1. What you should KNOW from Chapter 1
Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 24)
What you should KNOW from Chapter 1
Know the basic accounting terms and accounting concepts related to starting a service business as a proprietorship (See Chapter 1 Excel File)
Classify accounts as assets, liabilities, or owner’s equity and demonstrate the Accounting Equation. Assets = Liabilities + Owners Equity
Analyze how accounts are affected by transactions and how this affects the Accounting Equation. (See Pages 9-11)
Prepare a Balance Sheet for a service business from information in an Accounting Equation (See Page 14)

2. Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 24)

3. Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 26)

4. Transaction 6 August 12. Received cash from sales, $325.00.
Chapter 2-1 (Pg. 24)
Transaction 6 August 12. Received cash from sales, $
Transaction 7 August 12. Sold services on account to Kids Time, $
Lesson 2-1, page 26

5. Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 27)

6. Transaction 8 August 12. Paid cash for rent, $250.00.
PAID CASH FOR EXPENSES
Transaction 8 August 12. Paid cash for rent, $
Transaction 9 August 12. Paid cash for telephone bill, $45.00.
Lesson 2-1, page 27

7. Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 28)

8. OTHER TRANSACTIONS
Transaction 10 August 12. Received cash on account from Kids Time, $
–100 (withdrawal)
Transaction 11 August 12. Paid cash to owner for personal use, $
Lesson 2-1, page 28

9. Lesson 02-1 (GJ)
Chapter 2-1 (Pg. 29)

10. Lesson 02-1 (GJ)
Chapter 2-2 (Pg. 30)

11. BALANCE SHEET PREPARATION
Lesson 02-2 (GJ)
BALANCE SHEET PREPARATION
1. Write the heading. 1
2. Prepare the assets section. 2 3
3. Prepare the liabilities section. 4 6
4. Prepare the owner’s equity section. 5 7 8
5. Add and compare the totals.
6. Rule single lines.
7. Write the totals.
8. Rule double lines.
Lesson 2-2, page 30

12. Lesson 02-1 (GJ)
Chapter 2-2 (Pg. 31)

13. Lesson 02-1 (GJ)
Chapter 2-2 (Pg. 32)

14. SUMMARY OF CHANGES IN OWNER’S EQUITY
Transaction Change in
Number Kind of Transaction Owner’s Equity
6 Revenue (cash)
7 Revenue (on account)
8 Expense (rent) –250.00
9 Expense (telephone) –45.00
11 Withdrawal –100.00
Net change in owner’s equity
Lesson 2-1, page 28

15. TERMS REVIEW revenue sale on account expense withdrawals
Lesson 2-1, page 29

16. What you should KNOW from Chapter 2
Lesson 02-1 (GJ)
Chapter 2
What you should KNOW from Chapter 2
Know the basic accounting terms and accounting concepts that affect Owners Equity Transactions. (See Chapter 2 Excel File)
Analyze changes in an accounting equation that affect Owners Equity transactions in a service business organized as a proprietorship. See 2-1 Transactions!!!
Prepare a Balance Sheet for a service business from information in an Accounting Equation (See Page 30)