© 2000 South-Western Educational Publishing RECEIVED CASH FROM SALES Lesson 4-3, page 76 August 12. Received cash from sales, $ Tape No Which accounts are affected? Cash Sales 4.How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. 3.How is each classification changed? Assets are increased. Revenues are increased. 2.How is each account classified? Cash is as asset account. Sales is as revenue account. Sales Cash Debit Normal Balance   Credit Normal Balance

© 2000 South-Western Educational Publishing RECEIVED CASH FROM SALES (continued) Lesson 4-3, page 76 August 12. Received cash from sales, $ Tape No Write the date. 2.Debit Cash. 3.Credit Sales. 4.Write the source document number. 3

© 2000 South-Western Educational Publishing SOLD SERVICES ON ACCOUNT Lesson 4-3, page 77 August 12. Sold services on account to Kids Time, $ Sales Invoice No Which accounts are affected? Accounts Receivable—Kids Time Sales 4.How is each amount entered in the accounts? Assets increase on the debit side. Revenues increase on the credit side. 3.How is each classification changed? Assets are increased. Revenues are increased. 2.How is each account classified? Accounts Receivable—Kids Time is an asset account. Sales is as revenue account. Sales Accounts Rec.—Kids Time Debit Normal Balance   Credit Normal Balance

© 2000 South-Western Educational Publishing SOLD SERVICES ON ACCOUNT (continued) Lesson 4-3, page 77 August 12. Sold services on account to Kids Time, $ Sales Invoice No Write the date. 2.Debit Cash. 3.Credit Sales. 4.Write the source document number. 2

© 2000 South-Western Educational Publishing PAID CASH FOR AN EXPENSE Lesson 4-3, page 78 August 12. Paid cash for rent, $ Check No Which accounts are affected? Rent Expense Cash 4.How is each amount entered in the accounts? Expenses increase on the debit side. Assets decrease on the credit side. 3.How is each classification changed? Expenses are increased. Assets are decreased. 2.How is each account classified? Rent Expense is an expense account. Cash is an asset account. Cash Rent Expense Debit Normal Balance   Debit Normal Balance

© 2000 South-Western Educational Publishing PAID CASH FOR AN EXPENSE (continued) Lesson 4-3, page 78 August 12. Paid cash for rent, $ Check No Write the date. 2.Debit Rent Expense. 3.Credit Cash. 4.Write the source document number. 2

© 2000 South-Western Educational Publishing RECEIVED CASH ON ACCOUNT Lesson 4-3, page 79 August 12. Received cash on account from Kids Time, $ Receipt No Which accounts are affected? Cash Accounts Receivable—Kids Time 4.How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. 3.How is each classification changed? Assets are increased. Assets are decreased. 2.How is each account classified? Cash is an asset account. Accounts Rec.—Kids Time is an asset account. Accounts Rec.—Kids Time Cash Debit Normal Balance   Debit Normal Balance

© 2000 South-Western Educational Publishing RECEIVED CASH ON ACCOUNT (continued) Lesson 4-3, page 79 August 12. Received cash on account from Kids Time, $ Receipt No Write the date. 2.Debit Cash. 3.Credit Sales. 4.Write the source document number. 3

© 2000 South-Western Educational Publishing PAID CASH TO OWNER FOR PERSONAL USE Lesson 4-3, page 80 August 12. Paid cash to owner for personal use, $ Check No Which accounts are affected? Barbara Treviño, Drawing Cash 4.How is each amount entered in the accounts? Owner’s equity accounts decrease on the debit side. Assets decrease on the credit side. 3.How is each classification changed? Withdrawals are increased. (This results in a decrease in owner’s equity.) Assets are decreased. 2.How is each account classified? Barbara Treviño, Drawing is an owner’s equity account. Cash is an asset account. Cash Barbara Treviño, Drawing Debit Normal Balance Debit Normal Balance  

© 2000 South-Western Educational Publishing PAID CASH TO OWNER FOR PERSONAL USE Lesson 4-3, page August 12. Paid cash to owner for personal use, $ Check No Write the date. 2.Debit Barbara Treviño, Drawing. 3.Credit Cash. 4.Write the source document number. 2