Fundermental accounting principles 课件 1.pptVIP

Let’s look at the identification and recording of business transactions. We can begin by analyzing a transaction where Chas Taylor contributes $30,000 cash to get the business started. First, we have to identify the assets, liability or equity accounts involved in this transaction. We can see that the cash account will increase by $30,000 and the owner capital will increase by $30,000. You can see what the books of Chas Taylor’s business look like after we analyze this transaction. The accounting equation is in balance because assets are equal to liabilities plus equity. In this transaction,