Accounting1 Chapter 6 (The Journal and Source Documents)

Journalizing

The process of recording accounting entries in the journal

Remittance Advice

A form accompanying the cheque that explains the payment.

Opening Entry

First entry that is recorded in the journal

Cash Sales Slip

The source document used when goods/ services are sold to a customer for cash

Source document

A(n) ________ is a business paper that shows the nature of a transaction and provides all the information needed to account for it properly.

Sales Invoice

The source document used when goods/services are sold on account to a customer

Purchase Invoice

Represents a purchase of service or goods on account

Cheque Copy

Is a document supporting the accounting entry for a payment by cheque

Cash Receipts Daily Summary

A business paper that lists the money coming in from the customer

Bank Advice

When a bank initiates a change in the banking account of a business

PST

Provincial Sales Tax (8% in Ontario)

GST

Goods and Services Tax (5%)

HST

Harmonize Sales Tax (one tax that combines PST and GST) 13% in Ontario

Remitting Taxes

Sending tax money collected on behalf of the government, to the government

Contra Account

An account that has a balance that reduces the balance of a closely related account