college accounting

1
(No Transcript)
2
Analyzing Business Transactions
Chapter
2

• Section 1 Property and Financial Interest

Section Objectives

• 1. Record in equation form the financial
  effects of a business transaction.
• 2. Define, identify, and understand the
  relationship between asset, liability, and
  owners equity accounts.

3
Objective 2
Define, identify, and understand the
relationship between. . .
Assets, Liabilities, and Owners Equity
4
(No Transcript)
5
(No Transcript)
6
(No Transcript)
7

• At regular intervals a Balance Sheet is
  prepared for JTs Consulting Services.

8
(No Transcript)
9
JTs Consulting Services Balance Sheet November
30, 2007

• Assets the amount and types of property owned
  by the business

• Liabilities the amount owed to the creditors

• Equity the owners interest

10
Financial Interest
Liabilities Owners Equity
Assets
Property
Property equals Financial Interest
11
R E V I E W
SECTION
Complete the following sentences
A financial event that changes the resources of a
firm is called a ___________________.
business transaction
Equity
______ is the owners financial interest in a
business.
The amounts a business must pay in the future are
called _______________.
accounts payable
12

R E V I E W
SECTION
Complete the following sentences
Assets
_______ are the property owned by a business.
Liabilities
________ are the debts or obligations of a
business.
A ____________ is a formal report of a businesss
financial condition on a certain date.
balance sheet
13
Thank You for using College Accounting, 11th
Edition
Price Haddock Brock