Accounting. How transactions change owner’s equity in accting equation revenue increases Owner’s Equity withdrawls decrease Owner’s Equity received cash.

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Presentation transcript:

Accounting

How transactions change owner’s equity in accting equation revenue increases Owner’s Equity withdrawls decrease Owner’s Equity received cash means cash increase paid cash means cash decrease

August 12, 2008 Received cash from sales, $295.00

Assets = Liabilities + Owners Equity Cash+ Supplies + Prepaid =Supply Kim Park, InsuranceDepot Capital $3,225 $775 $1,200 $200 $5, $3,520 $775 $1,200$200 $5,295 $5,495 Received Cash for Sales

August 12, 2008 Sold services on account to Oakdale School, $350.00

Assets = Liabilities + Owners Equity Cash + Oakdale + Supplies + Prepaid =Supply Kim Park, School Insurance Depot Capital $3,520 $0 $775 $1,200$200 $5, $3,520 $350 $775 $1,200 $200 $5,645 $5,845$5,845 Sold Services on Account

August 12, 2008 Paid Cash for Rent, $300.00

Paid Cash for Rent Assets = Liabilities + Owners Equity Cash + Oakdale + Supplies + Prepaid =Supply Kim Park, School Insurance Depot Capital $3,520 $350 $775 $1,200$200 $5, $3,220 $350 $775 $1,200 $200 $5,345 $5,545$5,545

August 12, 2008 Paid cash for telephone bill, $40.00

Assets = Liabilities + Owners Equity Cash + Oakdale + Supplies + Prepaid =Supply Kim Park, School Insurance Depot Capital $3,220 $350 $775 $1,200$200 $5, $3,180 $350 $775 $1,200 $200 $5,305 $5,505$5,505 Paid cash for Telephone bill

August 12, 2008 Received cash on account from Oakdale School, $200.00

Assets = Liabilities + Owners Equity Cash + Oakdale + Supplies + Prepaid =Supply Kim Park, School Insurance Depot Capital $3,180 $350 $775 $1,200$200 $5, $3,380 $150 $775 $1,200 $200 $5,305 $5,505$5,505 Received cash on account from Oakdale School

August 12, 2008 Paid cash to owner for personal use, $125.00

Assets = Liabilities + Owners Equity Cash + Oakdale + Supplies + Prepaid =Supply Kim Park, School Insurance Depot Capital $3,380 $150 $775 $1,200$200 $5, $3,255 $150 $775 $1,200 $200 $5,180 $5,380$5,380 Paid cash to owner for Personal Use