COMMERCE 1AA3 Lecture 2: Chapter-2-Textbook-Notes (1)
11 Feb 2019
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Apply pays programmers to create itunes software: selling computers and repaying debts, buying an iphone results in a positive financial impact on the company. Reduce shareholders" equity: e. g a company sells a building for more than the amount it was carried at on the balance sheet, then the company would realize a gain on the sale of this asset. Tara earns service revenue by providing engineering services. Assume the business provides ,000 in such services and collects this amount in cash. The effect on the accounting equation is an increase in the asset cash and an increase in retained. During the month, tara pays for the following expenses: office rent, ,100; employee salary, ,200; and utilities, . The effect on the accounting equation is: business transactions must be kept separate from the personal transactions of the, e. g. Tara pays the shareholders a ,100 cash dividend. The effect on the accounting business"s owners equation is:
