Transactions related to revenue and cash receipts completed by Acheville Architects Co. during the period September 2-30,

Question:

Transactions related to revenue and cash receipts completed by Acheville Architects Co. during the period September 2-30, 2014, are as follows:

Sept. 2. Issued Invoice No. 793 to Nickle Co., $5,200.

5. Received cash from Mendez Co. for the balance owed on its account.

6. Issued Invoice No. 794 to Rahal Co., $2,140.

13. Issued Invoice No. 795 to Shilo Co., $3,420.

Post revenue and collections to the accounts receivable subsidiary ledger.

15. Received cash from Rahal Co. for the balance owed on September 1.

16. Issued Invoice No. 796 to Rahal Co., $6,000.

Post revenue and collections to the accounts receivable subsidiary ledger.

19. Received cash from Nickle Co. for the balance due on invoice of September 2.

20. Received cash from Rahal Co. for invoice of September 6.

22. Issued Invoice No. 797 to Mendez Co., $7,590.

25. Received $2,500 note receivable in partial settlement of the balance due on the

Shilo Co.account.

30. Recorded cash fees earned, $11,970.

Instructions

1. Insert the following balances in the general ledger as of September 1:

2. Insert the following balances in the accounts receivable subsidiary ledger as of September 1:

3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark (âœ“) in the Post. Ref. column when recording cash fees.
4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for September. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt.
5. Total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting.
6. Determine that the sum of the customer balances agrees with the accounts receivable controlling account in the general ledger.
7. Why would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?