Purchase journal Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account. General Ledger General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account. Subsidiary ledger Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger. To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
Purchase journal Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account. General Ledger General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account. Subsidiary ledger Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger. To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
Solution Summary: The author explains that purchase journal is used to record all purchases on account. General Ledger records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 5, Problem 5.11EX
To determine
Purchase journal
Purchase journal refers to the journal that is used to record all purchases on account. In the purchase journal, all purchase transactions are recorded only when the business purchased the goods on account. For example, the business purchased cleaning supplies on account.
General Ledger
General ledger refers to the ledger that records all the transactions of the business related to the company’s assets, liabilities, owners’ equities, revenues and expenses. Each subsidiary ledger is represented in the general ledger by summarizing the account.
Subsidiary ledger
Subsidiary ledger refers to the ledger that provides the detailed information of the account already recorded in the general ledger such as accounts receivable subsidiary ledger and accounts payable subsidiary ledger.
To identify: The postings to be done in (1) General ledger accounts or (2) Subsidiary ledger accounts or (3) No posting is required.
What is the capital gains yield ? General accounting question
At year-end, BlueWave Corp. has cash of $15,000, current accounts receivable of
$75,000, merchandise inventory of $50,000, and prepaid expenses totaling $8,000.
Liabilities of $35,000 must be paid next year. Assume accounts receivable had a
beginning balance of $25,000, and net credit sales for the current year totaled
$3,000,000.
How many days did it take BlueWave Corp. to collect its average level of receivables?
(Assume 365 days/year.)
How much are total overhead costs at this level of activity of this general accounting question?
Chapter 5 Solutions
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