Exam 23: The Voucher System

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Repairs expense

A schedule of unpaid vouchers can be prepared from the tickler file at the end of the month.

On May 1,Garcia Corporation bought $10,000 of merchandise from Morris Corporation,terms 4/10,n/30.Garcia paid the invoice on May 6.The company uses the periodic and voucher systems.The journal entry to record the payment under the net method would be to:

Unpaid vouchers are arranged by the invoice date in a tickler file.

On the balance sheet,Vouchers Payable would be:

Describe how the transactions listed would be handled applying the gross method and the net method.For example: A $750 invoice with 3/10 net 30 terms.

Bill returned all of the $5,700 purchase of equipment to Sue.The company uses the voucher system.The entry to record this is:

Items are listed in the voucher register in the order liabilities are incurred.

The check register replaces the voucher journal.

A voucher register could contain which of the following columns?

On the balance sheet,the liability for vouchers will be:

A cash discount of $24 taken under the net method is recorded in:

Partial payments of an original voucher require new vouchers for each approved payment.

The entry to record payment of a voucher,for an invoice within the discount period,under the net method will include:

Any change in an already recorded voucher dictates the ________ of that voucher.

Using the voucher system when paying an invoice outside the discount period,assuming the gross method,the entry would be to debit Vouchers Payable,credit Discounts Lost,and credit Cash.

Button Corporation uses a voucher system and the periodic inventory method.Record the following transactions in general journal format.Omit the explanations. Nov.8 Purchased office equipment from Tram Company,$1,000;voucher no.200 was prepared. Nov.12 Established a petty cash fund of $150;voucher no.201 was prepared. Nov.14 Purchased merchandise from Carr Corporation,$1,800;voucher no.202 was prepared.

Borrowed $4,000,signing a 5%,60 day promissory note. Debit ________ Credit ________

The voucher system is not a form of internal control.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). - Column 1 Column 2 Column 3 Column 4 Wages payable