Terms
A form for recording transactions in chronological order
Journal
A source document that provides proof of a cash payment
Check
Transactions must be recorded in a journal in this order
Chronological
Received cash from the owner, B. Smith, as an investment.
Debit - Cash
Credit, B. Smith, Capital
This famous kite flyer is credited with designing the first US penny.
Ben Franklin
Recording transactions in a journal
Journalizing
A form describing the goods or services sold, the quantity, and the price or a bill
Invoice
A complete journal entry consists of the debit and credit account names the debit amount, the credit amount, a source document and
Sold services on account to Mr. LaVine, $200.00
Debit - Accounts Receivable, Mr. LaVine
Credit - Sales
Steel
Information for each transaction recorded in a journal
A source document for cash received from transactions other that sales
Receipt
The Objective Evidence concept requires ________ that a transaction did occur.
Proof
Paid cash for an electric bill, $80.00.
Debit - Utilities Expense
Credit - Cash
Although referred to as a penny, it is not the official name of the coin. This is the official name.
Cent or one-cent-coin
A business paper from which information is obtained for a journal entry
Source Document
An invoice used as a source document for recording a sale on account
Sales Invoice
You need to draw a neat line through all parts of the incorrect entry and write the correct information above to do what
Correct an entry
Paid cash on account to Township Services, $50.00
Debit - Accounts Payable, Township Services
Credit - Cash
The name penny comes from this foreign country.
Great Britain
The recording of debit and credit parts of a transaction
Double-Entry Accounting
A form on which a brief message is written describing a transaction
Memorandum
A transaction recorded in a journal is a
Permanent Record
Owner, B. Smith, withdrew equity in the form of cash, $500.00.
Debit - B. Smith, Drawing
Credit - Cash
In this year, Lincoln first appeared on the penny.
1909