Chapter 3 The Equation Analysis Sheet Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Source Documents and the Objectivity Principle https://www.youtube.com/watch?v=2R7n3vNcXW0 Accounting entries are made from business papers known as Source documents are kept on file for reference purposes and as proof of transactions The Objectivity Principle A business’s accounting must be recorded Presentation Title runs here l 00/00/00

Figure 3.1: Metropolitan Movers Balance Sheet PowerPoint 3–1 Chapter 3 Figure 3.1: Metropolitan Movers Balance Sheet 3

Transactions for Metropolitan Movers PowerPoint 3–2 (part 1) Chapter 3 Transactions for Metropolitan Movers Transaction 1 Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Transaction 2 K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Transaction 3 Equipment costing $1950 is purchased for cash. Transaction 4 A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 4

Transactions for Metropolitan Movers PowerPoint 3–2 (part 2) Chapter 3 Transactions for Metropolitan Movers Transaction 5 Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. Transaction 6 J. Hofner, the owner, withdraws $500 for personal use. 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. 5

The Equation Analysis Sheet Write down the fundamental accounting equation and list the items in the assets, liabilities, and owner’s equity sections. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Begin recording the transactions. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate accounts. The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate accounts. The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate accounts. The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record the new balances. Make sure the equation still balances. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 2: K The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 2: K The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record the new balances. Make sure the equation still balances. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

Record changes to the appropriate items. The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record the new balances. Make sure the equation still balances. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 6: J The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 6: J The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 6: J The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Transaction 6: J The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation 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. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation 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. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation 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. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation 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. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7th Edition

The Equation Analysis Sheet Exercise Please complete exercise 1 & 2 on page 78/79 and exercise 7 on page 81 in your textbook. Feel free to work with a partner! Presentation Title runs here l 00/00/00