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 Receivable14 Supplies41 Fees Earned3. 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?
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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?
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