Reference no: EM13667

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?