Concept explainers
(1)
Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.
Accounting equation is expressed as shown below:
Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Statement of
To analyze: The transactions of AS, using the accounting equation in the given format
(2) (a)
To prepare: Income statement of AS for the month ended October 31, 2018.
(b)
To prepare: Statement of retained earnings of AS for the month ended October 31, 2018
(c)
To prepare: Balance sheet of AS on October 31, 2018.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters, Student Value Edition (6th Edition)