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TRANSACTIONS (1).pdf
- 1. TRANSACTIONS
- 2. TRANSACTIONS A business transaction is an economic activity between two or more parties that involves the exchange of goods, money, or services. Each transaction changes the ๏ฌnancial position of a company (which is shown on the balance sheet).
- 3. REMEMBERโฆ. ASSETS LIABILITIES OWNERโS EQUITY + = A = L OE + Fundamental Accounting Equation With every transaction, the balance sheet MUST balance.
- 4. TRANSACTION ANALYSIS SHEET Record initial balances from the balance sheet.
- 5. TRANSACTION ANALYSIS SHEET Record initial balances from the balance sheet.
- 6. TRANSACTION ANALYSIS SHEET Record initial balances from the balance sheet.
- 7. TRANSACTION ANALYSIS SHEET Begin recording the transactions.
- 8. TRANSACTION ANALYSIS SHEET TRANSACTION 1 Very Happy Moving Company pays $1,000 cash to reduce the Bank Loan. Record changes to the appropriate accounts.
- 9. TRANSACTION ANALYSIS SHEET TRANSACTION 1 Very Happy Moving Company pays $1,000 cash to reduce the Bank Loan.
- 10. TRANSACTION ANALYSIS SHEET TRANSACTION 1 Very Happy Moving Company pays $1,000 cash to reduce the Bank Loan.
- 11. TRANSACTION ANALYSIS SHEET TRANSACTION 1 Very Happy Moving Company pays $1,000 cash to reduce the Bank Loan. Record the new balances. Make sure the equation still balances.
- 12. TRANSACTION ANALYSIS SHEET TRANSACTION 2 J. Knight, who owes Very Happy Moving Company $2600, pays $1100 in partial payment of the debt. Record changes to the appropriate items.
- 13. TRANSACTION ANALYSIS SHEET TRANSACTION 2 J. Knight, who owes Very Happy Moving Company $2600, pays $1100 in partial payment of the debt.
- 14. TRANSACTION ANALYSIS SHEET TRANSACTION 2 J. Knight, who owes Very Happy Moving Company $2600, pays $1100 in partial payment of the debt.
- 15. TRANSACTION ANALYSIS SHEET Record the new balances. Make sure the equation still balances. TRANSACTION 2 J. Knight, who owes Very Happy Moving Company $2600, pays $1100 in partial payment of the debt.
- 16. TRANSACTION ANALYSIS SHEET TRANSACTION 3 Equipment costing $1950 is purchased with cash. Record changes to the appropriate items.
- 17. TRANSACTION ANALYSIS SHEET TRANSACTION 3 Equipment costing $1950 is purchased on credit.
- 18. TRANSACTION ANALYSIS SHEET TRANSACTION 3 Equipment costing $1950 is purchased on credit.
- 19. TRANSACTION ANALYSIS SHEET Record the new balances. Make sure the equation still balances. TRANSACTION 3 Equipment costing $1950 is purchased on credit.
- 20. TRANSACTION ANALYSIS SHEET TRANSACTION 4 A pick-up truck is purchased at a cost of $18,000. Very Happy Moving Company pays $10,000 cash and arranges a loan from its bank to cover the balance of the purchase price.
- 21. TRANSACTION ANALYSIS SHEET TRANSACTION 4 A pick-up truck is purchased at a cost of $18,000. Very Happy Moving Company pays $10,000 cash and arranges a loan from its bank to cover the balance of the purchase price.
- 22. TRANSACTION ANALYSIS SHEET TRANSACTION 4 A pick-up truck is purchased at a cost of $18,000. Very Happy Moving Company pays $10,000 cash and arranges a loan from its bank to cover the balance of the purchase price.
- 23. TRANSACTION ANALYSIS SHEET TRANSACTION 4 A pick-up truck is purchased at a cost of $18,000. Very Happy Moving Company pays $10,000 cash and arranges a loan from its bank to cover the balance of the purchase price.
- 24. TRANSACTION ANALYSIS SHEET TRANSACTION 4 A pick-up truck is purchased at a cost of $18,000. Very Happy Moving Company pays $10,000 cash and arranges a loan from its bank to cover the balance of the purchase price.
- 25. TRANSACTION ANALYSIS SHEET TRANSACTION 5 Very Happy Moving Company completes a storage service for P. Enns at a price of $1500. A bill is sent to Enns to indicate the additional amount that is owed.
- 26. TRANSACTION ANALYSIS SHEET TRANSACTION 5 Very Happy Moving Company completes a storage service for P. Enns at a price of $1500. A bill is sent to Enns to indicate the additional amount that is owed.
- 27. TRANSACTION ANALYSIS SHEET TRANSACTION 5 Very Happy Moving Company completes a storage service for P. Enns at a price of $1500. A bill is sent to Enns to indicate the additional amount that is owed.
- 28. TRANSACTION ANALYSIS SHEET TRANSACTION 5 Very Happy Moving Company completes a storage service for P. Enns at a price of $1500. A bill is sent to Enns to indicate the additional amount that is owed.
- 29. TRANSACTION ANALYSIS SHEET TRANSACTION 6 T. Chan, the owner, withdraws $500 for personal use.
- 30. TRANSACTION ANALYSIS SHEET TRANSACTION 6 T. Chan, the owner, withdraws $500 for personal use.
- 31. TRANSACTION ANALYSIS SHEET TRANSACTION 6 T. Chan, the owner, withdraws $500 for personal use.
- 32. TRANSACTION ANALYSIS SHEET TRANSACTION 6 T. Chan, the owner, withdraws $500 for personal use.
- 33. TRANSACTION ANALYSIS SHEET TRANSACTION 7 One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up.
- 34. TRANSACTION ANALYSIS SHEET TRANSACTION 7 One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up.
- 35. TRANSACTION ANALYSIS SHEET TRANSACTION 7 One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up.
- 36. TRANSACTION ANALYSIS SHEET TRANSACTION 7 One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up.
- 37. TRANSACTION ANALYSIS SHEET Final balances from the transaction analysis sheet can be used to create an updated balance sheet.
- 38. TRANSACTION ANALYSIS SHEET Final balances from the equation analysis sheet can be used to create an updated balance sheet.
- 39. BALANCE SHEETS Previous ๏ฌnancial position (Sept 30) New ๏ฌnancial position (Oct 31) after transactions