Chpt 3.1 Business Transactions A business transaction is a ________________ that causes a ______________ ____________.

Business Transaction Example 1 A business buys a new colour laser printer for $700. What Balance Sheet accounts would be affected by this transaction? __________________________________

Business Transaction Example 2 A business pays off $3000 on their bank loan. What Balance Sheet accounts would be affected by this transaction? __________________________________

Business Transaction Example 3 A business has a fire inspector in to check the fire extinguishers. What Balance Sheet accounts would be affected by this transaction? __________________________________

Accounting Standard - Objectivity Requires that a business’s accounting be recorded ___________________________ ______________ Means that different people looking at the ________(source document) ____________ __________________________. ___________is recorded on ______, not on personal feeling or opinion.

Source Documents A source document is a ___________ with a dollar figure that ___________ __________________ to the recipient. Examples include: Hydro bill, ___________, store receipts, ____________, cash register summaries, Sales invoice, ______________.

Source Documents Remember: 1. ________________are made from business papers known as _________________. 2. Source documents are ___________for reference purposes and are _________of transactions. (paper trail)

Steps in Analyzing a Transaction Step 1 – _______________(asset or liability) that must be changed and make all necessary changes. Step 2 – See if the ______________has ______________. If the company is __________than owner’s equity should _____________. If the company is ____________than owner’s equity should ___________.

Steps in Analyzing a Transaction Step 3 – Make certain that at __________of the individual items have changed. Step 4 – Make sure that the ______________ __________________ _______________________________