Subsidiary Ledger & Controlling Accounts
What are goods that a business purchase to sell is called?
What is Merchandise
What is an inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise is called?
What is Perpetual Inventory?
What is the vendor number written in the post ref column of the purchases journal?
What is an audit trail to the account where the transaction was posted?
What is a Cash Payment Journal?
What is a cash payments journal is a special journal used to record only cash payment transactions?
What is a credit limit?
What is the maximum outstanding balance allowed to customers by a vendor?
What is a legal document that identifies the basic characteristics of a corporation, is part of the application submitted to a state to become a corporation?
What is the Article of Incorporation?
What is a merchandise inventory evaluated at the end of a fiscal period is called?
What is Periodic Inventory?
What should a business frequently post from the purchases journal to the account payable ledger?
What is frequently posting to the accounts payable ledger helps ensure that vendor accounts are paid on time and that the business can continue purchasing goods and services on account.
What is a trade discount?
What is a trade discount, a reduction in the list price granted to a merchandising business?
What are the five steps to posting the general amount columns of a cash payments journal to general ledger?
What are the five steps to posting the general amount columns of a cash payments journal to general ledger?
1) Write the date in the date column of the account
2) Write the journal page number in the post ref. a column of the account
3) Write the debt amount in the account's debt column
4) Add the amount in the debit column to the previous balance in the balance debit column
5) Write the general ledger account number in the post ref column of the cash payment journal.
What account in a general ledger that summarizes accounts in a subsidiary ledger is called?
What are Controlling Accounts?
What is the difference between a periodic inventory system and a perpetual inventory system?
What is the periodic inventory system, the value of the inventory determined by a physical count? With a perpetual inventory system, the value of the inventory on hand is determined by a continuous record of increases and decreases?
What the five steps to posting the total of a purchases journal to the general ledger accounts?
What are the
1) Write the date in the date column
2) What the purchases journal page number in the post ref number column of the accounts
3) For each account write the purchases journal total in the debit or credit column
4) For each account, calculate and write the new account balance in the balance debit or credit column
5) Return to the purchases journal and write the purchases general ledger account number and the accounts payable general ledger account number
What is a cash discount?
What is a cash discount is a deduction that a vendor allows on an invoice amount to encourage prompt payment?
What is the schedule of accounts payable?
What is the schedule of accounts payable?
A listing of vendor accounts, account balances and the total amount due to all vendors is called schedule of accounts payable?
What are the six steps in starting a New Page in a Subsidiary Ledger?
What are the following
1 Write the account name
2 Write the account number
3 Write the date
4 Write the word balance in the item column
5. Place a mark in the Post Ref column to show that the amount has been carried over
6. Write the balance in the credit balance column
What information is contained on a purchase invoice?
What are the vendor name, address, the date, the quantity, description, and price of each item, and the total amount of the purchase?.
What are the six steps to totaling and Ruling a purchase journal?
What are the following:
1) Rule a single line across the amount column under the last entry
2) Write the date in the date column
3) Write the word in the account credited column
4) Add the amount column. Verify the total by re-adding the column in reverse order
5) Write the total directly below the single line in the amount column
6 Rule double lines across the amount column directly below the total amount to show that the total has been verified as correct
What are the six steps to journalizing a cash payment on account with purchases discount?
What are the six steps journalizing a cash payment on account with purchases discount?
1) Write the date in the date column
2) Write the account title of the vendor in the account title column
3) Write the check number in the ck. No. column
4) Write the debit amount to account payable in the account payable column
5) Write the credit amount in the purchases discount credit column
6) Write the credit amount in the Cash credit column
What is the relationship between a controlling account and a subsidiary ledger?
What is the primary difference between retail and wholesale merchandising business?
What is a retail merchandising business sells to those who use or consume the goods? A wholesale merchandising business buys and resells merchandise primarily to other merchandising businesses?
What are special amount columns used a journal?
What is the special amount column is used for frequently occurring transactions?
What are the five steps posting from a purchases journal to an accounts payable ledger?
What are the five steps of posting a purchases journal to an accounts payable ledger?
1) Write the Date
2) Write the Journal page number
3) Write the credit amount in the credit column of the vendor account
4) Add the amount in the credit column to the previous balance in the credit balance column
5) Write the vendor number in the Post Ref. Column
What is the net price of an item with a $1,200 list price having a 60% trade discount?
What is the column in which the cash payments journal are the amounts that post individually to the accounts payable ledger?
What is the accounts payable debit?