Transaction analysis PDF

Preview

Summary

Practice TA...

Description

Transaction analysis Assets Cash

AccountsReceivable Supplies

= Liabilities Equipment

=

Unearned Revenue

+ Notes Payable

+

Equity Contributed Capital

Retained Earnings

1. After registering the business name, Video Memories, the owners deposited $15,000 into the business bank account. 15000 = 15000 2. Video Memories purchases 2 video cameras (equipment) for $9000 & supplies for $1000, paid cash. -10000 +1000 +9000 =

-10000

3. Video Memories receives $1500 immediately after filming a customer’s wedding. Sales revenue +1500

+1500 R

4. Video Memories receives $2000 to film a wedding anniversary in a few weeks time. +2000 2000 5. Video Memories paid $250 in cash for Facebook advertising. Expense -250

-250 Ad

6. Video Memories film a dance competition, leaving a $3500 invoice (bill) with the customer asking for payment within 7 days. 3500 3500 R 7. Video Memories purchases another video camera for $9000 by signing a nine-month notes payable. This requires payment of principle and interest at maturity. Interest is charged at 6% p.a. 9000 9000 8. Video Memories receives $3500 from the customer in payment of the invoice from transaction #6. -3500 3500 9. Video Memories pays wages of $2000 to its employees. -2000

-2000 Ex

10. At the end of the month, Video Memories owners withdraw $1,500 for personal use (dividend). -1500

-1500

Account- a place where we can record, sort and store all transaction that affect a related group of items T-account - a visual representation of an account.. looks like General ledger - a place where a business stores a complete record of all its financial transactions and accounts...