This preview shows page 1. Sign up to view the full content.
Unformatted text preview: timate
This approach results in a more accurate
Balance Transaction Analysis:
Assume the following selected events
occurred at “Our Company.” For each
Determine how the accounting equation was affected.
Determine the effect on the financial statements.
Record the event in t-accounts.
Assume the beginning balance in A/R was $1,050,
and the beginning balance in the Allowance…
account is $70
account Transaction 1
Provided services to customers for
$9,000, on account.
+ 9,000 (A/R)
n/a + C. Stock + Ret. Earn.
+ 9,000 Income Statement: net income increased Statement of Changes in Equity: equity increased
Statement Statement of Cash Flows: cash flow was not
affected Selected T-accts for Our Co.
xx beg. bal.
Allow. for Doubt. Acc.
(bal.) 70 Revenue
Bad Debt Expense Transaction 2
Collected $6,000 cash from account
View Full Document
- Fall '13