37 terms

Accounting Chapter 3

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Terms in this set (...)

Journal
A form for recording transactions in chronological order.
Journalizing
Recording transactions in a journal.
Special amount column
A journal amount column headed with an account title.
General amount column
A journal amount column that is not headed with an account title.
Entry
Information for each transaction recorded in a journal.
Double-entry accounting
The recording of debit and credit parts of a transaction.
Source document
A business paper from which information is obtained for a journal entry.
Check
A business from ordering a bank to pay cash from a bank account.
Invoice
A form describing the goods or services sold, the quantity, and the price.
Sales invoice
An invoice used as a source document for recording a sale on account.
Receipt
A business form giving written acknowledgment for cash received.
Memorandum
A form on which brief message is written describing a transaction.
In what order are transactions recorded in a journal?
Transactions are recorded in a journal by date.
Why are source documents important?
Source documents are important because they prove the transaction occurred.
List the four parts of a journal entry.
the four part of a journal entry are account title, general, sales credit, and cash .
Which journal columns are used to record paying cash for insurance?
The journal columns that are used for paying cash for insurance are cash which is credited and general which is debited.
Which journal columns are used to record buying supplies on account?
The journal columns that are used when buying supplies on account are general which is both debited and credited.
Which journal columns are used to record paying cash on account?
The journal columns that are used when paying cash on account are cash which is credited and general which is debited.
Which journal columns are used to record receiving cash from sales?
Th journal columns that are used to record receiving cash from sales are cash which is debited and sales credit which is credited.
Which journal columns are used to record sales on account?
The journal columns that are used to record sale on account are general which is debited and sales credit which is credited.
Which journal columns are used to record paying cash for an expense?
The journal columns that are used when paying cash fro an expense are general which is debited and cash which is credited.
Which journal columns are used to record receiving cash on account?
The journal columns that are used when receiving cash on account are general which is credited and cash which is debited.
Which journal column are used to record paying cash to owner for personal use?
The journal columns used when paying cash to owner for personal use are general which is debited and cash which is credited.
Proving cash
Determining that the amount of cash agrees with the accounting records.
List the three steps for proving a journal.
1.) Add each of the amount columns
2.) Add the debit and credit columns total
3.)Verify that the total total debits and credit equal.
Sate the formula for proving cash.
take all the column amounts so general, sales, and cash both the debit and credit side and add them all up together the credits and debits side should equal in the end.
List the five steps to rule a journal at the end of a month.
1.) rule a signal line across all amount columns below last entry to show they will be added
2.)write the date 31st in the date column
3.)write the word total in the account title column
4.)write each column total below a single line
5.)Draw double lines below the column totals across all column amounts
Received cash for owner as an investment.
Cash gets debited and capital goes into general which gets credited
Paid cash for supplies.
cash is credited supplies is put into general and gets debited.
Paid cash for insurance.
Cash gets credited and insurance is put into general which is then debited.
Bought supplies on account from accounts payable.
both supplies and accounts payable are put into general under the account title in separate boxes supplies is debited and AC is credited.
Paid cash on account.
cash gets credited while accounts payable is put in general and is debited.
Received cash from sales.
cash gets debited while the sale entry goes under sales credit and gets credited.
Sold services on account.
Accounts receivable is under general and gets debited while sales credit gets credited.
Paid cash for rent
rent expense goes under general and gets debited while cash gets credited.
Received cash on account.
Accounts receivable gets credited under general while cash gets debited.
Paid cash to owner for personal use.
drawing goes under general which is debited while cash gets credited.
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