Transactions That Affect Revenue, Expense, and Withdrawals by the Owner Chapter 3.3.

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Presentation transcript:

Transactions That Affect Revenue, Expense, and Withdrawals by the Owner Chapter 3.3

Revenue  Income earned from the sale of goods or services.  Examples: Fees, cash received from sales  Increases Owner’s Equity  Because it increases the assets of the business

Business Transaction #8  Roadrunner received a check for $1,200 from a customer, Sims Corporation, for delivery services.

Expenses  The price paid for goods or services used to operate a business.  Examples: Rent, utilities, advertising  Decrease Owner’s Equity  Because they decrease the assets of the business  OR  Increase liabilities

Business Transaction #9  Roadrunner wrote a check for $700 to pay for the rent for the month.

Withdrawals  If a business earns revenue….  Generally the owner will take cash from the business for personal use.  Decreases both assets and owner’s equity

Business Transaction #10  Maria Sanchez withdrew $500 from the business for personal use.

Complete the following… Textbook page Thinking Critically 2. Analyzing Accounting 3. Problem 3-3  We will go over it on Thursday