Concept Introduction:
General ledger: A general ledger contains the summarized information taken from its subsidiary ledgers.
Subsidiary Ledger: A Subsidiary Ledger is prepared for one account of the general ledger. There may be several subsidiary ledgers or one general ledger.
Requirement-1:
To prepare:
Concept Introduction:
General ledger: A general ledger contains the summarized information taken from its subsidiary ledgers.
Subsidiary Ledger: A Subsidiary Ledger is prepared for one account of the general ledger. There may be several subsidiary ledgers or one general ledger.
Requirement-2:
To prepare:
Accounts Receivable and Sales General Ledger T accounts
Concept Introduction:
General ledger: A general ledger contains the summarized information taken from its subsidiary ledgers.
Subsidiary Ledger: A Subsidiary Ledger is prepared for one account of the general ledger. There may be several subsidiary ledgers or one general ledger.
Requirement-3:
To prepare:
A Schedule of Accounts Receivable and reconciliation of its balance with the Accounts receivable controlling account balance
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
FUND.ACCT.PRIN.(LOOSELEAF)-W/CONNECT
- Use the journals and ledgers that follow. Total the journals. Post the transactions to the subsidiary ledger and (using T-accounts) to the general ledger accounts. Then prepare a schedule of accounts receivable.arrow_forwardWhat is the purpose of subsidiary ledgers? Select one: a. Provide supporting details on groups of accounts b. Provide credit balances only c. Provide supporting details on individual accounts d. Provide debit balances onlyarrow_forwardThe controlling account in the general ledger that summarizes the debits and credits to the individual accounts in the customer's ledger is entitled A. Accounts Receivable B. Accounts Payable C. Sales D. Purchasesarrow_forward
- A subsidiary ledger is used for accounts receivable and accounts payable. Thus, transactions that are made “on account” are posted to the individual customer or creditor accounts.a. Why do companies use subsidiary ledgers for accounts payable and accounts receivable?b. Identify another account that could benefit from using a subsidiary ledger.arrow_forwardThe schedule of accounts payable lists each creditors account balance, and the total equals the _________________. a. Controlling account in the journal b. Accounts Payable account in the general ledger c. Accounts Receivable account in the general ledger d. Purchases account in the general ledger e. Sales account in the general ledgerarrow_forwardWhy must the Accounts Receivable account in the general ledger match the totals of all the subsidiary Accounts Receivable accounts?arrow_forward
- The sum of all the accounts in the accounts receivable subsidiary ledger should ________. A. equal the accounts receivable account balance in the general ledger before posting any amounts B. equal the accounts payable account balance in the general ledger before posting any amounts C. equal the accounts receivable account balance in the general ledger after posting all amounts D. equal the cash account balance in the general ledger after posting all amountsarrow_forwardThe subsidiary ledger that includes customer account activity is called the a. asset ledger b. accounts payable ledger c. expense ledger d. accounts receivable ledgerarrow_forwardActivity 1: Journalize the following transactions and then post them to the General Ledger. Below are the transactions of Juan Manuell Enterprises for the month of May 2018. Maу 3 Mr. Manuell invested P500,000 cash. May 5 Purchases from Big Dipper Merchants P50,000 merchandise. Terms: 3/10, n/20. May 6 Sold merchandise to Gemini Enterprises, P32,000. Terms: 2/10, n/30. 59 63 / 164 Мay 9 Purchased office supplies from Galaxy Co. for cash, P3,000 through Check No. 0031. May 11 Gemini Enterprises settled its account in full. Issued OR#10241 Purchased merchandise from Polaris Trading, P55,000. Terms: P25,000 down payment, balance on account. Terms: 2/10, n/30. Check No. 0032. May 16 Purchased merchandise from Aurora Borealis Systems, P201,600. Terms: 2/10, n/30. May 25 May 26 Sold to Virgo Enterprises P150,000 worth of merchandise. Terms: 2/10, n/30. Мay 30 Purchases from Meteor Trading P80,000. Terms: 2/15, n/30. Procedures: 1. Analyze the given transactions. 2. Journalize each…arrow_forward
- For each account, indicate whether it appears in the general ledger or the subsidiary ledger Accounts Receivable—Martinarrow_forwardIndividual customer accounts are kept in a ledger called a: O purchase ledger O sales ledger general ledger O subsidiary ledgerarrow_forward1. Explain briefly the purpose of making accounts receivable subsidiary ledger and accounts payable subsidiary ledger! 2. There are 4 common types of special journals, what is the function of each special journal?arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College