Exam 23: The Voucher System

When using a voucher system,all of the following are true except that:

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 FICA payable

Spice Company completed the following transactions: May 10 $\quad$ Prepared voucher \#301 for purchase of merchandise for $\$ 3,600$ from Sugar Company $\quad$$\quad$ 12 $\quad$ Returned $\$ 500$ of the merchandise purchased from Sugar because of poor quality. $\quad$$\quad$$\quad$$\quad$ Cancelled voucher \#301 and replaced it with voucher $\# 305$ . Required: Prepare journal entries to record the above transactions.Assume Spice uses the gross approach method for recording purchases.Omit explanations.

The entry to record the incurrence of an expense will include:

The check register is:

A voucher register is:

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 Vouchers payable

Vouchers should be filed in the tickler file ________ rather than alphabetically.

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 Supplies

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

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

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

The company receiving a purchase order prepares a:

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

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

The check register replaces the voucher journal.

On the balance sheet,Vouchers Payable would be:

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. -Prepared and recorded voucher #425 for the purchase of merchandise (net method)of $2,000 with credit terms of 2/10,n/30. Debit ________ & ________ & ________ Credit ________ & ________ & ________

In the voucher system,the purchases journal is replaced by the:

The check register would contain a column for all except: