Business Transaction 10 Maria Sanchez withdrew $500 from the business for her personal use. ANALYSIS Identify Classify 1. A withdrawal decreases the owner's claim to the assets of the business, so Maria Sanchez, Capital is affected. Cash is paid out, so the Cash in Bank account is affected. 2. Maria Sanchez, Capital is an owner's equity account. Cash in Bank is an asset account. 3. Maria Sanchez, Capital is decreased by $500. Cash in Bank is decreased by $500. 4. The accounting equation remains in balance. +/- Balance Assets Cash in Bank Prev. Bal. $22,350 Trans. 10 -500 Balance $21,850 + Accounts Receivable $0 Computer Equipment $3,000 Office Equipment $200 Delivery Equipment $12,000 = Liabilities + Owner's Equity Accounts Maria Sanchez, Payable Capital $11,650 $25,900 --500 $0 + $3,000 + $200 + $12,000 = $11,650 + $25,400 The following summarizes the transactions of this chapter. Can you describe what is happening in each line? Accounts Receivable Computer Equipment Office Equipment 0 Delivery Equipment = Accounts Payable + Owner's Equity +25,000 +400 +400 +3,000 +12,000 +12,000 Cash in Bank Prev. Bal. 0 Trans. 1 +25,000 Trans. 2 Trans. 3 -3,000 Trans. 4 Trans. 5 Trans. 6 -350 Trans. 7 +200 Trans. 8 +1,200 Trans. 9 -700 Trans. 10 -500 Balance $21,850 + 200 - 200 -350 -200 +1,200 -700 -500 $25,400 + $0 + $3,000 + $200 + $12,000 = $11,650 +