The accounting equation is Assets = Liabilities + Owners Equity

I will concentrate the following accounting elements in this posts: Assets and Owners Equity (specifically Revenue).

A business transaction affecting the accounting equation is one in which we (the company) provide tax reporting services (1040 long form) to a individual customer for $150 and the customer pays our company cash. First, cash an ASSET account is increased because cash is coming into the company from the customer. To increase an asset account, we debit the cash account. Second, the revenue account which is part of Owners Equity is also increased because services are provided. To increase a revenue account, we need to credit the account. We can go further and label revenue accounts, appropriately. In this case, we can call it Individual Preparation Services. The entry is as follows

Cash DR $150 Indiv. Prep. Services CR $150

example

Accounting Equation Elements and Journal Entries Create a post about the accounting equation, elements and effects on elements through a increase or decrease. Requirement 1: Place your name in the post title, Requirement 2: State the accounting equation and which accounting element or elements the post will concentrate on. Requirement 3: Give an example of a journal entry and specify effect on each element. Please Note: You Accounting Equation Elements and Journal Entries Create a post about the accounting equation, elements and effects on elements through a increase or decrease. Requirement 1: Place your name in the post title, Requirement 2: State the accounting equation and which accounting element or elements the post will concentrate on. Requirement 3: Give an example of a journal entry and specify effect on each element. Please Note: You