Maldanado Company Has a Balance in Its Accounts Payable Control

question 72

Essay

Maldanado Company has a balance in its Accounts Payable control account of $10,500 on January 1, 2020. The subsidiary ledger contains three accounts: Smith Company, balance $3,000; White Company, balance $2,500 and Marino Company. During January, the following payable-related transactions occurred. Instructions
(a) What is the January 1 balance in the Marino Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?

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Definitions:

Modified Rebuy

A buying situation where an organization makes changes to its previous purchase orders, involving modifications in product specifications, prices, or suppliers.

New Buy

A purchasing situation in which a buyer purchases a product or service for the first time, presenting a significant decision-making process.

Buying Center

A group of individuals within an organization who are responsible for making decisions about significant purchases, evaluating options based on the company's needs.

Premanufacturing Tests

Assessments and evaluations conducted before mass production to ensure product quality and safety.