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Changes Affecting Owner's Equity

Goes through terms and theory about how certain transactions change the owner's equity part of the accounting equation
STUDY
PLAY
Revenue
increase in owner's equity through business activities
Expense
decrease in owner's equity through business operations
Withdrawal
assets taken for owner's personal use (drawing)
Received cash as investment
Debit cash Credit owner's equity (capital)
Received cash from sales
Debit cash Credit owner's equity (sales)
Accounting equation
Assets = Liabilities + Owner's Equity
Four accounts affecting owner's equity
Revenue, expense, drawing, and capital
Four expense transactions besides rent & utilities
Advertising, equipment repairs, charitable contributions, miscellaneous
Paid cash for advertising expense
Credit cash Debit owner's equity (expense)
Paid cash to owner for personal use
Credit cash Debit owner's equity (drawing)
How does "received cash from sales" affect accounting equation?
Asset increases Owner's equity increases
How does "paid cash for expense" affect accounting equation?
Asset decreases Owner's equity decreases
How does "received cash from sales" affect accounting equation?
Asset increases Owner's equity increases
How does "paid cash to owner for personal use" affect accounting equation?
Asset decreases Owner's equity decreases