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Posting from Special Journals a. When are purchases transactions posted to the accounts

Accounting: First Year Course | 1st Edition | ISBN: 9780078688294 | Authors: Glencoe ISBN: 9780078688294 416

Solution for problem 4 Chapter 17

Accounting: First Year Course | 1st Edition

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Accounting: First Year Course | 1st Edition | ISBN: 9780078688294 | Authors: Glencoe

Accounting: First Year Course | 1st Edition

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Problem 4

Posting from Special Journals a. When are purchases transactions posted to the accounts payable subsidiary ledger? Why? b. When are cash payments transactions posted to the accounts payable subsidiary ledger? Why?

Step-by-Step Solution:
Step 1 of 3

When you buy inventory, it has no impact on your P&L, but it does have an impact on your balance sheet. When you buy inventory, CASH goes DOWN & INVENTORY goes UP. Accrual-Basis Accounting ● Transactions recorded in the periods in which the economic event occurs ● Revenues are recognized when earned, rather than when cash is received. ● Expenses are recognized when incurred, rather than when paid. Economic event (p. 27): An offer made, accepted, and fulfilled. Transactions may be external or internal. Not all activities represent transactions. Each transaction has a dual effect on the accounting equation. Cash in has to exceed cash out. You have to get enough cash from: 1. Selling stock 2. Borrowing 3. Operations As sales increase, so does Cash Shortfall. Bal

Step 2 of 3

Chapter 17, Problem 4 is Solved
Step 3 of 3

Textbook: Accounting: First Year Course
Edition: 1
Author: Glencoe
ISBN: 9780078688294

Since the solution to 4 from 17 chapter was answered, more than 230 students have viewed the full step-by-step answer. This full solution covers the following key subjects: . This expansive textbook survival guide covers 29 chapters, and 429 solutions. This textbook survival guide was created for the textbook: Accounting: First Year Course, edition: 1. Accounting: First Year Course was written by and is associated to the ISBN: 9780078688294. The answer to “Posting from Special Journals a. When are purchases transactions posted to the accounts payable subsidiary ledger? Why? b. When are cash payments transactions posted to the accounts payable subsidiary ledger? Why?” is broken down into a number of easy to follow steps, and 31 words. The full step-by-step solution to problem: 4 from chapter: 17 was answered by , our top Business solution expert on 03/14/18, 05:31PM.

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Posting from Special Journals a. When are purchases transactions posted to the accounts