Les 02 1
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The document contains records of 11 financial transactions made by a business owner on August 12. Transaction 6 and 7 were revenues totaling $525 from cash sales and a sale on account. Transactions 8 and 9 were expenses totaling $295 paid in cash for rent and a telephone bill. Transaction 10 was a $100 cash payment received on the account from an earlier sale. Transaction 11 was a $100 cash withdrawal for personal use. The net change in owner's equity was an increase of $130.
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Les 02 1
- 1. REVENUE TRANSACTIONS Transaction 6 August 12. Received cash from sales, $325.00. Transaction 7 August 12. Sold services on account to Kids Time, $200.00. Lesson 2-1, page 26 2- © South-Western South- Educational Publishing
- 2. PAID CASH FOR EXPENSES Transaction 8 August 12. Paid cash for rent, $250.00. Transaction 9 August 12. Paid cash for telephone bill, $45.00. Lesson 2-1, page 27 2- © South-Western South- Educational Publishing
- 3. OTHER TRANSACTIONS Transaction 10 August 12. Received cash on account from Kids Time, $100.00. –100 (withdrawal) Transaction 11 August 12. Paid cash to owner for personal use, $100.00. Lesson 2-1, page 28 2- © South-Western South- Educational Publishing
- 4. SUMMARY OF CHANGES IN OWNER’S EQUITY Transaction Change in Number Kind of Transaction Owner’s Equity 6 Revenue (cash) +325.00 7 Revenue (on account) +200.00 8 Expense (rent) –250.00 9 Expense (telephone) –45.00 11 Withdrawal –100.00 Net change in owner’s equity +130.00 Lesson 2-1, page 28 2- © South-Western South- Educational Publishing
- 5. TERMS REVIEW revenue sale on account expense withdrawals Lesson 2-1, page 29 2- © South-Western South- Educational Publishing