Chapter 5, Problem 5.1APR

Revenue journal; accounts receivable subsidiary and general ledgers

Sage Learning Centers was established on July 20, 2016, 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 accounts receivable 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 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?