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

2. 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

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

4. 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

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

6. 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

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

8. Complete the following… Textbook page 60 1. Thinking Critically 2. Analyzing Accounting 3. Problem 3-3  We will go over it on Thursday