Revenue and Cash Receipts Journals Lasting Summer Inc. has $1,840 in the October 1 balance of the accounts receivable account consisting of $850 from Champion Co. and $990 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows: Oct. 3.   Issued Invoice No. 622 for services provided to Palace Corp., $1,930. 5.   Received cash from Champion Co., on account, for $850. 8.   Issued Invoice No. 623 for services provided to Sunny Style Inc., $3,330. 12.   Received cash from Wayfarer Co., on account, for $990. 18.   Issued Invoice No. 624 for services provided to Amex Services Inc., $2,340. 23.   Received cash from Palace Corp. for Invoice No. 622 of October 3. 28.   Issued Invoice No. 625 to Wayfarer Co., on account, for $1,970. 30.   Received cash from Rogers Co. for services provided, $70. a.  Prepare a single-column revenue journal to record these transactions. Enter transactions in chronological order. REVENUE JOURNAL PAGE 19 DATE Invoice No. Account Debited Post. Ref. Accounts Rec. Dr. Fees Earned Cr. 20Y5   fill in the blank dfeab2fa7fdffd5_2   ✔ fill in the blank dfeab2fa7fdffd5_4   fill in the blank dfeab2fa7fdffd5_6   ✔ fill in the blank dfeab2fa7fdffd5_8   fill in the blank dfeab2fa7fdffd5_10   ✔ fill in the blank dfeab2fa7fdffd5_12   fill in the blank dfeab2fa7fdffd5_14   ✔ fill in the blank dfeab2fa7fdffd5_16     Total   fill in the blank dfeab2fa7fdffd5_18 Prepare a cash receipts journal to record these transactions. If an amount box does not require an entry, leave it blank. CASH RECEIPTS JOURNAL PAGE 25 DATE Account Credited Post. Ref. Fees Earned Cr. Accounts Rec. Cr. Cash Dr. 20Y5     ✔ fill in the blank bfc8c2018fd2fd8_3 fill in the blank bfc8c2018fd2fd8_4 fill in the blank bfc8c2018fd2fd8_5     ✔ fill in the blank bfc8c2018fd2fd8_8 fill in the blank bfc8c2018fd2fd8_9 fill in the blank bfc8c2018fd2fd8_10     ✔ fill in the blank bfc8c2018fd2fd8_13 fill in the blank bfc8c2018fd2fd8_14 fill in the blank bfc8c2018fd2fd8_15       fill in the blank bfc8c2018fd2fd8_18 fill in the blank bfc8c2018fd2fd8_19 fill in the blank bfc8c2018fd2fd8_20 Oct. 31 Total   fill in the blank bfc8c2018fd2fd8_21 fill in the blank bfc8c2018fd2fd8_22 fill in the blank bfc8c2018fd2fd8_23 b.  Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 20Y5. Lasting Summer Inc. Accounts Receivable Customer Balances October 31, 20Y5 Amex Services Inc. $fill in the blank b07d56f2f025fe6_1 Sunny Style Inc. fill in the blank b07d56f2f025fe6_2 Wayfarer Co. fill in the blank b07d56f2f025fe6_3 Total accounts receivable $fill in the blank b07d56f2f025fe6_4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Revenue and Cash Receipts Journals

Lasting Summer Inc. has $1,840 in the October 1 balance of the accounts receivable account consisting of $850 from Champion Co. and $990 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 20Y5 are as follows:

Oct. 3.   Issued Invoice No. 622 for services provided to Palace Corp., $1,930.
5.   Received cash from Champion Co., on account, for $850.
8.   Issued Invoice No. 623 for services provided to Sunny Style Inc., $3,330.
12.   Received cash from Wayfarer Co., on account, for $990.
18.   Issued Invoice No. 624 for services provided to Amex Services Inc., $2,340.
23.   Received cash from Palace Corp. for Invoice No. 622 of October 3.
28.   Issued Invoice No. 625 to Wayfarer Co., on account, for $1,970.
30.   Received cash from Rogers Co. for services provided, $70.

a.  Prepare a single-column revenue journal to record these transactions. Enter transactions in chronological order.

REVENUE JOURNAL PAGE 19

DATE

Invoice No.

Account Debited

Post. Ref.
Accounts Rec. Dr.
Fees Earned Cr.
20Y5
  fill in the blank dfeab2fa7fdffd5_2   fill in the blank dfeab2fa7fdffd5_4
  fill in the blank dfeab2fa7fdffd5_6   fill in the blank dfeab2fa7fdffd5_8
  fill in the blank dfeab2fa7fdffd5_10   fill in the blank dfeab2fa7fdffd5_12
  fill in the blank dfeab2fa7fdffd5_14   fill in the blank dfeab2fa7fdffd5_16
    Total   fill in the blank dfeab2fa7fdffd5_18

Prepare a cash receipts journal to record these transactions.

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

CASH RECEIPTS JOURNAL PAGE 25
DATE Account Credited Post. Ref. Fees Earned Cr. Accounts Rec. Cr. Cash Dr.
20Y5
    fill in the blank bfc8c2018fd2fd8_3 fill in the blank bfc8c2018fd2fd8_4 fill in the blank bfc8c2018fd2fd8_5
    fill in the blank bfc8c2018fd2fd8_8 fill in the blank bfc8c2018fd2fd8_9 fill in the blank bfc8c2018fd2fd8_10
    fill in the blank bfc8c2018fd2fd8_13 fill in the blank bfc8c2018fd2fd8_14 fill in the blank bfc8c2018fd2fd8_15
      fill in the blank bfc8c2018fd2fd8_18 fill in the blank bfc8c2018fd2fd8_19 fill in the blank bfc8c2018fd2fd8_20
Oct. 31 Total   fill in the blank bfc8c2018fd2fd8_21 fill in the blank bfc8c2018fd2fd8_22 fill in the blank bfc8c2018fd2fd8_23

b.  Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 20Y5.

Lasting Summer Inc.
Accounts Receivable Customer Balances
October 31, 20Y5
Amex Services Inc. $fill in the blank b07d56f2f025fe6_1
Sunny Style Inc. fill in the blank b07d56f2f025fe6_2
Wayfarer Co. fill in the blank b07d56f2f025fe6_3
Total accounts receivable $fill in the blank b07d56f2f025fe6_4

c.  Lasting Summer Inc. uses a subsidiary ledger for accounts receivable for all of the following reasons EXCEPT:

 
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