It is the language of business Lesson 1-1 1/25/2018 LESSON 1-1 What is Accounting? It is the planning, recording, analyzing and interpreting financial information It is the language of business

THE ACCOUNTING EQUATION Lesson 1-1 1/25/2018 THE ACCOUNTING EQUATION page 8 LESSON 1-1

TERMS TO KNOW accounting accounting system accounting records page 9 accounting accounting system accounting records financial statements service business proprietorship Asset equities liability owner’s equity accounting equation ethics business ethics transaction account account title account balance Capital revenue sale on account expense withdrawals LESSON 1-1

Let’s do some examples Open your books to page 9, and we will do the WT together, then you will do the OYO using Excel. . . Please listen and follow along as I give you directions on how to find the assignments, name them and save them. LESSON 1-1

LESSON 1-2 How Business Activities Change the Accounting Equation 1/25/2018 LESSON 1-2 How Business Activities Change the Accounting Equation

RECEIVING CASH Unit of Measurement Concept: when business transactions page 10 Transaction 1 August 1. Received cash from owner as an investment, $5,000.00. Unit of Measurement Concept: when business transactions are stated In numbers that have common values LESSON 1-2

PAYING CASH Transaction 2 August 3. Paid cash for supplies, $275.00. page 11 Transaction 2 August 3. Paid cash for supplies, $275.00. Transaction 3 August 4. Paid cash for insurance, $1,200.00. LESSON 1-2

TRANSACTIONS ON ACCOUNT page 12 Transaction 4 August 7. Bought supplies on account from Supply Depot, $500.00. Transaction 5 August 11. Paid cash on account to Supply Depot, $300.00. LESSON 1-2

Let’s do some examples On page 13, we will do WT1-2 together and you will then do OYO 1-2 by yourselves.

How Transactions Change Owner’s Equity in an Accounting Equation Lesson 1-3 1/25/2018 LESSON 1-3 How Transactions Change Owner’s Equity in an Accounting Equation Green

REVENUE TRANSACTIONS page 14 Transaction 6 August 12. Received cash from sales, $295.00. Transaction 7 August 12. Sold services on account to Oakdale School, $350.00. LESSON 1-3

EXPENSE TRANSACTIONS page 15 Transaction 8 August 12. Paid cash for rent, $300.00. Transaction 9 August 12. Paid cash for telephone bill, $40.00. LESSON 1-3

OTHER CASH TRANSACTIONS Lesson 1-3 1/25/2018 OTHER CASH TRANSACTIONS page 16 Transaction 10 August 18. Received cash on account from Oakdale School, $200.00. Transaction 11 August 18. Paid cash to owner for personal use, $125.00. LESSON 1-3 Green

Chapter Assignments Study guide activities are all posted on quia.com website create user name and password (I can’t reset you HAVE to remember. . .) Class code TFBPE337 Purple transaction worksheets (if you can’t find the answer in your textbook, maybe this will help you if your neighbors don’t know the answers and I am working with other students. . .) Chapter assignments: Application problems 1-5 Answer Key Etiquette! LESSON 1-1