1. LESSON 2-1 Using T Accounts
2/22/2019
LESSON 2-1
Using T Accounts

2. ANALYZING THE ACCOUNTING EQUATION
page 28
LESSON 2-1

3. ACCOUNTS
page 29
LESSON 2-1

4. ACCOUNT BALANCES
page 29
LESSON 2-1

5. INCREASES AND DECREASES IN ACCOUNTS
page 30
LESSON 2-1

6. TERMS REVIEW
page 31
T account
debit
credit
normal balance
LESSON 2-1

7. LESSON 2-1 Analyzing How Transactions Affect Accounts
2/22/2019
LESSON 2-2
Analyzing How Transactions Affect Accounts

8. chart of accounts A List of Accounts.
The accounts are listed in order of Assets, Liabilities and Owner’s Equity.
Assets are listed by their liquidity.
Liquidity is the term for how quickly an asset can be converted to cash.
Liabilities are listed in alphabetic order.
Owner’s Equity has the Capital account.
LESSON 2-1

9. 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?
LESSON 2-1

10. 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?
LESSON 2-1

11. 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?
LESSON 2-1

12. 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?
LESSON 2-1

13. 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?
LESSON 2-1

14. TERM REVIEW
page 37
chart of accounts
LESSON 2-1

15. LESSON 2-1 Analyzing How Transactions Affect Owner’s Equity Accounts
2/22/2019
LESSON 2-3
Analyzing How Transactions Affect Owner’s Equity Accounts

16. Sales Account Classification - Revenue that affects Owner’s Equity
What does it do? - Keeps track of Revenue
(Money From Sales for Cash or Sales on Account)
Normal Balance Side? Credit (increase in OE)
Increase Side? Credit (increase in OE)
LESSON 2-1

17. RECEIVED CASH FROM SALES
page 38
August 12. Received cash from sales, $ 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?
LESSON 2-1

18. SOLD SERVICES ON ACCOUNT
page 39
August 12. Sold services on account to Oakdale School, $ 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?
LESSON 2-1

19. Expense Accounts Classification - Expense that affects Owner’s Equity
What does it do? - Keeps track of Expenses
Expense? Cost of doing business
Normal Balance Side? Debit (decrease in OE)
Increase Side? Debit (decrease in OE)
LESSON 2-1

20. PAID CASH FOR AN EXPENSE
page 40
August 12. Paid cash for rent, $ 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?
LESSON 2-1

21. RECEIVED CASH ON ACCOUNT
page 41
August 12. Received cash on account from Oakdale School, $ 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?
LESSON 2-1

22. Owner’s Withdrawals Account
Classification - Account that affects Owner’s Equity
What does it do? - Keeps track of Owner’s Withdrawals
Withdrawals? Owner takes Assets from Business
Normal Balance Side? Debit (decrease in OE)
Increase Side? Debit (decrease in OE)
Similar to an Expense Account
LESSON 2-1

23. PAID CASH TO OWNER FOR PERSONAL USE
page 42
August 12. Paid cash to owner for personal use, $ 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?
LESSON 2-1

24. Terms to Know
Revenue
Sale on Account
Expense
Withdrawals
LESSON 2-1

25. LESSON 2-1