Transactions related to revenue and cash receipts completed by Bel-Aire Architects Co. during the period September 2–30, 2010, are as follows:

Sept. 2. Issued Invoice No. 793 to Morton Co., $5,200.

5. Received cash from Mendez Co. for the balance owed on its account.

6. Issued Invoice No. 794 to Pinnacle Co., $1,870.

13. Issued Invoice No. 795 to Shilo Co., $2,710.

Post revenue and collections to the accounts receivable subsidiary ledger.

15. Received cash from Pinnacle Co. for the balance owed on September 1.

16. Issued Invoice No. 796 to Pinnacle Co., $6,000.

Post revenue and collections to the accounts receivable subsidiary ledger.

19. Received cash from Morton Co. for the balance due on invoice of September 2.

20. Received cash from Pinnacle Co. for invoice of September 6.

22. Issued Invoice No. 797 to Mendez Co., $7,830.

25. Received $1,800 note receivable in partial settlement of the balance due on the Shilo Co. account.

30. Recorded cash fees earned, $11,570.

Post revenue and collections to the accounts receivable subsidiary ledger.

Instructions

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

11 Cash $12,970

12 Accounts Receivable 14,570

14 Notes Receivable 5,000

41 Fees Earned —

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

September 1:

Mendez Co. 8,420

Morton Co. —

Pinnacle Co. 6,150

Shilo Co. —

3. Prepare a single-column revenue journal and a cash receipts journal. 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. Insert a check mark (✓) in the Post. Ref. column.

4. Using the two special journals and the two-column general journal, journalize the transactions for September. 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 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. Insert account balances after the last posting.

6. Determine that the subsidiary ledger agrees with the controlling account in the general ledger.