1. Chapter 3 - Analyzing Transactions into Debit & Credit Parts
Accounting I
Chapter 3 - Analyzing Transactions into Debit & Credit Parts

2. TERMS REVIEW
T account
debit
credit
normal balance
Lesson 3-1, page 44

3. TERMS REVIEW T-Account
An accounting device used to analyze transactions.
Lesson 3-1, page 42

4. TERMS REVIEW Debit An amount recorded on the left side.
Lesson 3-1, page 42

5. TERMS REVIEW Credit An amount recorded on the right side.
Lesson 3-1, page 42

6. TERMS REVIEW Normal Balance
The side of the account that an increase to the balance of that account occurs on.
Lesson 3-1, page 42

7. TERMS REVIEW Chart of Accounts A list of accounts used by a business.
Lesson 3-2, page 45

8. ACCOUNTS
Lesson 3-1, page 42

9. ACCOUNT BALANCES
Lesson 3-1, page 42

10. INCREASES AND DECREASES IN ACCOUNTS
Lesson 3-1, page 43

11. Work Together &
On Your Own – Page 44

12. RECEIVED CASH FROM OWNER AS AN INVESTMENT
August 1. Received cash from owner an an investment, $10, 2 2 1 1 4 4 3 3
1. Cash and Barbara Treviño, Capital are affected.
2. Cash is an asset account. Barbara Treviño, Capital is an owner’s equity account.
3. Assets are increased. Owner’s Equity is increased.
4. Cash is debited. Barbara Treviño, Capital is credited.
Lesson 3-2, page 45

13. PAID CASH FOR SUPPLIES
August 3. Paid cash for supplies, $1, 2 1 1 4 4 3 3
1. Supplies and Cash are affected.
2. Supplies and Cash are assets.
3. Assets (Supplies) are increased. Assets (Cash) are decreased.
4. Supplies is debited. Cash is credited.
Lesson 3-2, page 46

14. PAID CASH FOR INSURANCE
August 4. Paid cash for insurance, $1, 2 1 1 4 4 3 3
1. Prepaid Insurance and Cash are affected.
2. Prepaid Insurance and Cash are assets.
3. Assets (Prepaid Insurance) are increased. Assets (Cash) are decreased.
4. Prepaid Insurance is debited. Cash is credited.
Lesson 3-2, page 47

15. BOUGHT SUPPLIES ON ACCOUNT
August 7. Bought supplies on account from Ling Music Supplies, $2, 2 2 1 1 4 4 3 3
1. Supplies and Accounts Payable—Ling Music Supplies are affected.
2. Supplies is an asset. Accounts Payable—Ling Music Supplies is a liability.
3. Assets are increased. Liabilities are increased.
4. Supplies is debited. Accounts Payable—Ling Music Supplies is credited.
Lesson 3-2, page 48

16. PAID CASH ON ACCOUNT
August 11. Paid cash on account to Ling Music Supplies, $1, 2 2 1 1 4 4 3 3
1. Accounts Payable—Ling Music Supplies and Cash are affected.
2. Cash is an asset. Accounts Payable—Ling Music Supplies is a liability.
3. Assets are decreased. Liabilities are decreased.
4. Accounts Payable—Ling Music Supplies is debited. Cash is credited.
Lesson 3-2, page 49

17. Work Together &
On Your Own – Page 50

18. RECEIVED CASH FROM SALES
August 12. Received cash from sales, $ 2 2 1 1 4 4 3 3
1. Cash and Sales are affected.
2. Cash is an asset. Sales is a revenue account that affects owner’s equity.
3. Assets are increased. Owner’s equity is increased.
4. Cash is debited. Sales is credited.
Lesson 3-3, page 51

19. SOLD SERVICES ON ACCOUNT
August 12. Sold services on account to Kids Time, $ 2 2 1 1 4 4 3 3
1. Accounts Receivable—Kids Time and Sales are affected.
2. Accounts Receivable—Kids Time is an asset. Sales is a revenue account that affects owner’s equity.
3. Assets are increased. Owner’s equity is increased.
4. Accounts Receivable—Kids Time is debited. Sales is credited.
Lesson 3-3, page 52

20. PAID CASH FOR AN EXPENSE
August 12. Paid cash for rent, $ 2 2 1 4 3 1
1. Rent Expense and Cash are affected. 4
2. Cash is an asset. Rent Expense is an expense account that affects owner’s equity. 3 3
3. Assets are decreased. Owner’s equity is decreased; expenses are increased.
4. Rent Expense is debited. Cash is credited.
Lesson 3-3, page 53

21. RECEIVED CASH ON ACCOUNT
August 12. Received cash on account from Kids Time, $ 2 1 1 4 4 3 3
1. Cash and Accounts Receivable—Kids Time are affected.
2. Cash and Accounts Receivable—Kids Time are assets.
3. Assets (Cash) are increased. Assets (Accounts Receivable—Kids Time) is decreased.
4. Cash is debited. Accounts Receivable—Kids Time is credited.
Lesson 3-3, page 54

22. PAID CASH TO OWNER FOR PERSONAL USE1 2
Assets =
Liabilities +
Owner’s Equity
Cash
Debit
Credit
Normal Balance
Barbara Trevino, Drawing
$100.00 3
1. Barbara Trevino, Drawing & Cash are affected.
2. Barbara Trevino, Drawing is an owner’s equity account. Cash is an asset account
3. Owner’s Equity is decreased when Drawing is increased. Assets are decreased.

23. Work Together &
On Your Own – Page 56