Sage Learning Centers was established on July 20 to provide educational services.The services provided during the remainder of the month are as follows:July 21. Issued Invoice No. 1 to J. Dunlop for $115 on account.22. Issued Invoice No. 2 to K. Tisdale for $350 on account.24. Issued Invoice No. 3 to T. Quinn for $85 on account.25. Provided educational services, $300, to K. Tisdale in exchange for educationalsupplies.27. Issued Invoice No. 4 to F. Mintz for $225 on account.30. Issued Invoice No. 5 to D. Chase for $170 on account.30. Issued Invoice No. 6 to K. Tisdale for $120 on account.31. Issued Invoice No. 7 to T. Quinn for $105 on account.Instructions1. Journalize the transactions for July, using a single-column revenue journal and atwo-column general journal. Post to the following customer accounts in the accountsreceivable ledger and insert the balance immediately after recording each entry:D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale.2. Post the revenue journal and the general journal to the following accounts in thegeneral ledger, inserting the account balances only after the last postings:12 Accounts Receivable13 Supplies41 Fees Earned3. a. What is the sum of the balances of the customer accounts in the subsidiary ledgerat July 31?b. What is the balance of the accounts receivable controlling account at July 31?4. Assume Sage Learning Centers began using a computerized accounting system to recordthe sales transactions on August 1. What are some of the benefits of the computerizedsystem over the manual system?
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Sage Learning Centers was established on July 20 to provide educational services.
The services provided during the remainder of the month are as follows:
July 21. Issued Invoice No. 1 to J. Dunlop for $115 on account.
22. Issued Invoice No. 2 to K. Tisdale for $350 on account.
24. Issued Invoice No. 3 to T. Quinn for $85 on account.
25. Provided educational services, $300, to K. Tisdale in exchange for educational
supplies.
27. Issued Invoice No. 4 to F. Mintz for $225 on account.
30. Issued Invoice No. 5 to D. Chase for $170 on account.
30. Issued Invoice No. 6 to K. Tisdale for $120 on account.
31. Issued Invoice No. 7 to T. Quinn for $105 on account.
Instructions
1. Journalize the transactions for July, using a single-column revenue journal and a
two-column general journal. Post to the following customer accounts in the
receivable
D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale.
2. Post the revenue journal and the general journal to the following accounts in the
general ledger, inserting the account balances only after the last postings:
12 Accounts Receivable
13 Supplies
41 Fees Earned
3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger
at July 31?
b. What is the balance of the accounts receivable controlling account at July 31?
4. Assume Sage Learning Centers began using a computerized accounting system to record
the sales transactions on August 1. What are some of the benefits of the computerized
system over the manual system?
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