1. Home

2. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Financial Claims in Accounting Property and Financial Claims Section 3.1 The Accounting Equation Home Assets = Liabilities + Owner’s Equity A L OE

3. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Key Terms business transaction account accounts receivable accounts payable investment on account Transaction That Affect Owner’s Investment, Cash, and Credit Section 3.2 Home

4. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Business Transactions business transaction An economic event that causes a change—either an increase or decrease—in assets, liabilities, and/or owner’s equity. Section 3.2 Buying a sweater or putting cash in your savings account are examples of business transactions. Transaction That Affect Owner’s Investment, Cash, and Credit Home

5. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Business Transactions Section 3.2 A business records changes in subdivisions called accounts. Accounts receivable Accounts payable account A subdivision under assets, liabilities, or owner’s equity. Transaction That Affect Owner’s Investment, Cash, and Credit Home

6. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Business Transactions A business records changes in subdivisions called accounts. Accounts payable Accounts receivable accounts receivable The total amount of money owed to a business—money to be received later because of the sale of goods or services on credit. accounts payable The amount owed, or payable, to the creditors of a business. Section 3.2 Transaction That Affect Owner’s Investment, Cash, and Credit Home

7. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Assets Cash in Bank Accounts Receivable Computer Equip Office Equip Delivery Equip Liabilities Accounts Payable Owner’s Equity Crista Vargas, Capital Accounts

8. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Business Transactions Section 3.2 Steps for analyzing a business transaction Identify the accounts affected. Classify the accounts affected. Determine the amount of increase or decrease for each account affected. Make sure the accounting equation remains in balance. Transaction That Affect Owner’s Investment, Cash, and Credit 1 2 3 4 Home

9. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 Business Transaction 1 Christa Vargas took $25,000 from personal savings and deposited that amount to open a business checking account in the name Zip Delivery Service. Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment

10. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 Business Transaction 2 Christa Vargas transferred two telephones valued at $200 each from her home to the business. See page 58 Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment investment When an owner pays out cash or property in order to produce a profit.

11. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 Business Transaction 2 Christa Vargas transferred two telephones valued at $200 each from her home to the business. See page 58 Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment

12. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 Business Transaction 3 Zip issued a $3,000 check to purchase a computer system. See page 59 Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment

13. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 on account When a business buys (or sells) an item on credit. Business Transaction 4 Zip bought a used truck on account from Coast to Coast Auto for $12,000. Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment

14. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Transactions and the Accounting Equation Section 3.2 Business Transaction 4 Zip bought a used truck on account from Coast to Coast Auto for $12,000. Transaction That Affect Owner’s Investment, Cash, and Credit Home AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment AssetsLiabilitiesOwner’s Equity Cash in BankAccounts PayableCrista Vargas, Capital Office Equipment Computer Equipment Delivery Equipment

15. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Home Complete Problems on back of notes sheet Go to Page 62 of the textbook Do: Math for Accounting (1&2 and the lower three) Problem 3-2 (1-6) Connect – Complete Ch 3 Sec 2 Problems Assignment