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Balance Sheet Sale on Account Revenue Expense Withdrawals T-Account Debit Credit Normal Balance Copyright © Texas Education Agency, All rights reserved. 3

Performance Objective The student will be able to apply fundamental bookkeeping skills for a virtual business office. Specific Objectives The student will be able to understand how business activities change the accounting equation. The student will be able to report financial information on a balance sheet. The student will be able to determine the normal balance for a simple chart of accounts. The student will be able to analyze transactions into debit and credit parts by using T-Accounts. The student will be able to analyze how transactions affect accounts. The student will be able to analyze how transactions affect owner’s equity. Copyright © Texas Education Agency, All rights reserved. 4

Do you think keeping up with a company’s earnings and expenditu res would be difficult? What do you think the most difficult part would be? Why do you think it’s important that a business keep accurate track of its earnings and expenditures? Do you think there is only one way to keep track of the money? Do you think there is only one way to keep track of the money? Copyright © Texas Education Agency, All rights reserved. 5

Go to the following website In the upper right-hand corner, type in the word ‘Accountant’ and answer these questions: Does this profession have a bright future? What are some of the necessary skills? What are some of the necessary abilities? What kind of education is needed? What kind of interests codes are associated with this profession and what do they mean? Is there a projected job growth up to 2020? How many projected job openings will there be? A reported 90% of accountants in Texas have yearly job earnings of how much? This is a dollar amount. Copyright © Texas Education Agency, All rights reserved. 6

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When a person starts a business and needs to keep up with his/her financial records, there are three very important and basic skills/tools to remember: He/She needs to know how different business activities affect the accounting equation. He/She needs to know how to properly fill out a balance sheet to make their accounting equation is always balanced. He/She needs to understand what debits and credits are and which accounts have a normal balance of debit and which accounts have a normal balance of credit. Copyright © Texas Education Agency, All rights reserved. 8

How Business Activities Affect the Accounting Equation (Plus Minus) Please use the file provided. We will go through a practice together, and then you will complete the assignment on your own. Copyright © Texas Education Agency, All rights reserved. 9

How to Complete a Balance Sheet Please use the file provided. We will go through a practice together, and then you will complete the assignment on your own. Copyright © Texas Education Agency, All rights reserved. 10

-Accounts Please use the file provided. We will go through a practice together, and then you will complete the assignment on your own. There will be a formal assessment over this assignment. Copyright © Texas Education Agency, All rights reserved. 11

How did you do? Performance Objective The student will be able to apply fundamental bookkeeping skills for a virtual business office. Specific Objectives Were you able to understand how business activities change the accounting equation? Were you able to report financial information on a balance sheet? Were you able to determine the normal balance for a simple chart of accounts? Were you able to analyze transactions into debit and credit parts by using T-Accounts? Were you able to analyze how transactions affect accounts? Were you able to analyze how transactions affect owner’s equity? Copyright © Texas Education Agency, All rights reserved. 12

Have students use the Onet Online website (onetonline.org) and find the answers to the same questions in the discovery activity, but do this for three professions that are of interest to him/her. Have students take a foam ball and dress is it up like an accountant to be displayed in your classroom. Copyright © Texas Education Agency, All rights reserved. 13