Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions. Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal. Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period. General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital. Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit. 1. To Compute: The total of each column of the given purchases journal.

Question

Nashville Company reported the cost of goods sold of $750,000 last year and $780,000 this year. Nashville also reported accounts payable of $270,000 last year and $260,000 this year. Compute this year's accounts payable turnover ratio for Nashville. Help me with this

Answer 1

Question

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

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Nashville Company reported the cost of goods sold of $750,000 last year and $780,000 this year. Nashville also reported accounts payable of $270,000 last year and $260,000 this year. Compute this year's accounts payable turnover ratio for Nashville. Help me with this

The Palmer School of Business operates a transportation service, solely for the purpose of providing commuting services to off-campus students. You have been hired as accounting students to analyze the cost of providing the transportation services and to develop a cost function which describes the behaviour of the related costs. The schools' administration has assembled the data for a twelve-month period pertaining to the monthly total costs of providing the service and the corresponding number of students who used the transportation system each month. You were recently taught how to use the Excel graphing tool, and a member of the team successfully generated the scattergram given below from the data set provided. Total Transportation Costs PALMER SCHOOL OF BUSINESS SCATTER DIAGRAM 300,000 250,000 200,000 130,000 100,000 50,000 500 1,000 1,500 # of Students Line of Best Fit 2,000 2,500 3,000 The other team members are now tasked to use the graph to provide the administrators with a…

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Answer 2

Question

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

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Answer 3

Question

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

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Answer 4

Question

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Answer 6

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

Answer 7

Chapter 7, Problem E7.21E

To determine

Purchases Journal: A Purchases Journal is a special journal that records all the credit purchases made from the suppliers. It includes columns of date of transaction, invoice no., supplier name (i.e. from whom purchased), posting reference which is denoted as ‘Post. Ref.’ (that contains the account number of account found in the ledger), and separate columns for the accounts (containing debit or credit amount) that are affected by credit purchase transactions.

Four-Column Accounts: A four-column account includes columns of date, item, debit (amount) and credit (amount). It also includes posting reference (denoted as ‘Post. Ref.’) and two additional columns of debit balance and credit balance to record the balance after each posting of transaction. The posting reference in a ledger account contains the source journal like GJ for General Journal and sometimes also the page number of the journal.

Ledger: A ledger is a book of account that is used to record transactions in particular accounts. The transactions occurring in an entity are first recorded in the journals and then they are posted to the respective ledger accounts in the particular Ledger for a particular period.

General Ledger: General Ledger is a book of account that contains five types of accounts, which are assets, liabilities, income, expenses and capital.

Accounts Payable Subsidiary Ledger: Accounts Payable Subsidiary Ledger is a book of account that contains the ledger accounts of various vendors from whom the goods or services are purchased on credit.

1.

To Compute: The total of each column of the given purchases journal.

Answer 8

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

Answer 9

To determine

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

Answer 10

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

Answer 11

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

Answer 12

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

Answer 13

To determine

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

Answer 14

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Answer 15

To determine

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Answer 16

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Ch. 7 - Which of the following benefits of an effective...Ch. 7 - Prob. 2QC Ch. 7 - Which of the following is not a special journal?...Ch. 7 - Mountain Day Spa sold merchandise inventory on...Ch. 7 - Prob. 5QC Ch. 7 - Centex Sound Systems purchased merchandise...Ch. 7 - Every transaction recorded in the cash payments...Ch. 7 - Prob. 8QC Ch. 7 - Which is a disadvantage of an enterprise resource...Ch. 7 - Prob. 1RQ

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2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Chapter 7 Solutions

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2. (i) To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

(ii) To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

3. (i) To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

(ii) To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.

Chapter 7 Solutions

2.

(i)

To Open: The four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120), Equipment (150), and Accounts Payable (211).

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the accounts.

3.

(i)

To Open: The four-column accounts in the accounts payable subsidiary ledger for Farrell Equipment, Jump Supply, and Last Tech.

(ii)

To Post: The transactions to these four-column ledger accounts from the purchases journal and using dates and posting references in the ledger accounts.