Chapter 12 Assignment

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.
- Subsidiary Ledger: A Ledger that is summarized in a single general ledger account.
-Accounts Receivable Vendor's name and Accounts Payable Customer's name subidiary ledgers.

2.) Explain what a controlling account is list the ones that we will be using.
- Controlling accounts: Account in a general ledger that summarizes all accounts in a subsidiary ledger.
-Using Accounts Receivable and Accounts Payable.

3.) Explain where controlling accounts are maintained.
- Maintained in subidiary ledger.

4.) What is the relationship between a controlling account and a subsidiary ledger?
-The Subsidiary ledger has the names of all of the vendors/customers involved in the Accounts Payable and Accounts Receivable transactions. The Controlling accounts are the titles which include "Accounts Payable" and "Accounts Receivable".

5.) Identifly in writing the two schedules that we will perpare.
- Schedule of Accounts Receivable and Schedule of Accounts Payable.

6.) List the rules for posting a journal's column totals?
-General amount column totals ARE NOT posted.
-Special amount column totals ARE posted.

7.) Explain why the 3-column account form used in an accounts receivable ledger has a Debit Balacne column?
- The Accounts Receivable accounts have a normal balance on the debit side becasue they are assets. Assets have a normal debit balance.

8.) What is the title of the balance amount column of the accounts payable ledger form and why is that title used?
-The normal balance column has to be on the credit side, becuase of it being a liability.

9.) List the steps for starting a new page in the accounts payable ledger.
* Write the venders name
* Write the venders number
* Write the date
* Write the word Balance in the Item column
* Place a check mark in the Post. Ref. column to show that the amount has been carried forward for a previous page rather than posted from a journal
* Write the account balance

10.) List the steps for posting to the accounts receivable ledger.
* Write the date
* Write the journal page number
* Write the debit amount in the debit column of the account
* Add the amount in the debit column to the pervious balance in the debit balance. Then Write the new account balance in the debit column
* Write the customer number