Arnina Photography Services

Analysis in FABM
Transaction 1 (July 1, 2015)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Owner’s Equity. More specifically, the account titles
are cash, digital camera, manual camera, desktop computer, photo papers, ink and personal debt
(debit), and Arnina Photography, Capital (credit).
3. The amount to be debited is 300,000 for cash, 45,000 for the digital camera, 25,000 for the
manual camera, 28,000 for the desktop computer, 14,000 for photo papers and ink, and the
amount to be credited is 412,00 for initial investment.
Transaction 2 (July 4)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected is Assets. More specifically, the account titles are Prepaid Rent
(debit), cash (credit).
3. The amount to be debited is 30,000 for prepaid rent and the amount to be credited is 30,000 for
cash.
Transaction 3 (July 6)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Expenses and Liabilities. More specifically, the account titles are
advertising expense (debit) and accounts payable (credit).
3. The amount to be debited is 5,500 for cash and the amount to be credited is 5,500 for accounts
payable.
Transaction 4 (July 8)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
photography equipment (debit), accounts payable (credit), and cash (credit).
3. The amount to be debited is 40,000 for photography equipment and the amount to be credited is
12,000 for cash and 28,000 for accounts payable.
Transaction 5 (July 12)
1. The transaction is a non-business transaction since it does not affects the accounting equation.
Transaction 6 (July 13)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Revenue. More specifically, the account titles are
cash, accounts receivable (debit), and photography services revenue (credit).
3. The amount to be debited is 135,000 for accounts receivable, 45,000 for cash and the amount to
be credited is 180,000 for photography services revenue.
Transaction 7 (July 14)
1. The transaction is a business transaction since it affects the accounting equation.
 2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
furniture & fixtures (debit) and accounts payable (credit).
3. The amount to be debited is 30,000 for furniture and fixtures and the amount to be credited is
30,000 for accounts payable.
Transaction 8 (July 15)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Expenses. More specifically, the account titles are
representation expense, utility expense, telephone expense, repairs expense (debit), and cash
(credit).
3. The amount to be debited is 4,000 for the representation expense, 23,000 for utility expense,
6,000 for telephone expense, and 2,500 for repairs expense and the amount to be credited is
35,500 for cash.
Transaction 9 (July 18)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets, Revenue. More specifically, the account titles are
accounts receivable (debit) and interest receivable, photography services revenue (credit).
3. The amount to be debited is 45,000 for interest receivable, 135,000 for accounts receivable and
the amount to be credited is 180,000 for photography services revenue.
Transaction 10 (July 20)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
cash (debit) and advances from clients (credit).
3. The amount to be debited is 60,000 for cash and the amount to be credited is 60,000 for advances
from clients.
Transaction 11 (July 22)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected is Assets. More specifically, the account titles are cash (debit) and
accounts receivable (credit).
3. The amount to be debited is 121,500 for cash and the amount to be credited is 121,500 for
accounts receivable.
Transaction 12 (July 24)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
accounts payable (debit), and cash (credit).
3. The amount to be debited is 5,500 for accounts payable and the amount to be credited is 5,500 for
cash.
Transaction 13 (July 26)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
accounts payable (debit) and notes payable, cash (credit).
 3. The amount to be debited is 28,000 for accounts payable and the amount to be credited is 22,400
for cash and 5,600 for notes payable.
Transaction 14 (July 28)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Liabilities. More specifically, the account titles are
accounts payable (debit), and cash (credit).
3. The amount to be debited is 15,000 for accounts payable and the amount to be credited is 15,000
for cash.
Transaction 15 (July 31)
1. The transaction is a business transaction since it affects the accounting equation.
2. The major accounts affected are Assets and Expenses. More specifically, the account titles are
salaries expense (debit), and cash (credit).
3. The amount to be debited is 3,097 for salaries expense and the amount to be credited is 3,097 for
cash.