1. Lesson 1-1
8/23/2018
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” Aristotle
LESSON 1-1

2. Standards – Accounting Cycle
Lesson 1-1
8/23/2018
Chapter 1 Starting a Proprietorship: Changes that Affect the Accounting Equation
Accounting:
The Language of Business
Lesson 1-1:
The Accounting Equation
Standards – Accounting Cycle
AC1-1.1
Define accounting and explain the purpose of the accounting system.
AC1-1.2
Explain the importance of following Generally Accepted Accounting Principles (GAAP) and interpret the standards correctly.
AC1-1.3
Demonstrate a working knowledge of the fundamental accounting equation.

3. Terms Accounting Accounting system Accounting records
Lesson 1-1
8/23/2018
Terms
pages 6-7
I can define key accounting terms related to the accounting equation.
Accounting
Accounting system
Accounting records
Financial statements
Service Business
Proprietorship
Business Entity--
(GAAP concepts in purple)
I can list reasons why accounting records are important.
I can explain Why the concept of Business Entity is important when starting a business.
LESSON 1-1

4. THE ACCOUNTING EQUATION
Lesson 1-1
8/23/2018
THE ACCOUNTING EQUATION
Page 8
I can for the missing amount in an accounting equation. solve
Asset
Equities:
Equity of those to whom money is owed
Equity of the owner (aka “owner’s equity”)
Liability
Owner’s Equity
I can define key accounting terms related to the accounting equation.
Do Assessment:
Work together 1-1, On Your Own 1-1
LESSON 1-1

5. I can define key accounting terms related to the accounting equation.
Lesson 1-1
8/23/2018
TERMS REVIEW
page 9
I can define key accounting terms related to the accounting equation.
accounting
accounting system
accounting records
financial statements
service business
proprietorship
asset
equities
liability
owner’s equity
accounting equation
ethics
business ethics
You will need to know ALL of the Chapter 1 terms for our Chapter 1 exam. To help you review/study, we will be completing a study guide, and there are online resources for you to use to study.
Here’s the website:
Ethics: the principles of right and wrong that guide an individual in making decisions
Business Ethics: the use of ethics in making business decisions
DO:
Application Prob. 1-1
LESSON 1-1

6. I can define key accounting terms related to the accounting equation.
Lesson 1-1
8/23/2018
LESSON 1-2
How Business Activities Change the Accounting Equation
Terms:
Transaction
Account
Account Title
Account Balance
Capital
Unit of Measurement
US=Dollars, Japan=Yen
China=Yuan, France=Euro
I can define key accounting terms related to the accounting equation.
LESSON 1-1

7. I can balance the accounting equation as transactions take place.
Lesson 1-1
8/23/2018
RECEIVING CASH
page 10
Transaction 1 August 1. Received cash from owner as an investment, $5,
I can balance the accounting equation as transactions take place.
LESSON 1-1

8. I can balance the accounting equation as transactions take place.
Lesson 1-1
8/23/2018
PAYING CASH
page 11
Transaction 2 August 3. Paid cash for supplies, $
I can balance the accounting equation as transactions take place.
Transaction 3 August 4. Paid cash for insurance, $1,
LESSON 1-1

9. TRANSACTIONS ON ACCOUNT
Lesson 1-1
8/23/2018
TRANSACTIONS ON ACCOUNT
page 12
Transaction 4 August 7. Bought supplies on account from Supply Depot, $
I can balance the accounting equation as transactions take place.
Transaction 5 August 11. Paid cash on account to Supply Depot, $
LESSON 1-1

10. Guided Practice DO: Application problem 1-2: Work together 1-2:
Lesson 1-1
Guided Practice
8/23/2018
DO:
Work together 1-2:
OYO 1-2: Text p 13. Working papers p 8
Application problem 1-2:
I can explain Why the concept of Unit of Measurement is important to using the accounting equation.
LESSON 1-1

11. How Transactions Change Owner’s Equity in an Accounting Equation
Lesson 1-1
8/23/2018
LESSON 1-3
How Transactions Change Owner’s Equity in an Accounting Equation
Terms:
Revenue
Sale on Account:
aka: “charge sale”
Expense
Withdrawals
Realization of Revenue
I can define key accounting terms related to the accounting equation.

12. Lesson 1-1
8/23/2018
REVENUE TRANSACTIONS
page 14
Transaction 6 August 12. Received cash from sales, $
I can balance the accounting equation as transactions change Owner’s Equity.
Transaction 7 August 12. Sold services on account to Oakdale School, $
LESSON 1-1

13. Lesson 1-1
8/23/2018
EXPENSE TRANSACTIONS
page 15
Transaction 8 August 12. Paid cash for rent, $
I can balance the accounting equation as transactions change Owner’s Equity.
Transaction 9 August 12. Paid cash for telephone bill, $40.00.
LESSON 1-1

14. OTHER CASH TRANSACTIONS
Lesson 1-1
8/23/2018
OTHER CASH TRANSACTIONS
page 16
Transaction 10 August 12. Received cash on account from Oakdale School, $
I can balance the accounting equation as transactions change Owner’s Equity.
Transaction 11 August 12. Paid cash to owner for personal use, $
LESSON 1-1

15. Guided Practice and Chapter Assignment
Lesson 1-1
8/23/2018
Guided Practice and Chapter Assignment
Standards – Accounting Cycle
AC1-1.1
Define accounting and explain the purpose of the accounting system.
AC1-1.2
Explain the importance of following Generally Accepted Accounting Principles (GAAP) and interpret the standards correctly.
AC1-1.3
Demonstrate a working knowledge of the fundamental accounting equation.
Do: Work together 1-3
OYO 1-3
Application problem 1-3;
Study Guide Chapter 1
Summative assignments for Chapter 1:
Mastery Problem 1-4
Challenge Problem 1-5
I can show how business activities change the accounting equation using a dual entry accounting system.
I can show how business activities change Owner's Equity in the accounting equation using a dual entry accounting system.
LESSON 1-1