The following cash receipts journal headings have been suggested for a small service firm. List the errors you find in the headings.
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CASH RECEIPTS JOURNAL |
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Fees |
Accts. |
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Other |
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Account |
Post. |
Earned |
Rec. |
Cash |
Accounts |
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Date |
Credited |
Ref. |
Cr. |
Cr. |
Cr. |
Dr. |
Lee Technical Services Inc. was established on June 15, 2008. The clients for whom Lee provided technical services during the remainder of June are listed below. These clients pay Lee the amount indicated plus a 5% sales tax.
June 16. Issued Invoice No. 1 to A. Sommerfeld for $400 plus tax on account.
June 19. Issued Invoice No. 2 to R. Mendoza for $180 plus tax.
June 21. Issued Invoice No. 3 to J. Koss for $100 plus tax.
June 22. Issued Invoice No. 4 to D. Jeffries for $160 plus tax.
June 24. Provided services to K. Sallinger, in exchange for office supplies having a value of $100, plus tax.
June 26. Issued Invoice No. 5 to J. Koss for $280 plus tax.
June 28. Issued Invoice No. 6 to R. Mendoza for $40 plus tax.
a. Journalize the transactions for June, using a three column revenue journal and a two column general journal. Post the customer accounts in the accounts receivable subsidiary ledger, and insert the balance immediately after recording each entry.
b. Post the general journal and the revenue journal to the following general ledger accounts, inserting account balances only after the last postings:
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12 |
Accounts Receivable |
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14 |
Office Supplies |
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22 |
Sales Tax Payable |
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41 |
Fees Earned |
c. 1. What is the sum of the balances in the accounts receivable subsidiary ledger at June 30?
2. What is the balance of the controlling account at June 30?