1. Analyzing Transactions into Debit and Credit Parts
Chapter 2
Analyzing Transactions into Debit and Credit Parts

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

3. ACCOUNTS T account – an accounting device used to analyze transactions
page 29
T account – an accounting device used to analyze transactions
Debit – amount recorded on the left side
Credit – amount recorded on the right side
LESSON 2-1

4. ACCOUNT BALANCES
page 29
Normal balance – the side of the account that is increased
LESSON 2-1

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

6. ANALYZING HOW TRANSACTIONS AFFECT ACCOUNTS
Chart of Accounts – a list of accounts used by a business

7. 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?
Always list the DEBIT first
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

8. PAID CASH FOR SUPPLIES 2 1 4 3 Always list the DEBIT first
page 33
August 3. Paid cash for supplies, $ 2 1 4 3
Always list the DEBIT first
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 2-2

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

10. 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?
Always list the DEBIT first
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

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

12. MORE TRANSACTIONS
Always list the DEBIT first

13. 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 2-3

14. 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 2-3

15. 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 2-3

16. RECEIVED CASH ON ACCOUNT
page 41
August 18. 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 2-3

17. 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 2-3