Transactions
Company A buys $500 worth of Office Equipment
Office Equipment +500, Cash -500
Owner withdraws $2,000
Cash in-Bank -2,000, Owners Equity -2,000
Owners Capital?
What is Owner's Equity
What is the owner's claims to the total assets of the business
Owners Equity
The amount owed to a creditor
What is accounts payable
Company B completes a $50 service for a customer and the customer will pay them later
Accounts Receivable +50, Owner's Equity +50
Owner supplies the office with $5000 worth of computers
Office Equipment +5,000, Owners Equity +5,000
Accounts Recievable
What is Assest
What is the amount a business owes to its creditor
Liabilities
money or other property paid out to produce profit
What is investment
Customer pays $60 on previous owed amount
-60 Accounts Receivable, +60 Cash in Bank
Company A completes a $2,000 service for a customer and he pays $1000 in cash and the rest he will pay later
Accounts receivable +1000, Cash in-bank +1000, Owners Equity +1000
Accounts Payable
What is Liabilities
the total amount owed to a business
What is accounts recievable
buying an item on credit
What is on account
Company A purchases 20,000 in Land on credit
Land +20,000, Liabilities +20,000
Company B sells $500 worth of office chairs
Cash in-bank +500, Office furniture -500
Salaries Payable
What is Liabilities
What is a subdivision under assets, liabilities or owners equity
Accounts
income earned from the sale of goods and services
What is revenue
Company pays off $20,000 of debt
Cash In-bank -20,000, Accounts Payable -20,000
Company B buys new truck for $35,000 putting $20,000 on loan
Cash in-bank -15,000, +20,000 Accounts payable, Truck Account +35,000
Cash-In Bank
Asset
What is the relationship between assets, liabilities and owner's equity
Accounting equation
the cost to produce goods, services and to run business
what is an expense