Guardian Security Services was established on January 15 to provide security ser

Question

Guardian Security Services was established on January 15 to provide security services. The services provided during the remainder of the month are as follows:

Jan. 18. Issued Invoice No. 1 to Murphy Co. for $490 on account.

20. Issued Invoice No. 2 to Qwik-Mart Co. for $340 on account.

24. Issued Invoice No. 3 to Hopkins Co. for $750 on account.

27. Issued Invoice No. 4 to Carson Co. for $680 on account.

28. Issued Invoice No. 5 to Amber Waves Co. for $120 on account.

28. Provided security services, $100, to Qwik-Mart Co. in exchange for supplies.

30. Issued Invoice No. 6 to Qwik-Mart Co. for $200 on account.

31. Issued Invoice No. 7 to Hopkins Co. for $295 on account.

Instructions 1. Journalize the transactions for January, 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: Amber Waves Co.; Carson Co.; Hopkins Co.; Murphy Co.; Qwik-Mart Co.

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

12 Accounts receivable                                                                                                                                                                       14 supplies                                                                                                                                                                                          41 fees earned

3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger at January 31? b. What is the balance of the accounts receivable controlling account at January 31?

4. Assume Guardian Security Services began using a computerized accounting system to record the sales transactions on February 1. What are some of the benefits of the computerized system over the manual system?

Explanation / Answer

Part 1

Revenue Journal

Posting reference

(Assumption)

Accounts receivable (Dr.

Fees earned (Cr.)

Journal

Accounts receivable ledger

Murphy Co.

Quik Mart co.

Hopkins co.

Carsons co.

Amber waves co.

Part 2 -

General ledgers

Accounts receivable

Fees earned Ledger

Supplies ledger

Part 3

a.)

b.)

Analysis

Part 4

Benefits of computerized system over manual system

Date Invoice Number Accounts debited

Posting reference

(Assumption)

Accounts receivable (Dr.

Fees earned (Cr.)

January 18 1 Murphy co. 10 $490 January 20 2 Quik Mart Co. 20 $340 January 24 3 Hopkins co. 30 $750 January 27 4 Carsons Co. 40 $680 January 28 5 Amber waves co. 50 $120 January 30 6 Quik Mart co. 60 $200 January 31 7 Hopkins co. 70 $295 80 & 90 $2875

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.