© 2014 Cengage Learning. All Rights Reserved. Do Now: ●In Your Notebooks: ●If you have a cash balance at the end of the month, will it be in the debit or credit column of your T-account? ●What if you have a balance in your liability accounts? ●What if you have a balance in the capital account? SLIDE 1

© 2014 Cengage Learning. All Rights Reserved. Received Cash from Sales Lesson 2-3 LO5 January 10. Received cash from sales, $1, Cash and Sales are affected Cash is an asset. Owner’s equity is increased. 3 3 Sales is credited. 4 4 Cash is debited. 4 4 Sales is a revenue account that affects owner‘s equity. 2 2 Assets are increased. 3 3 SLIDE 2

© 2014 Cengage Learning. All Rights Reserved. Sold Services on Account Lesson 2-3 LO5 January 12. Sold services on account to Main Street Services, $ Accounts Receivable—Main Street Services and Sales are affected Accounts Receivable— Main Street Services is an asset. Owner’s equity is increased. 3 3 Sales is credited. 4 4 Accounts Receivable— Main Street Services is debited. 4 4 Sales is a revenue account that affects owner's equity. 2 2 Assets are increased. 3 3 SLIDE 3

© 2014 Cengage Learning. All Rights Reserved. Paid Cash for an Expense Lesson 2-3 LO5 January 12. Paid cash for communications bill for cell phone and Internet service, $ Communications Expense and Cash are affected Cash is an asset. Owner‘s equity is decreased; expenses are increased. 3 3 Communications Expense is debited. 4 4 Cash is credited. 4 4 Communications Expense is an expense account that affects owner‘s equity. 2 2 Assets are decreased. 3 3 SLIDE 4

© 2014 Cengage Learning. All Rights Reserved. Assets= Liabilities + Owner’s Equity Received Cash on Account Lesson 2-3 LO5 January 16. Received cash on account from Main Street Services, $ Cash and Accounts Receivable— Main Street Services are assets. 2 2 Assets (Accounts Receivable— Main Street Services) are decreased. 3 3 Accounts Receivable— Main Street Services is credited. 4 4 Cash is debited. 4 4 Assets (Cash) are increased. 3 3 SLIDE 5 Cash and Accounts Receivable— Main Street Services are affected. 1 1

© 2014 Cengage Learning. All Rights Reserved. Paid Cash to Owner for Personal Use Lesson 2-3 LO5 January 16. Michael Delgado withdrew equity in the form of cash, $ Michael Delgado, Drawing and Cash are affected Cash is an asset. Owner’s equity is decreased; withdrawals are increased. 3 3 Michael Delgado, Drawing is debited. 4 4 Cash is credited. 4 4 Assets are decreased. 3 3 Michael Delgado, Drawing is an owner‘s equity account. 2 2 SLIDE 6

© 2014 Cengage Learning. All Rights Reserved. Lesson 2-3 Audit Your Understanding 1.Which two accounts are affected when a business pays cash for a cell phone bill? SLIDE 7 ANSWER Communications Expense Cash Lesson 2-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 2-3 Audit Your Understanding 2.Which two accounts are affected when a business sells services on account? SLIDE 8 ANSWER Accounts Receivable Sales Lesson 2-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 2-3 Audit Your Understanding 3.Which two accounts are affected when a business receives cash on account? SLIDE 9 ANSWER Cash Accounts Receivable Lesson 2-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 2-3 Audit Your Understanding 4.Is the drawing account increased on the debit side or credit side? SLIDE 10 ANSWER Debit because withdrawals decrease owner’s equity Lesson 2-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 2-3 Audit Your Understanding 5.Are revenue accounts increased on the debit side or credit side? SLIDE 11 ANSWER Credit because revenue increases owner’s equity Lesson 2-3

© 2014 Cengage Learning. All Rights Reserved. Your Turn: ●Demonstrate completion of 2-3 Work Together and 2-3 On Your Own with a partner ●Any pair can be called, so be prepared ●Homework: 2-1 thru 2-3 Application Problems ●Due two class periods from now SLIDE 12

© 2014 Cengage Learning. All Rights Reserved. Group Project ●Create a rap or song (in groups of two or three) that explains what you have learned thus far in accounting! ●Refer to project description/rubric for detail ●Will be presented with 30 minutes left next class period by all groups! SLIDE 13

© 2014 Cengage Learning. All Rights Reserved. Exit Slip ●Exit Slip (on post-it): How will accounting systems like the one we have used thus far help business owners make educated business decisions? ●Think about our accounting equation and each account within the equation. SLIDE 14

© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Continue working on your projects! ●You have 50 minutes to do so ●Your group will present with 30 minutes remaining in class ●Have your rubric prepared to hand to me before you present SLIDE 15

© 2014 Cengage Learning. All Rights Reserved. Closure: ●Parking Lot: Write down chapter 2 questions you still have on the front board ●Fellow classmates each choose question they will answer ●EVERYONE MUST HAVE A QUESTION AND A QUESTION TO ANSWER SLIDE 16

© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Compare and contrast your Application Problem answers with a partner SLIDE 17

© 2014 Cengage Learning. All Rights Reserved. Reciprocal Teaching: ●Individual students must approach board to complete parts of the Application Problems SLIDE 18

© 2014 Cengage Learning. All Rights Reserved. Flash Card Game: ●On your individual white boards, draw the accounting equation ●Label the accounts that are impacted ●Write down whether those accounts are debited or credited ●Is owner’s equity impacted? Why or why not? SLIDE 19

© 2014 Cengage Learning. All Rights Reserved. Think & Ink: ●Complete Mastery Problem with a partner ●Homework: finish Mastery and Challenge Problems, as well as Chapter 2 Crossword Puzzle SLIDE 20

© 2014 Cengage Learning. All Rights Reserved. Closure: ●Exit Slip: How will an accounting system like the one we have used thus far help owners make educated business decisions? SLIDE 21

© 2014 Cengage Learning. All Rights Reserved. Do Now: ●Take out Mastery and Challenge Problem for review SLIDE 22

© 2014 Cengage Learning. All Rights Reserved. Review Game: ●Clear everything off of your desks ●Share a bell with a partner even though this is an individual game ●Pick up a white board at the front of the room ●When finished with test: ●Define chapter 3 vocabulary SLIDE 23

© 2014 Cengage Learning. All Rights Reserved. Closure: ●What is another way in which we can record transactions without creating infinite t accounts? SLIDE 24