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