Exam 23: The Voucher System

Laird Corporation bought $5,000 of merchandise from Woods Corporation,terms 2/10,n/30.The company uses the periodic inventory system and the voucher system.The journal entry to record the payment under the net method after the discount period would be to:

Which of the following business documents would originate with the selling company?

A company uses the gross method of recording purchases.An invoice was paid after the discount date.The full amount of the invoice would be recorded in the:

When a voucher is prepared,the invoice needs only to be compared to the purchase requisition,purchase order and receiving report.

In a voucher system,the source documents include the invoice,receiving report,sales order,and purchase requisition.

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 Equipment

Which of the following sequences of events is in the correct order for a voucher system?

Prepared voucher #424 in the amount of $6,240 in reply to the payroll department's request for payment of last week's wages. Debit ________ Credit ________

Paid voucher #419 which was issued to reimburse petty cash for the purchase of supplies,$35,and delivery expense of $50. Debit ________ Credit ________

Prepared voucher #425 for a note payable.The principal amounts to $2,500 and there is $100 of interest which has not been accrued. Debit ________ & ________ Credit ________

Vouchers are recorded in alphabetical order.

Name and discuss the two most important internal control principles embedded in the voucher system.

When merchandise is purchased,the entry in the vouchers register is a debit to Merchandise Inventory and a credit to Vouchers Payable.The company uses the periodic method.

Before a voucher is approved for payment,all documents must be in agreement,except for the:

The company receiving a purchase order prepares a:

Prepared and recorded voucher #422 for the purchase of merchandise (gross method)of $5,000 with credit terms of 2/10,n/30. Debit ________ Credit ________

Which of the following is an element in a voucher system?

Using the gross method,record the payment of the following transaction in time to take the discount.Connect Company bought $5,000 of merchandise,terms 2/10,n/30,and uses the periodic inventory system:

The Discount Lost account is used when the:

Supporting documents for a voucher system are: