FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Accounting Equation Transaction Analysis Practice Transaction Analysis. Identify the effects of each transaction to total assets, total liabilities, and total equity by writing (+) for increase, (-) for decrease and NE for no effect. EXAMPLE: Owner invested cash in the business NE 1. Invested cash in a laundry business. 2. Bought laundry equipment paying partial cash and the balance on account. 3. Received cash for laundry services. 4. Paid the balance in number 2. 5. A customer issued a 15-day note for laundry services rendered. 6. The owner withdraws cash. 7. The customer who issued the note in number 5 paid his account. 8. Paid Meralco bills for the month. 9. Borrowed from a bank and issued a note for the principal. 10. Paid the salary of the helper.

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Accounting Equation Transaction Analysis Practice Transaction Analysis. Identify the effects of each transaction to total assets, total liabilities, and total equity by writing (+) for increase, (-) for decrease and NE for no effect. EXAMPLE: Owner invested cash in the business NE 1. Invested cash in a laundry business. 2. Bought laundry equipment paying partial cash and the balance on account. 3. Received cash for laundry services. 4. Paid the balance in number 2. 5. A customer issued a 15-day note for laundry services rendered. 6. The owner withdraws cash. 7. The customer who issued the note in number 5 paid his account. 8. Paid Meralco bills for the month. 9. Borrowed from a bank and issued a note for the principal. 10. Paid the salary of the helper.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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