For your main Discussion post, list at least one of each transaction related to all of the following business events: Purchase of goods or services for cash
Providing services for cash
Providing services on account
Purchase of goods or services on account
Payment of a previously recorded expense
Receipt of a previously recorded revenue earned
Be sure to explain your logic in the analysis of your business transactions and do not repeat examples from the textbook. Also, list the type of source documents that may serve as evidence for each accounting transaction. Here is an example of a purchase of goods for cash:
My Company purchased $1,000 of supplies during the current accounting period; payment was made at the time of purchase. The source I would need is a sales receipt from the company from which I purchased the supplies.
Additionally, for each business transaction presented, answer these questions:
Which accounts are affected for each transaction?
How is each account affected (debit or credit, increase or decrease), specifically?
For example, given the above scenario:
The Supplies account, which is an asset account, would be increased (a debit) for $1,000 and the Cash account, also an asset account, would be decreased (a credit) for the same amount.
Lastly, assume one of the six transactions listed above was not entered in the accounting records in error. How would the trial balance be affected, specifically? For example, given the above scenario:
If the transaction were not journalized and posted to the ledger, the Supplies account would be understated and the Cash account would be overstated. Because both accounts are asset accounts, the trial balance debit column in total would not be affected.