Chapter 1 section 3
Download
1 / 10

- PowerPoint PPT Presentation


  • 58 Views
  • Uploaded on

Chapter 1 – Section 3. How Transactions Change Owner’s Equity in an Accounting Equation. Transaction for the sale of goods or services. Results in owner’s equity. Increase in OE from the business transactions is called Revenue. Ex: cash from sales, sold services. Revenue Transactions.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - noel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Chapter 1 section 3

Chapter 1 – Section 3

How Transactions Change Owner’s Equity in an Accounting Equation


Revenue transactions

Revenue Transactions


Transaction 6

Assets = Liabilities + O/E

Cash + A/R + Supplies + P/I = A/P KP, Capt.

$3,225 $0 $775 $1,200 $200 $5,000

+$295 +295

$3,520 $0 $775 $1,200 $200 $5,295

Transaction #6


Revenue trans cont

Revenue Trans. Cont.


Transaction 7

Assets = Liabilities + O/E money now?

Cash + A/R + Supplies + P/I = A/P KP, Capt.

$3,225 $0 $775 $1,200 $200 $5,000

+$295 +$295

+$350 +$350

$3,520 $350 $775 $1,200 $200 $5,645

Transaction #7


Expense transactions

Expense Transactions


Transactions 8 9

Assets = Liabilities + O/E money now?

Cash + A/R + Supplies + P/I = A/P KP, Capt.

$3520 $350 $775 $1200 $200 $5645

-$300 -$300

-$40 -$40

$3180 $350 $775 $1200 $200 $5305

Transactions 8 & 9


Other cash transactions

Other Cash Transactions


Transactions 10 11

Assets = Liabilities + O/E money now?

Cash + A/R + Supplies + P/I = A/P KP, Capt.

$3180 $350 $775 $1200 $200 $5305

+$200 -$200

-$125 -$125

$3255 $150 $775 $1200 $200 $5180

Transactions 10 & 11


Changes in owner s equity

Beginning Capital $5,000.00 money now?

Revenue #6 295.00

Revenue #7 350.00

Expense #8 300.00

Expense #9 40.00

Withdrawal #11 125.00

Ending Capital $5,180.00

Total Change = $180.00

Changes in Owner’s Equity