Chapter 3

Question 1

Journal

Answer 1

A form for recording transaction in chronological order

Question 2

Journalizing

Answer 2

Recording transactions in a journal

Question 3

Special Amount Column

Answer 3

A journal amount column headed with an account title

Question 4

General Amount Column

Answer 4

A journal amount column that is not headed with an account title

Question 5

Entry

Answer 5

Information for each transaction recorded in a journal

Question 6

Source Document

Answer 6

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

Question 7

Double-Entry Accounting

Answer 7

The recording of debit and credit parts of a transaction

Question 8

Concept: Objective Evidence

Answer 8

A source document is prepared for each transaction

Question 9

Check

Answer 9

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

Question 10

Invoice

Answer 10

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

Question 11

Sales Invoice/Sales Ticket/Sales Slip

Answer 11

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

Question 12

Receipt

Answer 12

A business form giving written acknowledgement for cash received

Question 13

Memorandum

Answer 13

A form on which a brief message is written describing a transaction

Question 14

Journalizing Steps

Answer 14

1) Date
2) Debit
3) Credit
4) Source Document

Question 15

Proving a Journal Page

Answer 15

1) Add each of the amount columns
2) Add the debit column totals, and then add the credit column totals
3) Verify that the total debits and total credits are equal. Because the total debits equal the total credits, page 1 of the journal is proved. If the total debits do not equal the total credits, the errors must be found and corrected before any more work is completed

Question 16

Ruling a Journal Page (1/2)

Answer 16

1) Rule a single line across all amount columns directly below the last entry to indicate that the columns are to be totaled
2) On the next line, write the date in the date column
3) Write Carried Forward in the account title column. Place a check mark in the post. ref. column.

Question 17

Ruling a Journal Page (2/2)

Answer 17

4) Write each column total below the single line
5) Rule double lines below the column totals across all amount columns. A double rule in a journal indicates that the amounts are totals and that the sum of the debit totals equals the sum of the credit totals