Transactions That Affect Revenue, Expense, and Withdrawals by the OwnerChapter 3.3
Revenue Income earned from the sale of goods or
services. Examples: Fees, cash received from
sales Increases Owner’s Equity
Because it increases the assets of the business
Business Transaction #8Roadrunner received a check for
$1,200 from a customer, Sims Corporation, for delivery services.
Expenses The price paid for goods or services
used to operate a business. Examples: Rent, utilities, advertising Decrease Owner’s Equity
Because they decrease the assets of the business
OR Increase liabilities
Business Transaction #9Roadrunner wrote a check for
$700 to pay for the rent for the month.
Withdrawals If a business earns revenue….Generally the owner will take cash
from the business for personal use.
Decreases both assets and owner’s equity
Business Transaction #10Maria Sanchez withdrew $500
from the business for personal use.
Complete the following…Textbook page 601. Thinking Critically2. Analyzing Accounting3. Problem 3-3
We will go over it on Thursday
