id stringlengths 36 36 | embedding list | document stringlengths 70 999 | metadata stringlengths 691 694 |
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09eccd97-48b1-47ee-bce6-3daee518c8da | [
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-0.0324... | C O N C E P T S I N P R A C T I C E
Tax Cuts and Jobs Act
In 2017, the US government enacted the Tax Cuts and Jobs Act. As a result, financial stakeholders needed
to resolve several issues surrounding the standards from GAAP principles and the FASB. The issues were
as follows: “Current Generally Accepted Accoun... | {"file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_type": ".pdf", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "ti... |
9966d4a5-7126-4ad9-9c10-97258aba9b89 | [
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-0.021496016532182693,
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-0.... | study of accounting because it shows what the organization owns and the sources of (or claims against) those
resources. The accounting equation is expressed as follows:
4
Financial Accounting Standards Board (FASB). “Accounting for the Tax Cuts and Jobs Act.” https://www.fasb.org/taxcutsjobsact#section_1
122
Chapt... | {"file_size_mb": 156.7, "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1",... |
eb5c5b5c-1e3a-430a-80bd-52e435bb9824 | [
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-0.07288926839828491,
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-0.04... | discussion to simplify our example. Individual owners are sole proprietors in legal terms. This distinction
becomes significant in such areas as legal liability and tax compliance. For sole proprietors, the owner’s
interest is labeled “owner’s equity.”
In Introduction to Financial Statements, we addressed the owner’... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "file_hash": "89738e550d63820fbb3a833... |
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-0.... | The primary reason for this distinction is that the typical company can have several to thousands of owners,
and the financial statements for corporations require a greater amount of complexity.
As you also learned in Introduction to Financial Statements, the accounting equation represents the balance
sheet and show... | {"file_name": "FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "batch_upload": true, "total_pages": 1055, "uploaded_v... |
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-0.0... | “normal” balance for each account that is part of a formal accounting system.
Double-Entry Bookkeeping
The basic components of even the simplest accounting system are accounts and a general ledger. An account is
a record showing increases and decreases to assets, liabilities, and equity—the basic components found in... | {"producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "upload_timestamp": "2026-02-07T... |
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-0.0047... | • Each time we record a transaction, we must record a change in at least two different accounts. Having two
or more accounts change will allow us to keep the accounting equation in balance.
• Not only will at least two accounts change, but there must also be at least one debit and one credit side
impacted.
• The su... | {"file_name": "FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "cr... |
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-0.018... | This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing and Recording Transactions
123
briefly mentioned in Introduction to Financial Statements and will be used later in this chapter to analyze
transactions. A T-account is called a “T-account” because it looks like a “T,... | {"batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "source_file": ... |
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0.004... | respectively. Depending on the account type, the sides that increase and decrease may vary. We can illustrate
each account type and its corresponding debit and credit effects in the form of an expanded accounting
equation. You will learn more about the expanded accounting equation and use it to analyze transactions i... | {"uploaded_via": "batch_uploader", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": tru... |
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-... | Normal Balance of an Account
The normal balance is the expected balance each account type maintains, which is the side that increases. As
assets and expenses increase on the debit side, their normal balance is a debit. Dividends paid to shareholders
also have a normal balance that is a debit entry. Since liabilities... | {"file_size_mb": 156.7, "batch_upload": true, "creator": "DocBook XSL Stylesheets V1.79.1", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "moddate": "2020-08-05T15:26:11-05:00", "prod... |
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-... | Chapter 3 Analyzing and Recording Transactions
Account Normal Balances and Increases
Type of account
Increases with
Normal balance
Revenue
Expense
Table 3.1
Credit
Debit
Credit
Debit
When an account produces a balance that is contrary to what the expected normal balance of that account is,
this account has... | {"batch_upload": true, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "creationdate": ... |
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0.029382... | balance. This situation could possibly occur with an overpayment to a supplier or an error in recording.
C O N C E P T S I N P R A C T I C E
Assets
We define an asset to be a resource that a company owns that has an economic value. We also know that
the employment activities performed by an employee of a compan... | {"file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "file_type": ".pdf", "producer": "Prince 11 (www.princexml.com)", "creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "total_pages": 1055, "source_file": "downloads\\busines... |
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-0.029136840254068375,
-0.00556... | purposes, players’ contracts are treated akin to office equipment even though expenses for player
salaries and bonuses have already been recorded. This can be a point of contention for some who argue
that an owner does not assume the lost value of a player’s contract, the player does.[5]
3.2 Define and Describe the E... | {"moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab... |
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-0.044412095099687576,
-0.05... | or past periods, creating retained earnings or some other form of stockholder’s equity. Recall the accounting
Tommy Craggs. “MLB Confidential, Part 3: Texas Rangers.” Deadspin. August 24, 2010. https://deadspin.com/5619951/mlb-confidential-
5
part-3-texas-rangers
This OpenStax book is available for free at http://cn... | {"uploaded_via": "batch_uploader", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d1... |
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-0.02... | increase to revenue can increase net income on the income statement, increase retained earnings on the
statement of retained earnings, and change the distribution of stockholder’s equity on the balance sheet. This
may be difficult to understand where these changes have occurred without revenue recognized individually... | {"moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_... |
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A business can now use this equation to analyze transactions in more detail. But first, it may help to examine
the many accounts that can fall under each of the main categories of Assets, Liabilities, and Equity, in terms of
their relationship... | {"uploaded_via": "batch_uploader", "title": "Principles of Accounting, Volume 1: Financial Accounting", "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "total_pages": 1055, "batch_upload": true, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "sourc... |
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0.020829392597079277,
-0.01... | Chapter 3 Analyzing and Recording Transactions
When a company first starts the analysis process, it will make a list of all the accounts used in day-to-day
transactions. For example, a company may have accounts such as cash, accounts receivable, supplies,
accounts payable, unearned revenues, common stock, dividends,... | {"file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source_... |
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category
Assets
Liabilities
Stockholders’
equity
Revenues
Expenses
Table 3.2
We call this account numbering system a chart of accounts. The accounts are presented in the chart of
accounts in the order in which they appear on the financial statements, beginning with the balance sheet
accounts and then... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "... |
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0... | Assets and the Expanded Accounting Equation
On the left side of the equation are assets. Assets are resources a company owns that have an economic value.
Assets are represented on the balance sheet financial statement. Some common examples of assets are cash,
accounts receivable, inventory, supplies, prepaid expense... | {"producer": "Prince 11 (www.princexml.com)", "uploaded_via": "batch_uploader", "file_type": ".pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf",... |
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-0.039... | paid with cash for the provided good or service but will do so in the future. Common phrasing to describe this
situation is that a customer purchased something “on account,” meaning that the customer has asked to be
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing a... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "file_name": "FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "total_... |
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-0.025... | this topic in Inventory.
Examples of supplies (office supplies) include pens, paper, and pencils. Supplies are considered assets until an
employee uses them. At the point they are used, they no longer have an economic value to the organization,
and their cost is now an expense to the business.
Prepaid expenses are ... | {"file_type": ".pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "batch_upload": true, "uploaded_via": "batch_... |
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-0.051606159... | company will adjust its records to reflect the cost of one month of insurance usage.
Notes receivable is similar to accounts receivable in that it is money owed to the company by a customer or
other entity. The difference here is that a note typically includes interest and specific contract terms, and the
amount may... | {"file_type": ".pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "file_name": "FinancialAccounting-OP.pdf", "source_file"... |
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-0.01682... | manufacturing company that has a factory producing goods. Machinery and buildings also depreciate. Unlike
other long-term assets such as machinery, buildings, and equipment, land is not depreciated. The process to
calculate the loss on land value could be very cumbersome, speculative, and unreliable; therefore, the
... | {"producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "file_type": ".pdf", "uploaded_via": "batch_uploader", "batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "897... |
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-0.05931... | modification of “Gfp-inventory-space” by Yinan Chen/Wikimedia Commons, CC0)
Liabilities and the Expanded Accounting Equation
The accounting equation emphasizes a basic idea in business; that is, businesses need assets in order to
operate. There are two ways a business can finance the purchase of assets. First, it ca... | {"total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0a... |
5e6e8324-4293-4eae-bddb-d4e25ab39ba6 | [
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-0.0... | are reported on the balance sheet. It is important to understand that when we talk about liabilities, we are not
just talking about loans. Money collected for gift cards, subscriptions, or as advance deposits from customers
could also be liabilities. Essentially, anything a company owes and has yet to pay within a pe... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T... |
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-... | well as the liability to pay the utility bill, in May.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing and Recording Transactions
129
Eventually that debt must be repaid by performing the service, fulfilling the subscription, or providing an asset
such as merchan... | {"file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "batch_upload": true, "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_type": ".pdf", "moddate": "2... |
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0.000... | future, so we use the word “payable.” The debt owed is usually paid off in less than one accounting period
(less than a year typically) if it is classified as an account payable.
A notes payable is similar to accounts payable in that the company owes money and has not yet paid. Some
key differences are that the cont... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "moddate": "2020-08-05T15:26:11-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:... |
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Equity and the Expanded Accounting Equation
Stockholder’s equity refers to the owner’s (stockholders) investments in the business and earnings. These
two components are contributed capital and retained earnings.
The ow... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "source_file": "downloads\\business\\accounting\\Fin... |
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-0.003557... | company holds onto at the end of a period to reinvest in the business, after any distributions to ownership
occur. Stated more technically, retained earnings are a company’s cumulative earnings since the creation of
the company minus any dividends that it has declared or paid since its creation. One tricky point to r... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "creationdate": "2019-04-24T10:32:54-05:00"... |
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-0.00126... | earnings from the sale of goods and services. An increase in revenues will also contribute toward an increase
in retained earnings. Expenses are the cost of resources associated with earning revenues. An increase to
expenses will contribute toward a decrease in retained earnings. Recall that this concept of recognizi... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "fi... |
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130
Chapter 3 Analyzing and Recording Transactions
Net income reported on the income statement flows into the statement of retained earnings. If a business has
net income (earnings) for the period, then this will increase its retained ea... | {"producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "file... |
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retained earnings balance at the beginning of the period, adds net income or subtracts net loss from the
income statement, and subtracts dividends declared, to result in an ending retained earnings balance
repor... | {"moddate": "2020-08-05T15:26:11-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)"... |
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L I N K T O L E A R N I N G
The Financial Accounting Standards Board had a policy that allowed companies to reduce their tax
liability from share-based compensation deductions. This led companies to create what... | {"moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "creator": "DocBook XSL Stylesheets V1.79.1", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Vo... |
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-0.06... | known as the accounting cycle. The accounting cycle is a step-by-step process to record business activities
and events to keep financial records up to date. The process occurs over one accounting period and will begin
the cycle again in the following period. A period is one operating cycle of a business, which could ... | {"creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "file_hash": "89738e550d63820f... |
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steps in the accounting cycle: identify and analyze transactions, record transactions to a journal, post journal
information to a ledger, and prepare an unadjusted trial balance.
In The Adjustment Proces... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)... |
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-0.0183456... | E T H I C A L C O N S I D E R A T I O N S
Turning Hacked Gift Card Accounts into Cash
Gift cards are a great way for a company to presell its products and to create cash flow. One of the
problems with gift cards is that fraudsters are using the retailer’s weak internal controls to defraud the
retailer’s customers... | {"file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "file_size_mb": 156.7, "file_hash": "89738e550d63820fbb3a833d14ab0402... |
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-0.03767... | process.
A simple explanation of this fraud is that a fraudster will gain access to an individual’s email account
through phishing or by other means, such as a fraudster putting a key logger on a public computer or in
a corrupted public Wi-Fi. The individual uses the same password for the reloadable gift card as his... | {"moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounti... |
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-0.016994... | retailor. This type of fraud causes problems for the retailer, for the retailer’s reputation is damaged
through the implementation of poor internal controls.
Does the fraudster use the fraudulently acquired gift cards? No, there is an entire market for selling gift
cards on Craigslist, just go look and see how easy ... | {"moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32... |
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-0.078... | First Four Steps in the Accounting Cycle
The first four steps in the accounting cycle are (1) identify and analyze transactions, (2) record transactions to a
journal, (3) post journal information to a ledger, and (4) prepare an unadjusted trial balance. We begin by
introducing the steps and their related documentati... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "total_pages": 1055, "title": "... |
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original sources or activities and translates that information into usable financial data. An original source is a
traceable record of information that contributes to the creation of a business transaction. For example, a sales
invoice is considered an original source. Activities would include paying an employee... | {"file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\Financi... |
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-0.057366... | This sales receipt contains information such as how much the customer owes, payment terms, and dates. This
sales receipt is an original source containing financial information that creates a business transaction for the
company.
Step 2. The second step in the process is recording transactions to a journal. This take... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_type": ".pdf", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "creator": "DocBook X... |
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-0.025435... | record this $200 in his financial records. He needs to choose what accounts represent this transaction, whether
or not this transaction will increase or decreases the accounts, and how that impacts the accounting equation
before he can record the transaction in his journal. He needs to do this process for every trans... | {"file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "creationdate": "2019-04-24T10:32:54-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_type": ".pdf", "file_name": "FinancialAccounting... |
9c25f390-cc8f-4c52-8a85-76dbc1638f13 | [
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-0.0798924... | from the journal during a period and moves the information to a general ledger, or ledger. As you’ve learned,
account balances can be represented visually in the form of T-accounts.
Returning to Supreme Cleaners, Mark identified the accounts needed to represent the $200 sale and recorded
them in his journal. He will... | {"moddate": "2020-08-05T15:26:11-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "title":... |
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... | from the general ledger and transfers it onto a document showing all account balances, and ensuring that
debits and credits for the period balance (debit and credit totals are equal).
Mark Summers from Supreme Cleaners needs to organize all of his accounts and their balances, including the
$200 sale, onto a trial ba... | {"file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "creationdate": "2019-04-24T10:32:54-05:00", "moddate"... |
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-0.... | as you complete each step, you are careful and really take the time to understand how to record information
and why you are recording it. In the next section, you will learn how the accounting equation is used to analyze
transactions.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
C... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "batch_upload": true, "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file... |
8c2aa804-fa10-4217-9c80-ee766e5e3ef7 | [
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-0... | accounting cycle, including original source documents, looking through journal entries, general ledgers,
and financial statements. They may even be asked to testify to their findings in a court of law.
To be a successful forensic accountant, one must be detailed, organized, and naturally inquisitive. This
position w... | {"file_type": ".pdf", "batch_upload": true, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "file_name": "FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downlo... |
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... | have drillable financial statements. This feature can be found in several software systems, allowing
companies to go through the accounting cycle from transaction entry to financial statement
construction. Read this Journal of Accountancy column on drillable financial statements
(https://openstax.org/l/50DrillFinSta... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "cre... |
5f8ee054-fbde-4921-ad01-c5a4b667b03b | [
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0.009777774102985859,
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-0... | business may encounter. We can review how each transaction would affect the basic accounting equation and
the corresponding financial statements.
As discussed in Define and Examine the Initial Steps in the Accounting Cycle, the first step in the accounting
cycle is to identify and analyze transactions. Each original... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "file_name": ... |
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0.019701732322573662,
0.004747651983052492,
-0.00... | Chapter 3 Analyzing and Recording Transactions
Y O U R T U R N
Monetary Value of Transactions
You are the accountant for a small computer programming company. You must record the following
transactions. What values do you think you will use for each transaction?
A. The company purchased a secondhand van to be us... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloa... |
c03e4802-c188-406e-be90-7cd9f66339c0 | [
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-0.... | $250,000 today. Since the building is now worth $250,000, you are contemplating whether you
should increase its value on the books to reflect this estimated current market value.
C. Your company has performed a task for a customer. The customer agreed to a minimum price of
$2,350 for the work, but if the customer ha... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "source_fil... |
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-0.052... | service the company provides depends on having intelligent, hardworking, dependable employees
who believe they need to deliver exactly what the customer wants in a reasonable amount of time.
Without the employees, the company would not be so successful. The owner wants to know if she
can include the value of her emp... | {"producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "file_hash": "8... |
83f7c8b6-3f86-4ff4-906b-a1fb27fddfa8 | [
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-0.06838... | not allowed to increase the value of an asset on their books just because they believe it is worth
more.
C. You must record the revenue at $2,350 per the rules of conservatism. We do not want to record
revenue at $2,500 when we are not absolutely 100% sure that is what we will earn. Recording it at
$2,500 might mis... | {"uploaded_via": "batch_uploader", "batch_upload": true, "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.... |
6c29dbf8-bc58-4301-8f77-5423ff87735c | [
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-0.0... | Printing Plus, as our example. Please notice that since Printing Plus is a corporation, we are using the Common
Stock account, instead of Owner’s Equity. The following are several transactions from this business’s current
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analy... | {"producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "total... |
523e484c-a55e-4bba-8948-840f67fd9327 | [
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-0.... | 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 cash, this will increase assets because cash is coming into the business. When
a... | {"file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\Financial... |
ba8ab7ef-78d7-4885-9782-fc606767b233 | [
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0.011465940624475479,
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-0.... | Changes to stockholder’s equity, specifically common stock, will increase stockholder’s equity on the balance
sheet.
Transaction 2: Purchases equipment on account for $3,500, payment due within the month.
Analysis: We know that the company purchased equipment, which is an asset. We also know that the
company purcha... | {"file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", ... |
332a634d-1821-4016-949b-1b1944820e46 | [
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-0.... | money. The more money the company owes, the more that liability will increase.
The accounting equation remains balanced because there is a $3,500 increase on the asset side, and a $3,500
increase on the liability and equity side. This change to assets will increase assets on the balance sheet. The
change to liabilit... | {"batch_upload": true, "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "creator": "DocBook XSL Stylesheets V1.79.1", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "title": "... |
c35411ee-0986-447e-9ee9-da8f324b762d | [
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0.03095749206840992,
0.028723368421196938,
-0.021796537563204765,
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-0.027576... | cannot recognize that revenue until it provides the service. Therefore, the company has a liability to the
customer to provide the service and must record the liability as unearned revenue. The liability of $4,000 worth
of services increases because the company has more unearned revenue than previously.
The equation... | {"creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "file_size_mb": 156.7, "total_pages": 1055, "file_name": "FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccountin... |
82832888-a803-4b55-a728-45219bcb6298 | [
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0.036860350519418716,
-0.024344991892576218,
0.0631565973162651,
-0.0485805... | receivable is an asset that is increasing in this case. This customer obligation of $5,500 adds to the balance in
accounts receivable.
The company did provide the services. As a result, the revenue recognition principle requires recognition as
revenue, which increases equity for $5,500. The increase to assets would ... | {"uploaded_via": "batch_uploader", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pd... |
e3958977-490e-49ff-bac2-f9701e9fb78c | [
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-0.0013022475177422166,
0.04835401102900505,
-0.004025022964924574,
0.017290780320763588,
-0.0... | Analysis: The company paid with cash, an asset. Assets are decreasing by $300 since cash was used to pay for
this utility bill. The company no longer has that money.
Utility payments are generated from bills for services that were used and paid for within the accounting
period, thus recognized as an expense. The exp... | {"creationdate": "2019-04-24T10:32:54-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "uploaded_via": "batch_uploader", "file_name": "FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "to... |
0f9604d7-f7a4-45c5-8af3-88136a4a5793 | [
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0.04180755838751793,
0.05705551430583,
0.04620251804590225,
0.007779254112392664,
-0.056438... | Transaction 6: Distributed $100 cash in dividends to stockholders.
Analysis: The company paid the distribution with cash, an asset. Assets decrease by $100 as a result.
Dividends affect equity and, in this case, decrease equity by $100. The decrease to assets, specifically cash,
This OpenStax book is available for f... | {"file_type": ".pdf", "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accoun... |
41cc8450-6aa0-4d8f-9b87-c970e3d8f3c8 | [
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0.07588548958301544,
-0.04944583401083946,
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0.005... | each of the transactions.
As you can see, assets total $32,600, while liabilities added to equity also equal $32,600. Our accounting
equation remains balanced. In Use Journal Entries to Record Transactions and Post to T-Accounts, we add
other elements to the accounting equation and expand the equation to include ind... | {"file_name": "FinancialAccounting-OP.pdf", "file_type": ".pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload": true, "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7,... |
92b8a933-d2dd-4b96-8522-d45ae2a3fe82 | [
-0.05718723684549332,
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0.04658349230885506,
0.14271226525306702,
-0.028701426461338997,
0.0006325647700577974,
-0.0... | C. A customer buys a gallon of milk paying cash.
D. The shelving is delivered with an invoice for $750.
Which events will be recorded in the accounting system?
Solution
A. Debbie did not yet receive the shelving—it has only been ordered. As of now there is no new asset
owned by the company. Since the shelving has ... | {"file_name": "FinancialAccounting-OP.pdf", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156... |
4c41f80c-022c-4bd4-9259-8834ae65b6a0 | [
-0.04385960102081299,
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0.040859151631593704,
0.025111984461545944,
0.017267074435949326,
-0.030917005613446236,
-0.... | her inventory of milk. She has an increase in one asset (cash) and a decrease in another asset
(inventory.) She also has earned revenue.
D. Debbie has taken possession of the shelving and is the legal owner. She also has an increase in her
liabilities as she accepted delivery of the shelving but has not paid for it.... | {"total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32:54... |
6333d7c8-3b38-49c9-94ce-354f2492ee0e | [
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-0.039778389036655426,
0.04538150876760483,
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-0.... | place information is entered into the accounting system. A journal is often referred to as the book of original
entry because it is the place the information originally enters into the system. A journal keeps a historical
account of all recordable transactions with which the company has engaged. In other words, a jou... | {"producer": "Prince 11 (www.princexml.com)", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "batch_upload": true, "uploaded_via": "batch_uploader", "source": "downloads\\business\\accounting\\FinancialAcco... |
8c29d40b-f3d3-44ce-a808-1d422d92d421 | [
-0.007726063020527363,
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0.0037980168126523495,
-0.036063823848962784,
-0.06475163996219635,
0.01852814294397831,
-0.05... | Formatting When Recording Journal Entries
•
Include a date of when the transaction occurred.
• The debit account title(s) always come first and on the left.
• The credit account title(s) always come after all debit titles are entered, and on the right.
• The titles of the credit accounts will be indented below the... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer":... |
8278232a-4a0e-4d25-bf72-2e95921b4244 | [
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0.011185909621417522,
0.012925802730023861,
-0.01634945347905159,
-0.0260512828826904... | 141
An example journal entry format is as follows. It is not taken from previous examples but is intended to stand
alone.
Note that this example has only one debit account and one credit account, which is considered a simple entry.
A compound entry is when there is more than one account listed under the debit and/o... | {"file_type": ".pdf", "file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "modd... |
ac4d0e44-59e6-4440-89bb-cd7ed5fd5dac | [
-0.05446489155292511,
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0.032364584505558014,
0.07523652911186218,
0.03185761347413063,
0.005019623786211014,
-0.0571... | credit amount, and there is a short description of the transaction.
Let’s now look at a few transactions from Printing Plus and record their journal entries.
Recording Transactions
We now return to our company example of Printing Plus, Lynn Sanders’ printing service company. We will
analyze and record each of the t... | {"total_pages": 1055, "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "f... |
65b9011a-4538-4e26-b2f7-53738e6c6efd | [
-0.0715276226401329,
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0.029044877737760544,
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0.05238880589604378,
0.00757366931065917,
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0.05773242563009262,
0.05324655398726463,
-0.023294860497117043,
-0.04217958077788353,
-0.04... | 4. On January 10, 2019, provides $5,500 in services to a customer who asks to be billed for the services.
5. On January 12, 2019, pays a $300 utility bill with cash.
6. On January 14, 2019, distributed $100 cash in dividends to stockholders.
7. On January 17, 2019, receives $2,800 cash from a customer for services r... | {"file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d... |
97ffbed5-4e06-47a7-af41-a3fe932f58be | [
-0.016901491209864616,
-0.017766598612070084,
0.0044316500425338745,
-0.05828896164894104,
-0.017263157293200493,
0.033510297536849976,
0.02778354100883007,
0.04866860434412956,
0.012823259457945824,
0.0055043357424438,
0.09516671299934387,
0.041692156344652176,
-0.04433455318212509,
-0.06... | Transaction 1: On January 3, 2019, issues $20,000 shares of common stock for cash.
142
Analysis:
Chapter 3 Analyzing and Recording Transactions
• This is a transaction that needs to be recorded, as Printing Plus has received money, and the stockholders
have invested in the firm.
• Printing Plus now has more cash.... | {"creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "batch_upload": true, "title": "Principles of Accounting, Volume 1: Financial Accounting", "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "upload_timestamp": "2026-02-07... |
7c41465b-7f33-4b58-9f45-769449d128d2 | [
-0.0617617703974247,
0.05383504182100296,
-0.008605844341218472,
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-0.024772098287940025,
-0.013326361775398254,
0.061587002128362656,
0.02700435183942318,
0.023615194484591484,
0.032612428069114685,
0.11717928946018219,
0.027708448469638824,
0.04932520538568497,
-0.058... | assets increase and total stockholders’ equity will also increase, both by $20,000. With both totals increasing by
$20,000, the accounting equation, and therefore our balance sheet, will be in balance. There is no effect on the
income statement from this transaction as there were no revenues or expenses recorded.
Tr... | {"file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "file_type": ".pdf", "source": "downloads\\business\\accounting\\Financ... |
41f3cd5e-b746-4f32-a38e-1b743e5472be | [
-0.04553144797682762,
0.025810446590185165,
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-0.004241872113198042,
0.05249716341495514,
0.009639040566980839,
0.040995024144649506,
-0.... | Accounts Payable is used to recognize this liability. This liability is increasing, as the company now owes
money to the supplier. A liability account increases on the credit side; therefore, Accounts Payable will
increase on the credit side in the amount of $3,500.
Impact on the financial statements: Since both acc... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload": true, "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Acc... |
5339b2bc-7fc0-414c-b9d9-d77987c26aea | [
-0.08344345539808273,
0.029812289401888847,
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-0.028200000524520874,
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0.027750452980399132,
0.08838819712400436,
-0.03762635216116905,
0.03792738914489746,
0.022315356880426407,
0.061868637800216675,
-0.02... | company has a liability to the customer until it provides the service. The Unearned Revenue account
would be used to recognize this liability. This is a liability the company did not have before, thus
increasing this account. Liabilities increase on the credit side; thus, Unearned Revenue will recognize the
$4,000 o... | {"moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Pr... |
796a9a63-f3d1-4315-a177-4c42630da611 | [
-0.01826854795217514,
-0.0005726327653974295,
-0.011183147318661213,
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-0.05893382057547569,
0.008745316416025162,
0.08089473843574524,
0.029061272740364075,
0.07730379700660706,
-0.028743602335453033,
0.019545437768101692,
0.008172688074409962,
0.03996315225958824,
-0.0... | equity. Revenue accounts increase on the credit side; thus, Service Revenue will show an increase of
$5,500 on the credit side.
• The customer did not immediately pay for the services and owes Printing Plus payment. This money will
be received in the future, increasing Accounts Receivable. Accounts Receivable is an ... | {"creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\b... |
73919700-e591-47cd-a574-f50658302da0 | [
-0.016901865601539612,
0.04627383127808571,
0.01502478588372469,
-0.01139433216303587,
-0.018892334774136543,
-0.01816767081618309,
0.056865788996219635,
-0.003959737252444029,
0.07482171803712845,
0.0003470678930170834,
0.030008917674422264,
-0.006923028267920017,
0.010864324867725372,
-0... | equity will increase $5,500. Accounts receivable is going up so total assets will increase by $5,500. The
accounting equation, and therefore the balance sheet, remain in balance.
Transaction 5: On January 12, 2019, pays a $300 utility bill with cash.
Analysis:
• Cash was used to pay the utility bill, which means ca... | {"file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529",... |
97b47b92-e230-4611-98da-7ed38e8b6516 | [
-0.013506093993782997,
0.04939151927828789,
0.009665776044130325,
-0.0476716011762619,
0.014751583337783813,
-0.021057218313217163,
0.05079379305243492,
0.029386932030320168,
0.09725038707256317,
0.02373231202363968,
0.0556853823363781,
0.05013878270983696,
0.003614481771364808,
-0.0466754... | equity will decrease by $300. Cash is decreasing, so total assets will decrease by $300, impacting the balance
sheet.
Transaction 6: On January 14, 2019, distributed $100 cash in dividends to stockholders.
Analysis:
• Cash was used to pay the dividends, which means cash is decreasing. Cash is an asset that decrease... | {"uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "title": "Principles of Accounting, Volume 1: Financial Accounting... |
3371e1ef-6982-40de-b14e-d03b3b3f88e6 | [
-0.038746874779462814,
0.03362962231040001,
0.0028096085879951715,
-0.0667942687869072,
-0.04032881557941437,
0.007974769920110703,
0.09853208810091019,
0.040228068828582764,
0.06640411913394928,
-0.010314582847058773,
0.05199141055345535,
0.03766912594437599,
-0.0031637356150895357,
-0.05... | decrease in stockholders’ equity (retained earnings). Cash is decreasing, so total assets will decrease by $100,
impacting the balance sheet.
Transaction 7: On January 17, 2019, receives $2,800 cash from a customer for services rendered.
Analysis:
• The customer used cash as the payment method, thus increasing the ... | {"creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "file_name": "Finan... |
9142f2d9-73c2-4791-bff9-e48e8c8b107d | [
-0.051605865359306335,
0.05525394156575203,
0.004651519935578108,
-0.08091273158788681,
-0.027420522645115852,
-0.05927203223109245,
0.07421426475048065,
0.046006567776203156,
0.02805747091770172,
0.019115807488560677,
0.05127928406000137,
0.01159647572785616,
0.038204073905944824,
-0.0562... | account, so total equity will increase $2,800. Cash is increasing, which increases total assets on the balance
sheet.
Transaction 8: On January 18, 2019, paid in full, with cash, for the equipment purchase on January 5.
Analysis:
• Cash is decreasing because it was used to pay for the outstanding liability created ... | {"creationdate": "2019-04-24T10:32:54-05:00", "batch_upload": true, "producer": "Prince 11 (www.princexml.com)", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\FinancialAc... |
3c884fb5-5940-4267-b813-a04e06769e22 | [
0.0071671768091619015,
0.11919711530208588,
0.025186985731124878,
-0.002879943000152707,
0.001533646136522293,
0.010127772577106953,
0.0677850991487503,
0.022411465644836426,
0.041920699179172516,
-0.045224182307720184,
0.03218023106455803,
-0.026044286787509918,
-0.029905449599027634,
-0.... | see no effect on the income statement.
Transaction 9: On January 20, 2019, paid $3,600 cash in salaries expense to employees.
Analysis:
• Cash was used to pay for salaries, which decreases the Cash account. Cash is an asset that decreases on
the credit side.
• Salaries are an expense to the business for employee w... | {"uploaded_via": "batch_uploader", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type":... |
12709d58-6239-49ff-8630-0531fe0e1989 | [
-0.012345949187874794,
0.03779096528887749,
0.012735821306705475,
-0.054808177053928375,
-0.018042858690023422,
-0.043685104697942734,
0.051413360983133316,
0.012759272940456867,
0.07256510853767395,
0.01566220074892044,
0.040520623326301575,
0.017662467435002327,
0.06264989078044891,
-0.0... | equity will decrease by $3,600. Cash is decreasing, so total assets will decrease by $3,600, impacting the
balance sheet.
Transaction 10: On January 23, 2019, received cash payment in full from the customer on the January 10
transaction.
Analysis:
• Cash was received, thus increasing the Cash account. Cash is an a... | {"creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAcc... |
6163ceec-8d82-4b56-863d-21bbe4207972 | [
-0.08720801770687103,
0.062429483979940414,
0.01978660561144352,
-0.06431477516889572,
-0.0553717166185379,
0.011025330051779747,
0.057998672127723694,
-0.0018897776026278734,
0.08849430829286575,
0.010386280715465546,
0.06941193342208862,
-0.0039880964905023575,
0.06969679892063141,
-0.04... | decrease to another asset (Accounts Receivable). This means total assets change by $0, because the increase
and decrease to assets in the same amount cancel each other out. There are no changes to liabilities or
stockholders’ equity, so the equation is still in balance. Since there are no revenues or expenses affecte... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "upload_timestamp": "2026-02-07T07:23:08.167529", "moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "file_n... |
0812f4e9-9143-4540-8b2d-cda57ebee42f | [
-0.05442662909626961,
0.005190469790250063,
-0.03919802978634834,
-0.04044671356678009,
-0.02208198793232441,
0.016800206154584885,
0.048055727034807205,
0.0018423827132210135,
0.002435416914522648,
-0.014731461182236671,
0.1235131174325943,
0.061890847980976105,
-0.006189099047333002,
-0.... | • Printing Plus provided the service, thus earning revenue. Service Revenue would increase on the credit
side.
Impact on the financial statements: Revenue is reported on the income statement. More revenue will
increase net income (earnings), thus increasing retained earnings. Retained earnings is a stockholders’ equ... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_type"... |
1da710cd-d92c-456a-9828-1f1f39ec55e7 | [
-0.05013767629861832,
0.03065280057489872,
-0.06008007749915123,
-0.03193652257323265,
0.03986283019185066,
0.0003490145318210125,
0.05203370749950409,
-0.0017392168520018458,
-0.012081479653716087,
0.020814741030335426,
0.05064268037676811,
0.04480933025479317,
0.004066006746143103,
-0.05... | Chapter 3 Analyzing and Recording Transactions
debit side.
• Printing Plus did not pay immediately for the supplies and asked to be billed for the supplies, payable at a
later date. This creates a liability for the company, Accounts Payable. This liability increases Accounts
Payable; thus, Accounts Payable increase... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL ... |
22423381-2072-4c61-a2f5-83134aefa14d | [
0.005853455513715744,
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-0.040392663329839706,
0.0108918696641922,
0.017850831151008606,
0.009330295026302338,
-0.018529051914811134,
-0.01857372187077999,
0.014897356741130352,
-0.04230836406350136,
0.051331765949726105,
0.06120776757597923,
-0.007962274365127087,
-0.0... | Chapter 3 Analyzing and Recording Transactions
C O N T I N U I N G A P P L I C A T I O N A T W O R K
Colfax Market
Colfax Market is a small corner grocery store that carries a variety of staple items such as meat, milk,
eggs, bread, and so on. As a smaller grocery store, Colfax does not offer the variety of p... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1... |
a7cd6f80-e24c-4d10-b0b3-8fa9c1971caa | [
-0.013482081703841686,
0.02116445079445839,
-0.03391551598906517,
-0.025070982053875923,
0.0021561747416853905,
-0.013554321601986885,
0.06842763721942902,
-0.03753351792693138,
0.03761103376746178,
-0.02893156372010708,
0.020630326122045517,
0.009826196357607841,
-0.02972947619855404,
-0.... | multiple deliveries a week, and multiple entries for purchases from a variety of vendors on their accounts
payable weekly.
This similarity extends to other retailers, from clothing stores to sporting goods to hardware. No matter
the size of a company and no matter the product a company sells, the fundamental account... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "creationdate": "2019-04-24T10:... |
d5a6611f-102f-4ad4-9627-23b4c8d861ef | [
-0.013669711537659168,
-0.015822742134332657,
-0.0828537791967392,
-0.07548291981220245,
-0.018173735588788986,
-0.03169947490096092,
0.08799583464860916,
-0.0006419015699066222,
0.05013144761323929,
0.02609090879559517,
0.02520657703280449,
0.005627297796308994,
-0.035047877579927444,
-0.... | Remember, all asset accounts will start with the number 1. The date of each transaction related to this account
is included, a possible description of the transaction, and a reference number if available. There are debit and
credit columns, storing the financial figures for each transaction, and a balance column that... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccountin... |
7c14a729-f531-4cb7-8cd4-0492bdce0e85 | [
0.008226017467677593,
0.030874205753207207,
-0.012372598983347416,
-0.06069664657115936,
-0.023750904947519302,
-0.04649161919951439,
0.03100857138633728,
0.05515604093670845,
0.03291240707039833,
0.013148009777069092,
0.031032493337988853,
0.016940558329224586,
-0.029100369662046432,
-0.0... | description of the transaction follows in the next column. Cash had a debit of $20,000 in the journal entry, so
$20,000 is transferred to the general ledger in the debit column. The balance in this account is currently
$20,000, because no other transactions have affected this account yet.
Common Stock has the same d... | {"creationdate": "2019-04-24T10:32:54-05:00", "batch_upload": true, "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "total_pages": 1055, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f... |
df5d884f-ae47-4979-99db-18bf5a20a213 | [
-0.01225451659411192,
0.04168407991528511,
-0.012864070013165474,
-0.05260230228304863,
-0.006017751060426235,
-0.017484350129961967,
0.04247564077377319,
0.0826805979013443,
-0.002473900793120265,
0.06568614393472672,
-0.017549004405736923,
0.0053863804787397385,
0.04081821069121361,
-0.0... | Best Buy’s 2017 annual report (https://openstax.org/l/50BestBuy2017) to learn more about Best Buy.
Take note of the company’s balance sheet on page 53 of the report and the income statement on page
54. These reports have much more information than the financial statements we have shown you;
however, if you read thro... | {"batch_upload": true, "file_name": "FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "crea... |
a9b5b26f-16f2-46c6-87df-128ce9da95f0 | [
-0.028063179925084114,
0.05565892904996872,
-0.02769441343843937,
-0.08244060724973679,
-0.020030995830893517,
-0.09836932271718979,
0.04365574195981026,
0.049795400351285934,
0.0008080347906798124,
0.029453687369823456,
-0.022795289754867554,
-0.07558555901050568,
-0.01586829498410225,
0.... | debit side and decrease on the credit side. If there was a debit of $5,000 and a credit of $3,000 in the Cash
account, we would find the difference between the two, which is $2,000 (5,000 – 3,000). The debit is the larger
of the two sides ($5,000 on the debit side as opposed to $3,000 on the credit side), so the Cash... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file... |
8a55302e-9fbd-4a86-8853-91b6088ea51a | [
-0.0231475792825222,
0.013766889460384846,
-0.039490677416324615,
-0.09820505976676941,
0.008954557590186596,
-0.1126900166273117,
0.033945802599191666,
0.009270723909139633,
0.04840144142508507,
0.02620759792625904,
0.0035327421501278877,
-0.04686705023050308,
0.018667731434106827,
-0.056... | ledger account to calculate account balances.
The general ledger account for Cash would look like the following:
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing and Recording Transactions
153
In the last column of the Cash ledger account is the running balance. T... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "202... |
4a92c4df-1235-4288-b4f1-c0ff1fe22866 | [
-0.04856184497475624,
0.0382186695933342,
-0.06568320840597153,
-0.09812896698713303,
-0.05634990334510803,
-0.11633393913507462,
0.045608993619680405,
0.040203243494033813,
0.05476031079888344,
0.06732969731092453,
0.01400135550647974,
-0.08704687654972076,
-0.011754389852285385,
-0.04476... | ledger account. Since this figure is on the credit side, this $300 is subtracted from the previous balance of
$24,000 to get a new balance of $23,700. The same process occurs for the rest of the entries in the ledger and
their balances. The final balance in the account is $24,800.
Checking to make sure the final bal... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creationdate": "2019-04-24T10:32:54-05:... |
9d2cab86-9cfe-4ee9-b98b-40915283516d | [
-0.04318368807435036,
0.024364043027162552,
-0.0617980994284153,
-0.04624781385064125,
-0.07568176090717316,
0.009165703319013119,
0.02082178369164467,
-0.011646951548755169,
0.05268319696187973,
0.03402375802397728,
0.06868762522935867,
0.07138080894947052,
0.005000830162316561,
-0.062143... | Posting to the T-Accounts
The third step in the accounting cycle is to post journal information to the ledger. To do this we can use a T-
account format. A company will take information from its journal and post to this general ledger. Posting
refers to the process of transferring data from the journal to the genera... | {"producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "uploaded_via": "batch_uploader", "total_pages": 10... |
2e28a4e5-47de-4693-8416-b880cee26585 | [
-0.043354082852602005,
-0.006573360413312912,
-0.016510866582393646,
-0.08563688397407532,
-0.03806142136454582,
-0.05151002109050751,
0.07398948073387146,
0.048430416733026505,
0.029210876673460007,
0.044766031205654144,
0.06027853861451149,
-0.010113111697137356,
-0.006296875420957804,
-... | Transaction 1: On January 3, 2019, issues $20,000 shares of common stock for cash.
154
Chapter 3 Analyzing and Recording Transactions
In the journal entry, Cash has a debit of $20,000. This is posted to the Cash T-account on the debit side (left
side). Common Stock has a credit balance of $20,000. This is posted to... | {"creationdate": "2019-04-24T10:32:54-05:00", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f... |
52fcfea7-eeb2-4470-9b9b-4b83a8472ebf | [
-0.033868249505758286,
0.017910147085785866,
-0.004794764332473278,
-0.09000013023614883,
-0.06275283545255661,
-0.08101995289325714,
0.08005695790052414,
0.02021811157464981,
0.08178288489580154,
0.04479879140853882,
-0.0017641960876062512,
-0.030370455235242844,
0.030370881780982018,
-0.... | rendered.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing and Recording Transactions
155
In the journal entry, Cash has a debit of $4,000. This is posted to the Cash T-account on the debit side. You will
notice that the transaction from January 3 is listed alread... | {"file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "batch_upload": true, "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (ww... |
9630a1ed-e3c7-4926-912f-55ab3dc66c16 | [
-0.10450205951929092,
-0.007456054445356131,
-0.018630294129252434,
-0.06508535146713257,
-0.026649797335267067,
-0.06790293008089066,
0.09666619449853897,
-0.0038156788796186447,
0.07251924276351929,
0.06729689240455627,
0.019904525950551033,
-0.042141951620578766,
-0.03352753445506096,
-... | account on the debit side. Service Revenue has a credit balance of $5,500. This is posted to the Service Revenue
T-account on the credit side.
Transaction 5: On January 12, 2019, pays a $300 utility bill with cash.
156
Chapter 3 Analyzing and Recording Transactions
In the journal entry, Utility Expense has a debit... | {"creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "creationdate": "2019-04-24T10:3... |
612b9907-1eaf-4456-bbfd-29d64cb349da | [
-0.03243791311979294,
0.01674453169107437,
0.007853979244828224,
-0.05940714851021767,
-0.054139528423547745,
-0.09329469501972198,
0.08189686387777328,
0.04579664394259453,
0.029883066192269325,
0.06864108145236969,
0.02574921026825905,
-0.04739825055003166,
-0.02590976655483246,
-0.01593... | debit side. Cash has a credit of $100. This is posted to the Cash T-account on the credit side. You will notice that
the transactions from January 3, January 9, and January 12 are listed already in this T-account. The next
transaction figure of $100 is added directly below the January 12 record on the credit side.
T... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "uploaded_via": "batch_uploader", "batch_upload": true, "file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167... |
5a06067d-29bc-425e-bced-1b12504a6000 | [
-0.09037809818983078,
0.010385080240666866,
-0.0006879906286485493,
-0.09382108598947525,
-0.05529264733195305,
-0.04493637755513191,
0.08100380003452301,
0.030521949753165245,
0.03236432373523712,
0.04338391497731209,
0.03798648715019226,
-0.03709455579519272,
0.0059393541887402534,
-0.05... | account. The next transaction figure of $2,800 is added directly below the January 9 record on the debit side.
Service Revenue has a credit balance of $2,800. This too has a balance already from January 10. The new entry
is recorded under the Jan 10 record, posted to the Service Revenue T-account on the credit side.
... | {"file_type": ".pdf", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload": true... |
1c55b3b9-10f8-4539-837d-8edaa20130ff | [
-0.07152039557695389,
0.05540222302079201,
-0.008253357373178005,
-0.05655335262417793,
-0.06373383849859238,
-0.03195786848664284,
0.08372583240270615,
0.004243568517267704,
0.03020246885716915,
0.03163895383477211,
0.003680393798276782,
-0.10656335949897766,
-0.027478819712996483,
-0.036... | January 5 record.
Transaction 9: On January 20, 2019, paid $3,600 cash in salaries expense to employees.
158
Chapter 3 Analyzing and Recording Transactions
On this transaction, Cash has a credit of $3,600. This is posted to the Cash T-account on the credit side beneath
the January 18 transaction. Salaries Expense ... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "... |
5a1294df-7786-4180-a0b1-6a33dfd7349c | [
-0.06661307066679001,
0.022174349054694176,
0.014950966462492943,
-0.07960382848978043,
-0.055069372057914734,
-0.03637443110346794,
0.06004945933818817,
0.0021068977657705545,
0.040041178464889526,
0.05275578051805496,
0.04239192232489586,
-0.023173274472355843,
0.03528998792171478,
-0.03... | Transaction 11: On January 27, 2019, provides $1,200 in services to a customer who asks to be billed for the
services.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 3 Analyzing and Recording Transactions
159
On this transaction, Accounts Receivable has a debit of $1,200. T... | {"file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "producer": "Prince 11 (www.princexml.com)", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "sour... |
c450d1e0-5309-4013-8113-dc6338872d6e | [
-0.07364822179079056,
0.05774310231208801,
-0.06540364772081375,
-0.02787238359451294,
-0.028129667043685913,
0.01595110073685646,
0.024732962250709534,
0.03721953183412552,
0.028477109968662262,
0.066306933760643,
0.03497500345110893,
-0.06344463676214218,
0.03762437775731087,
-0.05195140... | Accounts Payable has a credit of $500. You notice there are already figures in Accounts Payable, and the new
record is placed directly underneath the January 5 record.
T-Accounts Summary
Once all journal entries have been posted to T-accounts, we can check to make sure the accounting equation
remains balanced. A su... | {"creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "moddate": "2020-08-05T15:26:11-05:00", "batch_upload": true, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "upload_timestamp": "2026-0... |
8804de27-dabf-4732-a5b3-0c83e309fc0f | [
-0.07469911128282547,
0.0836452841758728,
-0.03884221240878105,
-0.05616655945777893,
-0.03419993817806244,
-0.028451869264245033,
0.061147890985012054,
0.08571017533540726,
0.0364411287009716,
0.060682326555252075,
-0.003423958783969283,
-0.05327867716550827,
0.06799283623695374,
-0.01643... | of the equation, we need to find the difference between debits and credits. Credits on the liabilities and equity
side of the equation total $34,000 (500 + 4,000 + 20,000 + 9,500). Debits on the liabilities and equity side of the
equation total $4,000 (100 + 3,600 + 300). The difference $34,000 – $4,000 = $30,000. Th... | {"producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", ... |
81116a5e-ef5a-4aa2-84ac-d0ac8ede844e | [
-0.021616952493786812,
0.04968396574258804,
-0.011182713322341442,
-0.03684093430638313,
-0.017343325540423393,
-0.05264892429113388,
0.07678349316120148,
0.042873382568359375,
-0.06266359984874725,
0.013086698018014431,
0.0373995341360569,
-0.05089880898594856,
-0.01106257364153862,
-0.02... | Apr. 25
You stop by your uncle’s gas station to refill both gas cans for your company, Watson’s
Landscaping. Your uncle adds the total of $28 to your account.
Apr. 26
You record another week’s revenue for the lawns mowed over the past week. You earned
$1,200. You received cash equal to 75% of your revenue.
Apr. 2... | {"uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_size_mb": 156.7, "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Pr... |
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