Chapter 3 The Equation Analysis Sheet 1 Chapter

Chapter 3 The Equation Analysis Sheet 1 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition 3

The Equation Analysis Sheet This tutorial guides you through the basic steps of creating an equation analysis sheet. It also illustrates how business transactions affect financial position. For more detailed instructions, refer to Section 3. 2 of the Accounting 1 textbook. 2 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Write down the fundamental accounting equation and list the items in the assets, liabilities, and owner’s equity sections. 3 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. 4 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. 5 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. 6 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. 7 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Record the initial balances from a balance sheet. 8 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Begin recording the transactions. 9 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. 10 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. 11 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. 12 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record changes to the appropriate accounts. 13 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 1: Metropolitan Movers pays $1200 cash to reduce the Bank Loan. Record the new balances. Make sure the equation still balances. 14 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. 15 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. 16 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. 17 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record changes to the appropriate items. 18 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 2: K. Lincoln, who owes Metropolitan Movers $2500, pays $1100 in partial payment of the debt. Record the new balances. Make sure the equation still balances. 19 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. 20 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. 21 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. 22 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record changes to the appropriate items. 23 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 3: Equipment costing $1950 is purchased for cash. Record the new balances. Make sure the equation still balances. 24 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 25 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 26 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 27 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 28 Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 4: A pick-up truck is purchased at a cost of $18 000. Metropolitan Movers pays $10 000 cash and arranges a loan from its bank to cover the balance of the purchase price. 29 Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. 30 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. 31 Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. 32 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 5: Metropolitan Movers completes a storage service for B. Cava at a price of $1500. A bill is sent to Cava to indicate the additional amount that is owed. 33 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. 34 Chapter 3 – The Equation Analysis Sheet | Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. 35 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. 36 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 6: J. Hofner, the owner, withdraws $500 for personal use. 37 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 7: One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up. 38 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 7: One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up. 39 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 7: One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up. 40 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Transaction 7: One of the trucks requires an engine adjustment costing $375. The repair is paid for in cash when the truck is picked up. 41 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. 42 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. 43 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition

The Equation Analysis Sheet Final balances from the equation analysis sheet can be used to create an updated balance sheet. 44 Chapter 3 – The Equation Analysis Sheet l Accounting 1, 7 th Edition