Question

1. In accounting its important to understand that there may be events that occur that are not business transactions. Please give us an example of a business transaction that affects the accounting equation. Remember that the expanded accounting equation is: Assets = Liabilities + Owner's Equity + Revenue - Expenses. Please be sure that you provide this transaction in General Journal format. Additionally give us an example of an event that is not an accounting transaction.

2. Please let us know what you are doing to get those rules of debit and credit memorized. Please let us know if you have any hints to help us with this process.

Answer 1

Answer:

Given that:

Increase in revenue or liability or equity credit Decrease in revenue or liability or equity debit Increase in expense or assets debit Decrease in expense or assets credit

Analysls of tran Account title Effect Categorles DR/CR Amount(S) No. Transactlon Issued of common stock of $1000 at par value Cash Increase Assets Debit 1000 Increase Equity Credt stock of supplies on account Supplies Increase Assets Debit 200 200 Credit 200 Increase Liability Account payable 3 Srvice performed of $400 onAccount Increase Assets Debit 400 account receivable Sales revenue Increase|Revenue Credit400 4 Wages expense paid $100 Wages Increase Expense Debit 100 expense Cash Decrese Assets Credit 100 5 Utilities expense paid $50 Utilities Increase Expense Debit 50 expense Cash Decrease Assets Credit 50 6 300S received from service perfumed in transaction number Cash Increase Assets Debit 300 Account Decrease Assets Credit 300 receivable 7 Paid to 200S for supplies purchased on transition number 2 Account Decrease lty Debit 200 payable Cash Decrease Assets Credit 200

General journal Debit Credit Cash 1000 Common stock 1000 To record cash received from issued of common stock.) Supplies 2 Account payable To record purchase of supplies on account.) Account receivable 400 Sales revenue 400 To record service revenue on account.) 4 Wages expense 100 Cash 100 To record wages expense paid.) Utilities expense 50 Cash 50

To record Utilities expense paid.) Cash 300 Account receivable 300 To record cash collected from account receivable.) 7 Account payable 200 Cash 200 To record payment made to account payable.)

h transaction Company send price list to customer Meeting with client