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question evenue and cash receipts journals lasting summer inc has 2 510 in the octob 4280045

Question

evenue and Cash Receipts Journals

Lasting Summer Inc. has $2,510 in the October 1 balance of theaccounts receivable account consisting of $1,060 from Champion Co.and $1,450 from Wayfarer Co. Transactions related to revenue andcash receipts completed by Lasting Summer Inc. during the month ofOctober 2016 are as follows:

Oct. 3.

Issued Invoice No. 622 for services provided to Palace Corp.,$2,890.

Oct. 5.

Received cash from Champion Co., on account, for $1,060.

Oct. 8.

Issued Invoice No. 623 for services provided to Sunny StyleInc., $1,940.

Oct. 12.

Received cash from Wayfarer Co., on account, for $1,450.

Oct. 18.

Issued Invoice No. 624 for services provided to Amex ServicesInc., $2,970.

Oct. 23.

Received cash from Palace Corp. for Invoice No. 622 of October3.

Oct. 28.

Issued Invoice No. 625 to Wayfarer Co., on account, for$900.

Oct. 30.

Received cash from Rogers Co. for services provided, $120.

a. Prepare a single-column revenue journal torecord these transactions. Enter transactions in chronologicalorder.

REVENUEJOURNAL

PAGE 19

 

DATE

 

Invoice No.

 

Account Debited

 

Post. Ref.

Accounts Rec. Dr.

Fees Earned Cr.

2016

 

 

 

?

 

 

 

 

?

 

 

 

 

?

 

 

 

 

?

 

 

 

Total

 

 

         

Prepare a cash receipts journal to record thesetransactions.

If an amount box does not require an entry, leave it blank.

CASH RECEIPTSJOURNAL

PAGE25

DATE

AccountCredited

Post. Ref.

Fees EarnedCr.

Accounts Rec.Cr.

Cash Dr.

2016

 

 

?

 

 

 

 

 

?

 

 

 

 

 

?

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

           

b. Prepare a listing of the accounts receivablecustomer balances and verify that the total of the accountsreceivable customer balances equals the balance of the accountsreceivable controlling account on October 31, 2016.

LastingSummer Inc.

AccountsReceivable Customer Balances

October 31,2016

Amex Services Inc.

$

Sunny Style Inc.

 

Wayfarer Co.

 

Total accounts receivable

$

   

c. Lasting Summer Inc. uses a subsidiary ledgerfor accounts receivable for all of the following reasonsEXCEPT:

 

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