Transaction in Accounting

1. Name: Rinku Nahar Hossan
Transaction Analysis & Statement

2. TRANSACTION
An accounting transaction is a business event having a monetary impact on the
financial statement of a business. It is recorded in the accounting records of the
business. Each transaction has a dual effect on the accounting equation.
Examples of accounting transactions are:
 Sale in cash to a customer.
 Sale on credit to a customer.
 Receive cash in payment of an invoice owed by a customer.
 Purchase fixed assets from a supplier.
 Investment in another business.
 Borrow funds from a lender.

3. TRANSACTION ANALYSIS
Transaction 1: On June 1,2018,Rinku invested $10,000 cash in business which she
names worldbyte.
Transaction 2: On June 2,Purchased a used van for deliveries for $12,000.Rinku
paid $2000 cash and signed a note payable for the remaining balance.
1 +$10,0
00
+$10,000
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000

4. Transaction 3: On June 3,Paid $500 for office rent for the month.
Transaction 4: ON June 5,Performed $4,400 of service on account.
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400

5. Transaction 5: On June 9,Withdraw $200 cash for personal use.
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)

6. Transaction 6: On June 12,Purchased Supplies for $150 on account.
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150

7. Transaction 7: On June 15,Received a cash payment of $1250 for services
provided on June 5.
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)

8. Transaction 8: On June 17,Purchased gasoline for $200 on account.
1 +$10,0
00
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200

9. Transaction 9: On June 20,Received a cash payment of $1300 for service
provided.
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2 +$130 +$1300

10. Transaction 10: On June 23,Made a cash payment of $600 on the note payable.
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2
0
+$130
00
+$1300

11. Transaction 11: On June 26, Paid $250 for utilities.
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2
0
+$130
00
+$1300

12. Transaction 12: On June 29, Paid for the gasoline purchased on account, June 17.
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2
0
+$130
00
+$1300
($600)

13. Transaction 13: On June 30, Paid $1000 for employee salaries.
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2
0
+$130
00
+$1300

14. Total = 23,300 23,300
1 +$10,00
0
$10,000
2 ($2000
0)
+$12,000 +$10,000
3 ($500)
)
($500)
5 +$4,400 +$4,400
9 ($200)
)
($200)
1
2
+$150 +$150
1
5
+$125
50
($1250)
1
7
+$200 +$200
2
0
+$130
00
+$1300
2
3
($600)
)
($600)
2 ($250)

15. The Income Statement is one of a company’s core financial statements
that shows their profit and loss over a period of time.
The profit or loss is determined by taking all revenues and subtracting all
expenses from both operating and non-operating activities.
Net Income = (Total Revenue + Gains) – (Total Expenses + Losses)

16. Revenue
Service Revenue $5,700
Expenses
Office Rent $500
Utilities $250
salaries $1000
Total Expense $1750
Net Income $3950
WorldByte
Income Statement
For the month of June

17. Owner’s equity is essentially the owner’s rights to the assets of the
business.
 It’s what’s left over for the owner after we subtract all the liabilities from the
assets.
Owner’s Equity = Assets – Liabilities

18. Owner’s Capital , June 1 $_0_
Add: Investments $10,000
Net Income $3,950 $13,950
$13,950
Less: Drawings $200
Owner’s Capital, June 30 $13,750
WorldByte
Owner’s Equity Statement
For the month ended of June 30,2018

19. A balance sheet is a financial statement that reports a company's
assets, liabilities and owner’s equity at a specific point in time.
It provides a basis for computing rates of return and evaluating its
capital structure.
It is a financial statement that provides a snapshot of what a company
owns and owes, as well as the amount invested by owner.
For the balance sheet to reflect the true picture, both heads (liabilities &
assets) should tally
(Assets = Liabilities + Equity).

20. Assets
Cash $7,800
Equipment $12,200
Supplies $150
Account Receivable $3,150
Total Assets $23,300
Liabilities & Owner’s Equity
Account Payable $9,550
Owner’s Equity $13,750
Total Liabilities & Owner’s Equity $23,300
WorldByte
Balance Sheet
June 30,2018