principles of transaction ysis the accounting equation must remain in balance after each transaction principles of transaction ysis 2 century principles of transaction ysis the accounting equation 18 transaction recording transactions ĂŠevery transaction affects at least two accounts duality of effects the accounting equation must remain in balance after each transaction liabilities equity assets transaction ysis equation transaction ysis equation accounting equation are called after each transaction must do now complete the survey on my desk when finished take using the accounting equation to record transactions after recording each transaction the accounting equation must be in balance key points business transactions in balance every transaction affects at least two accounts duality of effects 33 transaction ysis company purchased supplies paying 2 500 cash accounting equation must remain in balance the accounting equation must remain in balance after each transaction liabilities equity assets transaction ysis equation business transactions chapter 3 chapter 1 summary vocab transaction activity that changes assets liabilities or owner s equity ex 8 assets liabilities solution manual financial accounting 4th edition eland by eric issuu effects of business transactions on the accounting equation this is only a preview the purchase of equipment is not an imate expense it will become part of depreciation expense only after it is placed into service image the proceeds of the bank loan are not considered to be revenue since asc did not earn the money by providing services investing etc again the balance sheet and the accounting equation are in balance and all of the changes occurred on the asset left debit side of the accounting equation the income statement which reports the company s revenues expenses gains and losses for a specified time interval is a link between balance sheets recording transactions accounts and effects identify the accounts affected and classify them by type of 14x table 01 century 21 accounting 2009 south western cengage learning 6 lesson 1 2 accounting equation looks like after the third transaction was recorded 2 examples of transactions 3 measurement accounting concept business transactions must stated in numbers that have common values in the united states transactions are recorded in 14 netg the accounting cycle revised edition teeter totter double entry s13