Chapter 3
Source Document
A business paper from which information is obtained for a journal entry (ex: Check Stub)
Invoice
A form describing the goods or services sold, the quantity, the price, and the terms of sale (usually on sales on account) (like a bill) (you owe me money)
Journal
A form for recording transactions in chronological order
Memorandum
A form on which a brief message is written to describe a transaction
Benefits of journalizing
Accuracy Chronological record Double-entry accounting ● Information for each transaction recorded in a journal is called an entry. ● The recording of debit and credit parts of a transaction is called double-entry accounting.
Sales Invoice (sales ticket) (sales slip)
An invoice used as a source document for recording a sale on account
Receipt
A business form giving written acknowledgement for cash received (when you get the money right away)
Check
A business form ordering a bank to pay cash from a bank account (you spend money)
Proving Cash
Determining that the amount of cash agrees with the accounting records
Debit
In a journal if you utilize to lines does debit or credit go on top?
Calculator Tape
Mostly at retail stores where there are tons of sales daily. From a cash register. Journalized as one whole item, instead of individually.
Journalizing
Recording transactions in a journal