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Chapter 3 The Equation Analysis Sheet

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

2 The Equation Analysis Sheet This tutorial guides you through the basic steps of creating an equation analysis sheet. It also illustrates how business transactions affect financial position. For more detailed instructions, refer to Section 3.2 of the Accounting 1 textbook. Chapter 3 – The Equation Analysis Sheet l DRAFT | Accounting 1, 7th Edition

3 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 DRAFT | Accounting 1, 7th Edition

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

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

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

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

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

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

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

11 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 DRAFT | Accounting 1, 7th Edition

12 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 DRAFT | Accounting 1, 7th Edition

13 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 DRAFT | Accounting 1, 7th Edition

14 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 DRAFT | Accounting 1, 7th Edition

15 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 DRAFT | Accounting 1, 7th Edition

16 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 DRAFT | Accounting 1, 7th Edition

17 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 DRAFT | Accounting 1, 7th Edition

18 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 DRAFT | Accounting 1, 7th Edition

19 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 DRAFT | Accounting 1, 7th Edition

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

21 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 DRAFT | Accounting 1, 7th Edition

22 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 DRAFT | Accounting 1, 7th Edition

23 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 DRAFT | Accounting 1, 7th Edition

24 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 DRAFT | Accounting 1, 7th Edition

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

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

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

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

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

30 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 DRAFT | Accounting 1, 7th Edition

31 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 DRAFT | Accounting 1, 7th Edition

32 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 DRAFT | Accounting 1, 7th Edition

33 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 DRAFT | Accounting 1, 7th Edition

34 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 DRAFT | Accounting 1, 7th Edition

35 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 DRAFT | Accounting 1, 7th Edition

36 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 DRAFT | Accounting 1, 7th Edition

37 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 DRAFT | Accounting 1, 7th Edition

38 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 DRAFT | Accounting 1, 7th Edition

39 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 DRAFT | Accounting 1, 7th Edition

40 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 DRAFT | Accounting 1, 7th Edition

41 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 DRAFT | Accounting 1, 7th Edition

42 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 DRAFT | Accounting 1, 7th Edition

43 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 DRAFT | Accounting 1, 7th Edition

44 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 DRAFT | Accounting 1, 7th Edition

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