Presentation is loading. Please wait.

Presentation is loading. Please wait.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-3 Pages 14-18 How Transactions Change Owners Equity in an Accounting Equation Objectives.

Similar presentations


Presentation on theme: "CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-3 Pages 14-18 How Transactions Change Owners Equity in an Accounting Equation Objectives."— Presentation transcript:

1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-3 Pages How Transactions Change Owners Equity in an Accounting Equation Objectives Define accounting terms related to starting a service business organized as a proprietorship and to changes that affect the accounting equation. Identify accounting concepts and practices related to starting a service business organized as a proprietorship and to changes that affect the accounting equation. Classify accounts as assets, liabilities, or owners equity and demonstrate their relationships in the accounting equation. Analyze how transactions affect the accounts in an accounting equation. Are they Revenue, Expenses, or Withdrawals?

2 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 1-3 REVENUE TRANSACTIONS Transaction 6 August 12. Received cash from sales, $ (Revenue) Transaction 7 August 12. Sold services on account to Oakdale School, $ (Revenue) page 14

3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 EXPENSE TRANSACTIONS Transaction 8 August 12. Paid cash for rent, $ (Expense) Transaction 9 August 12. Paid cash for telephone bill, $ (Expense)

4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 1-3 OTHER CASH TRANSACTIONS Transaction 10 August 18. Received cash on account from Oakdale School, $ Transaction 11 August 18. Paid cash to owner for personal use, $ (Withdrawal) page 16

5 Work together Text p. 17 Working Papers p. 9 Determining how transactions change an accounting equation. Write the answer to the following problem in the Working Papers. 1. Place a plus (+) in the appropriate column is increased. Place a minus (-) in the appropriate column if the account is decreased Trans. No. Assets = Liabilities + Owners Equity Cash + Accts. Rec + Supplies + Prepaid = Accts. Pay + Susan Sanders Bowman Co. Insurance Maxwell Co. Capital Received cash from sales (Revenue)2. Sold services on account to Bowman Company (Revenue) 3. Paid cash for telephone bill (Expense) 4. Received cash on account from Bowman Company 5. Paid cash to owner for personal use (Withdrawal)

6 Work together 1-3 Text p. 17 Working Papers p. 10 Determining how transactions change an accounting equation. Write the answer to the following problem in the Working Papers. 1. Place a plus (+) in the appropriate column is increased. Place a minus (-) in the appropriate column if the account is decreased Trans. No. Assets = Liabilities + Owners Equity Cash + Accts. Rec + Supplies + Prepaid = Accts. Pay + Vincent Orr, Navarro Co. Insurance Barrett Co. Capital Sold services on account to Navarro Company (Revenue) 2. Received cash from sales (Revenue) 3. Received cash on account from Navarro Company 4. Paid cash to owner for personal use (Withdrawal)5. Paid cash for rent (expense)

7 7 TERMS REVIEW revenue sale on account expense withdrawals Assignment: 1-3 Application Problem Textbook p. 20 Working Papers p.13 MAKE SURE YOU WRITE IN WHETHER IT IS A REVENUE, EXPENSE, AND WITHDRAWAL TRANSACTIONS CHANGE AN ACCOUNTING EQUATION. Homework: Finish pages: 1-4 (STUDY GUIDE) I will collect the study guide! Read pages: Finish 1-3 Application Problem

8 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Trans. No. Assets = Liabilities + Owners Equity Accts Pay Peter Accts. Rec. Prepaid Kline Smith Cash + Lisa Lee + Supplies + Insurance = Co. + Capital Beg. Bal ,100 Beg. Bal 2. Beg. Bal 3. Beg. Bal 4. Beg. Bal 5. Beg. Bal 6. Beg. Bal 7. Beg. Bal 8. New Bal. 1-3 APPLICATION PROBLEM (withdrawal) (revenue) (revenue) (expense) +650 (revenue) ,450 1, (expense) -35 (expense) ,365 2,400 2, ,790 1,525 1,


Download ppt "CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-3 Pages 14-18 How Transactions Change Owners Equity in an Accounting Equation Objectives."

Similar presentations


Ads by Google