Using the Form Below, Record Each of the Following Transactions

question 73

Essay

Using the form below, record each of the following transactions for Mayer Corporation during the year ending December 31, Year 1. (Note: There is no need to provide appropriate account titles for the Retained Earnings amounts in the last column of the table.)November 1: Received cash from clients for services to be performed over the next six months, $12,000November 1: Paid $1,200 for a 12-month insurance policyDecember 31: Recorded expiration of two months of the insuranceDecember 31: Earned $4,000 of the amount received from clients in November

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Definitions:

Schedule Of Accounts Receivable

A list of the customers, in alphabetical order, that have an outstanding balance in the accounts receivable subsidiary ledger. This total should be equal to the balance of the Accounts Receivable controlling account in the general ledger at the end of the month.

Control Account

A summary account in the general ledger that consolidates and reflects the total of transactions recorded in subsidiary ledgers.

Customers' Names

Identifying information for individuals or entities that purchase goods or services from a business.

Subsidiary Ledger

A detailed ledger that contains the accounts of specific areas of business, supporting data for accounts in the general ledger.