The transactions completed by Franklin Company during January, its first month o

Question

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: cash receipts (CR), cash payments (CP), revenue (R), and purchases (P). Assume that it uses accounts receivable and accounts payable subsidiary ledgers as well as a general ledger. Indicate by letters which journal would be used for each transaction and whether or not the entry requires a posting to a subsidiary ledger.

Clear All Issued check for rent R, subsidiary posting Received a check from a customer for payment on account CP, no subsidiary posting Issued an invoice to a customer CR, subsidiary posting Issued check for advertising expense P, subsidiary posting Purchased equipment on account

Explanation / Answer

CR, SUBSIDIARY POSTING - RECEIVED A CHECK FROM A CUSTOMER FOR PAYMENT ON ACCOUNT

R, SUBSIDIARY POSTING - ISSUED AN INVOICE TO A CUSTOMER

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