Reference no: EM132690814

Problem - Revenue journal; accounts receivable and general ledgers

Newton Learning Centers was established on October 20, 2012, to provide educational services. The services provided during the remainder of the month are as follows:

Oct. 21. Issued Invoice No. 1 to J. Dunlop for $60 on account.

Oct. 22. Issued Invoice No. 2 to K. Todd for $255 on account.

Oct. 24. Issued Invoice No. 3 to T. Patrick for $55 on account.

Oct. 25. Provided educational services, $100, to K. Todd in exchange for educational supplies.

Oct. 27. Issued Invoice No. 4 to F. Mintz for $150 on account.

Oct. 30. Issued Invoice No. 5 to D. Chase for $135 on account.

Oct. 30. Issued Invoice No. 6 to K. Todd for $105 on account.

Oct. 31. Issued Invoice No. 7 to T. Patrick for $70 on account.

Instructions -

1. Journalize the transactions for October, 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: D. Chase; J. Dunlop; F. Mintz; T. Patrick; K. Todd.

2. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings:

12 Accounts Receivable

13 Supplies

41 Fees Earned

3. a. What is the sum of the balances of the accounts in the subsidiary ledger at October 31?

3. b. What is the balance of the controlling account at October 31?

4. Assume Newton Learning Centers began using a computerized accounting system to record the sales transactions on November 1. What are some of the benefits of the computerized system over the manual system?