LESSON 2-2
Analyzing How
Transactions Affect
Accounts
Identify the steps for analyzing a transaction.
Analyze transactions.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
Competency: Understanding the
Accounting Cycle for a Service Business
Objectives:
35 Demonstrate the effects of
transactions on the accounting
equation.
40 Analyze transactions through the
use of T accounts.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
3
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.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
4
 Chart of accounts – a list of accounts used by a
business.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
5
RECEIVED CASH FROM OWNER AS AN
INVESTMENT
page 32
August 1. Received cash from owner as an investment, $5,000.00.
2
1
2
1
4
4
3
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
6
PAID CASH FOR SUPPLIES
page 33
August 3. Paid cash for supplies, $275.00.
1
2
1
4
4
3
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
7
PAID CASH FOR INSURANCE
page 34
August 4. Paid cash for insurance, $1,200.00.
1
2
1
4
4
3
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
8
BOUGHT SUPPLIES ON ACCOUNT
page 35
August 7. Bought supplies on account from Supply Depot, $500.00.
2
1
2
1
4
4
3
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
9
PAID CASH ON ACCOUNT
page 36
August 11. Paid cash on account to Supply Depot, $300.00.
2
1
1
4
4
3
3
2
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
10
DEFINE TERM REVIEW
page 37
In your Chapter 2Terms Word Document and drop a copy in my
Inbox.
 chart of accounts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
11
Exit Ticket for Chapter 2-2
In a Word Document, SaveAS: Chapter2-2AYUYourName
Drop a copy in my InBox today before you leave!
1. State the four questions used to analyze a
transaction.
2. What two accounts are affected when a business
pays cash for supplies?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2
12
Chapter 2-2 Assignments
Complete on Aplia
 Work Together 2-2
 On Your Own 2-2
 Application Problem 2-2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-2