Revenue Journal Page 12
Date
Invoice
No. Account Debited
Post.
Ref.
Accts. Rec. Dr.
Fees Earned Cr.
2014
May 4 355 Borman Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,670
9 356 Life Star Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,870
14 357 Aladdin Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,140
22 359 Borman Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,150
31 8,830
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.
Aladdin Co. Borman Co.
May 1 Bal. 505 May 4 1,670
14 1,140 22 3,150
Bal. 1,645 Bal. 4,820
Life Star Inc.
May 9 2,870
Bal. 2,870
c.
Accounts Receivable Fees Earned
May 1 Bal. 505 May 31 8,830
31 8,830 Bal. 8,830
Bal. 9,335
d.
EVERGREEN CONSULTING INC.
Accounts Receivable Customer Balances
May 31, 2014
Aladdin Co. $1,645
Borman Co. 4,820
Life Star Inc. 2,870
Total accounts receivable $9,335
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. There would be no control totals posted to a controlling account