Exam 23: The Voucher System

The information contained on a voucher includes: invoice number and date; purchase order number; the amount to be paid,who is being paid; voucher number; and the verification steps.

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

Kitchen Supply purchased $1,900 of merchandise,terms 4/10,n/60 on July 2,and prepared voucher #1001.Kitchen Supply paid the invoice on August 31. Prepare journal entries to record the above transactions.Assume Kitchen Supply uses the gross approach method for recording purchases.Omit explanations.

The voucher system is a form of internal control.

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

When merchandise is purchased,the entry in the vouchers register is a debit to Purchases and a credit to Vouchers Payable.

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

Bill returned all of the $4,700 purchase of equipment to Sue.The entry to record this is:

After Sally purchased $3,000 of merchandise from Bob,Sally discovered $800 of defective merchandise.Record the entry for the return.

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

The entry to record payment of a voucher for an invoice after the discount period under the gross method will include:

On June 2,Sandoval Corporation purchased $7,000 of merchandise from Johnston Company,terms 2/10,n/30 and prepared voucher #402.Sandoval returned $400 of the supplies on June 8,because of poor quality.Sandoval cancelled voucher #402 and replaced it with #415. Required: Prepare journal entries to record the above transactions.Assume Sandoval uses the net approach method for recording purchases.Omit explanations.

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 Petty cash

Clip Company bought $6,500 of merchandise from Tarpon Corporation,terms 2/15,n/45.The journal entry to record the payment under the gross method approach after the discount period would be to:

A voucher register could contain which of the following columns?

Given the following accounts: [1]Cash in bank [2]Petty cash [3]Supplies [4]Equipment [5]Notes payable [6]Vouchers payable [7]FICA payable [8]Wages payable [9]Purchases [10]Purchase discounts [11]Discounts lost [12]Repairs exp [13]Interest expense [14]Delivery expense Indicate the account(s) to be debited and credited to record the following transactions. -Paid voucher #422,payment was within the discount period. Debit ________ & ________ & ________ Credit ________ & ________ & ________

In a voucher system,a schedule of vouchers payable is essentially the same as a schedule of accounts payable.

Which situation would not result in a separation of duties?

On May 1,Garcia Corporation bought $6,000 of merchandise from Morris Corporation,terms 2/10,n/30.Garcia paid the invoice on May 6.The journal entry to record the payment under the net approach method would be to:

Describe how the transactions listed would be handled applying the gross approach method and the net approach method.For example: A $750 invoice with a 3/10 net 30 discount. Transaction Gross Method Net Method (a) Record original transaction (b) Returned purchases (c) Discounts taken (d) Discounts not taken