Question

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Find below a description of 3 transactions recorded in a company's accounting. For every transaction explain what happened. To do so (i) classify the relevant accounts as assets, liabilities, equity revenues, expenses, cash flow from operating, investing, or financing activities, (ii) explain what the debit entry and the credit entry represent, and (iii) explain what activity resulted in the described accounting record. If more than one transaction meets the description, choose the most typical one. Transaction 1: A credit entry on net sales and a debit entry on the unearned revenues. Transaction 2: A credit entry on the value of net fixed assets, a debit entry on the cash account, and a credit entry on the income statement. Transaction 3: A credit entry on a cash account and a debit entry in the accumulated retained earnings.

Answer 1

Răspuns:

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