E7-5 Pennington Company has a balance in i $9,250 on January 1, 2017. The subsid
ID: 2524032 • Letter: E
Question
E7-5 Pennington Company has a balance in i $9,250 on January 1, 2017. The subsidiary ledger contains three accounts: Hale Company balance $3,000; Janish Company, balance $1,875; and Valdez Company. During January, the following payable-related transactions occurred ts Accounts Payable control account Returns Purchases $6,750 5,250 6,375 Payments $6,000 1,875 6,750 Hale Company Janish Company Valdez Company $-0- 2,250 Instructions (a) What is the January 1 balance in the Valdez Company subsidiary account? (b) What is the January 31 balance in the control account? (c) Compute the balances in the subsidiary accounts at the end of the month. (d) Which January transaction would not be recorded in a special journal? E7-6 Gomes Company uses special journals and a general journal. The following transac- tions occurred during September 2017. Sold merchandise on account to H. Drew, invoice no. 101, $620, terms n/30. The cost of the merchandise sold was $420 Purchased merchandise on account from A. Pagan $650, terms 2/10, n/30. Sept. 2 10 12 Purchased office equipment on account from R. Cairo $6,500. 21 Sold merchandise on account to G. Holliday, invoice no. 102 for $800, terms 2/10, n/30. The cost of the merchandise sold was $480 Purchased merchandise on account from D. Downs $860, terms n/30. Sold merchandise to S. Miller for $700 cash. The cost of the merchandise sold was $400. 25 27 Instructions (a) Prepare a sales journal (see Ilustration 7-7) and a single-column purchases journal (see Ilustration 7-13). (Use page 1 for each journal.) b) Record the transaction(s) for September that should be journalized in the sales journal and the purchases journal.Explanation / Answer
7-5.
a. January 1 balance of Vadez Company $4,375
Working:
b. January 31 balance in contro account $10,750.
Working:
c.
Working:
d. The return of goods would not be recorded in special journal.
7-6.
Control a/c Balance on January 1 9250 Less: Balance of Hale Company 3000 Balance in Janish Company 1875 4875 Balance in Valdez Company 4375Related Questions
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