Exam 23: The Voucher System

Buzz 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 Bell Company, $1,500; voucher no. 200 was prepared. Nov. 12 Established a petty cash fund of $200; voucher no. 101 was prepared. Nov. 14 Purchased merchandise from Kelly Corporation, $2,100; voucher no. 102 was prepared.

The Discount Lost account is used when the:

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). -

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). -

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

The check register is:

Vouchers are recorded in alphabetical order.

Given the following accounts: -Prepared voucher #425 for a note payable. The principal amounts to $3,000 and there is $125 of interest which has not been accrued. Debit ________ & ________ Credit ________

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

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). -

Given the following accounts: -Borrowed $4,000, signing a 5%, 60-day promissory note. Debit ________ Credit ________

Vouchers are recorded in the voucher register at the time the liability is paid.

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

The Discount Lost account is used when the gross method is used for recording invoices.

What is the internal control advantage of using the net method of accounting for merchandise purchases?

After payment is made, a notation is made on the:

The check register would contain a column for all except:

Given the following accounts: -Received an invoice in the amount of $60 for repairs to the store equipment, voucher #423 was prepared. Debit ________ Credit ________

Jack returned all of the $13,000 purchase of equipment to Sue. The company uses the voucher system. The entry to record this is: D) None of these answers is correct.

The reason for filing vouchers in an unpaid voucher file according to due date is: