Prepare a financial statement worksheet.
Describe the advantages of using subsidiary ledgers and special journals.
The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are as follows.
BRISCOE COMPANY
Worksheet
For the Month Ended June 30, 2008
Trial Balance
Account Titles Dr. Cr.
Cash $ 2,320
Accounts Receivable 2,440
Supplies 1,880
Accounts Payable $1,120
Unearned Revenue 240
Common Stock 3,600
Service Revenue 2,400
Salaries Expense 560
Miscellaneous Expense 160
$7,360 $7,360
Other data:
1. A physical count reveals $300 of supplies on hand.
2. $100 of the unearned revenue is still unearned at month-end.
3. Accrued salaries are $280.
- What are the advantages of the four different special journals? When would you use each type?
- What is a subsidiary ledger and what purpose does it serve?
- What is a control account and what purpose does it serve?
- Which two general ledger accounts may act as control accounts for a subsidiary ledger?
- What are the advantages of using subsidiary ledgers?