Project Report: Process financial transaction and extract.

Added on - 21 Apr 2020

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Running Head: Process of financial transaction1Project Report: Process financial transaction and extract interim report
Process of financial transaction2Que 1a)Books of Beck Wsik CompanyCashSuppliesAccountsreceivableEquipmentAccountspayableCommonstockRetainedearningsA5000050000B50005000C-2000-2000UtilityExpensesD60006000ServiceRevenueE3000-3000F-5000-5000G1000010000H-2200-2200DividendsTotal43800500030001000010000500001800The above table depicts about the financial transaction of Beckwsik and its impactover the various accounts (Garleanu & Pedersen, 2007). This table depicts that entiretransaction impacts over 2 or more than 2 accounts constantly. Further, it has also been foundthat the impact of accounts make it easy for the accountant to analyze that whether thetransaction has been reported in a good manner.Accounting equation:Accounting equation depicts that all the financial transaction has impact over 2 ormore than 2 accounts. This accounting equation depict that all the assets of a company areeither bought by the company on cash or borrowing money (Noreen, Brewer &Crawford,2011). Thus the accounting equation of the finance is:Accounting Equation = Assets - Liabilities = capitalThe above discussed equation has been analyzed over the above given calculation toanalyze that whether the above recorded transaction are correct or not. For analyzing it, allthe assets have been added and subtracted from liabilities which would be equal to the totalcapital of the company.In the given case, the total assets are = 43800+5000+3000+10000
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