Business Administration 2257 Chapter Notes - Chapter 3: Arkansas Highway 5, Financial Transaction, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Eleni Petrou

Document Summary

B, d should be recorded in the accounting records because a financial transaction between two parties has taken place. Yes, assets can be the only side that changes (e. g. , company purchases supplies with cash) cash goes down, supplies go up. Shareholders" equity is made up of two components: a. b. Be3-1 riko corporation has the following selected transactions: Issued common shares to shareholders in exchange for . a. b. c. Paid rent in advance for six months . a. b. c. Credit cash, debit prepaid rent, () cash, + prepaid rent. Paid administrative assistant a salary a. b. c. Credit cash, debit wages expense () cash, + wages expense. Debit of supplies, credit of a/p. Debit cash, credit bank loan payable.