1 Transaction Sell shares of company stock for $2,000
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis +Cash +Stock
$ 2,000 $ 2,000
Debit/Credit
Analysis Debit Cash Credit Stock
Financial Cash is an asset account, balance sheet
Statement Stock is an equity account, balance sheet
Analysis
2 Transaction Borrow $1,600 from bank
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation +Notes
Analysis +Cash Payable
$ 1,600 $ 1,600
Credit
Debit/Credit Notes
Analysis Debit Cash Payable
Financial Cash is an asset account, balance sheet
Statement Notes Payable is a liability account, balance sheet
Analysis
Purchase land and farmhouse: cash down $250, note payable
3 Transaction $500
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation +Notes
Analysis -Cash Payable
$ (250) $ 500
+ Property &
Farmhouse
$ 750
Credit
Debit/Credit Credit Cash Notes
Analysis Debit P&F Payable
Financial Cash is an asset account, balance sheet
Statement Property & Farmhouse is an asset account, balance sheet
Analysis Notes Payable is a liability account, balance sheet
4 Transaction Purchase worms $100 cash
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis -Cash
$ (100)
+Inventory
$ 100
Debit/Credit Credit Cash
Analysis Debit Inventory
Financial Cash is an asset account, balance sheet
Statement Inventory is an asset account, balance sheet
Analysis
5 Transaction Purchase worms $120 credit
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation + Accounts
Analysis + Inventory Payable
$ 120 $ 120
Credit
Debit/Credit Accounts
Analysis Debit Inventory Payable
Financial Inventory is an asset account, balance sheet
Statement Accounts Payable is a liability account, balance sheet
Analysis
6 Transaction Purchase supplies $70 cash
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis -Cash
$ (70)
+Supplies
$ 70
Debit/Credit Credit Cash
Analysis Debit Supplies
Financial Cash is an asset account, balance sheet
Statement Supplies is an asset account, balance sheet
Analysis
7 Transaction Pay for wages $200 cash
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis -Cash +Wages expense
$ (200) $ (200)
Credit Cash
Debit/Credit Debit Wages
Analysis exp.
Financial Cash is an asset account, balance sheet
Statement Wages is an expense, income statement
Analysis
8 Transaction Sell worms on credit $600, decrease inventory $150
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation + Accounts
Analysis Receivable + Sales
$ 600 $ 600
- Inventory +Cost of Goods Sold
$ (150) $ (150)
Debit A/R
Debit/Credit Credit Credit Sales Debit
Analysis Inventory CGS
Financial Accts. Rec. is an asset account, balance sheet
Statement Inventory is an asset account, balance sheet
Analysis Sales is a revenue account, income statement
Cost of Goods sold is an expense acct, income stmt.
9 Transaction Sell worms on cash $300, decrease inventory $50
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis + Cash + Sales
$ 300 $ 300
- Inventory +Cost of Goods Sold
$ (50) $ (50)
Debit Cash
Debit/Credit Credit Credit Sales Debit
Analysis Inventory CGS
Financial Cash is an asset account, balance sheet
Statement Inventory is an asset account, balance sheet
Analysis Sales is a revenue account, income statement
Cost of Goods sold is an expense acct, income stmt.
10 Transaction Accrue utility expenses $30
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation +Accts.
Analysis Payable +Utilities expense
$ 30 $ (30)
Credit
Debit/Credit Accts.
Analysis Payable Debit Utilities Expense
Financial Accts Payable is a liability account, balance sheet
Statement Utilities is an expense account, income statement
Analysis
11 Transaction Collect cash on credit sales $500
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis + Cash
$ 500
- Accounts
receivable
$ (500)
Debit Cash
Credit
Debit/Credit Accounts
Analysis receivable
Financial Cash is an asset account, balance sheet
Statement Accounts receivable is an asset account, balance sheet
Analysis
Pay accrued expenses: vendor of worms $80, utility company
12 Transaction $30
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation +Accts.
Analysis -Cash Payable
$ (110) $ (110)
Debit/Credit Debit Accts.
Analysis Credit Cash Payable
Financial Cash is an asset account, balance sheet
Statement Accts Payable is a liability account, balance sheet
Analysis
13 Transaction Record depreciation on farmhouse, $25
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation +Accum. +Accts.
Analysis Depreciation Payable +Depreciation expense
$ (25) $ (25)
Debit/Credit Credit Accum.
Analysis Depreciation Debit Depreciation Expense
Financial Accum. Depn. is contra-asset account, balance sheet
Statement Depreciation is an expense account, income statement
Analysis
14 Transaction Use supplies $15
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis - Supplies +Supplies expense
$ (15) $ (15)
Debit/Credit
Analysis Credit Supplies Debit Supplies Expense
Financial Accum. Depn. is contra-asset account, balance sheet
Statement Depreciation is an expense account, income statement
Analysis
16 Transaction Pay income taxes for the year, $75
Equity (includes Rev. &
Accounting Assets = Liabilities + Exp.)
Equation
Analysis - Cash +Income tax expense
$ (75) $ (75)
Debit/Credit
Analysis Credit Supplies Debit Supplies Expense
Financial Cash is an asset account, balance sheet
Statement Income tax expense is an expense account, income statement
Analysis
Transaction
Accounting Assets = Liabilities + Equity (includes Rev. & Exp.)
Equation Analysis
Debit/Credit
Analysis
Financial
Statement Analysis
Transaction
Accounting Assets = Liabilities + Equity (includes Rev. & Exp.)
Equation Analysis
Debit/Credit
Analysis
Financial
Statement Analysis
Transaction
Accounting Assets = Liabilities + Equity (includes Rev. & Exp.)
Equation Analysis
Debit/Credit
Analysis Debit: cash Credit: Stock
Financial
Statement Analysis