1. LESSON 2-1 Using T Accounts
4/10/2019
LESSON 2-1
Using T Accounts

2. Lesson 2-1
Accounts
LO2
A record summarizing all the information affecting a single item in the accounting equation is known as an account.
An accounting device used to analyze transactions is called a T account.
Debit means an amount recorded on the left side of an account.
Credit means an amount recorded on the right side of an account.

3. ANALYZING THE ACCOUNTING EQUATION
page 28
LESSON 2-1

4. ACCOUNTS
page 29
LESSON 2-1

5. Increases, Decreases, and Balances in Accounts
Lesson 2-1
Increases, Decreases, and Balances in Accounts
LO3
Assets
On the left side of the accounting equation
Increase on the left, or debit, side of the account
Liabilities and the owner’s capital account
On the right side of the accounting equation
Increase on the right, or credit, side of the account
Normal balance
The side of the account that is increased is called the normal balance of the account.
Assets have normal debit balances
Liabilities and the owner’s capital account have normal credit balances

6. ACCOUNT BALANCES
page 29
LESSON 2-1

7. INCREASES AND DECREASES IN ACCOUNTS
page 30
LESSON 2-1

8. LESSON 2-2 Analyzing How Transactions Affect Accounts
4/10/2019
LESSON 2-2
Analyzing How Transactions Affect Accounts

9. RECEIVED CASH FROM OWNER AS AN INVESTMENT
page 32
August 1. Received cash from owner as an investment, $5, 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

10. PAID CASH FOR SUPPLIES
page 33
August 3. Paid cash for supplies, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

11. PAID CASH FOR INSURANCE
page 34
August 4. Paid cash for insurance, $1, 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

12. BOUGHT SUPPLIES ON ACCOUNT
page 35
August 7. Bought supplies on account from Supply Depot, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

13. PAID CASH ON ACCOUNT
page 36
August 11. Paid cash on account to Supply Depot, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-2

14. TERM REVIEW
page 37
chart of accounts
LESSON 2-2

15. LESSON 2-3 Analyzing How Transactions Affect Owner’s Equity Accounts
4/10/2019
LESSON 2-3
Analyzing How Transactions Affect Owner’s Equity Accounts
Blue

16. RECEIVED CASH FROM SALES
page 38
August 12. Received cash from sales, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-3

17. SOLD SERVICES ON ACCOUNT
page 39
August 12. Sold services on account to Oakdale School, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-3

18. PAID CASH FOR AN EXPENSE
page 40
August 12. Paid cash for rent, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-3

19. RECEIVED CASH ON ACCOUNT
page 41
August 18. Received cash on account from Oakdale School, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-3

20. PAID CASH TO OWNER FOR PERSONAL USE
page 42
August 12. Paid cash to owner for personal use, $ 2 1 4 3
1. Which accounts are affected?
2. How is each account classified?
3. How is each classification changed?
4. How is each amount entered in the accounts?
LESSON 2-3