TN.CTE.B.2

Using the fundamental steps of transaction analysis, demonstrate a thorough understanding of the accounting cycle by performing the items below. For example, review sample transactions presented either through source documents or in narrative form, then determine what accounts are affected and whether they increase or decrease as a result of the transaction. Classify the accounts as assets, liabilities, or owner’s (shareholders) equity, and create journal entries. Students should use both manual and computer based methods to develop accounting solutions in this course.