Showing the impact of transaction:
a.List of accounts impacted by the transaction Asset (cash) Liability (loan)
b.Increase or decrease in account Asset (cash) decrease Liability (Loan) decrease
c.Increase or decrease in terms of Dollar amount
Cash, $30,000 (decrease) Loan, $30,000 (decrease)
d.Impact on total assets, liabilities and owner’s equity Assets, $30,000 (decrease) Liabilities, $30,000 (decrease)
- Write about Trial balance and its purpose
- Journalizing the transactions of KD dispensary
- Opening the given accounts using T-account format
- Loans and receivables does not include equity securities purchased by the company, they are included in owners equity.