Accounting Chapter 3

The entry to record payment of cash to the owner as withdrawal of equity is

A business form giving written acknowledge for cash received

The source document for all cash payments is a check

A transaction recorded in a journal is not considered a permanent record

In double entry accounting, each transaction affects at least two accounts

A receipt is the source document for cash received from transactions other than sales

Recording transactions in a journal

Journal columns to record receiving cash as investment from owner is CASH DEBIT & SALES CREDIT

Received cash from an owner as an investment

Paid cash to owner for personal use

To correct an error in the journal, simply erase the incorrect item and write the correct one

Determining that the amount of cash agrees with the accounting records

Double lines are ruled across journal amount columns to indicate that the totals are correct

Bought supplies on account

Received cash from sales

On each journal page, the date is written

The recording of debit and credit parts of a transaction

A business form ordering a bank to pay cash from a bank account

A form describing the goods or services sold, the quantity, the price and terms of sale

When cash is received rom sales the amount is recorded in

when cash is paid for rent

A business paper from which information is obtained for a journal entry

When services are sold on account the amount is recorded in

Received cash from sales

Cash is always proved at the end of the month

Complete journal entry has date, debit amount, credit amount and source document

A single line ruled across the journal's amount columns indicates

When cash is paid on account, the amount is recorded in

Information for each transaction recorded in a journal

A form for recording transactions in chronological order

When cash is received on account, the account is recorded in

A form on which a brief message is written to describe a transaction

Paid cash on account

Paid cash for heating bill

An invoice used as a source document for recording a sale on account

Paid cash for insurance

Transactions are recorded in a journal in chronological order

If an error is recorded in a journal entry

Every business uses the same journal to record transactions