Chapter 3 Using The Accounting Equation To Analyze Transactions

Chapter 3 Using The Accounting Equation To Analyze Transactions ##### analyze. each transaction in terms of its effects on the acc 2 enter transaction into. journal. 3 transfer journal info to appropriate acc on ledger. do fn journal ledgerc journal. transactions initially recorded in chron order shows debit credit purpose discloses complete effect of transaction gives chron order. 3.3 define and describe the initial steps in the accounting cycle; 3.4 analyze business transactions using the accounting equation and show the impact of business transactions on financial statements; 3.5 use journal entries to record transactions and post to t accounts; 3.6 prepare a trial balance; key terms; summary; multiple choice.

Analyzing Transactions Using The Accounting Equation Chapter 2. learned how to analyze, record, and summarize the effects of transactions on balance sheet accounts. profit determined by blank. day to day operating activitees. chapter 3. anylizes, records, and summarizes the effects of operating transactions on balance sheet and income statement effects. understand the business. We now analyze each of these transactions, paying attention to how they impact the accounting equation and corresponding financial statements. transaction 1: issues $20,000 shares of common stock for cash. analysis: looking at the accounting equation, we know cash is an asset and common stock is stockholder’s equity. when a company collects. Learning link: chapter 2 illustrated basic relationships in the accounting equation and showed how to prepare financial statements. chapter 3 introduces tools accountants use to analyze business transactions, as well as the chart of accounts. 13 1. this chapter shows how to set up t accounts for assets, liabilities, and owner’s equity. 3.3: define and describe the initial steps in the accounting cycle. 3.4: analyze business transactions using the accounting equation and show the impact of business transactions on financial statements. 3.5: use journal entries to record transactions and post to t accounts. 3.6: prepare a trial balance. 3.6.0: summary.