Chapter 3 Vocab

Journal

A form for recording transactions in chronological order.

Journalizing

Recording transactions in a journal.

Entry

Information for each transaction recorded in a journal.

Double-Entry Accounting

The recording of debit and credit parts of a transaction.

A Multicolumn Journal

Ensures accuracy, chronological order, and double-entry accounting.

Source Document

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

R

Receipts - A cash receipt document. It proves the business received cash or payment (a business form giving written acknowledgement for cash received).

C

Check - a check payment. It proves the business distributed funds to a vendor, employee, or other entity (a business form ordering a bank to pay cash from a bank account).

M

Memo/Memorandum - a form on which a brief message is written to describe a transaction.

Invoice

A form describing the goods or services sold, the quantity, the price, and the terms of sale.

Sales Invoice/Ticket/Slip

An invoice used as a source document for recording a sale on account.

Preparing Journal Entries

• - Book of original entry

• - Permanent record

• - Record using ink not pencil

• - Use “00” to denote even dollar amounts

Proving Cash

Determining that the amount of cash agrees with the accounting records.