Question

question 4

Able Fastners Co. has a balance in its Accounts Receivable general ledger control account of S 10,000 on January 1, 2019. The subsidiary ledger contains three vendor nts: Jones Company, balance of s 3,000; Keller Company, balance of $ 1,000, arson Company. The combined subsidiary ledger account balances of Jones 4 Com om,Keller Company, and Larson Company at January 1, 2019 agree to the Accounts unts receivable general ledger control account balance at such date. During January 2019, the following accounts receivable related transactions occurred. Payments Rec'd From turns Sales to None Jones Company $ 6,000 $7,000 None Keller Company 2,000 5,000 Larson Company 2,000 S 2,000 7.000 s 15,000 5,000 $17,000 What is the balance in the Accounts receivable subsidiary ledger account, LARSON, at January 31, 2019? a) S 3,000 b) 2,000 c) 1,000 d) AS 17,000 5. From the attached Worksheet for Franklin Engineering Service Co., prepare the Closing entry to close R [ REVENUES ] for the period. Debit Credit: Credit:

Answer 1

Solution In the given lem, following relevant information is Balance under Accounts Receivable control account as at Jan. 01, 2019 $10,000 No. of accounts under subsidiary ledgers $3,000 $1,000 $6,000 Jones Company's Balance as at Jan. 01, 2019 Keller Company's Balance as at Jan. 01, 2019 Larson Company's Balance as at Jan. 01, 2019 ($10,000 - $3,000 $1,000) Requirement 1: What is the balance in the Accounts receivable subsidiary ledger account, LARSON, at January 31,2019 Accounts Subsidiary ledgers Receivable Particulars Larson Control Jones Company Keller Company Company Account $1,000 $6,000 Balance as at Jan. 01, 2019 $3,000 $10,000 Sales $7,000 $5,000 $5,000 $17,000 ($6,000) ($2,000) ($7,000) ($15,000) Less: Payment received S0 S0 ($2,000) ($2,000) Less: Returns $4,000 $4,000 $2,000 Balance as at Jan. 31, 2019 $10,000 nce b) $2,000