Required information Exercise 7-13 (Algo) Unearned revenues-customer deposits LO 7-3 [The following information applies to the questions displayed below] NightWoundsTime Brewing Company distributes its products in an aluminum keg Customers are charged a deposit of $85 per keg: deposits are recorded in the Keg Deposits account Exercise 7-13 (Algo) Part d - Horizontal model Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Balance Sheet Income Statement

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is