Question

Maldanada Company has a balance in its Accounts Payable control account of $10,500 on January 1, 2020. The subsidiary ledger contains three accounts: Smith Company, balance $3,000; White Company, balance $2,500 and Marino Company. During January, the following payable-related transactions occurred. Smith Company White Company Marino Company Purchases $8,500 5,250 6,100 Payments $6,000 2,500 6,250 Returns $ -0- 1,500 What was the January 1 Balance in the Marino Co. Subsidiary account? What is the January 31 Balance in the control account? Compute the balances in the subsidiary accounts at the end of the month. Smith White Marino Total Which January Transaction would NOT be recorded in a special journal? The PURCHASE RETURN $_ would not be recorded in a special journal

Answer 1

Answer 1

Balance in Subsidiary Account = [$10,500 – $3,000 + $2,500)] Balance in Subsidiary Account = $5,000

Answer 2

Balance in control Account = [$10,500+ ($8,500 + $5, 250 + $6, 100) – ($6,000+ $2,500 + $6, 250) – $1,500] Balance in control Account = $10,500+($19, 850) -($14, 750) – $1,500] Balance in control Account = $14, 100

Answer 3

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

Answer 4

The Purchase return transaction will not be recorded.

Answer 5

The Purchase Return ($1,500) would not be recorded in the general journal.

In case of any doubt, please comment.