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

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

Nov. 2.		Issued Invoice No. 793 to Ohr Co., $5,650.
Nov. 5.		Received cash from Mendez Co. for the balance owed on its account.
Nov. 6.		Issued Invoice No. 794 to Rahal Co., $2,450.
Nov. 13.		Issued Invoice No. 795 to Shilo Co., $3,980.
		Post revenue and collections to the accounts receivable subsidiary ledger.
Nov. 15.		Received cash from Rahal Co. for the balance owed on November 1.
Nov. 16.		Issued Invoice No. 796 to Rahal Co., $6,500. Post revenue and collections to the accounts receivable subsidiary ledger.
Nov. 19.		Received cash from Ohr Co. for the balance due on invoice of November 2.
Nov. 20.		Received cash from Rahal Co. for balance due on invoice of November 6.
Nov. 22.		Issued Invoice No. 797 to Mendez Co., $8,040.
Nov. 25.		Received $3,000 note receivable in partial settlement of the balance due on the Shilo Co. account.
Nov. 30.		Recorded cash fees earned, $13,270. Post revenue and collections to the accounts receivable subsidiary ledger.

Required:

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

11	Cash	$11,350
12	Accounts Receivable	16,230
14	Notes Receivable	6,000
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.

GENERAL LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance Dr.	Balance Cr.
Account: Cash
2016
Nov. 1	Balance
Account: Accounts Receivable
2016
Nov. 1	Balance
Account: Notes Receivable
2016
Nov. 1	Balance
Account: Fees Earned
2016

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

Mendez Co.	$9,460
Ohr Co.	-
Rahal Co.	6,770
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.

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Date	Item	Post. Ref.	Debit	Credit	Balance
Account: Mendez Co.
2016
Nov. 1	Balance
Nov. 5
Account: Ohr Co.
2016
Account: Rahal Co.
2016
Nov. 1	Balance
Account: Shilo Co.
2016

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 November. 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) in chronological order. Insert account balances after the last posting.

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

REVENUE JOURNAL				PAGE 40
Date	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
2016

CASH RECEIPTS JOURNAL					PAGE 36
Date	Account Credited	Post. Ref.	Fees Earned Cr.	Accts. Rec. Cr.	Cash Dr.
2016

JOURNAL			PAGE 1
Date	Description	Post Ref.		Debit	Credit
2016

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?