class discussion how long would it take

Last week some of you posted examples of individual business transactions expressed in terms of increases and decreases to specific accounts. Business event analysis and the resulting impact on a business due to an event is new to virtually everyone. Let's practice and improve our skills by examining additional business events, but this time let's focus on expressing the impact in terms of debits and credits.

Note that learning how to express a business transaction in terms of debits and credits is a critical skill you need to succeed in Accounting I, Accounting II, additional accounting courses, in your career as an accountant, and in your career in business where you will be working with accountants. 

Also note that the process of recording a transaction using debits and credits and verifying that total debits in the transaction equal total credits in the transaction ensures that the accounting equation remains in balance.

For a business entity of your choice, a real or fictitious business, identify a typical business activity, an individual transaction where the business “gives up” something to “get” something else. 

For your example (note: use specific dollar amounts):

1. In your own words, describe the business transaction (i.e., event).
2. Identify the specific accounts (e.g., cash, telephone expense) that are affected by the exchange. Are they assets, liability, or equity accounts?
3. Describe how the accounts are affected in terms of debits and credits. In other words, what account is debited and what account is credited? Is the accounting equation in balance?

I urge you to practice by posting an example that no other student has posted. Examples that repeat examples posted by others are most likely to be evaluated as low value posts.