Source Document Answer Key Chapter 6: Answer the following questions based on source documents

1. What proof does a source document provide for a company 1. What proof does a source document provide for a company? For an auditor? See p. 184 Company: Reference purposes, locating errors. Auditor: proof that the accounting records have been prepared accurately and honestly

2. List 8 additional supporting documents and vouchers. See p. 192-193 Receipts, such as those for donations or postage Bills, such as hydro or telephone charges Email invoices Online banking transactions with accompanying confirmation numbers Insurance endorsement certificates Written memos from the owner Bank statements Cash register tapes

Description of Transaction 3. Complete the ‘Summary Chart’ below. Refer to p. 192. Pay particular attention to the accounting entry for each source document! Source Document Description of Transaction ACCOUNTING ENTRY Account Debited Account Credited Cash Sale Slip POS (point of sale) Summary A sale of goods or services for cash Bank Sales or Revenue Sales Invoice Charge Sales Slip A sale of goods or services on account Accounts Receivable Purchase Invoice A purchase of goods or services on account An expense account, such as Advertising An asset account, such as Supplies or Equipment Accounts Payable Cheque Copy Paying an account payable Cash purchase of an asset Cash payment for an expense Owner draws out money for personal use A liability account, such as Accounts Payable An asset account, such as Automobiles An expense account, such as Rent Expense The Drawings account Cash Receipts Daily Summary The cheques received from customers on account Bank Debit Advice Bank account decrease Interest expense or other account Bank Credit Advice Bank account increase Interest Earned or other account

4. Complete ex. 1 to 5 (all parts of each exercise). p. 193-196 (t) p 4. Complete ex. 1 to 5 (all parts of each exercise). p. 193-196 (t) p. 123-125(w)