Download presentation
Presentation is loading. Please wait.
Published byMarian Washington Modified over 8 years ago
1
How Transactions Change Owner ’ s Equity in an Accounting Equation Section 1-3
2
Revenue An increase in owner’s equity resulting from the operation of a business
3
Trans. 6: Received cash from sales Assets = Liabilities + Owner’s Equity Cash+50Revenue+50
4
Sales on Account A sale for which cash will be received at a later date
5
Trans. 7: Sold services on account Assets = Liabilities + Owner’s Equity Accounts Receivable +150 Revenue +150
6
Expenses A decrease in owner’s equity resulting from the operation of a business
7
Trans. 8: Paid cash for rent Assets = Liabilities + Owner’s Equity Cash -400Expense -400
8
Trans. 9: Paid cash for telephone bill Assets = Liabilities + Owner’s Equity Cash -40Expense -40
9
Trans. 10: Received cash on account Assets = Liabilities + Owner’s Equity Cash +200 AR -200
10
Withdrawals Assets taken out of the business for the owner’s personal use
11
Trans. 11: Paid cash to owner for personal use Assets = Liabilities + Owner’s Equity Cash -100Withdrawal 1100
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.