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. To record: The purchase transactions in the PS Incorporation during the month of June.

Question

Nimbus Financial Services expects its accountants to work 30,000 direct labor hours per year. The company's estimated total indirect costs are $275,000. The direct labor rate is $80 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Nimbus performs a job requiring 25 hours of direct labor, what is the total job cost? Answer

Answer 1

Question

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

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Nimbus Financial Services expects its accountants to work 30,000 direct labor hours per year. The company's estimated total indirect costs are $275,000. The direct labor rate is $80 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Nimbus performs a job requiring 25 hours of direct labor, what is the total job cost? Answer

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Nimbus Financial Services expects its accountants to work 30,000 direct labor hours per year. The company's estimated total indirect costs are $275,000. The direct labor rate is $80 per hour. The company uses direct labor hours as the allocation base for indirect costs. If Nimbus performs a job requiring 25 hours of direct labor, what is the total job cost? solve this

Answer 2

Question

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

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Answer 3

Question

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Answer 6

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

Answer 7

Chapter 5, Problem 5.14EX

(a)

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.

To record: The purchase transactions in the PS Incorporation during the month of June.

Answer 8

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

Answer 9

(b)

To determine

To describe: The total amount posted to the accounts payable, and office supplies accounts.

Answer 10

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Answer 11

(c)

To determine

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Answer 12

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Ch. 5 - Why would a company maintain separate accounts...Ch. 5 - What are the major advantages of the use of...Ch. 5 - Prob. 3DQ Ch. 5 - How many postings to Fees Earned for the month...Ch. 5 - During the current month, the following errors...Ch. 5 - Prob. 6DQ Ch. 5 - What is an electronic form, and how is it used in...Ch. 5 - Prob. 8DQ Ch. 5 - What happens to the special journal in a...Ch. 5 - Prob. 10DQ

Solution Summary: The author explains that the purchase journal is used to record all purchases on account. The total amount posted to the accounts payable, and office supplies accounts are identified.

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To describe: The total amount posted to the accounts payable, and office supplies accounts.

To describe: The June 30 balances of the O U Incorporation creditor account, and assume that the opening balance is zero.

Chapter 5 Solutions