Review 4

  1. Bank Reconcilation
    process of bringing the book & bank balances into agreement
  2. Bank statement
    statement of account issued by a bank to each depositor once a month
  3. Canceled checks
    depositor's checks paid by the bank during the period
  4. Cash short & over
    • (Change fund can be compared with the amount of cash)
    • Cash Short
    • Change fund $200
    • Receipts per register tapes $963.
    • Total $1,1163.00
    • Cash Count $1,161.00
    • Cash Shortage $2.00

    • Cash Over
    • Change fund $200.
    • Receipts per register tapes $814.
    • Total $1,014.
    • Cash count $ 1,015.00
    • Cash overage $1.00
  5. Combination journal
    a journal with such special & general columns
  6. Depositis in transit
    deposits that have not reached or been recorded by the bank before the statement is prepared
  7. Deposits in transit
    is a form showing a detailed listing of items being deposited
  8. Drawee
    the bank on which the check is drawn
  9. Drawer
    the depositor who orders the bank to pay the cash
  10. Employee earnings record
    a seperate record of each employee's earnings
  11. FUTA
    • (Federal Unemployement Tax Act)
    • tax is levied only on employers
  12. Independent contractor
    performs a service for a fee & does not work under the control & direction of the company paying for the service
  13. NSF checks
    • (Non Sufficent funds)
    • Checks deposited by the depositer that are not paid because the drawer did not have sufficient fund
  14. Outstanding checks
    Checks issued that have not been presented to the bank for payment before the statement is prepared
  15. Payee
    the person being paid the cash
  16. Payroll register
    is a form used to assemble the data required at the end of each payroll period
  17. petty cash fund
    • definition: to pay for small items with cash.
    • Entry to establish:
    • Petty cash as an asset as well as in Cash
  18. petty cash payments record
    is a special multi-column record that supplements the regular accounting records
  19. Petty cash voucher
    receipt should be prepared for every payment from the fund.
  20. Salary
    compensation for managerial or administrative services usually
  21. Wages
    compensation for skilled or unskilled labor usually is referred to
  22. Wages expense
    an account that is debited for the total amount of the gross earnings of all employees for each any period
  23. Worker's Compensation Insurance
    provides insurance for employees who suffer a job-related illness or injury
  24. FICA Abreviation stands for?
    Federal Insurance Contributions Act-requrires employers to withhold FICA taxes from employees' earnings.
  25. Rates & Maximums for Social Security, Medicare, FUTA and SUTA
    • Rates/Maximums
    • SSI:6.2% / $94,200
    • Medicare: 1.45% / No maximum 0
    • FUTA: 0.8% / $7,000 +
    • SUTA: 5.4% / $7,000
  26. What is considered cash in accounting?
    checks, money orders & bank cashier's checks received from customers
Card Set
Review 4
Study Guide