Sample Transactions #2 – #3
Sample Transaction #2 Marilyn illustrates for Joe a second transaction. On December 2, Direct Delivery purchases a used delivery van for $14,000 by writing...
Sample Transaction #2 Marilyn illustrates for Joe a second transaction. On December 2, Direct Delivery purchases a used delivery van for $14,000 by writing...
Sample Transaction #4 The fourth transaction occurs on December 3, when a customer gives Direct Delivery a check for $10 to deliver two parcels...
(B) Liabilities The balance sheet reports Direct Delivery’s liabilities as of the date noted in the heading of the balance sheet. Liabilities are obligations of the...
The third financial statement that Joe needs to understand is the Statement of Cash Flows. This statement shows how Direct Delivery’s cash amount has...
Asset accounts are one of the three major classifications of balance sheet accounts: Assets Liabilities Stockholders’ equity (or owner’s equity) The ending balances in...
When you hear your banker say, “I’ll credit your checking account,” it means the transaction will increase your checking account balance. Conversely, if your bank debits your account (e.g., takes...
Liability Accounts A company’s liability accounts appear in the chart of accounts, general ledger, and balance sheet immediately following the asset accounts. In the...