Business or Personal?
The owner buys groceries for their home using personal cash.
What is Personal?
Business buys supplies for cash — Cash: Increase or Decrease?
What is Cash - Decrease?
Owner invests $5,000 into the business.
What is Cash (Asset) and Capital (Owner’s Equity)?
Land
What is an Asset?
Cash is $2,400. The business pays $600 for supplies.
What is Cash -$600 ($1,800) and Supplies +$600?
The owner uses business cash to pay their own cell phone bill.
What is Personal?
Owner invests $2,000 into the business — Capital: Increase or Decrease?
What is Capital - Increase?
Business purchases equipment for $1,200 on credit.
What is Equipment (Asset) and Accounts Payable (Liability)?
Accounts Payable
What is a Liability?
Capital is $8,000. Owner invests $3,000 cash.
What is Capital (OE) +$3000 ($11,000) and Cash +$3,000?
The business buys a printer for the office.
What is Business? (Asset – Equipment)
Business repays $500 of a bank loan — Liabilities: Increase or Decrease?
What is Liabilities - Decrease?
Business pays $300 cash to reduce a bank loan.
What is Cash (Asset) and Bank Loan / Loan Payable (Liability)?
Bank Loan
What is a Liability?
The business has a Bank Loan of $6,000. It pays back $2,500 using cash.
What is Bank Loan -$2,500 ($3,500) and Cash -$2,500?
The owner pays for business supplies using their personal funds.
What is Business?
(Capital Contribution / Assets Increase)
Customer pays off part of their debt — Accounts Receivable: Increase or Decrease?
What is A/R - Decrease?
Received $600 cash from a customer who owed money.
What is Cash (Asset) and Accounts Receivable (Asset)?
Accounts Receivable
What is a Asset?
Business had Supplies worth $1,000. It uses $300 of supplies during operations.
What is Supplies -$300 ($700 left) and Owner’s Equity -$300?
The owner withdraws $500 from the business for personal use.
What is Personal?
(Drawings / Capital Decrease)
Business earns $800 cash from sales — Cash: Increase or Decrease?
What is Cash - Increase?
Business buys supplies for $200 cash.
What is Supplies (Asset) and Cash (Asset)?
Building Mortgage
What is a Liability?
Business buys equipment worth $2,000. It pays $1,200 cash and puts $800 on credit.
What is
Equipment +$2,000
Cash - $1,200
Accounts Payable / Loan: +$800