Exam 29: Subsidiary Ledgers and Special Journals

A single-column purchases journal is used to record purchases of merchandise on account.

The use of special journals often saves time in the _______________ process.

A control account and subsidiary ledger can be established for inventory.

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _______________ to the accounts in the accounts receivable subsidiary ledger and in _______________ to the control account in the general ledger.

Gates Company maintains four special journals and a general journal to record its transactions. Using the code below, indicate in the space provided the appropriate journal for recording the transactions listed. 1. Stockholders invested cash in the business. 2. Purchased store supplies on account. 3. Sold merchandise to customer on account. 4. Purchased a 2-year fire insurance policy for cash. 5. Received a check from a customer as payment on account. 6. Paid for store supplies purchased in transaction 2. 7. Purchased merchandise on account. 8. Issued a credit memorandum to a customer who returned defective merchandise previously sold on account. 9. Purchased office equipment for cash. 10. Made an adjusting entry for store supplies used during the period.

Correcting entries are journalized in

Transactions that cannot be entered in a special journal are recorded in the _______________, and if control and subsidiary accounts are involved, there must be a _______________ posting.

The entries recorded in the Other Accounts column of a cash payments journal

The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

Which one of the following columns in a cash receipts journal is not posted in total to an account in the general ledger?

The cash payments journal only has one column because all entries recorded in this journal require a credit to the Cash account.

A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a

Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the

Proving the postings of a single-column purchases journal would involve comparing the

If a transaction cannot be recorded in a special journal, it is

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

Cash from sales of merchandise will be recorded in the

Easton Company began business on October 1. The sales journal, as it appeared at the end of the month, follows: 1. Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales (No. 401) and an accounts receivable subsidiary T-account ledger with an account for each customer. Make the appropriate postings from the sales journal. Fill in the appropriate posting references in the sales journal above. 2. Prove the accounts receivable subsidiary ledger by preparing a schedule of accounts receivable.

A debit column for Sales Returns and Allowances may be found in the cash receipts journal.

The reference column of a multiple-column cash payments journal after posting