1. Lesson 1-1 The Accounting Equation
8/3/2018
LESSON 1-1
The Accounting Equation

2. THE ACCOUNTING EQUATION
Lesson 1-1
8/3/2018
THE ACCOUNTING EQUATION
page 8
LESSON 1-1

3. TERMS REVIEW 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
LESSON 1-1

4. Lesson 1-1 How Business Activities Change the Accounting Equation
8/3/2018
LESSON 1-2
How Business Activities Change the Accounting Equation

5. RECEIVING CASH
page 10
Transaction 1 August 1. Received cash from owner as an investment, $5,
LESSON 1-1

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

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

8. TERMS REVIEW transaction account account title account balance capital
page 13
transaction
account
account title
account balance
capital
LESSON 1-1

9. How Transactions Change Owner’s Equity in an Accounting Equation
Lesson 1-1
8/3/2018
LESSON 1-3
How Transactions Change Owner’s Equity in an Accounting Equation

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

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

12. OTHER CASH TRANSACTIONS
Lesson 1-1
8/3/2018
OTHER CASH TRANSACTIONS
page 16
Transaction 10 August 18. Received cash on account from Oakdale School, $
Transaction 11 August 18. Paid cash to owner for personal use, $
LESSON 1-3

13. TERMS REVIEW revenue sale on account expense withdrawals page 17
Lesson 1-1
8/3/2018
TERMS REVIEW
page 17
revenue
sale on account
expense
withdrawals
LESSON 1-1