Guardian Security Services was established on January 15 to provide security services. The services provided during the remainder of the month are as follows:
Jan.
18. Issued Invoice No. 1 to Murphy Co. for $490 on account.
20. Issued Invoice No. 2 to Qwik-Mart Co. for $340 on account.
24. Issued Invoice No. 3 to Hopkins Co. for $750 on account.
27. Issued Invoice No. 4 to Carson Co. for $680 on account.
28. Issued Invoice No. 5 to Amber Waves Co. for $120 on account.
28. Provided security services, $100, to Qwik-Mart Co. in exchange for supplies.
30. Issued Invoice No. 6 to Qwik-Mart Co. for $200 on account.
31. Issued Invoice No. 7 to Hopkins Co. for $295 on account.
Instructions
1. Journalize the transactions for January, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger and insert the balance immediately after recording each entry: Amber Waves Co.; Carson Co.; Hopkins Co.; Murphy Co.; Qwik-Mart Co.
2. Post the revenue journal to the following accounts in the general ledger, inserting the account balances only after the last postings:
12 Accounts Receivable
14 Supplies
41 Fees Earned
3.
a. What is the sum of the balances of the customer accounts in the subsidiary ledger at January 31?
b. What is the balance of the accounts receivable controlling account at January 31?
4. Assume Guardian Security Services began using a computerized accounting system to record the sales transactions on February 1. What are some of the benefits of the computerized system over the manual system?
Answer:
1. and 2.
Page 1
Jan. 18 1 Murphy Co.
20 2 Qwik-Mart Co.
24 3 Hopkins Co.
27 4 Carson Co.
28 5 Amber Waves Co.
30 6 Qwik-Mart Co.
31 7 Hopkins Co.
31
Page 1
Jan. 28 Supplies14 100
Fees Earned41 100
Post.
Item Ref. Debit Credit Balance
Jan. 28 R1 120 120
Post.
Item Ref. Debit Credit Balance
Jan. 27 R1 680 680
Post.
Item Ref. Debit Credit Balance
Jan. 24 R1 750 750
31 R1 295 1,045
Post.
Item Ref. Debit Credit Balance
Jan. 18 R1 490 490
Post.
Item Ref. Debit Credit Balance
Jan. 20 R1 340 340
30 R1 200 540
Item Ref. Debit Credit Debit Credit
31 R1 2,875 2,875
Item Ref. Debit Credit Debit Credit
28 J1 100 100
Item Ref. Debit Credit Debit Credit
28 J1 100 100
31 R1 2,875 2,975
3. a. $2,875 ($120 + $680 + $1,045 + $490 + $540)
b. $2,875
4. The computerized system is more efficient. Each sales transaction is entered into
an electronic invoice form. The postings to the accounts receivable subsidiary and
fees earned ledgers are automatic. Also, all sums and totals in the subsidiary
ledgers are calculated automatically. There are no separate postings to an accounts
receivable control account because there is no need to verify the accuracy of
account totals. There is no math or posting error. The computerized system also
provides management with current customer account balance information because
the postings are automatic.
No comments:
Post a Comment