Chapter 3: Transactions Effects

Walmart example:
Short term Investment
Debit Credit
1.1200$ 2.2000$

Cash
Debit Credit
2.1000$ 1.1000$
3.3000$ 4.1500$
5.50000$

Bank Loan
Debit Credit
4.1500$ 3.3000$

Common Shares
Debit Credit
50000$

Sales
Debit Credit
6.2000$

Inventory
Debit Credit
6.1000$
COGS
Debit Credit
6.1000$

Salary Exp
Debit Credit
7.8000$

Journal Entry

1. Dr. Short term Investment 2000$

Cr. Cash 2000$
2. Dr. Cash 1000$
Cr. Short term Investment 1000$
3. Dr. Cash 3000$
Cr. Bank Loan 3000$
4. Dr. Bank Loan 1500$
Cr. Cash 1500$
5. Dr. Cash 50000$
Cr. Common Share 50000$
6. Dr. Cash 2000$
Cr. Sales 2000$
Dr. COGS 1000$
Cr. Inventory 1000$
7. Dr. Salary Exp 8000$
Cr. Cash 8000$

Assests = Liabilties + SE
1.+2000$
.-2000$
2.+1000$
.-1000$
3.3000$ +3000$
4.-1500$ -1500$
5.+50,000$ +50,000$
6.+2000$ +2000$
.-1000$ -1000$
7.-8000$ -8000$