Comenius Learning Centers was established on May 20, 2014, to provide educational services

Comenius Learning Centers was established on May 20, 2014, to provide educational services. The services provided during the remainder of the month are as follows:

May 21. Issued Invoice No. 1 to J. Dunlop for $90 on account.
22. Issued Invoice No. 2 to K. Tisdale for $320 on account.
24. Issued Invoice No. 3 to T. Patrick for $75 on account.
25. Provided educational services, $200, to K. Tisdale in exchange for educational supplies.
27. Issued Invoice No. 4 to F. Mintz for $190 on account.
30. Issued Invoice No. 5 to D. Chase for $145 on account.
30. Issued Invoice No. 6 to K. Tisdale for $115 on account.
31. Issued Invoice No. 7 to T. Patrick for $85 on account.

Instructions
1. Journalize the transactions for May, 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. Tisdale.
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 customer accounts in the subsidiary ledger at May 31?
b. What is the balance of the accounts receivable controlling account at May 31?

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


Answer:

































































1. and 2.
REVENUE JOURNAL Page 1
Date
Invoice
No. Account Debited
Post.
Ref.
Accounts Rec. Dr.
Fees Earned Cr.
2014
May 21 1 J. Dunlop √ 90
22 2 K. Tisdale √ 320
24 3 T. Patrick √ 75
27 4 F. Mintz √ 190
30 5 D. Chase √ 145
30 6 K. Tisdale √ 115
31 7 T. Patrick √ 85
31 1,020
(12) (41)
JOURNAL Page 1
Date Description
Post.
Ref. Debit Credit
2014
May 25 Supplies 13 200
Fees Earned 41 200
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
Name: D. Chase
Date Item
Post.
Ref. Debit Credit Balance
2014
May 30 R1 145 145
Name: J. Dunlop
Date Item
Post.
Ref. Debit Credit Balance
2014
May 21 R1 90 90
Name: F. Mintz
Date Item
Post.
Ref. Debit Credit Balance
2014
May 27 R1 190 190
Name: T. Patrick
Date Item
Post.
Ref. Debit Credit Balance
2014
May 24 R1 75 75
31 R1 85 160
Name: K. Tisdale
Date Item
Post.
Ref. Debit Credit Balance
2014
May 22 R1 320 320
30 R1 115 435
GENERAL LEDGER
Account: Accounts Receivable Account No. 12
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 31 R1 1,020 1,020
Account: Supplies Account No. 13
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 25 J1 200 200
Account: Fees Earned Account No. 41
Date Item
Post.
Ref. Debit Credit
Balance
Debit Credit
2014
May 25 J1 200 200
31 R1 1,020 1,220
3. a. $1,020 ($145 + $90 + $190 + $160 + $435)
b. $1,020
4. The computerized system is much more efficient. Each sales transaction
would be entered into an electronic invoice form. The postings to the accounts
receivable subsidiary and fees earned ledgers would be automatic. Also, all
sums and totals in the subsidiary ledgers are calculated automatically. There
would be no separate postings to an accounts receivable control account,
because there would be no need to verify the accuracy of account totals. There
would not be a math or posting error. The computerized system would also
provide management current customer account balance information, since the
postings are automatic.