Accounting equation and transaction analysis ppt

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Revenue-Net Income. Not all activities represent transactions. Step 2: Borrow $20K from the Bank, now $100K cash, $80K equity, $20K liability. Paid cash for supplies, $275. The effect of this transac-tion on the accounting equation of Genie Car Wash, Inc. Key Terms Oct 3, 2012 · Accounting and financial analysis. Thus, each debit has an equal credit. ) Chapter TwoTransaction Analysis 2 Transactions. (If no impact on the accounting equation leave cells blank. xml¬VmoÚ: þ>iÿÁÊ÷4 ht*i™&qÛª° ` ‡xulÏ6 vuÿû=v `…JhÝ—ø%ç ?çñc ú¼­8ÚPm˜ ã ¾º DæL¬ÆÁ·Å4 ÈX,rÌ¥ ã` Accounting Equation Illustration. MyExceLab. Why Its Important You can analyze real-world business transactions by using the accounting . Transaction 1August 1. Business Transactions are events that have a financial impact on the business (assign a amount) and can be measured reliably. is decreased $3,500. Follow the transaction analysis examples on the course Chapter 1 PowerPoint Slides and use the same format to analyze the transactions below. It defines a service business as one that provides services rather than physical products. All kinds of organizations— government agencies, nonprofit organizations, and others —rely on accounting to gauge their progress. The Need for Accounting Accounting information can be used to assess past financial performance of a company and help predict its future performance. An accounting equation is a mathematical formula that illustrates how a company’s total assets and total liabilities relate to one another. The accounting equation is based on the double-entry bookkeeping system, which means that for every transaction Dec 10, 2018 · Financial Accounting & Analysis. Computer Equipment . Financial Information vs. Problem ; too many accounts ; too many transactions ; A separate record is kept for each account; 2 Accounts. Fundamentals of Accountancy, Business & Management - Accounting Equation Transaction Sample. Slides: 13. Solved Example on Accounting Equation Click on the Underlined Number (1,2,3,etc. Transactional Analysis. The accounting equation Aug 24, 2023 · Equity is the money that is bought by owners of the company for running the business. ppt / . A knowledge of transaction analysis allows you to critically and systematically analyze the impact of business events on a company's reported financial performance and position. $55,000 = $55,000. 1 “Transactions Frequently Encountered” are typical transactions that any company might encounter. perform transaction analysis and indicate the account amount, and direction of the effect (+for increase and-for decrease) on the accounting equation. Transaction analysis is a process of identifying the accounts involved in a transaction, determining the nature of those accounts and finally analyzing the transaction’s financial impact on business. In other words, an accounting equation is a This document discusses accounting concepts and procedures for a service business. Roneet Kumar. Transaction 2August 3. Section 2 Transactions That Affect Owner’s Investment, Cash, and Credit (con’t. Use the following partial chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies About This Presentation. The accounting equation is a core principle in the double-entry bookkeeping system, wherein each transaction must affect at a bare minimum Apr 29, 2024 · The accounting equation is a fundamental accounting principle that states that the total assets of a business are equal to the sum of its liabilities and owner’s equity. It forms the basis of the double-entry accounting system. Read less Sept. Transactions • Business Transactions are events that have a financial impact on the business (assign a $$ amount) and can be measured reliably. The accounting equation displays that all assets are either financed by borrowing money or paying with the 1. Lesson 3A ACCTBA1 Fundamentals of Accounting September 22, 2014 1 BASIC Includes:- Business types (ownership)- Transactions- Account types- Financial Position (Accounting Equation)- The Balance Sheet- Simple Ledgers- T-Accounts- Debit and Credit Theory- and moreRecommended for Grade 11 Accounting - Can use some resources for Grade 10 BusinessHandouts & Powerpoint Lessons**Remember to rate products to enhance their Joe Smith will now have Equity in the business because of his investment of $55,000. pptx), PDF File (. Retained Earnings. Bought the equipment (RMB 1 500yuan)by check. Dec 20, 2012 · This document provides an overview of lesson 3 in an accounting course for beginners. It provides definitions from the American Institute of Certified Public Accountants and the American Accounting Association, describing accounting as identifying, measuring, recording, classifying, and communicating financial information For example, all the occurrences listed in Figure 4. 29 KB. Mar 25, 2022 · File previews. Accounting equation was used to record daily business transactions. Oct 4, 2014 · Exercise 1. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account. The effects of transactions on financial statements. Purchase supplies on credit. Analysis of Transaction (2) Step 1 The business received supplies in exchange for a promise to pay cash to the supplier next month. Got a short loan (RMB100 000yuan) from the bank. This document discusses different types of source documents and accounting vouchers used in accounting. An account is the record of all the changes in a particular asset, liability, or stockholders’ equity during a period. Avg rating:3. Owners Equity. Post the entries to the ledger. More generally, Chapters 2 and 3 show (via the accounting cycle) how financial statements reflect business activities. Analysis: Looking at the accounting equation, we know cash is an asset and common stock is stockholder’s equity. View 2401 ch02. Services Provided for Cash and Credit. This is a lesson on the accounting equation. Sequentially, it is a part of overall journalizing process which is the next step of accounting cycle. Here are more examples to further illustrate how the accounting equation works. The expanded accounting equation breaks down the equity portion of the accounting equation into more detail. RECEIVING CASH page 10 LESSON 1-2. Aug 17, 2010 · Each transaction at a minimum has a dual effect on the accounting equation and it must always remain in balance. financial data is raw data is not useful until it is processed. Mar 1, 2014 · And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. 2. Received cash from owner as an investment, $5,000. 146 views • 0 slides Oct 27, 2020 · The accounting equation is the basis of the balance sheet which provides a snapshot of a company’s financial position. Mary's College of Baliuag- Bulacan. Analysis: The business has received cash resulting in an increase in the assets. May 4, 2024 · Accounting Steps: The transaction involves three steps in accounting: Step 1: Initial balance sheet shows $80K cash and equity. This is the process of analyzing business transactions to determine their effects on the books. On the basis of this dual nature of transactions, modern accountants have developed a mathematical formula that is referred to as the accounting equation. Apr 26, 2015 · ACCOUNTING EQUATION INVENTORY Assets = = + +--Liabilit esi Balance Sheet as of 12/31/2100 Income Statement, year ended 12/31/2100 = Net income increases RE T-Account Revenue Debit Credit Expense Equity Equation Assets = Liabilities + Equity Equity = Assets - Liabilities - COGS Journal Entry debit credit Cash 100 Common stock 100 The accounting cycle is the series of events that begin with a transaction and end with the closing of the books for an accounting period. 529,419 Subscribers. 00. Describe the characteristics of an account. In fact, the entire double entry accounting concept is based on the basic accounting equation. From basic bookkeeping to boardroom reports, we have templates for every accounting needs. Objectives. Before launching into transaction analysis, let’s review the accounts that a company such as Apple Computer uses. Chapter 1-26 May be external or internal. Ott. Financial Data. Transactions from the Accounting Equation viewpoint, can be divided into two, i. . 148 views • 0 slides Whenever a transaction is recorded in the accounting books, it has an equal effect on both sides of the accounting equation. This product ( Accounting Analyzing Transaction) is a 79-slide PPT PowerPoint presentation (PPT), which you can download immediately upon purchase. View Homework Help - Effect of Business Transactions on Accounting Equation: Analysis from BUSINESS A ACCT122 at St. Jan 8, 2024 · Basic Accounting Equation: Assets = Liabilities + Equity. It defines important terms like revenue, expense, assets, liabilities, and equity. 46) 35 Learning Objective A1. In this lesson, we're going to talk about the first step See Answer. equation. 2 likes • 4,301 views. The accounting equation equates a company’s assets to its liabilities and equity. (NML) is a commercial distributor of plant-based meat substitutes to grocery stores and management team have successfully grown the operation to the point where Home Describe the relationship between property and financial claims Explain the meaning of the term equities as it is used in accounting. R is Revenue. Title: THE ACCOUNTING EQUATION. It is the basis upon which the double entry accounting system is constructed. 2 LP1 Learning Objectives are classified as conceptual, analytical, or procedural. Assume the following transactions: Mr. The expanded accounting equation is: Total Assets = Total Liabilities + CC +/- AOCIL + BRE + R – E – D – SR. Classify the accounts listed 3. In the accounting equation, every transaction will have a debit and credit entry, and the total debits Recall the accounting equation’s basic form. 11 Section 2 Transactions That Affect Owners Investment, Cash, and Credit (cont. Buying assets will result in an increase in equity, while selling assets will result in a decrease in equity. Alternatively, you can view the accounting equation to mean that ASC has assets of $10,000 and there are no claims by creditors (liabilities) against the Download Now. A/P AP2-6A (Transaction analysis and the basic accounting equation) Nearly Meat Ltd. Analyze the effects of business transactions on a firm’s assets, liabilities, and owner’s equity and record these effects in accounting equation form. It introduces the accounting equation and the main financial statement elements (assets, liabilities, capital). Net assets (if a nonprofit organization). As we know that each transaction has a Dual aspect. Capital Stock. Every transaction that has a financial impact on your company results in changes to the make-up of your accounting equation. The accounting equation states that assets are equal to liabilities plus owners' equity. Learn how businesses use accounts. Summary: Understanding Transaction Analysis in Accounting • Introduction: This video, presented by Dave Kolitz, delves into transaction analysis within the context of the accounting equation. Download now. Step 3: Buy the machine, it becomes a long-term asset financed by $20K liability and $80K equity. The document discusses the definitions and key concepts of accounting. Download to read offline. Classify +/-Balance. It discusses 4 key learning objectives: 1) business transactions, 2) four transactions that affect the balance sheet, 3) four transactions that affect the income statement. Slides: 7. ppt from ACG 5395 at Florida International University. The Computer Equipment account is used to record the transaction. ) Chapter 2 $ Investments by the Owner (con’t. Analyze business transactions from source documents. Demonstrate the effects of transactions on the accounting equation. The accounting equation represents the relationship between a company’s assets, liabilities, and owner’s equity. This expansion of the equity section allows a company to see the impact to equity from changes to revenues and expenses, and to owner investments and payouts. Mar 18, 2015 · This is a short introduction video on recording accounting transactions utilizing the concepts of debits and credits. Description: THE ACCOUNTING EQUATION Lesson 1-1, page 7 TERMS REVIEW accounting Planning, recording analyzing and interpreting financial information accounting system A – PowerPoint PPT presentation. The equation must always balance as it highlights the impact of a transaction on at least two sets of accounts. Core Principles: Title: Accounting Chapter 3 Analyzing Transactions into Debit and Credit Parts 1 Accounting - Chapter 3Analyzing Transactions into Debit and Credit Parts. The basic accounting equation is Assets = Liabilities + __________Owner's Equity or Stockholders' Equity (if a corporation). Decide the accounting elements 2. For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. financial data is not financial information. Cash in Bank . It then walks through the accounting cycle, including identifying transactions, recording journal entries, and providing accounting equation will be in balance. Examples are provided to illustrate how common business transactions impact the accounting equation components of assets, liabilities, and owner's equity. Analytical 36 Assets. This document provides an overview of the key components of a balance sheet - assets, liabilities, and owner's equity - and how they relate through the accounting equation. 1. Business activity will impact various asset, liability, and/or equity accounts without disturbing the equality of The-Accounting-Equation-Ppt - Free download as Powerpoint Presentation (. Transaction 1: Issues $20,000 shares of common stock for cash. Accounting Equation: The foundational equation is assets = liabilities + owner's equity. On each slide, new content is added in blue Jul 11, 2014 · Transactions and the accounting equation • One single item impacts BOTH sides of the accounting equation • However, the accounting equation is still BALANCED. AOCIL is Accumulated Other Comprehensive Income (Loss) BRE is Beginning Retained Earnings. This simple equation illustrates two facts about a company: what it owns and what it owes. Accounting equation is the foundation of other accounting formulas. Below are additional transactions following example 1, 2 and 3 in the previous lesson: Rendered services and received the full amount in cash, $500 Mar 16, 2022 · The accounting transaction analysis process in 5 steps. ASSETS LIABILITIES Cash A/R Inv. 1 Rules for Double- Entry Accounting. – When a business transaction occurs, an accounting clerk analyzes the transaction to see how it affects each part of the accounting equation – Follow these steps: 1. ) Chapter 3. Just professional, easy-to-edit slides that make your financial data interesting. pdf), Text File (. Every transaction must adhere to this equation to ensure the Section 3 The Accounting Equation (20 marks) A. 0/5. pptx, 125. – PowerPoint PPT presentation. Nov 29, 2014 · Using The Basic Accounting Equation Transactions are a business’s economic events recorded by accountants. Record the entries in the journal. The accounting process begins with an analysis of 1. 0. The View -Lesson 3A Transactional Analysis. Whenever a transaction takes place, it is analyzed to determine if any asset, liability, equity, revenue, or expense accounts need to be increased Aug 9, 2023 · The accounting equation stands as an essential tool for accountants, financial analysts, and business owners, facilitating transparency and reliability in financial reporting and analysis. business transactions. Chapter 11 (1110. How a cash payment transaction affects the accounting equation. and . When a company issues common stock, this will increase a stockholder Assets = Liabilities + Shareholder’s Equity. The basic accounting equation is: Assets = Liabilities + Capital. Bold City Consulting purchases office supplies, agreeing to pay $250 within 30 days. Double-entry accounting is the concept that every transaction will affect both sides of the accounting equation equally, and the equation will stay balanced at all times. What that means is that if one side of the accounting equation changes because of a transaction, then the other side of the accounting equation has to change by the same amount so that the totals on both sides of the accounting equation always match. Prepaid Ins. Sample Business Transactions. Assets are resources owned or controlled by a company, while liabilities represent creditors' claims on assets. $ Assets = Liabilities + Owner’s Equity Cash in Bank Maria Sanchez, Capital Trans. Module 2: The Accounting Equation and Transaction Analysis. Click the card to flip 👆. Both . (5 Marks) Sept 1 Invested $25,000 of his personal savings into a bank account opened in the 12 name of the accounting practice. Measured in dollar amounts. It introduces the six key elements of accounting: assets, liabilities, owners' equity, revenues, expenses, and net income. How a credit transaction affects the accounting equation. The objectives are to use the accounting equation to present these Aug 26, 2021 · Chapter 1-32 Transactions Analysis SO 7 Analyze the effects of business transactions on the accounting equation. 0K) Management accounting and cost-volume-profit relationships We now analyse each of these transactions, paying attention to how they impact the accounting equation and corresponding financial statements. Description: Transactional Analysis What is Transactional Analysis ? A theory of personality as well as a systematic psychotherapy for personal growth and personal change. Analyze and verify the equation. Transactional analysis is a technique used to understand interpersonal relationships and behavior, especially in organizations. Cruz BUSINESS Transaction 1: Issues $20,000 shares of common stock for cash. Cash in Bank. Check that the accounting equation remains in balance after each transaction. 0K) Governance and other information. Dec 22, 2023 · Definition and explanation. But, each new transaction brings about a change in financial condition. Before recording a transaction you’ll need to Download the Strategic Account Plan Consulting presentation for PowerPoint or Google Slides. The rules of debit and credit and the normal balances of accounts. Analyze business transactions using the accounting equation. ) links to navigate to the Transaction Analysis Using The Simple Accounting Equation Table to see a sample transaction that illustrates the affect of this type of transaction on our Simple Accounting Equation. Owners' equity refers to ownership claims on total assets. There is also an extended accounting equation where revenue and expenses are added. Business transactions must be recorded in accordance with the accounting equation, to ensure that each part of a journal entry is correct. Softbyte provides $3,500 of programming services for customers. Each causes some measurable effect on a company’s assets, liabilities, revenues, expenses, gains, losses, capital stock, or dividends paid. Where terms from the Shareholder’s Equity section of the balance sheet include: CC is Contributed Capital. 1 - How Transactions Impact the Accounting Equation. $0 $0 $0. When a company collects cash, this will increase assets because cash is coming into the business. Aug 8, 2014 · Business Transactions and the Accounting Equation. The accounting process begins May 5, 2012 · Transactional analysis. The business paid cash so the account Cash in Bank is affected. Question: For each of the events (a) through (). Capital = Assets – Liabilities. Property rights are financial claims to the property. Property Ownership and Control. The accounting equation states that a company’s assets must be equal to the sum of its liabilities and equity on the balance sheet, at all times. Expanded Accounting Equation. , 1. In good form means that the appropriate Nov 6, 2023 · Accounting Equation: The equation that is the foundation of double entry accounting. The Accounting Equation A L OE. It describes common source documents like cash memos, invoices, receipts, pay-in-slips, cheques, debit notes and Mar 17, 2017 · The accounting equation expresses the relationship between assets, liabilities, and owners' equity, with the formula being Assets = Liabilities + Owners' Equity. T-account Nov 22, 2014 · Business transaction. e. In exchange for the cash, the business has issued shares, thereby Nov 2, 2014 · Business Transactions and the Accounting Equation. Oct 22, 2014 · It is because of this reason that it is based on the dual aspect concept of accounting. For each of the transactions in items 2 through 13, indicate the two (or more) effects on the accounting equation of the business or company. Expenses. Chapter 8 (1321. The key accounts for a service business are assets, liabilities, equity, income and expenses. Title: ACCOUNTING IN ACTION. Transaction (6). Transactions will impact the Assets, Liabilities, and Owners Equity of a firm ; To analyze, determine how this impacts the accounting equation (Assets Liabilities Jun 16, 2021 · EdmerConstantino. In the spreadsheet, we enter $55,000 in Joe Smith, Capital on the same line as the Cash part of the transaction. Number of Views: 222. Review • Accounting equation • Transaction analysis The Accounting Equation Assets = Liabilities + Equity Rule: The Accounting We now analyze each of these transactions, paying attention to how they impact the accounting equation and corresponding financial statements. key terms of accounting. , is a receipt of cash and issuance of common stock, as follows: Click Transaction analysis to see the full chart with all transactions. How will the transactions affect the accounting equation? Let us take a look at transaction #1: Mar 12, 2019 · The accounting equation remains in balance. is increased $3,500. +$5000 $0 + $5000. It is to be noted here that the Accounting Equation shall remain balanced every time. Transactional Analysis and the Accounting Equation (p. The meaning of the accounting elements. Nov 22, 2014 • Download as PPTX, PDF •. This shows all company assets are acquired by either debt or equity financing. Nov 5, 2018 · This document discusses the accounting equation and its components. Assets = Liabilities + Owner’s Equity. Liabilities. processed means ~ categorized, analyzed, and formatted. ppt from ACCOUNTING ACCTBA1 at De La Salle University. Number of Views: 7612. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated This demonstrates double-entry accounting, which keeps the accounting equation in balance. Students enrolled in principles of financial accounting courses need practice applying these concepts and playing tic-tac-toe helps to accomplish this task in a novel way. Education. Transaction 1. • Transactions will impact the Assets, Liabilities, and Owners’ Equity of a firm • To analyze, determine how this impacts the accounting equation (Assets The fundamental accounting equation is debatably the foundation of all accounting, specifically the double-entry accounting system and the balance sheet. LO 7 Analyze the effects of business transactions on the accounting equation. Accounting Equation Transaction Sample - Download as a PDF or view online for free. Property is anything of value that is owned or controlled. Double-entry accounting is a system where every transaction affects at least two accounts. The main limitation of the accounting equation is that it doesn’t provide an analysis of how well the business is operating. ppt/slides/slide13. THE END • Thanks for your attention! Using Accounting Equation. 3. Aug 14, 2019 · The accounting transaction analysis described in the six steps above, is best set out in table format to ensure that important considerations about the transaction are not overlooked. 0K) Financial statement analysis . Alex invested $20,000 to start a printing business, The company obtained a loan from a bank, $30,000, The company purchased printers and paid a total of $1,000. The balance sheet is a financial statement which represents the accounting equation in a more detailed and expanded manner. In the first case, we can solve for assets by adding liabilities to owner’s equity ($3,500 1 $100,000) to determine that assets are $103,500. The preceding balance sheet for Edelweiss represented the financial condition at the noted date. Chapter 9 (980. 0K) The income statement and the statement of cash flows. Often, more than one element of the accounting equation is impacted but sometimes, like with transaction 3, the same part of the equation (in this case assets) goes up and down, making it look like nothing has happened. 1 of 13. You can interpret the amounts in the accounting equation to mean that ASC has assets of $10,000 and the source of those assets was the owner, J. Analyze the transaction and Apr 8, 2019 · Chapter TwoTransaction Analysis. Number of Views: 303. The Accounting Equation is: Assets = Liabilities + Capital (Owner’s Equity) Or. Aug 6, 2015 · Accounting equation, accounting mechanics, subsidiary book, purchase book, sales book, bills receivable book, bill payable book, GAAP, Characteristics of Accounting Principles {Concepts and conventions} Accounting Standards Accounting Equation Subsidiary Books Advantages (Reasons)/ Disadvantages for maintaining subsidiary book Types of Dec 26, 2017 · The accounting equation always holds true as it is affected by transactions that may increase or decrease either one or two sides of the equation by equal amounts. Transaction 1: Issues $20,000 of share equity for cash. For example, an increase in an asset account can be As you can see, no matter what the transaction is, the accounting equation will always balance because each transaction has a dual aspect. Transform your numbers into creative presentations! Try our free accounting PowerPoint templates and Google Slides themes! No more messy charts or confusing graphs. This equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet. Chapter 10 (1024. Identify the accounts listed 2. Slides: 42. -- Created using PowToon -- Free sign up we record transactions using the journal and ledger of accounting. List and define each part of the accounting equation. Provided by: geocities76. Determine the amount of increase or decrease for each account affected 4. Analysis Identify. When a company collects Jan 5, 2024 · The accounting equation shows the relationship between assets, liabilities and equity. Chapter 3. This helps one avoid confusions on computing assets, liabilities, or owner's equity. In essence, the accounting equation is as Accounting for and presentation of liabilities and owner's equity. 2 Rules of Double-Entry Accounting/Transaction Analysis Accounting Equation. 1 +$25,000 = 0 + +$25,000. Your business demands smart solutions, and this consulting toolkit template is just that! This versatile and ingenious toolkit will provide you with the essential tools you need to shape your strategies and make informed decisions. Relationship of Accounting Equation. are Asset accounts. txt) or view presentation slides online. AI-enhanced description. The account is the basic summary device of accounting. . 1 1 4 10 19 27 29 30 30 Required Analyze and record these transactions using the template method. It was introduced by Eric Berne and views personality and dynamics through ego states (parent, adult, child) and transactions between individuals. 2. 37 Analyzing Transactions. May 16, 2015 · The accounting equation for a brand new company will look like this: Assets = Liabilities + Owner’s Equity. It then works through four transactions, step by step, showing how each one impacts the accounting equation. We explain the analysis and recording of transactions, the ledger and trial balance, and the double- entry system. Description: ACCOUNTING IN ACTION Accounting Principles, Eighth Edition Income Statement Financial Statements LO 8 Understand the four financial statements and how they are prepared. Transaction 1 : The owner deposits $5000 in the checking account to begin operations. Each transaction has a dual effect on the accounting equation. An asset is a resource controlled by an entity with the expectation of producing future economic benefits, a Nov 16, 2001 · About This Presentation. In the above example, suppose the cash payment for the rent was the amount of 4,000, using the six step process we have the following analysis of the transaction. The Accounting Equation is in balance, meaning the left side equals the right side. As mentioned in topic 5a, the accounting cycle has the aim of transforming the financial events that have happened to a company into financial statements “in good form”. accounting equation. Key concepts include analysis of self-awareness The fundamental accounting equation, also called the balance sheet equation, is the foundation for the double-entry bookkeeping system and the cornerstone of the entire accounting science. Business Transactions and the Accounting Equation. Related Articles Feb 15, 2021 · An accounting transaction analysis is the first step of the recording process of the accounting cycle. Mr. Gray and a few friends invest $50,000 to begin Genie Car Wash and the business issues common stock to the stockholders. Like any equation, each side will always be equal. A transaction may affect either both sides of the equation by the same amount or one side of the equation only, by both increasing or decreasing it by equal amounts. The final accounting equation would be: Assets $88,100 (Cash $66,800 + Accounts Receivable $5,000 + Supplies $500 + Prepaid Rent $1,800 + Equipment $5,500 + Truck $8,500) = Liabilities $200 + Equity $87, 900 (Common Stock $30,000 + Net Income $57,900 from revenue of $60,000 Changes in the accounting equation get recorded through double-entry bookkeeping. dv aq tf yd yb ow oy tj ai sk