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APPENDIX I
Subsidiary Ledgers and Special Journals
ASSIGNMENT CLASSIFICATION TABLE
Learning Objectives
Questions
Brief
Exercises
Do It!
Exercises
A
Problems
B
Problems
1. Describe the nature and
purpose of a subsidiary
ledger.
1, 2, 5,
7,12
1, 2
1
1, 2, 3, 4,
5, 6, 7, 9,
11, 12
1A, 2A, 3A,
4A, 5A, 6A
1B, 2B, 3B,
4B, 5B
2. Explain how companies
use special journals in
journalizing.
3, 4, 6,
7, 8, 9,
10, 13
3, 4,
5, 6
2
6, 7, 8,
10, 12
1A, 2A, 3A,
4A, 5A, 6A
1B, 2B, 3B,
4B, 5B
3. Indicate how companies
post a multi-column
journal.
8, 11
7
1, 3, 9, 11,
13, 14
1A, 2A, 3A,
4A, 5A, 6A
1B, 2B, 3B,
4B, 5B
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Number
Description
Difficulty
Level
Time
Allotted (min.)
1A
Journalize transactions in cash receipts journal;
post to control account and subsidiary ledger.
Simple
30–40
2A
Journalize transactions in cash payments journal;
post to control account and subsidiary ledgers.
Simple
30–40
3A
Journalize transactions in multi-column purchases
journal; post to the general and subsidiary ledgers.
Moderate
40–50
4A
Journalize transactions in special journals.
Moderate
50–60
5A
Journalize in sales and cash receipts journals; post;
prepare a trial balance; prove control to subsidiary;
prepare adjusting entries; prepare an adjusted
trial balance.
Moderate
60–70
6A
Journalize in special journals; post; prepare
a trial balance.
Complex
60–70
1B
Journalize transactions in cash receipts journal;
post to control account and subsidiary ledger.
Simple
30–40
2B
Journalize transactions in cash payments journal;
post to the general and subsidiary ledgers.
Simple
30–40
3B
Journalize transactions in multi-column purchases
journal; post to the general and subsidiary ledgers.
Moderate
40–50
4B
Journalize transactions in special journals.
Moderate
50–60
5B
Journalize in purchases and cash payments journals; post;
prepare a trial balance; prove control to subsidiary;
prepare adjusting entries; prepare an adjusted trial
balance.
Moderate
60–70
BLOOM’S TAXONOMY TABLE
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) I-3
Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-Chapter Exercises and Problems
Learning Objective
Knowledge
Comprehension
Application
Analysis
Synthesis
Evaluation
1. Describe the nature and purpose
of a subsidiary ledger.
QI-1
QI-2
QI-5
QI-12
BEI-1
BEI-2
EI-2
EI-11
DII-1
EI-1
EI-3
EI-4
EI-5
EI-6
EI-7
EI-9
EI-11
EI-12
PI-1A
PI-2A
PI-3A
PI-4A
PI-5A
PI-6A
PI-1B
PI-2B
PI-3B
PI-4B
PI-5B
QI-7
2. Explain how companies use
special journals in journalizing.
QI-3
QI-4
QI-6
QI-8
QI-9
QI-10
QI-13
BEI-3
BEI-4
BEI-5
BEI-6
DII-2
EI-8
EI-10
EI-6
EI-7
EI-10
EI-12
PI-1A
PI-2A
PI-3A
PI-4A
PI-5A
PI-6A
PI-1B
PI-2B
PI-3B
PI-4B
PI-5B
QI-7
3. Indicate how companies post
a multi-column journal.
QI-8
QI-11
BEI-7
EI-11
EI-1
EI-3
EI-9
EI-13
EI-14
PI-1A
PI-2A
PI-3A
PI-4A
PI-5A
PI-6A
PI-1B
PI-2B
PI-3B
PI-4B
PI-5B
Broadening Your Perspective
Real-World Focus
Financial Reporting
(Mini Practice Set)
Decision Making
Across the
Organization
Communication
Ethics Case
ANSWERS TO QUESTIONS
1. A subsidiary ledger is a group of accounts with a common characteristic. The accounts are assembled
Permit transactions affecting a single customer or single creditor to be shown in a single
account, thus providing necessary up-to-date information on specific account balances.
and thousands of individual account balances.
Assist in locating errors in individual accounts by reducing the number of accounts in one ledger
and by using control accounts.
2. (a) (1) Transactions to individual accounts are generally posted daily to the subsidiary ledger.
A subsidiary ledger is an addition to, and an expansion of, the general ledger.
3. Sales journal. Records entries for all sales of merchandise on account.
Cash receipts journal. Records entries for all cash received by the business.
Some advantages of each journal are given below:
employees.
Cash receipts journal. (1) Its use aids in the posting process since the totals for Cash, Sales
Discounts, Accounts Receivable, and Sales Revenue are all recorded in the general ledger
the appropriate subsidiary ledger accounts daily.
Purchases journal. The advantages are similar to those of the sales journal except that
items involved are Inventory debits and Accounts Payable credits.
involved are different.
In general, special journals: (1) allow greater division of labor because various individuals can
4. The entry for the sales return should be recorded in the general journal. Since Burguet Company
Questions Appendix I (Continued)
5. At the end of the month, after all postings to both the general ledger and the subsidiary accounts
than the total of the subsidiary accounts.
6. The purpose of special journals is to facilitate the recording process of the business entity. Therefore,
frequency of the transaction implies no need for an Accounts Receivable column in the cash
receipts journal.
7. (a) No, the customers’ ledger will not agree with the Accounts Receivable control account. The
be incorrect.
(b) The trial balance will balance, although Cash will be $4,000 too high and Accounts Receivable
$4,000 too low.
8. The special journal is the sales journal. The other account is Sales Revenue. (The cash receipts
general ledger accounts.)
9. (a) General journal. (d) Sales journal.
(b) General journal. (e) Cash receipts journal.
(c) Cash receipts journal. (f) General journal.
10. (a) Cash receipts journal. (d) Purchases journal.
(b) Cash receipts journal. (e) General journal.
(c) General journal. (f) Cash payments journal.
11. Typically included would be credit purchases of equipment, office supplies, and store supplies.
“other” column.
12. One such example is a purchase return. Here the Accounts Payable control and subsidiary account
should prove to the control account balance.
13. The general journal may be used to record such transactions as the granting of credit to a
customer for a sales return or allowance, the receipt of credit from a supplier for purchases
returned, acceptance of a note receivable from a customer, or the purchase of a plant asset by
issuing a note payable. In addition, all correcting, adjusting, and closing entries should be made
in the general journal.
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE I-1
Accounts Receivable Subsidiary Ledger
General Ledger
Adcock Co.
Accounts Receivable
Date
Ref.
Debit
Credit
Balance
Date
Ref.
Debit
Credit
Balance
Jan. 7
17
10,000
7,000
10,000
3,000
Jan. 31
31
26,000
22,000
26,000
4,000
Cruz Co.
Date
Ref.
Debit
Credit
Balance
Jan. 15
24
7,000
6,000
7,000
1,000
BRIEF EXERCISE I-5
(a). General Journal (if a one-column Purchases Journal)
BRIEF EXERCISE I-6
BRIEF EXERCISE I-7
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! I-1
Subsidiary balances:
Haley Company $3,300 ($9,000 – $5,700)
General ledger Accounts Payable balance: $5,600 ($3300 + $2,300)
DO IT! I-2
SOLUTIONS TO EXERCISES
EXERCISE I-1
(a) $344,400. Beginning balance of $314,000 plus $161,400 debit from sales
Receivable account in the general ledger.
(d) The accounts receivable column total of $131,000 in the cash receipts
EXERCISE I-2
To: Erica Grier, Chief Financial Officer
From: Student
Subject: Martha Nott account
The explanation of the three entries in the subsidiary ledger for the Martha
Nott account is as follows:
If I can be of further help, please let me know.
EXERCISE I-3
(a) & (b) General Ledger
Accounts Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
Balance
S
CR
G
4,650
7,030
185
10,960
15,610
8,580
8,395
Accounts Receivable Subsidiary Ledger
Baez
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
Balance
S
CR
1,260
1,310
2,060
3,320
2,010
Dey
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
Balance
S
CR
G
800
2,300
185
4,820
5,620
3,320
3,135
Guy
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
S
CR
1,330
380
0
1,330
950
Milo
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
Balance
CR
1,800
2,640
840
EXERCISE I-3 (Continued)
Zeyen
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
Balance
S
CR
1,260
1,240
1,440
2,700
1,460
(c) STARK COMPANY
Schedule of Customers
As of September 30, 2015
EXERCISE I-4
(a) $3,700 [$10,200 – ($4,000 + $2,500).
(d) The sales return ($3,000) would be recorded in the general journal.
EXERCISE I-5
