100 100 return to transaction types table 3 abc

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Return To Transaction Types Table3. ABC places an ad in the local newspaperreceives the invoice from the supplier andwrites a check for $25 to the newspaper.Return To Transaction Types Table25254. ABC purchases five mowers for $10,000and finances them with a note from thelocal bank.Return To Transaction Types Table10,00010,0005. ABC mows another customer's yard andsends the customer a $75 bill (invoice) forthe service they performed. They allowtheir customer ten (10) days to pay themfor this service (on account).Return To Transaction Types Table75756. The owner of ABC needs a little moneyto pay some personal bills and writeshimself a check for $500.Return To Transaction Types Table5005007. ABC pays the office supply company$100 with a check for the office suppliesthat they charged (promised to pay).Return To Transaction Types Table1001008. ABC receives a check from the customerwho they billed (invoiced) $75 for servicesand allowed 10 days to pay.Return To Transaction Types Table75759. ABC purchased some mulch for $60 and
received an invoice from their supplier whoallows them 15 days to pay. The mulchwas used on a customer's yard.
Return To Transaction Types Table10. ABC bills (prepares an invoice) thecustomer $80 for the mulch and mowinghis yard and receives a check for $80 fromthe customer.Return To Transaction Types Table8080Totals$10,380$700$100$10,160$585$205Let's see if you've been fibbing to me about those debits and credits.Account TypeDebitsCreditsAsset Transactions$10,380$700Liability Transactions10010,160Equity Transactions585205Totals$11,065$11,065By golly those debits and credits do equal each other.Let's not forget "Ma Capital's (Owner's Equity) Kids" ! We also borrowed another table fromLesson 2 and included the terms debit and credit in the table.Equity TableAnalysis of the Effects of Debits and Credits and Revenue, Expense, and Draws onOwner's EquityNavigation:Interactive Links are included in this table.To Return To The Analysis Using The Expanded Accounting Equation Table Click oUnderlined Dollar Amount.In the previous table, we entered all the transactions that affected Owner's Equity under oneheading; namely, Owner's Equity and disregarded whether it was a revenue, expense, ordraw item. The following table illustrates where the transactions affecting Owner's Equitywould actually be entered.
Instead of recording transactions directly to Owner's Equity ("Ma Capital"), properbookkeeping actually uses her "Kids" Revenue, Expense, and Draws to record the increasesand decreases to "Ma Capital" (Owner's Equity) in order to provide us with the answers tothe how and why the owner's claim to the business's property increased or decreased.This table also illustrates the effects of debits and credits on "Ma Capital's Kids" Revenue,Expense, and Draw. Of course only the sample transactions that affect Owner's Equity(Revenue, Expense, and Draws) have been included.

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Term
Winter
Professor
V.G. Narayanan
Tags
Balance Sheet, Revenue, Generally Accepted Accounting Principles, Double entry bookkeeping system

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