Expert: Arthur Naman - 2/10/2009

Question
I am a teacher(9-12) who has been assigned to teach accounting. A question came up that I couldn't answer. We are working with balance sheets. The transaction: Paid cash for one month of insurance $100.00. The book tells us to put +$100.00 under Insurance. and -$100.00 under Cash. Why is it not right to -$100.00 from Owners equity

Answer
I might be willing to do some, for lack of a better work, tutoring for you or your students.

I am not done this before and feel working at no charge might be a way to begin. If you or any of your students are interested, please let me know. I am not sure if chatting / instant messenger software should be used for this purpose or if there is other software.

I am available for assistance with accounting, bookkeeping questions.

- Arthur Naman
Austin, TX