
    Account: Ohr Co.

    fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72

    fill in the blank 74 fill in the blank 75 fill in the blank 76 fill in the blank 77
    Account: Pinecrest Co.
    Apr. 1 Balance fill in the blank 78 fill in the blank 79 fill in the blank 80

    fill in the blank 82 fill in the blank 83 fill in the blank 84 fill in the blank 85

    fill in the blank 87 fill in the blank 88 fill in the blank 89 fill in the blank 90

    fill in the blank 92 fill in the blank 93 fill in the blank 94 fill in the blank 95

    fill in the blank 97 fill in the blank 98 fill in the blank 99 fill in the blank 100
    Account: Shilo Co.

    fill in the blank 102 fill in the blank 103 fill in the blank 104 fill in the blank 105

    fill in the blank 107 fill in the blank 108 fill in the blank 109 fill in the blank 110

    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 customers 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.

    fill in the blank 116

    fill in the blank 118

    fill in the blank 120 fill in the blank 122

    fill in the blank 124

    fill in the blank 126

    fill in the blank 128

    fill in the blank 130

    fill in the blank 132

    (fill in the blank 133) (fill in the blank 134)

    fill in the blank 142 fill in the blank 143 fill in the blank 144

    fill in the blank 147 fill in the blank 148 fill in the blank 149

    fill in the blank 152 fill in the blank 153 fill in the blank 154

    fill in the blank 157

    fill in the blank 158

    fill in the blank 159

    fill in the blank 161

    fill in the blank 162

    fill in the blank 163

    (fill in the blank 164) (fill in the blank 165) (fill in the blank 166)
    JOURNAL PAGE 1
    Date Description Post. Ref. Debit Credit

    fill in the blank 169 fill in the blank 170 fill in the blank 171

    fill in the blank 173 fill in the blank 174 fill in the blank 175
    6. What is the sum of the customer balances? $fill in the blank 176 Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?

    YesNoCannot determine

    7. Would an automated system omit postings to a controlling account as performed in part (5) for Accounts Receivable?

    YesNoYes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Accounting Procedures Guidebook

Authors: Steven M. Bragg

1st Edition

193891001X, 978-1938910012

More Books

Students also viewed these Accounting questions