Question

(Hello, I am very confused in this discussion post that I was wondering if you can give me another example, I am not exactly sure where to start)

Give a unique example of a business transaction. Then explain and show the T-account info. Create a fictitious company, then create a fictitious scenario.  

Example:

Owner invests $5,000.   Analysis: Since money is deposited into the checking account, Cash is debited (the balance increased by $5,000). What account receives a credit? An Equity account called Owner’s Equity or Capital Contribution. Since Equity accounts are ‘negative’ accounts, crediting this Equity account increases its balance by $5,000.

Debit Cash (increase its balance)

Credit Owner’s Equity (increases its balance)

Answer 1

Business Transaction
Suppose Company is XYZ and its has cash balance fo $10000
Company paid Wages of 5000 to workers for the Month of June.
This Transaction would affect the two accounts (1) cash and (2) wages expense. Wage is an expense so its nature of Nonimal account so it would be debited as wage expense and cash which is paid to workers for payment of wages so there is a outflow of cash so cash account is a real account so in this transaction a payment is made so cash is going out of business and as a rule of real account what goes out are credit so cash account would be credited.
Journal entry
date	explanation	debit	credit
1-	wages expense	5000
	cash		5000
	T-Account
	wage expense
cash	5000	balance	5000
	cash
beginning balance	10000	wages expense	5000
		balance	5000