Question

1. In accounting its important to understand that there may be events that occur that are not business transactions. Please give us an example of a business transaction that affects the accounting equation. Remember that the expanded accounting equation is: Assets = Liabilities + Owner's Equity + Revenue - Expenses. Please be sure that you provide this transaction in General Journal format. Additionally give us an example of an event that is not an accounting transaction.

2. Please let us know what you are doing to get those rules of debit and credit memorized. Please let us know if you have any hints to help us with this process.

Answer 1

As per policy, we cannot able to post solution more than one question.

Increase in revenue or liability or equity = credit

Decrease in revenue or liability or equity = debit

Increase in expense or assets = debit

Decrease in expense or assets = credit

Analysis of transaction
No.	Transaction	Account title	Effect	Categories	DR/CR	Amount($)
1	Issued of common stock of $1000 at par value	Cash	Increase	Assets	Debit	1000
		Common stock	Increase	Equity	Credit	1000
2	Purchase of supplies on account $200	Supplies	Increase	Assets	Debit	200
		Account payable	Increase	Liability	Credit	200
3	Service performed of $400 on account	Account receivable	Increase	Assets	Debit	400
		Sales revenue	Increase	Revenue	Credit	400
4	Wages expense paid $100	Wages expense	Increase	Expense	Debit	100
		Cash	Decrese	Assets	Credit	100
5	Utilities expense paid $50	Utilities expense	Increase	Expense	Debit	50
		Cash	Decrease	Assets	Credit	50
6	300$ received from service perfumed in transaction number 3	Cash	Increase	Assets	Debit	300
		Account receivable	Decrease	Assets	Credit	300
7	Paid to 200$ for supplies purchased on transition number 2	Account payable	Decrease	Liability	Debit	200
		Cash	Decrease	Assets	Credit	200

Date	General journal	Debit	Credit
1	Cash	1000
	Common stock		1000
	(To record cash received from issued of common stock.)
2	Supplies	200
	Account payable		200
	(To record purchase of supplies on account.)
3	Account receivable	400
	Sales revenue		400
	(To record service revenue on account.)
4	Wages expense	100
	Cash		100
	(To record wages expense paid.)
5	Utilities expense	50
	Cash		50
	(To record Utilities expense paid.)
6	Cash	300
	Account receivable		300
	(To record cash collected from account receivable.)
7	Account payable	200
	Cash		200
	(To record payment made to account payable.)

Non cash transactions

Company send price list to customer

Meeting with client