CH 3.3 Notes - This worksheet helps those in need. PDF

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This worksheet helps those in need....

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CHAPTER 3.3 NOTES Transactions that Affect Revenue, Expense, And Withdrawals by the Owner Revenue – Income earned from the sale of goods or services. Examples include  Fees earned for services performed  Cash received from the sale of merchandise Revenue increases OE because it increases the assets of the business Expense – the price paid for goods or services used to operate a business. Examples include:  Rent  Utilities  Advertising Expenses decrease OE because they decrease the assets of the business or increase liabilities Withdrawal – cash or other assets the owner takes from the business A withdrawal decreases both OE and assets Transactions 8 & 9 – Revenue and Expense Transactions  8 – Roadrunner received a check for $1,200 from a customer, Sims Corporation, for delivery services. Identify Accounts Classify Accounts Increase / Decrease ASSETS +1,200 

=

Cash in Bank Asset Increase

LIABILITIES

Maria Sanchez, Capital OE Increase +

OWNER’S EQUITY -1,200

9 – Roadrunner wrote a check for $700 to pay the rent for the month. Identify Accounts Classify Accounts Increase / Decrease ASSETS -700

=

Maria Sanchez, Capital OE Decrease

LIABILITIES

Transaction 10 – Withdrawals by the Owner

+

Cash in Bank Asset Decrease OWNER’S EQUITY -700



Maria Sanchez withdrew $500 from the business for her personal use Identify Accounts Classify Accounts Increase / Decrease

ASSETS -500

=

Maria Sanchez, Capital OE Decrease

LIABILITIES

+

Cash in Bank Asset Decrease

OWNER’S EQUITY -500

Refer to (p59) overall effect of each transaction in summary and REITERATE that the accounting equation has remained in balance without exception. CORRESPONDING ASSIGNMENT(S):  Problem 3-3 Determining the Effect of Transactions on the Accounting Equation (p60 Book)  Problem 3-4 Classifying Accounts (p65 Book)  Problem 3-5 Completing the Accounting Equation (p65 Book)  Problem 3-6 Classifying Accounts Within the Accounting Equation (p65 Book)  Problem 3-7 Determining Increase and Decreases in Accounts (p66 Book)  Problem 3-8 Determining the Effects of Transactions on the Accounting Equation (p67 Book)  Problem 3-9 Determining the Effects of Business Transactions on the Accounting Equation (67)  Problem 3-10 Describing Business Transaction (p68 Book) AS A CLASS  Problem 3-11 Completing the Accounting Equation (p69 Book)  Understanding Accounting Concepts and Procedures Questions 1-13 (p70 Book)  CH 3 Self-Test (Workbook)  CH 3 Review (Workbook)...