LESSON 2-1
Using T Accounts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

ANALYZING THE ACCOUNTING
EQUATION
2 page 28
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1

ACCOUNTS
3 page 29
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1

ACCOUNT BALANCES
4 page 29
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1

INCREASES AND DECREASES IN
ACCOUNTS
5 page 30
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1

LESSON 2-2
Analyzing How
Transactions Affect
Accounts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

RECEIVED CASH FROM OWNER AS AN
INVESTMENT page 32
7
August 1. Received cash from owner as an investment, $5,000.00.
4
2
1 1
4
2
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
3
LESSON 2-2

8 page 33
4
PAID CASH FOR SUPPLIES
August 3. Paid cash for supplies, $275.00.
2 1 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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
LESSON 2-2

9 page 34
PAID CASH FOR INSURANCE
August 4. Paid cash for insurance, $1,200.00.
2 1 1
4 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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
LESSON 2-2

10
BOUGHT SUPPLIES ON ACCOUNT
August 7. Bought supplies on account from Supply Depot, $500.00.
2
1 1
2 page 35
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
4
LESSON 2-2

11
PAID CASH ON ACCOUNT
August 11. Paid cash on account to Supply Depot, $300.00.
2
1 1
2 page 36
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

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

13 page 38
RECEIVED CASH FROM SALES
August 12. Received cash from sales, $295.00.
2
1 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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
4
2
LESSON 2-3

14
SOLD SERVICES ON ACCOUNT
August 12. Sold services on account to Oakdale School, $350.00.
2
1 1
2 page 39
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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
4
LESSON 2-3

PAID CASH FOR AN EXPENSE
August 12. Paid cash for rent, $300.00.
2 1
3
4
3
1
4
1. Which accounts are affected?
2. How is each account classified?
3
3. How is each classification changed?
4. How is each amount entered in the accounts?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-3
15 page 40
2

16
RECEIVED CASH ON ACCOUNT
August 18. Received cash on account from Oakdale School, $200.00.
page 41
2
1 1
4 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?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
LESSON 2-3

PAID CASH TO OWNER
FOR PERSONAL USE
August 12. Paid cash to owner for personal use, $125.00.
2 1
4
3 3
1 2
4
1. Which accounts are affected?
2. How is each account classified?
3
3. How is each classification changed?
4. How is each amount entered in the accounts?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
17 page 42
LESSON 2-3

18
TERMS REVIEW
T- Account An accounting device used to analyze transactions.
page 31
Debit
Credit
An amount recorded on the left side of a T account.
An amount recorded on the right side of a T account.
Normal Balance The side of the account that is increased.
Chart of accounts A list of accounts used by a business.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1