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In this video tutorial, the presenter sets up transaction analysis using Excel, but notes that Google Sheets or paper can also be used. The accounting equation is displayed, along with asset accounts like cash, accounts receivable, and computer equipment, liabilities such as accounts payable and notes payable, and equity accounts including common stock and retained earnings. A sum is added at the bottom of each account to keep a running total, ensuring balance in the balance sheet. Additional accounts can be added as needed for accurate transaction analysis.
