Accounting Equation Sandbox — Accounting Foundations

Accounting Foundations

Accounting Equation Sandbox

Step 0 of 50%

Northstar Services · Jan 2 · Scenario 1

The owner invests $5,000 of personal cash in Northstar Services for common stock.

Select the two accounts this touches, classify each one, and set the direction.

Source document

Stock subscription receipt #001 — $5,000

Account registry

Classify and set direction

Select the accounts this transaction touches to start classifying.

Debits and credits come next — first decide what changed and in which direction.

Confirm the classification and direction to see the equation verdict.