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Determining the Effects of Transactions on the Accounting Equation Juanita Ortega is the
Chapter 3, Problem 3-9(choose chapter or problem)
Determining the Effects of Transactions on the Accounting Equation
Juanita Ortega is the owner of a professional guide service called Outback Guide Service.
Instructions Use a form similar to the one below. Complete these steps for each of the following transactions:
1. Identify the accounts affected.
2. Write the amount of the increase (+) or decrease (-) in the space provided on the form in your working papers.
3. Determine the new balance for each account.
Questions & Answers
QUESTION:
Determining the Effects of Transactions on the Accounting Equation
Juanita Ortega is the owner of a professional guide service called Outback Guide Service.
Instructions Use a form similar to the one below. Complete these steps for each of the following transactions:
1. Identify the accounts affected.
2. Write the amount of the increase (+) or decrease (-) in the space provided on the form in your working papers.
3. Determine the new balance for each account.
ANSWER:
Step 1 of 12
Accounting is the language of the business. It keeps records of all the financial transactions in a dual aspect manner. This dual aspect is the accounting equation in horizontal form. The equation has assets on the left side and financial claims on the right side. Financial claims are segregated into owner’s equity and liabilities.