1. LESSON 2-1 Using T Accounts
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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. Audit Your Understanding
LESSON 2-1
4/25/2017
Audit Your Understanding
Draw the accounting equation on a T account.
What are the two accounting rules that regulate increases and decreases of account balances?
Assets = Liabilities + Owner’s Equity
A)Account balances increase on the normal balance side of an account. B)Account balances decrease on the side opposite the normal balance side of an account.
LESSON 2-1

7. Chapter 2-1 Work Together Book pg. 31 Workbook pg. 21
LESSON 2-1

8. LESSON 2-2 Analyzing How Transactions Affect Accounts
4/25/2017
LESSON 2-2
Analyzing How Transactions Affect Accounts

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 2-2

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 2-2

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 2-2

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 2-2

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 2-2

14. Audit Your Understanding
LESSON 2-1
4/25/2017
Audit Your Understanding
State the four questions used to analyze a transaction.
What two accounts are affected when a business pays cash for supplies?
A)which accounts are affected? B)how is each account classified? C)how is each classification changed? D)how is each amount entered in the accounts?
Supplies and Cash.
LESSON 2-1

15. Chapter 2-2 Work Together Book pg. 37 Workbook pg. 21
LESSON 2-1
4/25/2017
Chapter 2-2 Work Together Book pg. 37 Workbook pg. 21
REMEMBER THAT WE WILL POST THE DEBIT ACCOUNT FIRST BECAUSE THAT IS HOW IS WORKS WHEN WE USE THE GENERAL JOURNAL.
LESSON 2-1

16. LESSON 2-3 Analyzing How Transactions Affect Owner’s Equity Accounts
4/25/2017
LESSON 2-3
Analyzing How Transactions Affect Owner’s Equity Accounts
Green

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 2-3

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 2-3

19. 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

20. 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

21. 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

22. CHAPTER SUMMARY
LESSON 2-1

23. Audit Your Understanding
LESSON 2-1
4/25/2017
Audit Your Understanding
What two accounts are affected when a business receives cash from sales?
What two accounts are affected when services are sold on account?
What two accounts are affected when a business pays cash to the owner for personal use?
Are revenue accounts increased on the debit side or credit side?
Are expense accounts increased on the debit side or credit side?
Cash and Sales.
Accounts Receivable and Sales.
Owner’s Drawing account and Cash.
Credit, because revenue increases owner’s equity.
Debit, because expenses decrease owner’s equity.
LESSON 2-1

24. Chapter 2-3 Work Together Book pg. 44 Workbook pg. 25
LESSON 2-1