Verify Source Documents: Total Points, Invoice, Receipt, and

School: Troy University, Troy - Course: XTIA 2234 - Subject: Accounting

3.03 Verify the Source Documents Total Points: 75 Transaction 1 Tyler Timberland just received his law license and has opened a new law firm. Mr. Timberland went to the Office Supply Store to buy two desks. They agreed to let him pay for this office equipment in 60 days; but the store was very busy and did not give him a total for what he will owe them in 60 days. Invoice: Office Supply Store Invoice Number:125 Date:September 1, 2020 Order Number:150 Shipped by:Truck Terms:Payable in 60 days To: Tyler Timberland, Attorney at Law 1 Easy Street Any Town, USA QuantityItemUnit PriceTotal 2Desks$500.00? Transaction Analysis: Tyler Timberland, Attorney at Law has purchased two desks and will pay for them later. 1.For this purchase, what is the total due and payable? $$ 1000 2.The business purchased desks; what type account are the desks?asset 3.Will you Debit or Credit this account?Debit 4.The business Tyler Timberland, Attorney at Law is paying later, what account will Office Supply Store use to record this?liability 5.Will you Debit or Credit this account?Credit © ACCESS Virtual Learning 2018

Transaction 2 On September 1, 2020, Mr. Timberland withdrew $5,000 from his personal account to open an account in the name of his law firm.This is his first investment in his new business. Help him write a receipt for this money. Type your answers below the receipt. Receipt: Receipt Number: 101 6.Date:September 1, 2020 7.Received from:his personal account 8.Amount:Five - thousand dollars 9.For:to open an account in the name of his law firm 10. Received by:Mr. Timberland Transaction Analysis: 11. Which two accounts would you use to record the above receipt (hint: owner invested money)?Cash , Accounts Receivable 12. Which one is debited?Cash 13. Which one is credited?Accounts Receivable 14. What is the dollar amount for this transaction?$ 5,000