Transaction : The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions. Accounting equation : Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners. Accounting equation is expressed as shown below: Assets = Liabilities + Equity Assets = Liabilities+ { ( Contributed capital ) + ( Retained earnings ) } Assets = Liabilities+ { ( Common stock ) + ( Revenues–Expenses–Dividends ) } To analyze : The transactions using the accounting equation in the given format

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Chapter 1, Problem 1.47BP

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Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners. Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions using the accounting equation in the given format

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