A, L, OE, None?
Delivery Equipment
Asset
The company buys new computers for $5000 cash
Cash decrease ($5000)
Equipment increase ($5000)
The Fundamental Accounting Equation
A=L+OE
Household Furniture
None
A customer pays their invoice for the order they placed last month
Accounts Receivable Decrease
Cash Increase
A type of company that sells shares to the public.
Public Corporation
Liability
You provide a service to a customer for 1200. They pay 200 and put the rest on account.
Cash increase (+200)
Accounts receivable Increase (+1000)
Owner's Equity Increase (+1200)
Various individuals own shares of a business.
Corporation
Capital
Owner's Equity
You pay your monthly mortgage for $3200.
Mortgage decrease (-3200)
Cash decrease (-3200)
The 2 main ways businesses acquire money needed to pay for an asset
Borrowing and Investment
Mortgage
Liability
A truck in your lot that you purchased for $15,000 is re-valued by the dealer for $12,000.
Truck Decrease (-$3000)
Owner's Equity Decrease ($3000)