Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition1 Chapter 4 Debit and Credit Theory 4

Chapter 4 – Debit and Credit Theory | Accounting 1, 7 th Edition2 Debit and Credit Theory Today’s lesson focuses on classifying various transactions using debit and credit theory. For more detailed instructions, refer to Section 4.2 of the Accounting 1 textbook. Debit ? Credit ?

Chapter 4 – Debit and Credit Theory | Accounting 1, 7 th Edition3 Debit and Credit Theory When viewed in T-account form, all accounts have a left and a right side.

Chapter 4 – Debit and Credit Theory | Accounting 1, 7 th Edition4 Debit and Credit Theory The word Credit is associated with the right side.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition5 Debit and Credit Theory Assets, Liabilities, and Owner’s Equity accounts have their own debit and credit rules.

Chapter 4 – Debit and Credit Theory | Accounting 1, 7 th Edition6 Debit and Credit Theory Remember, assets behave opposite from liabilities and owner’s equity because they are on different sides of the balance sheet.

Chapter 4 – Debit and Credit Theory | Accounting 1, 7 th Edition7 Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition8 Debit and Credit Theory Transaction 1: The company purchases $200 worth of supplies from Packham Products, to be paid for later.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition9 Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition10 Debit and Credit Theory Transaction 2: The company pays $500 to Dini Bros. in partial payment of the amount owed to them.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition11 Debit and Credit Theory Transaction 3: The company receives $200 cash from R. Van Loon in partial payment of her debt.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition12 Debit and Credit Theory Transaction 3; The company receives $200 cash from R. Van Loon in partial payment of her debt.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition13 Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition14 Debit and Credit Theory Transaction 4: A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition15 Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition16 Debit and Credit Theory Transaction 5: A used truck costing $8000 is purchased from Dini Bros. A cash down payment of $2500 is made at the time of the purchase and the balance is to be paid at a later date.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition17 Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition18 Debit and Credit Theory Transaction 6: A delivery service is completed for R. Van Loon at a price of $350. Van Loon does not pay for the service at the time it is provided, but agrees to pay within 30 days.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition19 Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition20 Debit and Credit Theory Transaction 7: One of the lifting machines (part of Equipment) breaks down. The company spends $650 cash to have the machine repaired.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition21 Debit and Credit Theory Summary of all transactions.

Practice. Practice. Practice. On page 102, Review Questions (1-12) Exercises (1-4) Presentation Title runs here l 00/00/0022