Accounting Ch 3 Audits
Chronological order
In what order are transactions recorded in a journal?
1. Rule a single line across all amount columns directly below the last entry 2. On the next line, write the date 3. Write "Totals" in the account title 4. Write each column total below the single line 5. Rule double lines below the column totals across all amount columns
List the five steps to rule a journal at the end of the month.
Date, debit, credit, source document
List the four parts of a journal entry.
1. Add each of the amount columns 2. Add the debit column totals then the credit column totals 3. Verify that the total debits and credits are equal
List the three steps for proving a journal.
Cash on hand at the beginning of the month + Total cash received during the month = Totals Totals - Total cash paid during the month = Cash balance at the end of the month
State the formula for proving cash.
They prove that a transaction took place.
Why are source documents important?
