Business Essentials
Accounting Unit – 4.7
Determining the Effects of Business Transactions on the Accounting Equation
For each transaction date below, enter the appropriate amounts and show which accounts are increasing and decreasing with a plus or
minus.
Completing the Accounting Equation
For each row below, insert the amount that is needed to keep the Accounting Equation in balance.
ASSETS = LIABILITIES + OWNER’S EQUITY
Trans
.Cash in Bank Accounts
Receivable
Business
Equipment =Accounts
Payable +Richard Tang,
Capital
1$5,000 $2,000 $1,000 $500 $7,500
2$3,000 $9,000 $6,000 $2,000 $16,000
3$8,000 $1,000 $10,000 $4,000 $15,000
4$4,000 $10,000 $4,000 $1,000 $17,000
5$9,000 $7,000 $6,000 $5,000 $17,000
6$10,000 $14,000 $14,000 $6,000 $32,000
7$6,000 $4,000 $10,000 $5,000 $15,000
8$8,000 $5,000 $9,000 $1,000 $23,000
ASSETS = LIABILITIES + OWNER’S EQUITY
Trans.
#
Cash In
Bank
Accounts
Receivable
Hiking
Equip
Rafting
Equip
Office
Equip
Accounts
Payable Juanita Ortega, Capital
Jan 3 +$60,000 +$60,000
6 -$3,000 -$3,000
8 -$3,000 +$3,000
9 -$24,000 +$24,000
11 +$4,000 +$4,000
15 +$2,500 +$2,500
18 +450 +450
21 -$3,000 -$3,000
26 -$1,500 -$1,500
30 +$1,200 +$1,200
TOTALS $28,450 $1,200 $3,000 $24,000 $4,000 $2,500 $58,150
TOTAL ASSETS = $60,650 TOTAL LIAB +OE = $60,650
