Question

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.
July 22. Issued Invoice No. 2 to K. Tisdale for $350 on account.
July 24. Issued Invoice No. 3 to T. Quinn for $85 on account.
July 25. Provided educational services, $300, to K. Tisdale in exchange for educational supplies.
July 27. Issued Invoice No. 4 to F. Mintz for $225 on account.
July 30. Issued Invoice No. 5 to D. Chase for $170 on account.
July 30. Issued Invoice No. 6 to K. Tisdale for $120 on account.
July 31. Issued Invoice No. 7 to T. Quinn for $105 on account.
Required:
1A. Journalize the transactions (in chronological order as it appears in the data) for July, using a single-column revenue journal.
1B. Journalize (including the date) and post the appropriate transaction for July in the two-column general journal.
1C. 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
3A. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31?
3B. What is the balance of the accounts receivable controlling account at July 31?

Answer 1

Answer:

Sage Learning Centers

1A. Single-Column Revenue Journal:

July 21 J. Dunlop $115

July 22 K. Tisdale $350

July 24 T. Quinn  $85

July 25 K. Tisdale $300

July 27 F. Mintz $225

July 30 D. Chase $170

July 30 K. Tisdale $120

July 31 T. Quinn $105

Accounts Receivable $1,470

Being summary of customers account for the month of July.

1B. General Journal

Debit     Description                    Debit              Credit

July 25  Supplies                       $300

              Accounts Receivable (K. Tisdale)      $300

To record the exchange of educational supplies for services.

July 31   Accounts Receivable      $1,470

             Fees Earned                                      $1,470

To record the Fees Earned during July.  

1C.   Accounts Receivable Ledger:

J. Dunlop's Account

Date     Description                        Debit      Credit    Balance

July 21  Accounts Receivable        $115                       $115

K. Tisdale's Account

Date     Description                         Debit      Credit      Balance

July 22  Accounts Receivable        $350                       $350

July 27  Accounts Receivable        $300                       $650

July 27  Supplies                                            $300        $350

July 30  Accounts Receivable        $120                       $470

T. Quinn's Account

Date     Description                         Debit      Credit    Balance

July 24  Accounts Receivable        $85                       $85

July 31   Accounts Receivable      $105                      $190

F. Mintz's Account

Date     Description                        Debit      Credit    Balance

July 27  Accounts Receivable       $225                       $225

D. Chase's Account

Date     Description                         Debit      Credit    Balance

July 30  Accounts Receivable        $170                       $170

2. General Ledger

12 Accounts Receivable

Date     Description                         Debit      Credit    Balance

July 25 Supplies                                            $300     ($300)

July 31  Fees Earned                   $1,470                     $1,170

13 Supplies Account

Date     Description                         Debit      Credit    Balance

July 25 Accounts Receivable         $300                     $300

41 Fees Earned Account

Date     Description                         Debit      Credit    Balance

July 31  Accounts Receivable                        $1,470   $1,470

3A. The sum of the balances of the customer accounts in the subsidiary ledger at July 31 is $1,170.

3B.  The balance of the accounts receivable controlling account at July 31 is $1,170.

Explanation:

Journals are important prime books of original entry.  They record business transactions as they occur.  Some are used as memorandum records to accumulate the total for the period, like the Revenue or Sales Journal.  Others show the accounts to be debited and the ones to be credited in the general ledger.