© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin 1-27 Transaction Analysis The accounts involved are: (1) Cash (asset) (2) Common Stock (equi
{"Image DocumentName": "Transaction AnalysisA2. J. Scott invests  20,000 cash to start the business in exchange for stock.", "Image ImageDescription": "The accounts involved are: (1) Cash (asset) (2) Common Stock (equity) Let\u2019s look at the identification and recording of business transactions. We can begin by analyzing a transaction where J. Scott contributes twenty thousand dollars cash to get the business started. First, we have to identify the assets, liability or equity accounts involved in this transaction. We can see that the cash account will increase by twenty thousand dollars and the common stock account will increase by twenty thousand dollars. Let\u2019s see how the books of the company will appear after we record this transaction. 21.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}