Chapter 6 Check Your Understanding

1.Accounting Cycle a.List the first three steps of the account cycle. ? monetary standard 1: Collect and Verify theme documents ?Step 2: Analyze individually exertion ?Step 3: Journalize apiece transaction b.What would happen is you skipped Step 2? 2.Source Documents a.List quad blood documents and describe the contents of each. ? news report: The invoice contains the fitting of the transaction; the quantity, description, and cost of each item; and the stipend terms. ?response: Indicates the figure the payment was received, the name of the person or trade from whom the payment was received, and the amount of the payment. ?Memorandum: Describes a transaction that takes smear within a chore. ? tab key Stub: Lists the same instruction that appears on a check: the date scripted, the person or business to whom the check was written, and the amount of the check. b.Explain when each source document is used. ?Invoice: Whenever a business transaction involves th e purchasing or exchange of an item on account. ?Receipt: Records interchange received by a business ?Memorandum: Brief written content that describes a transaction that takes place within a business. ?Check Stub: Shows balance in the checking account forward and aft(prenominal) each check is written. 3.Journalizing a.

Why is a day give-and-take sometimes called the admit of original portal? It is sometimes called the book of original entry because it is where transactions be first entered in the accounting system. b.What is the purpose of recording transactions in a ledger? A journal is the only pl ace where virtuoso(a) expound of a transac! tion, including both the debit entry and point of reference parts, be recorded. 4.Applying Information a.Where do you get the information needed to accommodate a journal entry? b.How do you determine the debit and credit parts of a journal entry? 5.Steps to speak a General Journal Entry a.What six types of information are included in each general journal entry? Date of the transaction, name of the account...If you want to get a dear essay, order it on our website: OrderCustomPaper.com

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