FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Accounting Equation Transaction Analysis Practice Transaction Analysis. Identify the effects of each transaction to total assets, total liabilities, and total equity by writing (+) for increase, (-) for decrease and NE for no effect. EXAMPLE: Owner invested cash in the business NE 1. Invested cash in a laundry business. 2. Bought laundry equipment paying partial cash and the balance on account. 3. Received cash for laundry services. 4. Paid the balance in number 2. 5. A customer issued a 15-day note for laundry services rendered. 6. The owner withdraws cash. 7. The customer who issued the note in number 5 paid his account. 8. Paid Meralco bills for the month. 9. Borrowed from a bank and issued a note for the principal. 10. Paid the salary of the helper.

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Accounting Equation Transaction Analysis Practice Transaction Analysis. Identify the effects of each transaction to total assets, total liabilities, and total equity by writing (+) for increase, (-) for decrease and NE for no effect. EXAMPLE: Owner invested cash in the business NE 1. Invested cash in a laundry business. 2. Bought laundry equipment paying partial cash and the balance on account. 3. Received cash for laundry services. 4. Paid the balance in number 2. 5. A customer issued a 15-day note for laundry services rendered. 6. The owner withdraws cash. 7. The customer who issued the note in number 5 paid his account. 8. Paid Meralco bills for the month. 9. Borrowed from a bank and issued a note for the principal. 10. Paid the salary of the helper.

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 2E: List the classification of each of the following accounts as A (asset), L (liability), OE (owners...

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