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27 May, 20:08

Kieschnick Company has a balance in its Accounts Receivable control account of $10,500 on January 1, 2017.

The subsidiary ledger contains three accounts: Bixler Company, balance $3,800; Cuddyer Company, balance $3,000; and Freeze Company.

During January, the following receivable-related transactions occurred. Credit Sales Collections ReturnsBixler Company $9,200 $8,100 $0Cuddyer Company 7,000 2,500 2,800Freeze Company 8,200 9,200 0

What is the January 1 balance in the Freeze Company 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. Which January transaction would not be recorded in a special journal?

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  1. 27 May, 21:12
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    What is the January 1 balance in the Freeze Company subsidiary account?

    $3,700

    Freeze = $10,500 - $3,800 - $3,000 = $3,700

    What is the January 31 balance in the control account?

    $15,100

    Control Account January 1 Balance

    $10,500

    Total Sales

    $24,400

    Collections

    -$19,800

    Balance on January 31

    $15,100

    Which January transaction would not be recorded in a special journal?

    Returns of Cuddyer Company by $2,800

    Explanation:

    What is the January 1 balance in the Freeze Company subsidiary account?

    Company

    Bixler Cuddyer Freeze Kieschnick

    $3,800 $3,000 $3,700 $10,500

    To know the Freeze balance we have to take the total balance on accounts receivable in the control company and deduct the balance of Bixler and Cuddyer

    Freeze = $10,500 - $3,800 - $3,000 = $3,700

    What is the January 31 balance in the control account?

    Company

    Bixler Cuddyer Freeze Kieschnick

    $3,800 $3,000 $3,700 $10,500 January 1

    $9,200 $7,000 $8,200 $24,400 Sales

    -$8,100 - $2,500 - $9,200 - $19,800 Collections

    $4,900 $7,500 $2,700 $15,100 January 31

    To calculate the balance in the control account at January 31, it's necessary to calculate the balance of each subsidiary, then add each balance to report the balance in the control account.

    Control Account January 1 Balance

    $10,500

    Total Sales

    $24,400

    Collections

    -$19,800

    Balance on January 31

    $15,100

    Which January transaction would not be recorded in a special journal?

    Returns of Cuddyer Company by $2,800

    This transaction wont be recorded because Sales are expressed net of discount and Returns, so it's not necessary to deduct again this value of sales.
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