Question

a source document that describes the goods or services sold, the amount of the transaction, and the price is called a(n):

invoice
receipt
check stub
journal

question 4
3 pts
choose the answer.
how would you record a receipt showing that cash was received from the owner as an investment?

debit cash, credit capital
credit cash, debit sales
debit cash, credit accounts receivable
credit cash, debit drawing

Explanation:

• First question: An invoice is a source document that details goods/services sold, transaction amount, and price. A receipt is for acknowledging cash/asset receipt. A check stub is part of a check. A journal is a record - keeping book.
• Second question: When cash is received from the owner as an investment, Cash (an asset) increases (debit) and Capital (owner's equity) increases (credit). Crediting Cash would be wrong as it's received. Debiting Sales is for revenue from sales. Debiting Accounts Receivable is for amounts owed by customers. Crediting Cash and debiting Drawing is for owner withdrawals.

Answer:

• First question: invoice
• Second question: debit Cash, credit Capital