Horizon Consulting Company had the following transactions during the month of October:

Horizon Consulting Company had the following transactions during the month of October:

Oct.  

2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $595.

3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310.

14. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $205.

24. Issued Invoice No. 324 to Rose Co. for services rendered on account, $850.

29. Collected Invoice No. 321 from Pryor Corp.

a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format:

REVENUE JOURNAL Date Invoice   No. Account Debited Post. Ref. Accts. Rec. Dr. Fees Earned Cr.

b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October?

c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1?

Answer:

a.

2 Pryor Corp.595

3 Armor Inc.310

14 Pryor Corp.205

24 Rose Co. 850

311,960

b. Debit to Accounts Receivable [from revenue journal column total in (a)].

Credit to Fees Earned [from revenue journal column total in (a)].

c. $205 ($0 +  $595 + $205 – $595)