Accounting Chapter 17
cash payments journal
A special journal used for recording all cash paid out of the business
accounts payable subsidiary ledger
A( n ) __ is a separate ledger that contains accounts for all creditors.
cash payments journal
Purchased merchandise for cash
cash receipts journal
The ___ is a special journal used for recording all cash received by the business.
due date
The ____________ is the date by which an invoice must be paid.
accounts payable
___ is an account in the general ledger that controls the accounts payable subsidiary ledger
sales journal
a ___ is a special journal used for recording the sale of merchandise on account
controlling account
a ___ is an account in the general ledger that acts as a control on the accuracy of the accounts in the subsidiary ledger
true
a check mark is entered in parentheses below the double rule of the General Debit column of the purchases journal to indicate the column total is not posted
false
accounts in the accounts payable subsidiary ledger have normal debit balances
purchases debit
amount of debit when purchasing merchandise on account
Accounts Payable credit
amount of the credit in a purchases journal
false
amounts entered in the accounts payable debit column of the cash payments journal are posted at the end of the week
false
an invoice dated June 17 with terms 2/10, n/30 must be paid by July 17 to take advantage of the cash discount
false
because a bank service charge is automatically deducted from the checking account of a business, it is not necessary to record an entry in the ash payments journal
true
cash is usually proved at the end of the month
true
check stubs and the bank statement are the only two source documents used for recording transactions in the cash payments journal
true
every transaction recorded in the cash payments journal results in a credit to cash
false
individual amounts entered in the accounts payable credit column of the purchases journal are posted at the end of the month
accounts receivable
is an account in the general ledger that controls the accounts receivable
creditor's account credited
name of the creditor in the purchases journal
cash payments journal
paid insurance premiums for the next six months
cash payments journal
paid shipping charges for own merchandise purchased
cash payments journal
paid the monthly utility bill
purchases journal
purchased merchandise on account
cash payments journal
purchased office supplies for cash
false
purchases of items for cash are recorded in the purchases journal
purchases journal
purchases store equipment on account
cash payments journal
recorded bank service charge
cash payments journal
recorded bankcard fees for the month
cash payments journal
recorded payment of payroll
true
special journals should be footed before column totals are proved
schedule of accounts payable
the ___ is a list of all creditors in the accounts payable subsidiary ledger, the balance of each account, and the total owed to all creditors
accounts receivable subsidiary ledger
the ___ is a separate ledger that contains all charge customer accounts
purchases journal
the ___ is a special journal used for recording all purchases of assets on accounts
general journal
the ___ is an all-purpose journal used for recording transactions that do not fit into a special journal
true
the accounts payable controlling account is found in the general ledger
true
the general debit column of the purchases journal is used to record purchases of all items on account other than merchandise on account
proving cash
the process of determining whether the amount of cash recorded in the accounting records of a business agrees with the amount recorded in its checkbook is called ___
false
the purchases journal is used only for recording the purchase of merchandise on account
true
the purchases of merchandise on account are recorded in the Accounts Payable credit column and the Purchases debit column of the purchases journal
false
the schedule of accounts payable lists only creditor accounts showing a balance
false
the source document for recording a bank card fee is the check stub
true
the source document for recording info in the purchases journal is an invoice
true
the special column totals of special journals are always posted at the end of the month
true
the totals of the special amount columns of the cash payments journal are posted at the end of the month
true
transactions recorded in either the purchases or cash payments journals which affect accounts payable subsidiary ledger accounts should be posted on a daily basis, that is, as soon as the transaction is recorded
