1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-3 Analyzing How Transactions Affect Owner’s Equity Accounts Analyze transactions.

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Service Business 2 LESSON 2-3 Objectives : 35 Demonstrate the effects of transactions on the accounting equation. 40 Analyze transactions through the use of T accounts.

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2 Objectives Define accounting terms related to analyzing transactions into debit and credit parts. Identify accounting practices related to analyzing transactions into debit and credit parts. Use T accounts to analyze transactions showing which accounts are debited or credited for each transaction. Analyze how transactions to set up a business affect accounts. Analyze how transactions affect owner’s equity accounts. 3 LESSON 2-3

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 2-3 RECEIVED CASH FROM SALES page 38 August 12. Received cash from sales, $295.00. 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

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 2-3 SOLD SERVICES ON ACCOUNT page 39 August 12. Sold services on account to Oakdale School, $350.00. 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

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 2-3 PAID CASH FOR AN EXPENSE page 40 August 12. Paid cash for rent, $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? 1 1 4 4 22 3 3 3

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 2-3 RECEIVED CASH ON ACCOUNT page 41 August 18. Received cash on account from Oakdale School, $200.00. 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 2

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 2-3 PAID CASH TO OWNER FOR PERSONAL USE page 42 August 12. Paid cash to owner for personal use, $125.00. 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? 4 4 2 2 3 3 3 1 1

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for Chapter 2-3 1.What two accounts are affected when a business receives cash from sales? 2.What two accounts are affected when services are sold on account? 3.What two accounts are affected when a business pays cash to the owner for personal use? 4.Are revenue accounts increased on the debit side or credit side? Explain why. 5.Are expense accounts increased on the debit side or credit side? 9 LESSON 2-3 In a Word Document, SaveAS: Chapter2-3AYUYourName Drop a copy in my InBox today before you leave!

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2-3 Assignments Complete on Aplia Work Together 2-3 On Your Own 2-3 Application Problem 2-3 Application Problem 2-4 10 LESSON 2-3