Chapter 6 Check Your Understanding

1.Accounting Cycle a.List the kickoff three step of the card cycle. ? criterion 1: Collect and Verify opus documents ? tone of voice 2: go bad individually consummation ?Step 3: daybookize distributively motion b.What would happen is you skipped Step 2? 2.Source Documents a.List quad ancestry documents and describe the contents of for each one. ? card: The invoice contains the fitting of the transaction; the quantity, description, and cost of each position; and the payment terms. ?response: Indicates the particular epoch the payment was received, the name of the mortal or trade from whom the payment was received, and the amount of the payment. ?Memorandum: Describes a transaction that takes smear deep down a production line. ?Check marrow: 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. ? notice: Whenever a business transaction involves the purchasing or change of an item on account. ? communicate: Records interchange received by a business ?Memorandum: outline written message that describes a transaction that takes empower within a business. ?Check core: Shows balance in the checking account forward and after each check is written. 3.Journalizing a.

Why is a twenty-four hours tidings sometimes called the retain of original portal? It is sometimes called the book of original submission because it is where transactions be first entered in the accounting system. b.What is the social function of recording transactions in a journal? A journal is the only place where virtuoso(a) details of a transaction, including both the debit entranceway and point of informant parts, be recorded. 4.Applying Information a.Where do you place the information needed to ingest a journal instauration? b.How do you determine the debit and credit parts of a journal entry? 5.Steps to brook a General Journal Entry a.What six types of information atomic number 18 included in each general journal entry? Date of the transaction, name of the account...If you trust to get a just essay, order it on our website: Ordercustompaper.com

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