Revenue Journal and Cash Receipts Journals; Accounts Receivable subsidiary and General Ledgers

Transactions related to revenue and cash receipts completed by Aspen Architects Co. during the period June 230, 2016, are as follows:

June 2.		Issued Invoice No. 793 to Nickle Co., $4,860.
June 5.		Received cash from Mendez Co. for the balance owed on its account.
June 6.		Issued Invoice No. 794 to Preston Co., $1,750.
June 13.		Issued Invoice No. 795 to Shilo Co., $2,600.
		Post revenue and collections to the accounts receivable subsidiary ledger.
June 15.		Received cash from Preston Co. for the balance owed on June 1.
June 16.		Issued Invoice No. 796 to Preston Co., $5,440. Post revenue and collections to the accounts receivable subsidiary ledger.
June 19.		Received cash from Nickle Co. for the balance due on invoice of June 2.
June 20.		Received cash from Preston Co. for invoice of June 6.
June 22.		Issued Invoice No. 797 to Mendez Co., $7,170.
June 25.		Received $1,980 note receivable in partial settlement of the balance due on the Shilo Co. account.
June 30.		Recorded cash fees earned, $12,230. Post revenue and collections to the accounts receivable subsidiary ledger.

Required:

1. Insert the following balances in the general ledger as of June 1:

11	Cash	$11,130
12	Accounts Receivable	13,560
14	Notes Receivable	5,900
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.

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

Mendez Co.	$7,790
Nickle Co.	-
Preston Co.	5,770
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.

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 in chronological order for June. Post to the accounts receivable subsidiary ledger (in part 2), 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 (in part 1). Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

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?

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