Acc 506

Front 1

Bill of lading

Back 1

A document prepared at the time of shipment indicating the description of th merchandise, the quantity shipped, &other relevant data.

A bill of lading is written contract of receipt and shipment of goods between the seller & carrier. Do not include dollar values

Document prepared time transaction occurs.

Front 2

Customer Purchase Order

Back 2

A document prepared to request good or services from a customer.

The form should include the name and address of the customer, goods or services desired, and the desired delivery or performance date.

Document prepared before transaction occurs

Front 3

Charge sales invoice - charge to cust. acct.

Cash sales invoice - cash payment only

Back 3

A document prepared indicating the description and quantity of goods sold, the price including frieght, insurance, terms, other relevant data, and the total amount of the sale. It is the method of indicating to the customer the amount of a sale and due date of payment.

Front 4

Cash Receipt Prelist

Back 4

A list prepared when cash is received, which lists each cash receipt. This document is used later to verify whether cash received was recorded and deposited at the correct amounts and on a timely basis.

Front 5

Cash Receipts Journal

Back 5

A journal for recording cash receipts from collections, cash sales, and all other cash receipts. It indicates total cash received, the credit to accounts receivable at the gross amount of the original sale, sales discounts taken, and other debits and credits.

Front 6

Sales Return Request

Back 6

A document requesting authority to return goods.

Front 7

Credit Memo

Back 7

A document prepared indicating the amount and terms of the return or allowance

Front 8

Remittance advice

Back 8

A document that accompanies the sales invoice mailed to the customer and can be returned to the seller with the cash payment.

Front 9

Purchase Order

Back 9

A document prepared requesting goods or services from a vendor (seller).

Issue order to buy goods or services. Document prepared before transaction occurs.

Front 10

Receiving Report

Back 10

A document prepared at the time (tangible) goods are received. The report indicates the description, condition of the goods. (date received and quantity)

Document prepared at same time transaction occurs.

Front 11

Vendor Invoice

Back 11

A document received from the vendor indicating the description and quantity of the goods or services received, the price including freight, the cash discount terms, and the date of the billing.

Receive bill for goods or services purchased.

Document preapared after transaction occurs.

Front 12

Bank Reconciliation

Back 12

determination of the resons for differences between the cash in the bank balance as stated on the bank statement and on the general ledger at a point in time.

Can be used to locate errors or fraud in the accounting records and bank errors.

Front 13

Post Closing Trial Balance

Back 13

prepared after all closing etries are posted. Making sure all debits equal credits in the general ledger before the recording process starts for the next year, the retained earnings balance is correct, and there are no balances in any income statment accounts. Source of amounts is in the general ledger balance.

Front 14

General Journal

Back 14

A document for recording transactions not recorded in specialized journals.

Error correction, adjusting entries, closing entries, and other transactions not recorded in other journals.

Front 15

Sales Journal

Back 15

A journal for recording sales.

(Sales, acct receivables and sales discount taken)Totals of each account listed are posted to general ledger monthly.

Front 16

Purchase Journal

Back 16

A journal for recording purchases of goods and services.

Purchases (Supplies) Other purchase of inventory, accounts payable credit and purchase returns.

Effects - Accounts payable subsidiary ledger Purchase Office Equip. -Fix Asset Sub Ledger

Front 17

Cash Disbursements Journal

Back 17

A journal for recording cash disbursements. It indicates total cash paid, the debit to accounts payablea at the gross amount of the original purchase, cash discount taken, and other debits and credits. Supported by copies of checks or other doc vendor's invoices.

Effects - Accounts payable subsidiary ledger

Front 18

Payroll Journal

Back 18

A journal for recording payroll disbursements.

(reg. pay, overtime pay, fica, federal income tax withholdings, net pay, check #, & account classification).

Effects - Employee earnings subsidiary ledger - accumulated payroll by employee.

Front 19

General Ledger

Back 19

A record used to summarize transactions recorded in the journals. Totals are posted unless in misellounous column then each entry is posted to ledger seperatly.

Front 20

Accounts Payable Subsidiary Ledger

Back 20

A ledger for recording indivdual purchases, cash disbursements, and purchases returns and allowances for each vendor.

The total of the individual account balances in the sub ledger equals the total balance of accounts payable in the general ledger.

Front 21

Accounts Receivable Subsidiary Ledger

Back 21

A ledger for recording

Front 22

Employee Earnings Subsidiary Ledger

Back 22

A ledger for recording accumulated payroll information for each employee. (accumulated payroll record) same information as in payroll journal. New earnings record is started for each employee each year.

Front 23

Fixed Assets Subsidiary Ledger

Back 23

A ledger for recording individual purchases of fixed assets. Include original cost, current depreciation on the asset, and accumulated depreciation to date.

Total cost of assets equals balance in general ledger for each asset & same for depreciation & accumulated depreciation totals.

Front 24

Sales and Cash Receipts (Cycle)

Back 24

Balance Sheet - Cash, Accounts Receivable, Allowance for doubtful accounts, & Common stock.

Income Statement - Sales, Sales return & allowances, Bad debt expense, & Sales discounts taken.

Front 25

Purchases and Cash Disbursements (Cycle)

Back 25

Balance Sheet - Cash, Inventory, Prepaid Rent, Fixed Assets, Accumulated depreciation, Accounts Payable, Interest Payable.

Income Statement - Purchases, Rent, Repair, Postage, Travel, Utilities, Freight-In

Front 26

Payroll (Cycle)

Back 26

Balance Sheet - Cash, Wages and salaries payable, Federal Income taxes withheld, FICA taxes payable, other payroll taxes payable

Income Statement - Wages and salaries expense, Payroll tax expense

Front 27

Sales Invoice

Back 27

A document prepared indicating the description and quantity of goods sold, the price including freight, insurance, terms, other relevant data, and total amount.

Doc used to record sales, .

Document prepared after transaction occurs

Front 28

Monthly Bank Statement

Back 28

Provides information to determine whether the compuany or bank has errors or omissions in recording cash receipts and disbursements

Front 29

Customer Purchase Order

Back 29

Includes quantity ordered and agreed-upon price.

Receive order fro a sale of goods or services.

Used to determine quantities to ship to customerand amount to bill.

Front 30

Internal Controls -Adequate document and records

Back 30

The appropriate design & control of documents and records improves the likelihood of the correct transmission of information to users.

Doc & Records should be: Prenumbered consecutively. Before, during, or directly after trans occurs; no long interval. Designed for multiple uses. Constructed in a manner that aids in correct preparation.

Front 31

Internal Control - Authorization of transactions

Back 31

All transactions must be properly authorized to be satisfactory. Example: credit manager initial customer purchase order to show shipping dept. credit has been approved and shipment is therefore appropriate; also for other user of the document to show approval.

Front 32

Internal Control - Separation of the custody of assets from accounting

Back 32

Not permitting a person who has temporary or permanent custody of an asset (Cash) to account for that asset is to protect the company again fraud. Example: cashier recevies cash should not maintain accounts receivable records.

Front 33

Internal Control - Independent checks on performance

Back 33

A review of transactions and related assets for propriety and correct recording by a person not originally responsible fore any aspect of the transactions.

Recalculations, reconciliations, number sequencing, comparisons

Front 34

Return Request (Allowance Request)

Back 34

A document prepared to request authoirty to return goods or obtain an allowance. Must state whether the transaction is a return or allowance, and the amount of the credit granted.