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.
REVENUE JOURNALPage 12 Date Invoice No. Account Debited Post.
Ref. Accts. Rec. Dr. Fees Earned Cr. 20Y2 July 4 355 Clearmark Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,890 9 356 Life Star Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,410 18 357 Aladdin Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 950 22 359 Clearmark Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,660 319,910
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?
Answer:
a. and b.
July 1 Bal. 625 July 4 Bal. 1,890
18 95022 3,660
31 Bal. 1,57531 Bal. 5,550
July 9 3,410
31 Bal. 3,410
c.
July 1 Bal. 625 July 31 9,910
31 9,91031 Bal. 9,910
31 Bal. 10,535
d.
Aladdin Co.
Clearmark Co.
Life Star Inc.
Total accounts receivable
The total in the schedule above agrees with the T account balance for the
accounts receivable controlling account in part (c).
e. A computerized system would likely use an electronic form specially designed
for recording sales transactions, such as an electronic invoice form. The
transaction details would be input into the form fields and submitted. Once
submitted, the transaction would be saved and automatically posted as a debit
to the individual customer account receivable and a credit to the revenue
account. No control totals would be posted to a controlling account.