Accounting: Situation 3

Chapter 12

1: Explain what a subsidiary ledger is and list the ones that we will be using as we post transactions from the journal to the ledgers?A subsidaiary is a ledger that is summarized in a single general ledger account.Accounts payable ledger and accounts receivable ledger.

2: Explain what a controlling account is and list the ones we will be using?A controlling account is an account in a general ledger that summarizes all accounts in a subsidiary.Schedule of accounts payable and schedule of accounts receivable.

3:Explain where controlling accounts are maintained?in the Subsidairy ledger

4:What is the relationship between a controlling account and a subsidairy ledger?Controlling account equals the total of all account balances in its ralated subsidiary ledger.

5: Identify in writing the two schedules that we will prepare?Schedule of accounts payable and schedule of accounts receivable.

6: List the rules for posting a journal’s column totals?General amount columns are not posted. Special amount columns are posted

7: Explain why the 3-column account form used in an accounts receivable ledger has a debit balance column?they are assets

8: What is the title of the balance amount column of the accounts payable ledger form and why is that title used?Credit because it is a liability

9: List the steps for starting a new page in the accounts payable ledger?1:Write the vendor mane on the Vendor line2: Write the vendor # in the Vendor No. line3: Write the date on the date column4: Write the word balance in the Item column5: Put a check mark in the Post. Ref. column6: Write the balance in the proper column.

10: List the steps for posting to the accounts receivable ledger?1:Write the date in the Date column2: Write the journal page # in the Post. Ref. column3: Write the amount in the proper column4: Add the amount in the debit/credit column to the previous debit/credit column and write the new amount in the debit/credit balance column5: Write the customer # in the Post. Ref. column of the journal.

Friday, November 16, 2007

Situation 3

Situation:
LynnetteTillar and Bob Rebold are co-workers and good friends. Their supervisor,George Parton, has previously reprimanded them for spending too much time chatting on the phone and visiting. George has decided to access their e-mail to see if they are wasting company time with personal online communications as well.

We determined that George Parton was following business ethics because...

George can go through other peoples e-mail account in his business.
Personal e-mail accounts don't have anything to do with the company so Lynnette and Bob should not be on it.
Lynnette and Bob have the right to talk to each other whenever they want as long as they are doing all their work.

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Chapter 12

Friday, November 16, 2007

Situation 3

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