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Transaction Analysis , Chapter 3, p. 49-59 Practice Q: p. 59 & 60 ex. #1,2,3

Transaction Analysis , Chapter 3, p. 49-59 Practice Q: p. 59 & 60 ex. #1,2,3. BUSINESS TRANSACTION : examples:. Simplified balance sheet of Mary Anne’s Bicycles.

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Transaction Analysis , Chapter 3, p. 49-59 Practice Q: p. 59 & 60 ex. #1,2,3

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  1. Transaction Analysis, Chapter 3, p. 49-59Practice Q: p. 59 & 60 ex. #1,2,3 BUSINESS TRANSACTION: examples: Transaction Analysis, Chapt 3

  2. Simplified balance sheet of Mary Anne’s Bicycles Transaction Analysis, Chapt 3

  3. Any financial business transaction will effect and change the assets, liabilities and owner’s equity of the balance sheet… to understand how transactions effect the assets, liabilities and owner's equity, lets change the layout of the balance sheet into a working paper called the “accounting equation analysis sheet  See the spreadsheet HO Transaction Analysis, Chapt 3

  4. Transaction 1: Mary Anne’s Bicycles pays $35,000 to Easton Ind. what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  5. Transaction 2: GT Ind. Pays Mary Anne’s $15,000 of the $20,000 owed to Mary Annes’ Bicycles. what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  6. Transaction 3: Equipment costing $23,000 is purchased for cash!  what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  7. Transaction 4: A new delivery truck is purchased for $45,000. $10,000 is paid in cash, the remainder is borrowed.  what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  8. Transaction 5: Mary Anne’s sells $26,000 of bicycles in inventory to Tron. Corp. Mary Anne invoices Tron for the selling price of $40,000 (they send Tron the bill).  what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  9. Transaction 6: Tron Corp. Pays Mary Anne’s $45,000  what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  10. Transaction 7:Mary Anne (the owner) withdraws $20,000 for personal use.  this is called drawings or dividends what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  11. Transaction 8: A leak in the warehouse roof is repaired; the cost is $8000 and is paid in cash what accounts will be effected? Will the accounts increase or decrease? Complete the transaction analysis table Transaction Analysis, Chapt 3

  12. Use the final values from the transaction analysis sheet to update Mary Anne’s Balance sheet: Transaction Analysis, Chapt 3

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