Following are a list of source documents and a list of transactions. Indicate by
ID: 2379895 • Letter: F
Question
Following are a list of source documents and a list of transactions. Indicate by letter next to each
transaction the source document that would serve as evidence for the recording of the transaction.
Source Documents
a. Purchase invoice
b. Sales invoice
c. Cash register tape
d. Time cards
e. Promissory note
f. Stock certificates
g. Monthly statement from utility company
h. No standard source document would normally be available.
Transactions
________________ 1. Utilities expense for the month is recorded.
________________ 2. A cash settlement is received from a pending lawsuit.
________________ 3. Owners contribute cash to start a new corporation.
________________ 4. The biweekly payroll is paid.
________________ 5. Services are provided in exchange for cash.
________________ 6. Equipment is acquired on a 30-day open account.
________________ 7. Service is provided to a customer.
________________ 8. A building is acquired by signing an agreement to repay a stated amount
plus interest in six months.
Explanation / Answer
Transactions
_____g. Monthly statement from utility company___________ 1. Utilities expense for the month is recorded.
____h. No standard source document would normally be available.____________ 2. A cash settlement is received from a pending lawsuit.
______f. Stock certificates__________ 3. Owners contribute cash to start a new corporation.
_______d. Time cards_________ 4. The biweekly payroll is paid.
______c. Cash register tape__________ 5. Services are provided in exchange for cash.
______a. Purchase invoice__________ 6. Equipment is acquired on a 30-day open account.
________________ 7. Service is provided to a customer.
______e. Promissory note__________ 8. A building is acquired by signing an agreement to repay a stated amount
plus interest in six months.