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Transaction Analysis
Transaction Analysis
Transaction Analysis
Effects of Transactions in
the accounting equation
The Accounting Equation (Expanded)
Assets = Liabilities + Capital-Drawings+Revenues-Expenses)
Income
Service revenues $ 4 700
Expenses
Salaries expense $900
Rent expense 600
Advertising expense 250
Utilities expense 200
Total expenses 1 950
Profit $ 2 750
PowerPoint presentation by Dr Anne
21
Abraham, University of Western Sydney
Statement of Changes in Equity
SOFTBYTE
Statement of Changes in Equity
for the month ended 30 September 2010
Purchase of short-
term investment in
cash(trading
Securities)
Sale of short-term Gain on sale
investment in cash at in trading
securities
a gain(trading securities)
Sale of short-term Loss on sale in
investment in cash at trading
securities
a loss
Cash advance to an
employee
Assets = Liabilities + Capital
Assets = Liabilities + Capital(-Drawings+Revenues-Expenses)
Transaction ASSETS =LIABILITIES +CAPITAL Account
Purchase of
supplies for cash
Purchase of
supplies on
account
Purchase of fixed
asset for cash
Purchase of fixed
asset on account
Partial/full
payment of
accounts payable
Assets = Liabilities + Capital
Assets = Liabilities + Capital(-Drawings+Revenues- Expenses)
Transaction ASSETS =LIABILITIES +CAPITAL Account
Partial/full
collection accounts
receivable
Assets = Liabilities + Capital
Assets = Liabilities + Capital(-Drawings+Revenues- Expenses)
end