Transaction Analysis: Describing Underlying Events
Shown below are several transactions recorded by Beth’s coffee shop, The Bitter Bean (TBB):
|
Assets |
= |
LIABILITIES |
+ |
OWNER’S EQUITY |
|
a. Cash, +$30,000 |
Accounts payable, |
Capital, +$30,00 |
||
|
b. Inventory, +$12,000 |
+$12,000 |
|||
|
c. Cash, $3,000 |
Loans, $3,000 |
Capital, +$27,000 |
||
|
d. |
Loans, $27,000 |
Revenue, +$10,000 |
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|
e. Accounts receivable, |
||||
|
+$10,000 |
||||
|
f. Inventory, $3,000 |
Cost of goods sold, |
|||
|
g. Cash, $8,000 |
$3,000 |
|||
|
Accounts receivable, |
||||
|
$8,000 |
||||
|
h. |
Accounts payable, |
Operating expenses, |
||
|
+$30,000 |
$30,000 |
|||
Required
For each transaction, describe the event or activity that occurred. For example: