Study Guide 3. Part One Identifying Accounting Terms. Answers

Size: px

Start display at page:

Download "Study Guide 3. Part One Identifying Accounting Terms. Answers"

Ada Osborne
5 years ago
Views:

1 Study Guide Name Identifying Accounting Terms Identifying Accounting Concepts and Practices Recording Transactions in a Five-Column Journal Total Perfect Score Pts. Pts. 0 Pts. 0 Pts. Your Score Part One Identifying Accounting Terms Directions: Select the one term in Column I that best fits each definition in Column II. Print the letter identifying your choice in the Answers column. Column I Column II A. check. A form for recording transactions in chronological order. (p. ) B. double-entry accounting. Recording transactions in a journal. (p. ) Answers. F. G C. entry. A journal amount column headed with an account title. (p. ) D. general amount column. A journal amount column that is not headed with an account title. (p. ) E. invoice. Information for each transaction recorded in a journal. (p. ) F. journal. The recording of debit and credit parts of a transaction. (p. ) G. journalizing. A business paper from which information is obtained for a journal entry. (p. ) H. memorandum. A business form ordering a bank to pay cash from a bank account. (p. ) I. proving cash. A form describing the goods or services sold, the quantity, and the price. (p. ) J. receipt 0. An invoice used as a source document for recording a sale on account. (p. ) K. sales invoice. A business form giving written acknowledgment for cash received. (p. ) L. source document. A form on which a brief message is written describing a transaction. (p. ) M. special amount column. Determining that the amount of cash agrees with the accounting records. (p. ). M. D. C. B. L. A. E 0. K. J. H. I COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter

2 Part Two Identifying Accounting Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false.. Information in a journal includes the debit and credit parts of each transaction recorded in one place. (p. ). The Objective Evidence accounting concept requires that there be proof that a transaction did occur. (p. ). Examples of source documents include checks, sales invoices, memorandums, and letters. (p. ). A check is the source document used when items are paid in cash. (p. ). The source document for all cash payments is a sales invoice. (p. ). A receipt is the source document for cash received from transactions other than sales. (p. ). A calculator tape is the source document for daily sales. (p. ). The source document used when supplies are bought on account is a memorandum. (p. ). The source document used when supplies bought on account are paid for is a check. (p. ) 0. The journal columns used to record receiving cash from sales are cash debit and sales credit. (p. ). The source document sales invoice is abbreviated as SI in a journal entry. (p. ). The journal columns used to record paying cash for rent are general debit and cash credit. (p. ). The journal columns used to record paying cash to the owner for personal use are general debit and cash credit. (p. ). To prove a journal page, the total debit amounts are compared with the total credit amounts to be sure they are equal. (p. ). Double lines across column totals mean that the totals have been verified as correct. (p. ). To correct an error in a journal, simply erase the incorrect item and write the correct item in the same place. (p. ). Dollars and cents signs and decimal points should be used when writing amounts on ruled accounting pages. (p. ) Answers. T. T. F. T. F. T. T. T. T 0. T. F. T. T. T. T. F. F Working Papers TE CENTURY ACCOUNTING, TH EDITION

3 Name Date Class Part Three Recording Transactions in a Five- Column Journal Directions: The columns of the journal below are identified with capital letters. For each of the following transactions, decide which debit and credit amount columns will be used. Print the letters identifying your choice in the proper Answers columns. DATE ACCOUNT TITLE JOURNAL DEBIT DEBIT A B C D E F G H I PAGE Answers. Received cash from owner as an investment. (p. 0). H. F. Paid cash for supplies. (p. ). E. I. Paid cash for insurance. (p. ). E. I. Bought supplies on account. (p. ). E. F 0. Paid cash on account. (p. ). E 0. I. Received cash from sales. (p. ). H. G. Sold services on account. (p. ). E. G. Paid cash for an expense. (p. ). E. I. Received cash on account. (p. 0). H. F 0. Paid cash to owner for personal use. (p. ). E 0. I COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING Chapter

4 Study Skills A Place to Study Every student needs a good place to study. When you come home from school in the afternoon, you need a place where you can concentrate on your schoolwork for an extended period of time. Your study area should be a pleasant place to work with a comfortable place to sit. This is extremely important for your accounting work where you will be completing many problems. It is a good idea to sit in an upright chair at a desk. Lying in bed or on a sofa tends to put you in a position more conducive to sleep than to study. Keep It Private Although you may not have a private room, you can make the most of whatever space you have available. If you share a room with one or more other family members or friends, you should establish study hours and study rules. For example, you can set aside a period from six to nine each evening for study. During that time, the room should not be used for any other purpose. You will probably wish to keep the door closed, and you might even wish to place a small note on the door alerting others to the fact that you are studying. Be Neat It is very important that you keep your study area clean and neat. When you sit down to study, if you are faced with clutter and disorganized papers, you will have difficulty concentrating. If you have a neat and orderly work area, you will feel more comfortable, and you will enjoy your study more. You will be able to find the things you need quickly, and you can use your time to the greatest benefit. When you finish studying, you should put all your materials away. This will help others who may use the area, and you will be delighted to find a clean desk when you return to work. Quiet Please It is necessary to keep your study area quiet. You should not try to study with a radio or TV on. You might think that you can study better listening to music. Actually, you will very likely use more energy trying to concentrate if you are distracted by a radio or TV. In addition, the quality of your work will suffer. A Good Lamp You should have proper lighting in your study area. It is difficult to study if there is insufficient lighting or if the lighting is of poor quality. Try to place a lamp close to your work in such a way that there is no glare on your papers. If light is reflected into your eyes, you will be distracted and possibly end the study period with a headache. Your Desk It may be necessary for you to share your desk with others. Just as with a shared room, you can reserve certain hours for private use. If you share a desk with others, try to reserve a drawer or two for your things. Each person who uses the desk should take responsibility for keeping his or her supplies in good order. Storage Facilities You will need to keep your supplies handy, but they may be stored in a dresser drawer or in a cardboard box if there is not sufficient room in the desk. You will likely have personal papers as well as school papers which you will need to keep. You can use a file drawer for this purpose. If a file drawer is not available, you can purchase an expandable cardboard file that you can store in a nearby dresser or closet. A bookcase is an ideal place to keep your textbooks and notebooks. However, a shelf in a closet will work quite well. You should keep the materials together for each course that you take. For example, you should place your textbook and notebook for your English class together, along with any other items that you use in this particular class. In this way you can find the materials you need easily and quickly. It s What You Make It Your study environment is exactly what you make it. With just a little effort, you can have a quiet place to study where you can get your work done quickly with minimum effort. A proper study area can help you make the kind of grades you want. Working Papers TE CENTURY ACCOUNTING, TH EDITION

5 Name Date Class -, -, -, and - WORK TOGETHER, pp.,,, - Journalizing entries in a five-column journal - Journalizing entries in a five-column journal - Journalizing transactions that affect owner s equity in a five-column journal - Proving and ruling a journal 0 0 Apr. 0 Norm Derner, Capital Accts. Payable Palm Supply Prepaid Insurance Accts. Payable Palm Supply Rent Expense Accts. Receivable L. Rohe Utilities Expense Accts. Receivable L. Rohe Norm Derner, Drawing Accts. Receivable L. Rohe Norm Derner, Drawing Carried Forward R C M C C C T S C R C S C Chapter Journalizing Transactions

6 WORK TOGETHER (concluded) 0 Apr. 0 0 Brought Forward Accts. Receivable L. Rohe Totals R T0 0 Prove page of the journal: General ,.00,.00 Sales ,.00 Cash ,.00,.00 Totals ,.00,.00 Prove page of the journal: General ,.00,.00 Sales ,.00 Cash ,0.00,.00 Totals ,0.00 0, Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,0.00 Equals Total ,0.00 Less total cash paid during the month ,.00 Equals cash balance at the end of the month ,.00 Checkbook balance on the next unused check stub ,.00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

7 Name Date Class -, -, -, and - ON YOUR OWN, pp.,,, - Journalizing entries in a five-column journal - Journalizing entries in a five-column journal - Journalizing transactions that affect owner s equity in a five-column journal - Proving and ruling a journal 0 0 June 0 0 Lou James, Capital Prepaid Insurance Accts. Pay. OK Accts. Pay. OK Rent Expense Accts. Receivable C. Lord Miscellaneous Expense Accts. Receivable C. Lord Lou James, Drawing Accts. Receivable C. Lord Miscellaneous Expense Carried Forward R C C M C C S T C R C S C Chapter Journalizing Transactions

8 ON YOUR OWN (concluded) 0 June 0 0 Brought Forward Accts. Receivable C. Lord Totals R T Prove page of the journal: General ,.00,0.00 Sales ,00.00 Cash ,0.00,0.00 Totals ,.00 0,.00 Prove page of the journal: General ,.00,0.00 Sales ,.00 Cash ,.00,0.00 Totals ,.00 0,.00 Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,.00 Equals Total ,.00 Less total cash paid during the month ,0.00 Equals cash balance at the end of the month ,.00 Checkbook balance on the next unused check stub ,.00 0 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

9 Name Date Class -, -, -, and - APPLICATION PROBLEMS, pp. 0, - Journalizing transactions in a five-column journal - Journalizing buying insurance and buying and paying on account in a five-column journal - Journalizing transactions that affect owner s equity and receiving cash on account - Proving and ruling a journal Feb. Dennis Gilbert, Capital Prepaid Insurance Accts. Payable Scott Accts. Payable Scott Accts. Payable Scott Rent Expense Accts. Rec. Covey Company Utilities Expense Dennis Gilbert, Drawing Miscellaneous Expense Accts. Rec. Covey Company Utilities Expense Accts. Pay. Scott Accts. Rec. Covey Company Miscellaneous Expense Accts. Rec. Covey Company Carried Forward R C C C M C C C T S C C T C R T C0 M R C S C Chapter Journalizing Transactions

10 - APPLICATION PROBLEM (concluded) Feb. 0 Brought Forward Rent Expense Miscellaneous Expense Dennis Gilbert, Drawing Totals C C T C Prove page of the journal: General ,.00,0.00 Sales ,.00 Cash ,.00 0,.00 Totals ,0.00,0.00 Prove page of the journal: General ,.00,0.00 Sales ,0.00 Cash ,.00,.00 Totals ,.00,.00 Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,.00 Equals Total ,.00 Less total cash paid during the month ,.00 Equals cash balance at the end of the month ,.00 Checkbook balance on the next unused check stub ,.00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

11 Name Date Class - APPLICATION PROBLEM, p. Journalizing transactions and proving and ruling a five-column journal 0 0 Apr. Hans Schultz, Capital Prepaid Insurance Accts. Payable Midwest Accts. Payable Midwest Utilities Expense Hans Schultz, Drawing Accts. Receivable Frank Morris Advertising Expense Accts. Receivable Frank Morris R C C M C C C S T C R Prove the journal: General ,0.00,.00 Sales ,.00 Cash ,.00,.00 Totals ,.00,.00. Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,.00 Equals Total ,.00 Less total cash paid during the month ,.00 Equals cash balance at the end of the month ,0.00 Checkbook balance on the next unused check stub ,0.00 Chapter Journalizing Transactions

12 - MASTERY PROBLEM, p. Journalizing transactions and proving and ruling a five-column journal June 0 0 Jane Fernandez, Capital Rent Expense Accounts Payable Atkin Utilities Expense Accounts Payable Atkin Accts. Receivable Tony s Limos Prepaid Insurance Repair Expense Miscellaneous Expense Jane Fernandez, Drawing Accts. Receivable Tony s Limos Accounts Payable Pine Carried Forward R C C M C C T S C C T0 C T T C T C R M T T T Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

13 Name Date Class - MASTERY PROBLEM (concluded) 0 0 June Brought Forward Accounts Payable Pine Utilities Expense Accts. Receivable Tony s Limos Advertising Expense Accts. Receivable Tony s Limos Jane Fernandez, Drawing Totals M T C0 S C T T C T R C T Prove page of the journal: General ,.00,.00 Sales ,.00 Cash ,0.00,.00 Totals ,0.00 0,0.00 Prove page of the journal: General ,.00,.00 Sales ,.00 Cash ,.00,.00 Totals ,.00,.00 Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,.00 Equals Total ,.00 Less total cash paid during the month ,.00 Equals cash balance at the end of the month ,.00 Checkbook balance on the next unused check stub ,.00 Chapter Journalizing Transactions

14 - CHALLENGE PROBLEM, p. Journalizing transactions using a variation of the five-column journal June 0 Tony Wirth, Capital Prepaid Insurance Accounts Payable Marker Accounts Payable Marker Rent Expense Accounts Receivable Amy s Uniforms Utilities Expense Accounts Receivable Amy s Uniforms Tony Wirth, Drawing Totals R C M C C C T S C R C Prove the journal: General ,0.00,00.00 Sales Cash ,0.00,0.00 Totals ,0.00,0.00. Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,0.00 Equals Total ,0.00 Less total cash paid during the month ,0.00 Equals cash balance at the end of the month ,0.00 Checkbook balance on the next unused check stub ,0.00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

15 Name Date Class USING SOURCE DOCUMENTS, p. Journalizing transactions and proving and ruling a journal Receipt No. Date May, 0-- From Cy Sawyer For Investment $, Receipt No. Date May 0-- Rec d from Cy Sawyer For Investment Five Thousand & no /00 Amount $ CS Form, Received by Dollars Form Date: $ To: For: / National Supply Co. Form Date: $ To: For: / SW Management Co. May Rent BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR D. FOR D BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR D. FOR D No. Form MEMORANDUM Bought supplies on account from Atlas, $0.00 Signed: CS Date: //-- Chapter Journalizing Transactions

16 USING SOURCE DOCUMENTS (continued) Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL / City Electric Electric bill AMT. THIS CHECK BAL. CAR D. FOR D Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL / Atlas Payment on account AMT. THIS CHECK BAL. CAR D. FOR D May, 0- - T Form 0.00 * * Sold to: Cy s Repair Service Central Avenue Great Falls, MT 0- J. Hutton Park Drive Great Falls, MT 0-0 Description No. Date Terms Form //- - /0, n/0 Amount Repair condenser unit Repair motor Repair generator Total,00.00 Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

17 Name Date Class USING SOURCE DOCUMENTS (continued) Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL / Pineridge Insurance Co. Insurance AMT. THIS CHECK BAL. CAR D. FOR D May, 0- - T Form 0.00 * * Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL /.00 Sunset Delivery Co. Miscellaneous Expense AMT. THIS CHECK BAL. CAR D. FOR D May, 0- - T Form 0.00 * * Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL / 0.00 Foothills Cleaning Co. Miscellaneous Expense AMT. THIS CHECK BAL. CAR D. FOR D Chapter Journalizing Transactions

18 USING SOURCE DOCUMENTS (continued) Receipt No. May J. Hutton On Account Date, 0-- From For $, Receipt No. May J. Hutton On Account One thousand & no /00 Date 0-- Rec d from For Amount $ CS Form, Received by Dollars Form Date: $ To: For: / 0.00 Great Falls Telephone Company Telephone bill BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR D. FOR D Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL / Cy Sawyer Owner withdrawal AMT. THIS CHECK BAL. CAR D. FOR D May, 0- - T Form 0.00 * * 0 Form Date: $ To: For: BAL. BRO T. FOR D AMT. DEPOSITED SUBTOTAL AMT. THIS CHECK BAL. CAR D. FOR D Working Papers TE COPYRIGHT SOUTH-WESTERN CENGAGE LEARNING

19 Name Date Class USING SOURCE DOCUMENTS (concluded) 0 0 May 0 Cy Sawyer, Capital () () Rent Expense () () Accounts Payable Atlas Utilities Expense () Accounts Payable Atlas () () Accounts Receivable J. Hutton () Prepaid Insurance () (0) Miscellaneous Expense () () Miscellaneous Expense () Accounts Receivable J. Hutton () Utilities Expense () Cy Sawyer, Drawing () () Totals R C C M C C T S C T C T C R C C T Prove the journal: General ,.00,0.00 Sales ,.00 Cash ,.00,.00 Totals ,0.00,0.00. Prove cash: Cash on hand at the beginning of the month Plus total cash received during the month ,.00 Equals Total ,.00 Less total cash paid during the month ,.00 Equals cash balance at the end of the month ,.00 Checkbook balance on the next unused check stub ,.00 Chapter Journalizing Transactions

Study Guide 4. Part One Identifying Accounting Terms. Answers. Column II. Column I

Study Guide 4. Part One Identifying Accounting Terms. Answers. Column II. Column I Study Guide Name Identifying Accounting Terms Identifying Accounting Concepts and Practices Analyzing Posting from a Journal to a General Ledger Total Perfect Score Pts. Pts. Pts. Pts. Your Score Part