ACCT Chapter3 - BE 3 7 Terry Rolen a fellow student is...

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BE 3 – 7. Terry Rolen, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur. 1. Analyze each transaction in terms of its effects on account. 2. Enter the transaction information in a journal. 3. Transfer the journal information to the appreciate account in the ledger (book of accounts). BE 3 - 8. Issue shares of common stock to investors in exchange for 10,000. Event 1 On August 1 st Ankiel Corporation issued shares of common stock to investors in exchange for $10,000. Basic Analysis The asset Cash is increased $ 10,000, and stockholders’ equity (specifically Common Stock) is increased $10,000. Equation Analysis Assets Cash _ +10,000 = Liabilities = = = Stockholders’ Equity Common Stock_______________ + $10,000 Issued stock Debit-Credit Analysis Debits increase assets; debit Cash $10,00 Credits increase stockholders’ equity: credit common Stock $10,000.
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Event 1 On August 1 st Ankiel Corporation issued shares of common stock to investors in
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This note was uploaded on 10/15/2010 for the course ACCT 2101 taught by Professor Smith during the Fall '08 term at Georgia Perimeter.

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ACCT Chapter3 - BE 3 7 Terry Rolen a fellow student is...

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