Subsidiary Ledgers Listed Below Are Several Merchandising Transactions of Siegel's Garden Center,a

question 38

Essay

Subsidiary ledgers
Listed below are several merchandising transactions of Siegel's Garden Center,a garden supply store.
(a)Purchased merchandise from Bayview Wholesale on account.
(b)Sold merchandise for cash.
(c)Sold merchandise on account to Dom's Landscaping Co.
(d)Paid the account payable to Bayview Wholesale.
(e)Collected the account receivable from Dom's Landscaping Co.
Among the accounting records maintained by Siegel's are subsidiary ledgers for inventory,accounts receivable,and accounts payable.
For each of the five transactions,you are to indicate any subsidiary ledger (or ledgers)to which the transaction would be posted.Use the code:
Inv = Inventory subsidiary ledger
AR = Accounts receivable subsidiary ledger
AP = Accounts payable subsidiary ledger
Also indicate whether each posting causes the balance in the subsidiary ledger account to increase or decrease.Organize your answer in tabular form as illustrated below.The answer for transaction a is provided as an example.

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Definitions:

Local Taxes

Taxes imposed by local governments such as cities and municipalities, which can include property taxes, sales taxes, and income taxes.

Net Pay

The amount of salary or wages that is left after all deductions, such as taxes and social security contributions, have been subtracted.

Paycheck Amount

is the sum of money an employee receives from their employer as a result of their work, usually outlined on a paycheck.

W-2 Form

An official tax document used in the United States that reports an employee's annual wages and the amount of taxes withheld from their paycheck.