Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6Analyze and record transactions that affect owner’s equity. LO7Analyze and record sales and receipt of cash on account.

© 2014 Cengage Learning. All Rights Reserved. Received Cash from Sales SLIDE 2 LO6 Lesson 3-3 January 10. Received cash from sales, $1, Calculator Tape No. 10. Cash 1, Sales 1, Write the title of the account debited in the Account Title column. Write the debit amount in the Debit column Write the date in the Date column On the next line, indented about one centimeter, write the title of the account credited in the Account Title column. Write the credit amount in the Credit column Write the source document number in the Doc. No. column. 1 1 Date 4 4 Source Document 2 2 Debit Credit 3 3

© 2014 Cengage Learning. All Rights Reserved. Source Document 4 4 Sold Services on Account SLIDE 3 January 12. Sold services on account to Main Street Services, $ Sales Invoice No Accounts Rec.—Main Street Services LO7 Lesson Write the abbreviated title of the account debited in the Account Title column. Write the debit amount in the Debit column Write the date in the Date column On the next line, indented about one centimeter, write the title of the account credited in the Account Title column. Write the credit amount in the Credit column Write the source document number in the Doc. No. column. 1 1 Date 2 2 Debit Credit Sales

© 2014 Cengage Learning. All Rights Reserved. 4 4 Source Document Paid Cash for an Expense SLIDE 4 January 12. Paid cash for communications bill including cell phone and Internet service, $ Check No Communications Expense Cash LO7 Lesson Write the title of the account debited. Write the debit amount Write the date in the Date column On the next line, write the title of the account credited. Write the credit amount Write the source document number in the Doc. No. column. 1 1 Date 2 2 Debit Credit 3 3

© 2014 Cengage Learning. All Rights Reserved. Paid Cash for an Expense SLIDE 5 January 15. Paid cash for equipment rental, $ Check No Equipment Rental Expense Cash LO7 Lesson Source Document 2. 2.Write the title of the account debited. Write the debit amount Write the date in the Date column On the next line, write the title of the account credited. Write the credit amount Write the source document number in the Doc. No. column. 1 1 Date 2 2 Debit Credit 3 3

© 2014 Cengage Learning. All Rights Reserved. January 16. Received cash on account from Main Street Services, $ Receipt No. 2. Received Cash on Account SLIDE 6 Cash Accts Rec.—Main Street Services LO7 Lesson Write the title of the account debited. Write the debit amount Write the date in the Date column On the next line, indented about one centimeter, write the title of the account credited. Write the credit amount Write the source document number in the Doc. No. column. 1 1 Date 2 2 Debit Credit Source Document

© 2014 Cengage Learning. All Rights Reserved. 4 4 Source Document Paid Cash to Owner as Withdrawal of Equity SLIDE 7 January 16. Paid cash to owner for a withdrawal of equity, $ Check No Michael Delgado, Drawing Cash LO7 Lesson Write the title of the account debited. Write the debit amount Write the date in the Date column On the next line, indented about one centimeter, write the title of the account credited. Write the credit amount Write the source document number in the Doc. No. column. 1 1 Date 2 2 Debit Credit 3 3

© 2014 Cengage Learning. All Rights Reserved. Lesson 3-3 Audit Your Understanding 1.When cash is received from sales, which account is listed on the first line of the entry? SLIDE 8 ANSWER Cash Lesson 3-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 3-3 Audit Your Understanding 2.When cash is received from sales, which account is listed on the second line of the entry? SLIDE 9 ANSWER Sales Lesson 3-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 3-3 Audit Your Understanding 3.When services are sold on account, which account is listed on the second line of the entry? SLIDE 10 ANSWER Sales Lesson 3-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 3-3 Audit Your Understanding 4.When cash is paid for any reason, what abbreviation is used for the source document? SLIDE 11 ANSWER C (for check) Lesson 3-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 3-3 Audit Your Understanding 5.When cash is received on account, what abbreviation is used for the source document? SLIDE 12 ANSWER R (for receipt) Lesson 3-3