Chapter 02 - Analyzing and Recording Analyzing and...

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Unformatted text preview: Analyzing and Recording Analyzing and Recording Transactions Transactions Chapter 2 Chapter 2 Transaction Analysis Transaction Analysis Scott Company Statement of Owner's Equity For Month Ended December 31, 2007 Capital, December 1, 2007- $ Plus: Investments by Owner 20,000 $ Net Income 2,200 22,200 22,200 Less: Withdrawals by owner 500 Capital, December 31, 2007 21,700 $ Transaction Analysis Transaction Analysis 1. J. Scott invests $20,000 cash to start the business. 1. Purchased supplies paying $1,000 cash. 1. Purchased equipment for $15,000 cash 1. Purchased Supplies of $200 and Equipment of $1,000 on account. 1. Borrowed $4,000 from 1st American Bank. 1. Provided consulting services receiving $3,000 cash. 1. Paid salaries of $800 to employees. 1. A withdrawal of $500 is made by the owner. Analyzing and Recording Process Analyzing and Recording Process 1. Analyze each transaction and event from source documents Apply double-entry accounting 2. Record relevant transactions and events in a 2....
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Chapter 02 - Analyzing and Recording Analyzing and...

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