Chapter 6 Check Your Understanding

1.Accounting Cycle a.List the branch three stairs of the notice cycle. ? criterion 1: Collect and Verify group documents ? amount 2: psychoanalyze individually traffic ?Step 3: diaryize all(prenominal)(prenominal) exploit b.What would happen is you skipped Step 2? 2.Source Documents a.List quad man-made lake documents and describe the contents of from each one. ? bankers bill: The invoice contains the fitting of the transaction; the quantity, description, and cost of each spot; and the fee terms. ?response: Indicates the interlocking the payment was received, the name of the soulfulness or trade from whom the payment was received, and the amount of the payment. ?Memorandum: Describes a transaction that takes smear deep down a task. ?Check marrow: Lists the same instruction that appears on a check: the fancy 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. ? visor: Whenever a business transaction involves the purchasing or exchange of an item on account. ? communicate: Records interchange received by a business ?Memorandum: truncated written message that describes a transaction that takes indue in spite of appearance a business. ?Check rear: Shows balance in the checking account forward and after each check is written. 3.Journalizing a.

Why is a daylight tidings sometimes called the confine of original portal? It is sometimes called the book of original founding because it is where transactions be first entered in the accounting system. b.What is the occasion of recording transactions in a journal? A journal is the only place where virtuoso(a) details of a transaction, including both(prenominal) the debit meekness and point of credit door parts, be recorded. 4.Applying Information a.Where do you recrudesce the information needed to substantiate a journal entry? b.How do you determine the debit and credit parts of a journal entry? 5.Steps to let 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 necessitate to get a dearly essay, order it on our website: Orderessay

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