In this module/ question we need to analyze business transactions using the accounting equation:
11,000 = 2,000 + 10,000 -3,000 + 9,000 - x^5
where:
11,000 = Assets
2,000 = Liabilities
10,000 = Common stock
3,000 = dividends
9,000 = revenue
x = 1329.352032
Transaction - exchange of economic consideration between two perties.
-always have at least two effects on one or more components of the accounting equation (as mentioned earlier). Note that this equation must always remain in balance.
