Chapter 5, Problem 7E

The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 2016, balance of $625 consisting of an amount due from Aladdin Co. There were no collections during July.

1. a. Prepare a T account for the accounts receivable customer accounts.
2. b. Post the transactions from the revenue journal to the customer accounts, and determine their ending balances.
3. c. Prepare T accounts for the accounts receivable and fees earned accounts. Post control totals to the two accounts, and determine the ending balances.
4. 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.
5. e. How might a computerized system differ from a revenue journal in recording revenue transactions?