By Anant Pai
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Extra resources for Amar Chitra Katha - The Green Demon and Other Sufi Tales
Starting a Proprietorship: Changes That Affect the Accounting Equation Chapter 1 21 15 CHALLENGE PROBLEM Determining how transactions change an accounting equation Zachary Martin owns Zachary’s Repair Shop. On February 1, Zachary’s Repair Shop’s accounting equation indicated the following account balances. Use the form in your Working Papers to complete this problem. ؍ Assets Trans. No. Beg. Bal. 1. Cash 8,552 ؉ Liabilities ؉ Owner’s Equity Accts. — Prepaid Accts. — Zachary Martin, ؉ Mary Lou ؉ Supplies ؉ Insurance ؍ Kollasch Co.
A. Analyze the transaction to determine which accounts in the accounting equation are affected. b. Write the amount in the appropriate columns, using a plus (ϩ) if the account increases or a minus (Ϫ) if the account decreases. c. For transactions that change owner’s equity, write in parentheses a description of the transaction to the right of the amount. d. Calculate the new balance for each account in the accounting equation. e. Before going on to the next transaction, determine that the accounting equation is still in balance.
There may also be numerous forms to complete. For tax purposes, you need to know how many dependents you claim. You may need to fill out medical information, provide picture identification and a social security number, and compile a list of emergency contacts and phone numbers. Activities 1. Set up an appointment with someone in the Human Resources Department at a local company. Ask what decisions must be made by a new employee. Summarize your findings in a written report. 2. Give a list of typical benefits to 10 people.
Amar Chitra Katha - The Green Demon and Other Sufi Tales by Anant Pai