Chapter 5, Problem 5.7EX

Posting a revenue journal

The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of $625 consisting of an amount due from Aladdin Co. There were no collections during July.

a.    Prepare a T account for the accounts receivable customer accounts.

b.    Post the transactions from the revenue journal to the customer accounts and determine their ending balances.

c.    Prepare T accounts for the accounts receivable and fees earned accounts. Post control totals to the two accounts and determine the ending balances.

d.    Prepare a schedule of the customer account balances to verify the equality of the sum of the customer account balances and the accounts receivable controlling account balance.

e.    How might a computerized system differ from a revenue journal in recording revenue transactions?