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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, 2014, are as follows:

June 2.		Issued Invoice No. 793 to Nickle Co., $5,450.
June 5.		Received cash from Mendez Co. for the balance owed on its account.
June 6.		Issued Invoice No. 794 to Preston Co., $1,960.
June 13.		Issued Invoice No. 795 to Shilo Co., $2,930.
		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., $6,110. 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., $8,050.
June 25.		Received $2,230 note receivable in partial settlement of the balance due on the Shilo Co. account.
June 30.		Recorded cash fees earned, $13,740. 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	$12,370
12	Accounts Receivable	15,070
14	Notes Receivable	6,560
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 # 11
2014
June 1	Balance
SelectJune 26June 27June 28June 30Item 5
Account: Accounts Receivable # 12
2014
June 1	Balance
SelectJune 25June 27June 28June 30Item 15
SelectJune 26June 27June 28June 30Item 21
SelectJune 26June 27June 28June 30Item 27
Account: Notes Receivable # 14
2014
June 1	Balance
SelectJune 25June 27June 28June 30Item 37
Account: Fees Earned # 41
2014
SelectJune 26June 27June 28June 30Item 43
SelectJune 26June 27June 28June 30Item 49

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

Mendez Co.	$8,660
Nickle Co.	-
Preston Co.	6,410
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.
2014
June 1	Balance
SelectJune 5June 7June 8June 10Item 58
SelectJune 15June 17June 19June 22Item 63
Account: Nickle Co.
2014
SelectJune 1June 2June 4June 12Item 68
SelectJune 15June 17June 19June 22Item 73
Account: Preston Co.
2014
June 1	Balance
SelectJune 5June 6June 9June 12Item 81
SelectJune 15June 17June 19June 22Item 86
SelectJune 15June 16June 19June 22Item 91
SelectJune 15June 17June 19June 20Item 96
Account: Shilo Co.
2014
SelectJune 13June 17June 19June 22Item 101
SelectJune 15June 17June 19June 25Item 106

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.

REVENUE JOURNAL				PAGE 40
Date	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
2014
SelectJune 2June 6June 13June 16June 22June 30Item 111		SelectFees EarnedMendez Co.Nickle Co.Preston Co.Shilo Co.Item 113
SelectJune 2June 6June 13June 16June 22June 30Item 115		SelectFees EarnedMendez Co.Nickle Co.Preston Co.Shilo Co.Item 117
SelectJune 2June 6June 13June 16June 22June 30Item 119		SelectFees EarnedMendez Co.Nickle Co.Preston Co.Shilo Co.Item 121
SelectJune 2June 6June 13June 16June 22June 30Item 123		SelectFees EarnedMendez Co.Nickle Co.Preston Co.Shilo Co.Item 125
SelectJune 2June 6June 13June 16June 22June 30Item 127		SelectFees EarnedMendez Co.Nickle Co.Preston Co.Shilo Co.Item 129
SelectJune 2June 6June 13June 16June 22June 30Item 131

CASH RECEIPTS JOURNAL					PAGE 36
Date	Account Credited	Post. Ref.	Fees Earned Cr.	Accts. Rec. Cr.	Cash Dr.
2014
SelectJune 5June 15June 19June 20June 30Item 133	SelectFees EarnedMendez Co.Nickle Co.Preston Co.Item 134
SelectJune 5June 15June 19June 20June 30Item 138	SelectFees EarnedMendez Co.Nickle Co.Preston Co.Item 139
SelectJune 5June 15June 19June 20June 30Item 143	SelectFees EarnedMendez Co.Nickle Co.Preston Co.Item 144
SelectJune 5June 15June 19June 20June 30Item 148	SelectFees EarnedMendez Co.Nickle Co.Preston Co.Item 149
SelectJune 5June 15June 19June 20June 30Item 153	SelectFees EarnedMendez Co.Nickle Co.Preston Co.Item 154
SelectJune 5June 15June 19June 20June 30Item 158

JOURNAL				PAGE 1
Date	Description	Post Ref.	Debit	Credit
2014
SelectJune 15June 17June 19June 25Item 162	SelectNotes ReceivableAccounts Receivable-Shilo Co.Office EquipmentCashAccounts PayableItem 163
	SelectNotes ReceivableAccounts Receivable-Shilo Co.Office EquipmentCashAccounts PayableItem 167

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? SelectYesNoCannot determineItem 172

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

SelectYesNoItem 173

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