Transaction Analyzes for a Corporation These are some of the issues to consider when determining where or not a transaction

has occurred and if it can be recorded in the books of a corporation. Type of Transaction Information required to record transaction Name of the asset acquired Cost associated with the purchase Purchased of a long-term corporate asset Method of payment (Cash-asset account, Notes Payable-long term liability account, or Accounts payable-short term liability account) Title of the asset Book value of the asset Amount received for the asset Sale of a long-term corporate asset Method of payment (Cash-asset account, Notes
Receivable-long term asset account, or Accounts Receivable-short term asset account)

Sales or services provided to a customer

Advance payment for sales or services

The payment of a monthly expenses

Prepayment of a short-term asset

The hiring of a corporate employee Death of a corporate employee

The price of the goods or service Cost of Goods Sold (if goods were sold) Title of the revenue account affected Method of payment (Cash-asset account, Notes Receivable-credit account, or Accounts Receivable-credit account) The price of the goods or service Cost of Goods Sold (if goods were sold) Title of the unearned revenue account affected Method of payment (Cash-asset account, Notes Receivable-credit account, or Accounts Receivable-credit account) Title of the monthly expense account Dollar value of the expense Method of payment (Cash-asset account or Accounts payable-short term credit account) Title of current asset account (supplies, prepaid insurance, tickets or prepaid rent) Dollar value of asset Method of payment (Cash-asset account or Accounts payable-short term credit account) No transaction when the employee is first hired Salary and/or wage expense once the employee preformed their job duties. No transaction

MJC 1/2012

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Transaction Analyzes for a Corporation What is the source document that confirms a transaction occurred? Source Document Information acquired Invoice number Invoice Credit terms Dollar value Check number Check Dollar value Face Value Interest rate Signed note Dates Credit terms Date Sales Slip Dollar value

MJC 1/2012

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