Many events are linked to a source document. The following is a list of events that occurred in an entity:
a. Paid a one-year insurance policy.
b. Paid employee payroll.
c. Provided services to a customer on account.
d. Identified supplies in the storeroom destroyed by fire.
e. Received payment of bills from customers.
f. Purchased land for future expansion.
g. Calculated taxes due.
h. Entered into a car lease agreement and paid the tax, title, and license.
Required
For each item (a) through (h), indicate whether the event should or should not be recorded in the entity’s accounts. For each item that should be recorded in the entity’s books:
1. Identify one or more source documents that are generated from the event.
2. Identify which source document would be used to record an event when it produces more than one source document.
3. For each document, identify the information that is most useful in recording the event in the accounts.