FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

Accounting Equation
Transaction Analysis Practice

Transaction Analysis. Identify the effects of each transaction to total assets, total liabilities, and total equity by writing (+) for
increase, (-) for decrease and NE for no effect.

A L E
EXAMPLE:
Owner invested cash in the business + NE +

1. Invested cash in a laundry business. + NE +

2. Bought laundry equipment paying partial cash and the balance on account. + + NE
3. Received cash for laundry services. + NE +
4. Paid the balance in number 2. - - NE
5. A customer issued a 15-day note for laundry services rendered. + NE +
6. The owner withdraws cash. - NE -
7. The customer who issued the note in number 5 paid his account. - NE -
8. Paid Meralco bills for the month. - NE -
9. Borrowed from a bank and issued a note for the principal. + + NE
10. Paid the salary of the helper. - + NE

Parame, Cathyrine G. 11-AMOS