Key Terms
Recording transactions in a journal is
Journalizing
Transactions are recorded in _____________order.
chronological
A _______ is the source document for cash received from transactions other than sales.
Receipt (R )
To correct an error in a journal, one can simply erase the incorrect item and write the correct item. T/F
False
How many colors are traditionally in a rainbow?
Seven! 🌈
A business form ordering a bank to pay cash from a bank account.
Check
Source document used when "buying things on account."
Memorandum
The recording of debit and credit parts of a transaction.
Double-entry accounting
Analyze the txn.
1) Which account to Debit? Credit? 2) Source Doc?
Paid Cash for 1 month's rent.
Debit - Rent Expense; Credit- Cash (Check)
What has four legs but can’t walk?
A table!
Information for each transaction recorded in a journal is known as
Entry
An invoice used as a source document for recording a
sale on account.
Sales Invoice
Analyze the txn.
1) Which account to Debit? Credit? 2) Source Doc?
Received cash from owner as an investment
Debit Cash; Credit Owner's Capital (Receipt)
Analyze the txn.
1) Which account to Debit? Credit? 2) Source Doc?
Paid cash on account to S&D Supply
Debit - S&D Supply; Credit- Cash (Check)
Which bird is famous for not being able to fly but being an excellent swimmer?
A penguin! 🐧
A business paper from which information is obtained for a journal entry; proof that transaction occurred.
Source Document
A form describing the goods or services sold, the quantity, the price, and the terms of sale.
Invoice
Analyze the txn.
1) Which account to Debit? Credit? 2) Source Doc?
Bought supplies on account from Office Depot
Debit Supplies; Credit- A/P-Office Depot
Source Doc. - Memorandum
Analyze the txn.
1) Which account to Debit? Credit? 2) Source Doc?
Received Cash on Account from Boba Carlson
Debit- Cash; Credit- A/R-Boba Carlson (Receipt)
What do clouds wear under their clothes?
Thunderwear☁️😂
The __________ concept requires proof that a transaction did occur hence the requirement for __________.
Objective Evidence; Source documents
A transaction recorded in a journal is considered a __________ record.
Permanent
Analyze the 2 txns
Which account to Debit? Credit? 2) Source Doc?
1) Received Cash from Sales and
2) Sold Services on Account to Boba Carlson
1) Debit Cash; Credit Sales (Calculator Tape)
2) Debit A/R Boba C.; Credit Sales (Sales Inv.)
Analyze the 2 txns
Which account to Debit? Credit? 2) Source Doc?
1) Pay cash on account to Staples
2) Owner withdraws cash for personal use
1) Debit - A/R-Staples; Credit-Cash (Check)
2) Debit - Owner's Drawing; Credit Cash (Check)
What is the only continent with land in all four hemispheres?
Africa. 🌍