Chapter 3
In what order are transactions recorded in a journal?
Account/Transaction - Source Document - Debit Amount - Credit Amount
Receipt
a business form giving written acknowledgement for cash received
Check
a business form ordering a bank to pay cash from a bank account
Source Document
a business paper from which information is obtained for a journal entry
Invoice
a form describing the goods or services sold, the quantity, and the price
Journal
a form of recording transactions in chronological order
memorandum
a form on which a brief message is written describing a transaction
General Journal
a journal with two amount columns in which all kinds of entries
when supplies are bought on account, which account is listed on the second line?
accounts payable
Sales Invoice
an invoice used as a source document for recording a sale on a sale
when cash is paid on account, which account is listed on the second line of the entry?
c
when cash is paid on account, which account is listed on the second line of the entry?
cash
when cash is received from sales, which account is listed on the first line of the entry?
cash
in what order are transaction recorded in a journal?
chronological order
List the four parts of a journal.
date debit credit source document
Entry
information for each transactions recorded in a journl
when cash is paid for insurance, which account is listed on the first time line of the entry?
on accounting general
When cash is received on account, what abbreviation is used for the source document?
r
Journalizing
recording transactions in a journal
when cash is received from sales, which account is listed on the second line of the entry?
sales
when supplies are bought on account, which account is listed on the second line of the entry?
sales
when supplies are brought on account, which account is listed on the first line of entry?
supplies
Double Entry Accounting
the recording of debit and credit parts of a transaction
Why are source documents important?
to keep track of a document that has been recorded