analyzing transactions by laurie l. swanson principles of accounting practice session #1
TRANSCRIPT
![Page 1: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/1.jpg)
Analyzing Transactions
By Laurie L. Swanson
Principles of AccountingPractice Session #1
![Page 2: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/2.jpg)
Analyzing a TransactionRecall the three questions you should ask when analyzing transactions.
1. What accounts are involved in the transaction?2. What is the classification of each account?3. What is happening to each account—is it
increasing or decreasing?
![Page 3: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/3.jpg)
Analyzing a Transaction
Remember also that most transactions contain clues that help you identify the accounts involved in the transaction.
Further recall that each transaction will involve at least two different accounts.
![Page 4: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/4.jpg)
Transaction Analysis Sheet
Use the Transaction Analysis Sheet to help you analyze the following transactions. Do not worry at this time about the order of your answers on the Transaction Analysis Sheet.
These transactions continue to use Jones Career Consulting.
Be sure to view this presentation as a Slide Show for the interaction to work properly.
![Page 5: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/5.jpg)
Transaction Analysis Sheet
1. Provided $250 in services for a customer on account.
Accounts Receivable
Consulting Income Increasing
Asset Increasing
Revenue
What Accounts? What Classification? What Effect?
1.
![Page 6: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/6.jpg)
Transaction Analysis Sheet
2. Paid employees salaries totaling $3,000.
Salaries Expense
Cash Decreasing
Expense Increasing
Asset
What Accounts? What Classification? What Effect?
2.
![Page 7: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/7.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
3.
3. Purchased office equipment on account, $1,200.
Office Equipment
Accounts Payable Increasing
Asset Increasing
Liability
![Page 8: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/8.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
4.
4. Received payment from a customer for services previously rendered.
Cash
Accounts Receivable Decreasing
Asset Increasing
Asset
![Page 9: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/9.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
5.
5. Karen Jones, the owner, withdrew $1,000 for personal use.
Cash
Karen Jones, Drawing Increasing
Asset Decreasing
Owner’s Equity
![Page 10: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/10.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
6.
6. Paid $350 for advertising.
Cash
Advertising Expense Increasing
Asset Decreasing
Expense
![Page 11: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/11.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
7.
7. Performed $225 in services for a customer who paid cash.
Cash
Consulting Income Increasing
Asset Increasing
Revenue
![Page 12: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/12.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
8.
8. Karen placed a personal computer with a market value of $800 into service for her business.
Computer
Karen Jones, Capital Increasing
Asset Increasing
Owner’s Equity
![Page 13: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/13.jpg)
Transaction Analysis Sheet
What Accounts? What Classification? What Effect?
9.
9. Paid the $1,200 owed for previously purchased office equipment.
Accounts Payable
Cash Decreasing
Liability Decreasing
Asset
![Page 14: Analyzing Transactions By Laurie L. Swanson Principles of Accounting Practice Session #1](https://reader035.vdocuments.mx/reader035/viewer/2022081511/56649dbe5503460f94ab19c2/html5/thumbnails/14.jpg)
Analyzing Transactions
This ConcludesPractice Session #1