4-1The Accounting Cycle 4-1 Source Documents

Why source documents Invoices

normally relate to credit transactions
lists goods or services
suppliers normally send an invoice with goods (or once services have been delivered)
Inidicate payment terms (time) "Bills"

Receipts

Deposit Slip

Check Counterfoil

This is the part of the check kept by the drawer (writer) of the check as a record of the transaction

Statement

A report showing: the amount owed by one business to another. Details of transactions between the two businessses

Cash Receipts Journal

major categories of receipts such as from income or from debtors receive their own column the category called "sundry" is used to represent less regular items such as capital or receiving cash from a loan

the word sundry means various miscellaneous or general

the bank column is added up to show the total cash received for the period concerned

Cash Payments Journal

Sales Journal
where you record income on credit
debtor transactions 4-5 trial b alance and financial statements

1. Income Statement

2. The Statement of Owners Equity

3. 3. Balance Sheet

whereas the income statement and statement of changes in equity show changes over a certain period of time, the balance sheet shows the balances of assets, liabilities, and owners equity on a particular day

4. cash flow statement

	Created by alopez2203 over 10 years ago

4-1 source documents 4-2 journals 4-3 T-Accounts 4-4 Trial Balance 4-5 financial statements

unit 4 accounting cycle