Unit 5
Accounting and Finance Foundations Unit 5: Accounting Terminology 358
Accounting Terminology
Chapter 14
Transaction 9
Received Cash from Lisa Cook on Account, $750
When we look at the three questions discussed earlier, we see
a. The two accounts affected are Cash and Accounts Receivable, Lisa Cook.
b. Cash and Accounts Receivable, Lisa Cook are both assets.
c. Cash increases.
Accounts Receivable increases.
Assets = Liabilities + Owner’s Equity
Trans.
No.
Cash + Supplies + Accounts
Receivable,
Lisa Cook
+ Prepaid
Insurance
= Accounts
Payable/
Office
Supply
+ Your
Name,
Capital
+ Revenue - Expenses - Drawing
- 7500 + + + * + 7500 + - -
- -300
7200
+ +300 + + - + 7500 + - -
- -550
6650
+ 300 + + +550 * + 7500 + - -
- 6650 + +450
750
+ + 550 = +450 + 7500 + - -
- -200
6450
+ 750 + + 550 = -200
250
+ 7500 + - -
- +1200
7650
+ 750 + + 550 250 + 7500 + 1200 - -
- -800
6850
+ 750 + + 550 = 250 + 7500 + 1200 - 800 -
- 6850 + 750 + +1000
1000
+ 550 = 250 + 7500 + +1000
2200
- 800 -
- +750
7600
+ 750 + -750
250
+ 550 = 250 + 7500 + 2200 - 800 -
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