Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Hello, I am very confused in this discussion post that I was wondering if you can give me another example, I am not exactly sure

(Hello, I am very confused in this discussion post that I was wondering if you can give me another example, I am not exactly sure where to start) Give a unique example of a business transaction. Then explain and show the T-account info. Create a fictitious company, then create a fictitious scenario. Example: Owner invests $5,000. Analysis: Since money is deposited into the checking account, Cash is debited (the balance increased by $5,000). What account receives a credit? An Equity account called Owners Equity or Capital Contribution. Since Equity accounts are negative accounts, crediting this Equity account increases its balance by $5,000. Debit Cash (increase its balance) Credit Owners Equity (increases its balance).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Assurance And Consulting Services

Authors: Kurt Reding, Paul Sobel, Michael Head, Sridhar Ramamoorti, Urton Anderson

2nd Edition

0894136437, 978-0894136436

More Books

Students also viewed these Accounting questions

Question

2. Should a disciplinary system be established at Carter Cleaning?

Answered: 1 week ago

Question

1. What would you do if you were Jennifer, and why?

Answered: 1 week ago

Question

1. Explain what is meant by ethical behavior.

Answered: 1 week ago