CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1 Using T Accounts Draw the accounting equation on a T account. Identify the two basic accounting rules that regulate the increases and decreases of account balances.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Service Business 2 LESSON 2-1 Objectives : 35 Demonstrate the effects of transactions on the accounting equation. 40 Analyze transactions through the use of T accounts.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2 Objectives Define accounting terms related to analyzing transactions into debit and credit parts. Identify accounting practices related to analyzing transactions into debit and credit parts. Use T accounts to analyze transactions showing which accounts are debited or credited for each transaction. Analyze how transactions to set up a business affect accounts. Analyze how transactions affect owner’s equity accounts. 3 LESSON 2-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning T account – An account device used to analyze transactions. Debit (dr)– An amount recorded on the left side of a T account. Credit (cr) – An amount recorded on the right side of a T account. Normal Balance – The side of the account that is increased. 4 LESSON 2-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 2-1 ANALYZING THE ACCOUNTING EQUATION page 28

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 2-1 ACCOUNTS page 29

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 2-1 ACCOUNT BALANCES page 29

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 2-1 INCREASES AND DECREASES IN ACCOUNTS page 30

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 2-1 DEFINE TERMS REVIEW T account debit credit normal balance page 31 In your Chapter 2Terms Word Document and SaveAS: Chapter2TermsYourName

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for Chapter Draw the accounting equation on a T account. 2.What are the two accounting rules that regulate increases and decreases of account balance? 10 LESSON 2-1 In a Word Document, SaveAS: Chapter2-1AYUYourName Drop a copy in my InBox today before you leave!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2-1 Assignments Complete on Aplia Work Together 2-1 On Your Own 2-1 Application Problem LESSON 2-1