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    Accounting Analysis

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    Explain, Show along with how and why this transaction fits into accounting equation. Looking at this it would make no sense that it would equal out in the books?

    SEPT 1-SIGNED UP FOR CLASS AT COLLEGE. COST 1,000.00. PUT THIS ON BUSINESS CREDIT CARD

    SEPT 20-TRANSFERRED 2,500 FROM PERSONAL SAVINGS TO BUSINESS CHECKING

    SEPT 25 PURCHASED MATERIAL FROM BOOK STORE. CASH 250.00

    SEPT 25-SIGNED UP FOR TEST. 400.00 ON BUSINESS CARD

    OCT 15 PURCHASED 1 YEAR INSURANCE POLICY FOR BUSINESS 2400.00 ON BUSINESS CARD

    OCT 20 PAID 250 ON BUSINESS CARD

    OCT 25 500.00 CASH FOR TOOLS

    OCT 30-200.00 ON ADVERTISING EXPENSE FOR BUSINESS CARDS

    NOV 1-100.00 CASH PURCHASED GIFT BASKETS

    NOV 10-60.00 CASH OFFICE SUPPLIES

    NOV 20-10,000 FOR BUSINESS TRUCK. TOOK OUT LOAN FROM BANK

    THANKS

    2 PARTS OF QUESTIONS:
    1- Second portion which includes top part and put those and dec in ledger accounts (BELOW)
    2- Prepare trail balance for Dec?I don't know what this is??
    3- Also, does this look as if the business is going good and why? I feel it isn't but don't understand this in an accounting way. So if someone would show me then maybe I would understand.
    Comments:
    Dec4-900.00 payment of 3 persons
    Dec7-truck with gas-cash 43.oo
    Dec11-7 people charged 2,100 received 1,500.00 billed remainder
    Dec15 truck gas cash 43.oo
    Dec 18-10 person charged 3,000.00 received 2,000.00. billed others
    Dec18-350 office supplies
    Dec 22 credit card charge tools 475.00
    Dec2506 persons total 1,800.00 and received 600.00 billed other
    Dec 28 paid 500 on credit card--interest 100
    Dec 30-truck payment 250-85 interest
    Dec 30-withdrawal 2,000.00 for personal use
    Dec 30-received payment from clients 1,800.00
    Additional info: I am not sure how to incorporate this chart either.

    ACCOUNT NUMBER ACCOUNT TITLE
    100 cash
    110 accounts receivable
    120 prepaid insurance
    130 offices supplies
    140 books
    150 tools
    160 truck
    210 credit card payable
    220 truck loan payable
    300 my, capital
    310 my, drawing
    400 inspection revenue
    610 training expense
    620 license expense
    630 advertising expense
    640 interest expense
    650 gasoline expense

    © BrainMass Inc. brainmass.com October 9, 2019, 9:13 pm ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-analysis-177364

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    Solution Preview

    I have attached a word file that explains every single thing in detail. Like I explain in the word document, I tried to explain all the steps and procedures, but some of them require weeks of lecture to effectively explain, so I just went ahead and solved them. I also want to address the ...

    Solution Summary

    The solution
    1. Lists the dates and explained what part of the accounting equation and which accounts are affected by the corresponding transactions. This is for September through November.

    2. Creates a chart for the accounts affected by the September through November transactions.

    3. Lists the December transactions and the accounts affected by them.

    4. Creates a chart for the accounts affected by SEPTEMBER THROUGH DECEMBER transactions.

    5. Creates a trial balance

    6. Analyzes whether the business is doing good or not.

    $2.19