Chapter 1, Problem 1.48BP

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners. Accounting equation is expressed as shown below:

$\begin{array}{c}\text{Assets = Liabilities + Equity}\\ \text{Assets = Liabilities+}\left\{\left(\begin{array}{l}\text{Contributed }\\ \text{capital}\end{array}\right)\text{+}\left(\begin{array}{l}\text{Retained }\\ \text{earnings}\end{array}\right)\right\}\\ \text{Assets = Liabilities+}\left\{\left(\begin{array}{l}\text{Common }\\ \text{stock}\end{array}\right)\text{+}\left(\text{Revenues–Expenses–Dividends}\right)\right\}\end{array}$

To analyze: The transactions of T Gymnastics, using the accounting equation in the given format