Asked by Chintan Kothari on Jun 19, 2024
Verified
Maldanado Company has a balance in its Accounts Payable control account of $10500 on January 1 2016. The subsidiary ledger contains three accounts: Smith Company balance $3000; White Company balance $2500 and Marino Company. During January the following payable-related transactions occurred. Purchases Payments Returns Smith Company $8,500$6,000$−0− White Company 5,2502,5001,500 Marino Company 6,1006,250−0−\begin{array} { l c c c } & \text { Purchases } & \text { Payments } & \text { Returns } \\\hline\text { Smith Company } & \$ 8,500 & \$ 6,000 & \$ - 0 - \\\text { White Company } & 5,250 & 2,500 & 1,500 \\\text { Marino Company } & 6,100 & 6,250 & - 0 -\end{array} Smith Company White Company Marino Company Purchases $8,5005,2506,100 Payments $6,0002,5006,250 Returns $−0−1,500−0− Instructions
(a) What is the January 1 balance in the Marino Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?
Accounts Payable Control
A system or method used to manage and track the money owed by the company to its creditors or suppliers.
Subsidiary Ledger
A detailed ledger that contains the details to support a main ledger account, such as accounts receivable or accounts payable.
- Acquire knowledge on the procedure for entering transactions into the general and subsidiary ledgers.
- Acquire knowledge on the essential uses and benefits of subsidiary ledgers and control accounts in the maintenance of comprehensive accounting information.
- Assess and correct modifications in the balances of accounts across a given duration.
Verified Answer
SS
Sirilak SangdangJun 26, 2024
Final Answer :
(a) $5,000[$10,500−($3,000+$2,500)]\$ 5,000 [ \$ 10,500 - ( \$ 3,000 + \$ 2,500 ) ]$5,000[$10,500−($3,000+$2,500)] .
(b) $14,100[$10,500+($8,500+$5,250+$6,100)−($6,000+$2,500+$6,250)−\$ 14,100 [ \$ 10,500 + ( \$ 8,500 + \$ 5,250 + \$ 6,100 ) - ( \$ 6,000 + \$ 2,500 + \$ 6,250 ) -$14,100[$10,500+($8,500+$5,250+$6,100)−($6,000+$2,500+$6,250)− $1,500]\$ 1,500 ]$1,500] .
(c) Smith ($3,000+$8,500−$6,000)$5,500 White ($2,500+$5,250−$2,500−$1,500)3,750 Marino ($5,000+$6,100−$6,250)4,850‾$14,100‾‾\begin{array}{llr}\text { Smith } & (\$ 3,000+\$ 8,500-\$ 6,000) & \$ 5,500 \\\text { White } & (\$ 2,500+\$ 5,250-\$ 2,500-\$ 1,500) & 3,750 \\\text { Marino } & (\$ 5,000+\$ 6,100-\$ 6,250) & \underline{4,850} \\& &\underline{\underline{ \$ 14,100}}\end{array} Smith White Marino ($3,000+$8,500−$6,000)($2,500+$5,250−$2,500−$1,500)($5,000+$6,100−$6,250)$5,5003,7504,850$14,100
(d) The purchase return ($1,500)( \$ 1,500 )($1,500) would be recorded in the general journal.
(b) $14,100[$10,500+($8,500+$5,250+$6,100)−($6,000+$2,500+$6,250)−\$ 14,100 [ \$ 10,500 + ( \$ 8,500 + \$ 5,250 + \$ 6,100 ) - ( \$ 6,000 + \$ 2,500 + \$ 6,250 ) -$14,100[$10,500+($8,500+$5,250+$6,100)−($6,000+$2,500+$6,250)− $1,500]\$ 1,500 ]$1,500] .
(c) Smith ($3,000+$8,500−$6,000)$5,500 White ($2,500+$5,250−$2,500−$1,500)3,750 Marino ($5,000+$6,100−$6,250)4,850‾$14,100‾‾\begin{array}{llr}\text { Smith } & (\$ 3,000+\$ 8,500-\$ 6,000) & \$ 5,500 \\\text { White } & (\$ 2,500+\$ 5,250-\$ 2,500-\$ 1,500) & 3,750 \\\text { Marino } & (\$ 5,000+\$ 6,100-\$ 6,250) & \underline{4,850} \\& &\underline{\underline{ \$ 14,100}}\end{array} Smith White Marino ($3,000+$8,500−$6,000)($2,500+$5,250−$2,500−$1,500)($5,000+$6,100−$6,250)$5,5003,7504,850$14,100
(d) The purchase return ($1,500)( \$ 1,500 )($1,500) would be recorded in the general journal.
Learning Objectives
- Acquire knowledge on the procedure for entering transactions into the general and subsidiary ledgers.
- Acquire knowledge on the essential uses and benefits of subsidiary ledgers and control accounts in the maintenance of comprehensive accounting information.
- Assess and correct modifications in the balances of accounts across a given duration.
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