Answer:
- 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.
