Exam 29: Subsidiary Ledgers and Special Journals

If a company maintains special journals, sales of merchandise on credit should be recorded in a _______________ whereas sales of merchandise for cash should be recorded in the _______________.

On December 1, the accounts receivable control account balance in the general ledger of Mitus Company was $9,000. The accounts receivable subsidiary ledger contained the following detailed customer balances: Acme $1,500, Baker $2,100, Fare $2,600, and Grote $2,800. The following information is available from the company's special journals for the month of December: Cash Receipts Journal: Cash received from Fare $1,900, from Acme $1,600, from Santos $1,700, and from Baker $1,800. Sales Journal: Sales to Santos $2,300, to Fare $1,700, to Acme $2,300, and to Grote $2,400. Additionally, Fare returned defective merchandise for credit for $900. Acme returned defective merchandise for $600 which he had purchased for cash. Instructions (a) Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December. (b) Reconcile the accounts receivable control account with the subsidiary ledger by preparing a detail list of customer balances at December 31.

The total of the individual account balances in the accounts receivable subsidiary ledger should agree with the total of the individual account balances in the accounts payable subsidiary ledger.

Below are some typical transactions incurred by Harley Company. 1. Purchase of merchandise on account. 2. Collection on account from customers. 3. Payment of employee's wages. 4. Sales of merchandise for cash. 5. Close Income Summary to Retained Earnings. 6. Adjusting entry for depreciation on machinery. 7. Payment of creditors on account. 8. Purchase of office equipment on credit. 9. Sales discount taken on goods sold on credit. 10. Sales of merchandise on account. 11. Purchase of a delivery truck for cash. 12. Return of merchandise purchased on credit. 13. Payment of rent in advance. 14. Adjusting entry for accrued interest expense. 15. Purchase of office supplies for cash. For each transaction, indicate by the code letter the appropriate journal where the transaction would be journalized. CR - Cash Receipts Journal CP - Cash Payments Journal S - Sales Journal P - Single-Column Purchases Journal G - General Journal

After Artie Company had completed all posting for the month of December, the sum of the balances in the following accounts payable subsidiary ledger did not agree with the balance of the control account in the general ledger. The balance in the Accounts Payable control account of $37,380 has been verified as correct. Also assume that the journals references in the Post Ref. columns of the accounts payable subsidiary ledger have been verified as correct. Instructions Determine the errors in the preceding accounts payable subsidiary accounts and prepare a corrected schedule of accounts payable.

Which of the following would not be an appropriate heading for a column in the cash receipts journal?

A subsidiary ledger frees the general ledger from details of

A subsidiary ledger provides up-to-date information on specific account balances.

The balance of a control account in the general ledger

Ward Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals. Transactions

The entries in a sales journal will show

Sasser Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 70% of the sales price. ------------------------------------------- ------------------------------------------- -------------------------------------------

The process of totaling the columns of a journal is termed

Postings are generally made more frequently to the general ledger control accounts than to the individual accounts in the subsidiary ledgers.

Entries in a sales journal are

The use of special journals to record transactions

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Which accounts in the general ledger are affected when the monthly posting is made from the sales journal?

Horton Company uses four special journals, (cash receipts, cash payments, sales, and purchases journal) in addition to a general journal. On November 1, 2018, the control accounts in the general ledger had the following balances: Cash $12,000, Accounts Receivable $200,000 and Accounts Payable $42,000. Selected information on the final line of the special journals for the month of November is presented below: Additional Data: The Sales Journal total was $41,000. A customer returned merchandise for credit for $360 and Norton Company returned store supplies to a supplier for credit for $400. Instructions (a) Determine the missing amounts in the special journals. (b) Determine the balances in the general ledger accounts (Cash, Accounts Receivable, and Accounts Payable) at the end of November.