Completing Business Transactions in the Ac counting Equation

Purchased office equipment with cash.

Which accounts are affected & how?

• Cash in Bank (-)

  Business Equipment(+)

• Cash in Bank (+)

  Accounts Receivable (+)

• Cash in Bank (+)

  Business Equipment (+)

Received cash for repair services

(at the time the services were completed).

Which accounts are affected & how?

• Cash in Bank (-)

  Business Equipment(+)

• Richard Tang, Capital (+)

  Accounts Receivable (+)

• Cash in Bank (+)

  Richard Tang, Capital (+)

Bought video equipment on account.

Which accounts are affected & how?

• Cash in Bank (-)

  Business Equipment(+)

• Business Equipment (+)

  Accounts Receivable (+)

• Accounts Payable (+)

  Business Equipment (+)

The owner, Richard Tang, invests $30,000 into the business checking account.

Which accounts are affected & how?

• Cash in Bank (-)

  Richard Tang, Capital (+)

• Cash in Bank (+)

  Richard Tang, Capital (+)

• Accounts Payable (+)

  Richard Tang, Capital (+)

Performed repair services and the customer agreed to pay later (on account)

Which accounts are affected & how?

• Cash in Bank (-)

  Accounts Payable (-)

• Richard Tang, Capital (+)

  Accounts Receivable (+)

• Cash in Bank (+)

  Richard Tang, Capital (+)

Business sold old video equipment on account to a client

Which accounts are affected & how?

• Cash in Bank (-)

  Accounts Payable (-)

• Richard Tang, Capital (+)

  Accounts Receivable (+)

• Business Equipment (-)

  Accounts Receivable (+)

Richard Tang transferred office equipment to the business

Which accounts are affected & how?

• Cash in Bank (-)

  Accounts Payable (-)

• Richard Tang, Capital (+)

  Business Equipment (+)

• Cash in Bank (+)

  Richard Tang, Capital (+)

Issued a check to a creditor as payment

Which accounts are affected & how?

• Cash in Bank (-)

  Accounts Payable (-)

• Richard Tang, Capital (+)

  Accounts Payable (+)

• Cash in Bank (+)

  Richard Tang, Capital (+)

Received payment on account for services previously performed.

Which accounts are affected & how?

• Cash in Bank (+)

  Accounts Payable (-)

• Richard Tang, Capital (+)

  Accounts Receivable (+)

• Cash in Bank (+)

  Accounts Receivable (-)

The owner, Richard Tang, withdrew money from the business for personal use.

Which accounts are affected & how?

• Cash in Bank (+)

  Accounts Receivable (-)

• Richard Tang, Capital (-)

  Cash in Bank (-)

• Cash in Bank (+)

  Accounts Receivable (-)