1. LESSON 2-1 Using T Accounts
4/25/2018
LESSON 2-1
Using T Accounts
T-accounts are a way of expressing the accounting equation in a manner useful for accountants

2. ANALYZING THE ACCOUNTING EQUATION
LESSON 2-1
4/25/2018
ANALYZING THE ACCOUNTING EQUATION
page 28
Describe accounting equation: review concepts from chapter 1.
Explain the T
Which accounting equation items show up on the left side of the T?
Which accounting equation items show up on the right side of the T?

3. ACCOUNTS page 29 LESSON 2-1 4/25/2018
We can take that same equation and make a device to analyze accounting transactions
A t-account is an accounting device used to analyze transactions
We label each side of a t-account with the appropriate word: left and right
When we use a t-account to analyze a transaction, we use the words DEBIT for an amount recorded on the left side of a t-account and CREDIT for an amount recorded on the the right side) EVERY t-account has this same set of words.

4. ACCOUNT BALANCES page 29 LESSON 2-1 4/25/2018
Normal Balance: the side of the account that is increased
Assets, then, increase on the ? Side
Liabilities increase on the ? Side
Capital increases on the ? Side

5. INCREASES AND DECREASES IN ACCOUNTS
LESSON 2-1
4/25/2018
INCREASES AND DECREASES IN ACCOUNTS
page 30
With the equation on the top, and t-accounts for each element of the equation, we learn how each type of account “works”

6. TERMS REVIEW T account debit credit normal balance page 31 LESSON 2-1
4/25/2018
TERMS REVIEW
page 31
T account
debit
credit
normal balance
T-account: an accounting device used to analyze transaction
Debit: an amount recorded on the left side of a t-account
Credit: an amount recorded on the right side of a t-account
Nomal Balance: the side of an account that is increased

7. LESSON 2-1 Analyzing How Transactions Affect Accounts
4/25/2018
LESSON 2-2
Analyzing How Transactions Affect Accounts

8. RECEIVED CASH FROM OWNER AS AN INVESTMENT
LESSON 2-1
4/25/2018
RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 32
August 1. Received cash from owner as an investment, $5, 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

9. LESSON 2-1
4/25/2018
PAID CASH FOR SUPPLIES
page 33
August 3. Paid cash for supplies, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

10. PAID CASH FOR INSURANCE
LESSON 2-1
4/25/2018
PAID CASH FOR INSURANCE
page 34
August 4. Paid cash for insurance, $1, 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

11. BOUGHT SUPPLIES ON ACCOUNT
LESSON 2-1
4/25/2018
BOUGHT SUPPLIES ON ACCOUNT
page 35
August 7. Bought supplies on account from Supply Depot, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

12. LESSON 2-1
4/25/2018
PAID CASH ON ACCOUNT
page 36
August 11. Paid cash on account to Supply Depot, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

13. TERM REVIEW chart of accounts Do: Work Together 2-2: Do: OYO 2-2
LESSON 2-1
4/25/2018
TERM REVIEW
page 37
chart of accounts
Do: Work Together 2-2:
Text p 31; wp 21
Do: OYO 2-2
Text p 31; wp 22
Do: Application problem 2-1
Text p 46; wp 27

14. LESSON 2-1 Analyzing How Transactions Affect Owner’s Equity Accounts
4/25/2018
LESSON 2-3
Analyzing How Transactions
Affect Owner’s Equity Accounts
We have looked at how transactions affect assets and liabilities, as well as the investment of the owner. Now we will look at other transactions that deal with owner’s equity. WIRE

15. RECEIVED CASH FROM SALES
LESSON 2-1
4/25/2018
RECEIVED CASH FROM SALES
page 38
August 12. Received cash from sales, $ 2 1 4
WIRE: Revenue transaction 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

16. SOLD SERVICES ON ACCOUNT
LESSON 2-1
4/25/2018
SOLD SERVICES ON ACCOUNT
page 39
August 12. Sold services on account to Oakdale School, $ 2 1 4
WIRE: Revenue transaction 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

17. PAID CASH FOR AN EXPENSE
LESSON 2-1
4/25/2018
PAID CASH FOR AN EXPENSE
page 40
August 12. Paid cash for rent, $ 2 1 4 3
WIRE: Expense transaction
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

18. RECEIVED CASH ON ACCOUNT
LESSON 2-1
4/25/2018
RECEIVED CASH ON ACCOUNT
page 41
August 12. Received cash on account from Oakdale School, $ 2 1 4
Not a WIRE transaction 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

19. PAID CASH TO OWNER FOR PERSONAL USE
LESSON 2-1
4/25/2018
PAID CASH TO OWNER FOR PERSONAL USE
page 42
August 12. Paid cash to owner for personal use, $ 2 1 4 3
WIRE: Withdrawal
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?

20. Chapter 2 Work Do: Work Together: Text p 44; wp 25
LESSON 2-1
4/25/2018
Chapter 2 Work
Do: Work Together: Text p 44; wp 25
OYO: Text p 44; wp 26
Do: Recycling problem 2-1 TOGETHER
(mastery problem example)
Graded work for chapter 2:
Study Guide 2; wp 17, 18, 19 correct in class
Mastery Problem 2-5; p 47 text; wp 31
Xcred: Challenge Problem 2-6; text p 48, wp 32
TEST: CHAPTER 2