Chapter 8, Problem 8.27P

To determine

Introduction

Transaction analysis is a tabular form of presentation of each transaction with respective assets and liability column. It helps to understand the flow of transaction in more effective manner. Further, it also clarify that the particular transaction has made an additional contribution or made a negative contribution.

Every transaction has a double accounting effect, which means each and every transactions lead to affect the assets and liabilities by same value, making the balance sheet as balance. We need to figure out the every transaction and judge, which assets or which liabilities will be going to be affected due to particular transaction.

To prepare:

The transaction analysis statement