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