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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-2 Analyzing How Transactions Affect Accounts
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes Chart of Accounts Listing of all account titles and account numbers used by a business Questions to ask when analyzing a transaction Which accounts are affected? What is the classification of each account? How is each classification changed? (increase or decrease) How is each amount entered? (Debit…Credit) 2 LESSON 2-2
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 2-2 RECEIVED CASH FROM OWNER AS AN INVESTMENT 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? August 1. Received cash from owner as an investment, $5,000.00. 11 2 2 33 44 page 32 1. Which accounts are affected?
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 2-2 PAID CASH FOR SUPPLIES 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? August 3. Paid cash for supplies, $275.00. 11 2 33 44 page 33 1. Which accounts are affected?
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 2-2 1. Which accounts are affected? PAID CASH FOR INSURANCE 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? August 4. Paid cash for insurance, $1,200.00. 11 2 33 44 page 34
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 2-2 BOUGHT SUPPLIES ON ACCOUNT page 35 August 7. Bought supplies on account from Supply Depot, $500.00. 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? 11 33 44 22
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 2-2 PAID CASH ON ACCOUNT page 36 August 11. Paid cash on account to Supply Depot, $300.00. 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? 11 33 44 22
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 2-2 TERM REVIEW chart of accounts page 37
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