Lesson Plan 2.1 – Double-Entry Accounting
Course Title – Accounting I
Session Title – Double-Entry Accounting
Lesson Purpose – Introduce students to the double-entry accounting system.
Behavioral Objectives






Prepare a chart of accounts.
Define double-entry accounting.
Use T-accounts to analyze transactions into debit and credit parts.
Understand changes to owner’s equity.
Classify accounts with 100% accuracy.
Discuss the most used accounting assumptions.
OLD TEKS Correlations
Preparation
2010 TEKS Correlations
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.c. demonstrate the effects of
130.166.c:
transactions on the accounting
equation, for example, T accounts
7.a. follow oral and written
instructions;
7.b. develop time management skills
by setting priorities for completing
work as scheduled
3.a. classify, record, and summarize
financial data;
3.c.demonstrate the effects of
transactions on the accounting
equation;
3.d. prepare a chart of accounts;
3.e. use T accounts;
TAKS Correlation:
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
command of the conventions of spelling, punctuation, grammar, usage, and
sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
Lesson Plan 2.1 – Double-Entry Accounting
Copyright @ Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:






Textbook
Internet
Construction Paper
Markers
Multimedia presentation software
Accounting Software
Teaching Strategies:





Demonstration
Discussion
Presentations
Observation
Graded Assignments
Learner Preparation:
Have your students read at least two articles on double-entry accounting. Ask
them to type a one-page explanation telling why it is called double-entry
accounting. Include a brief explanation of the history of double-entry accounting.
Include resources in proper format.
Ask for a volunteer to read their paper. Ask for students to share any other facts
they learned that were not included. Reinforce by writing a few of these on a
white board or projector.
Lesson Content:
Introduce students to the double-entry accounting system. Review students on
classifying accounts and the accounting equation. In this lesson, students take a
look at the expanded accounting equation and its relationship to the balance
sheet. Finally, students use each piece to learn to analyze transactions using “T”
accounts and look at the effects of these transactions on owner’s equity.
Assessment:



Observation
Verbal Checking for Understanding
Graded Assignments
Additional Resources:
Textbooks:
Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting Real-World
Applications and Connections. Glencoe McGraw-Hill 2000. ISBN/ISSN
0-02-815004-X.
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting
Multicolumn Journal Anniversary Edition, 1st Year Course. SouthWestern Educational and Professional Publishing, 2003. ISBN/ISSN: 0538-43524-0
Lesson Plan 2.1 – Double-Entry Accounting
Copyright @ Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General Journal
Accounting Anniversary Edition, 7th Edition. South-Western Educational
and Professional Publishing, 2003. ISBN/ISSN: 0-538-43529-1.
Multimedia:
“T” Accounts. PowerPoint presentation. South-Western Publishing, Thomson
Learning, 2003.
http://www.swcollege.com/acct/heintz/heintz_17e/ppt/03.ppt
Lesson Plan 2.1 – Double-Entry Accounting
Copyright @ Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.1 – What Effects Owner’s Equity
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose – Learn what type of transactions effect owner’s equity and
how.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.c. demonstrate the effects of
130.166.C:
3.a. classify, record, and summarize
transactions on the accounting
equation, for example, T accounts
financial data;
3.c. demonstrate the effects of
transactions on the accounting
equation;
3. e. use T accounts
TAKS Correlation:
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:



Demonstration
Discussion
Observation
Activity Outline:
Ask students to define owner’s equity, revenue, expenses, and withdrawals.
Review the definition of owner’s equity. Ask the question “What type of
transactions do you think affect a person’s investment in a business and how?”
Lead students into a discussion about what type of revenue a person has for a
service business and what type of expenses. Give specific businesses as
examples. Explain why and when an owner might place more money in their
capital account as an investment. Explain drawing and what it does to owner’s
Activity 2.1.1 – What Effects Owner’s Equity
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
equity.
Place the following transactions on the white board or projector and ask students
to consider what they do to owner’s equity.
1.
2.
3.
4.
5.
6.
Paid cash for office building rent for this month
Received cash from the owner as an investment in the business
Paid cash to the owner for personal use
Paid cash to Myron’s Office Supplies to buy supplies
Paid cash for repairs to the company automobile
Received cash from a client
Place a reminder on the projector to review what affects owner’s equity and how:
Increases (Investments and Revenue); Decreases (Withdrawals and Expenses).
Have students break into teams of 4. With their partner within the team, have
them write 6 transactions. Make the transactions different from the examples
and ones that demonstrate all four types of effects. Ask the partners within their
team to solve the transactions by telling whether it was an increase or decrease
to owner’s equity.
Assessment:



Observation
Verbal Checking for Understanding
Team and Partner Participation
Activity 2.1.1 – What Effects Owner’s Equity
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.2 –Temporary and Permanent Accounts
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Gain a general knowledge of what constitutes temporary
or permanent accounts.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.c. demonstrate the effects of
130.166.C:
3.a. classify, record, and summarize
transactions on the accounting
equation, for example, T accounts
financial data;
3.c. demonstrate the effects of
transactions on the accounting
equation
3. e. use T accounts
TAKS Correlation:
N/A
Materials, Equipment and Resources:

Textbook
Teaching Strategies:



Discussion
Observation
Presentation
Activity Outline:
Ask students to define and add to their terms on index cards:






Fiscal Period
Temporary accounts
Permanent accounts
Nominal accounts
Real accounts
Income Summary
Using publisher or online resource, view online or create a Temporary and
Activity 2.1.2 – Temporary and Permanent Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Permanent Account presentation, briefly explain temporary accounts and
permanent accounts. Reinforce the definitions. Explain why these accounts
have to be “refueled” each month. You can use an odometer as an example.
When you start the trip (or in a business’ case a fiscal period) the odometer
needs to be at zero; otherwise, you don’t know how far you traveled on that trip.
Assessment:

Observation
Activity 2.1.2 – Temporary and Permanent Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.3 – Expanded Accounting Equation and
Balance Sheet
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Gain skill in balancing an expanded accounting equation.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.c. demonstrate the effects of
130.166.C:
3.a. classify, record, and summarize
transactions on the accounting
equation, for example, T accounts
financial data;
3.c. demonstrate the effects of
transactions on the accounting
equation
3. e. use T accounts
TAKS Correlation:
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processed and tools used in problem solving.
Materials, Equipment and Resources:


Textbook
Worksheet
Teaching Strategies:



Discussion
Observation
Verbal Checking for Understanding
Activity Outline:
Write the accounting equation on the white board, spreading it out across the
board. Underneath each classification ask your students to give some account
names that fit in that classification. Explain that this is considered the expanded
accounting equation. Draw a line down the middle beneath the equals sign.
Activity 2.1.3 – Expanded Accounting Equation
And Balance Sheet
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Explain that in accounting we have a left and a right side that must be equal.
Emphasize the left and right side idea and its relationship to the balance sheet.
We demonstrate this equality in what we call a balance sheet. This is a report
that shows the equation is equal.
Ask your students to complete the following worksheet either manually or copy it
to a file for them to do on the computer:
Activity 2.1.3 – Expanded Accounting Equation
And Balance Sheet
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Expanded Accounting Equation
Instructions: Place a plus or minus in the correct column and row for each transaction.
Assets
=
Liabilities
Broadmoor
Bank
Cash Supplies Equipment
ABC
Supplies
+ Owner’s
Equity
Harold
Homer,
Capital
1
2
3
4
5
6
7
8
9
10
1.
2.
3.
4.
5.
Paid cash to Broadmoor Bank.
Paid cash to Jones Equipment to
purchase some equipment.
Paid cash for rent.
Paid cash for miscellaneous
expense.
Paid cash to owner for personal
use.
6.
7.
8.
9.
10.
Received cash from services.
Paid cash for supplies.
Received cash from the owner as an
investment in the company.
Paid cash for equipment repair.
Bought supplies on account from ABC
Supply.
Go over the worksheet with your students, re-teaching any areas students missed. Discuss
the rules of transactions.
1. If the left side is decreased then the right side must be decreased by the same
amount.
2. If the left side is increased then the right side must be increased by the same
amount.
3. If two accounts are affected on the left side of the equation then one must be an
increase and the other a decrease and there might not be an account affected on the
right side.
Activity 2.1.3 – Expanded Accounting Equation
And Balance Sheet
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Expanded Accounting Equation
Instructions: Place a minus or plus sign and the amount on the transaction number
line. On the Balance line, calculate the new balance for each account.
Assets
Beginning
Balance
=
Liabilities
+
Owner’s
Equity
Cash
Supplies
Equipment
Broadmoor
Bank
ABC
Supplies
Harold
Homer,
Capital
$4,500
$300
$14,000
$8,800
$225
Find the
capital.
1
Balance
2
Balance
3
Balance
4
Balance
5
Balance
6
Balance
7
Balance
8
Balance
9
Balance
10
Ending
Balance
1.
2.
3.
4.
5.
Paid cash to Broadmoor Bank,
$500.00
Paid cash to Jones Equipment to
purchase some equipment, $1,200.
Paid cash for rent, $1,000.
Paid cash for miscellaneous expense,
$25.00.
Paid cash to owner for personal use,
$2,500.00.
6.
7.
8.
9.
10.
Received cash from services,
$4,000.00.
Paid cash for supplies, $125.00.
Received cash from the owner as an
investment in the company, $14,000.00.
Paid cash for equipment repair,
$250.00.
Bought supplies on account from ABC
Supply, $75.00.
Activity 2.1.3 – Expanded Accounting Equation and Balance Sheet
ACCOUNTING I
©Texas Education Agency/UNT
Have students show the math where they checked their balances.
Demonstrate how to prepare a balance sheet beginning with the three line heading.
Discuss proper ways of writing numbers and currency (no decimals, no commas, and no
dollar sign.) Emphasize that the left side should equal the right side like the equation.
Have your students create a balance sheet using the ending balances from the above
exercise. Discuss what a single and double ruled line means in accounting. Emphasize
neatness.
Assessment:


Observation
Graded Assignment:
Quality Feature
Participates in activities
Balances correct
Math to check balances shown
Writing legible if done manually
Completes in a timely manner

Score
Graded Balance Sheet:
Quality Feature
Neatness – numbers and text written
neatly with centering and indentions as
needed
Balances correct
Single and double lines used where needed
No dollar signs, commas or decimals
Completes in a timely manner
Assets directly across from liabilities and
capital

Scor
e
Verbal Checking for Understanding
Activity 2.1.3 – Expanded Accounting Equation and Balance Sheet
ACCOUNTING I
©Texas Education Agency/UNT
Activity 2.1.4 – Normal Balance Side and “T” Accounts
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Identify accounts with a normal debit balance side and
those with a normal credit balance side, and introduce “T” accounts.
OLD TEKS Correlations:
2010 TEKS Correlations
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.b. – apply basic accounting
130.166.c:
3.c.demonstrate the effects of
concepts and terminology;
1.c. – demonstrate the effects of
transactions on the accounting
equation, for example, T accounts
transactions on the accounting
equation;
3.e. use T accounts
TAKS Correlation:
N/A
Materials, Equipment and Resources:




Textbook
Construction Paper
Markers
Pencils
Teaching Strategies:



Discussion
Observation
Verbal Checking for Understanding
Activity 2.1.4 – Normal Balance Side and “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity Outline:
Using a Normal Balance Side presentation, explain the normal balance side of accounts
and the use of “T” accounts. Emphasize the relationship between the accounting
equation and its normal balance side.
Ask your students to use a marker to draw a line down the middle of a piece of
construction paper. Have your students trace their left hand and right hand on the piece
of construction paper with a pencil. Ask them what types of accounts have a normal left
side balance. Ask them to draw some pictures or write some account names on the left
side of the construction paper with a marker. Try to think of at least 5 examples. Then
ask them to do the same for the right side.
Have your students take the online quiz for normal balance side to check for
understanding before taking the assessment below.
http://webhome.crk.umn.edu/~lhuus/nrmfrm.htm.
Assessment:


Observation
Quiz on Normal Balance Side and “T” Accounts
Activity 2.1.4 – Normal Balance Side and “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Quiz on Normal Balance Side and “T” Accounts
1. What is the accounting equation, written in the form used most
often?
2. What is a “T” account used for and why?
3. If the left side is the debit side, what is the right side called?
4. What type or classification of accounts normally has a debit
balance?
5. What type or classification of accounts normally has a credit
balance?
6. How do you decrease an asset account?
7. How do you decrease a liability account?
8. Explain why the owner’s equity account is decreased with a
debit.
2.1.4 – Quiz on Normal Balance Side and “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
KEY
Quiz on Normal Balance Side and “T” Accounts
1. What is the accounting equation, written in the form used most
often?
Assets = Liabilities + Capital
2. What is a “T” account used for and why?
To assist in analyzing an account, because it shows the left and right
side so clearly.
3. If the left side is the debit side, what is the right side called?
Credit side
4. What type or classification of accounts normally has a debit
balance?
Asset
5. What type or classification of accounts normally has a credit
balance?
Liabilities and Owner’s Equity (Capital)
6. How do you decrease an asset account?
Credit the account
7. How do you decrease a liability account?
Debit the account
8. Explain why the owner’s equity account is decreased with a debit.
The owner’s equity account is on the right side of the accounting
equation and therefore has a normal balance side of credit. It has to
be decreased by doing the opposite which is to debit the account.
2.1.4 – Quiz on Normal Balance Side and “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.5 – Classifying Accounts (Review)
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Learn how to classify accounts with 100% accuracy.
.
OLD TEKS Correlations:
2010 TEKS Correlations
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.b. – apply basic accounting
130.166.C:
3.a. classify, record, and summarize
concepts and terminology;
1.c. – demonstrate the effects of
transactions on the accounting
equation, for example, T accounts
financial data;
3.c.demonstrate the effects of
transactions on the accounting
equation;
3.e. use T accounts
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:


Textbook
Internet
Teaching Strategies:



Review
Discussion
Verbal Drills
Activity 2.1.5 – Classifying Accounts (Review)
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity Outline:
Spend several times a week drilling on classifying accounts until almost all
students can classify accounts with 100% accuracy.
Have your students use index cards and drill with a partner.
Have your students number 1-20 on their page and classify as many accounts as
they can as you call them out. You could also create a presentation displaying
various account names and descriptions. You can have this running as they
enter the room.
Assessment:


Verbal Response
Observation
Activity 2.1.5 – Classifying Accounts (Review)
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.6 – Numbering Accounts
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Learn how to number accounts on a chart of accounts.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.d. prepare a chart of accounts
130.166.C:
3.c.demonstrate the effects of
transactions on the accounting
equation;
3.d. prepare a chart of accounts
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:



Review
Discussion
Verbal Drills
Activity 2.1.6 – Numbering Account s
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity Outline:
Discuss the need for numbering accounts and the need to keep an updated chart
of accounts. Explain that unless an account is on the chart of accounts, it can
not be used in the accounting system for that business.
Explain the numbering system used to keep the accounts separated and whether
it should be a 3-digit or 4-digit system.
Ask your students to put their index cards from Activity 1 in the order in which
they would appear on a chart of accounts. Check the order and review why they
are in that order. For instance, assets in order of the most easily liquidated
liabilities in alphabetical order and then the capital. Ask students what number
should begin all assets, all liabilities and the capital account.
Have them number the accounts on the index card. Check for accuracy.
Assessment:


Verbal Response
Observation
Activity 2.1.6 – Numbering Account s
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.7 – Preparing a Chart of Accounts
Course Title – Accounting I
Lesson Title – Double-Entry Accounting
Activity Purpose - Learn how to create a manual and computerized chart of
accounts.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
1.d. prepare a chart of accounts
130.166.C:
3.c.demonstrate the effects of
transactions on the accounting
equation;
3.d. prepare a chart of accounts
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:


Textbook
Accounting Software
Teaching Strategies:




Review
Demonstration
Observation
Graded Assignments
Activity Outline:
Review definitions of assets, liabilities and owner’s equity and the accounting
equation. Have students read an explanation from one of the web pages about a
chart of accounts. Lead a class discussion on the importance of a chart of
accounts and why only accounts on the chart of accounts can be used in the
financial process.
Give your students this scenario:
Jill Johnson, a sole proprietor, has decided to open a small
hair salon in your area. She lists on the left side of a sheet of paper
that she owns these items: Cash, Supplies, Equipment and
Activity 2.1.7 – Preparing a Chart of Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Furniture. On the right side she lists that she owes for supplies
from Landberg Office Supply and the equipment she purchased
was a loan from Bloomer Bank.
Have your students create a proper account on a sheet of paper and list the
accounts in the chart of account with an account number. Don’t forget to include
the owner’s equity account.
Instruct your students on how to use the available software to enter a chart of
accounts. Have your students enter the same chart of accounts as the one they
used for the manual chart.
Assessment:


Observation
Graded Assignment
Quality Feature
Correct title on chart of accounts
Accounts numbered correctly
Account names accurate with no spelling errors
Writing legible
Computerized chart of accounts: correct title, no
errors and numbered correctly
Activity 2.1.7 – Preparing a Chart of Accounts
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.8 - Using “T” Accounts
Course Title – Accounting
Lesson Title – Double-Entry Accounting
Activity Purpose - Use “T’ accounts to analyze transactions into debits and
credits.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C:
130.166.C:
1.b. Apply basic accounting concepts 3.a. classify, record, and summarize
and terminology;
1.c. Demonstrate the effects of
transactions on the accounting
equation, for example, T accounts.
financial data;
3.c. demonstrate the effects of
transactions on the accounting
equation;
3.e. use T accounts.
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:

Textbook
Teaching Strategies:



Demonstration
Observation
Practice
Activity Outline:
Draw “T” accounts on a sheet of paper for these accounts: Cash, Supplies,
Prepaid Insurance, Equipment, Boomer’s Office Supply, Bank of America, Tina
Taylor, Capital, Tina Taylor, Drawing, Income Summary, Fees Earned,
Advertising Expense, Miscellaneous Expense, Rent Expense and Utilities
Expense.
Have students analyze the transactions below. Remind them they always have
Activity 2.1.8 – Using “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
debits that equal credits. So if they have a $300 debit to cash, they must also
have a $300 credit somewhere. Left side must stay in balance to the right side.
Continue to emphasize this.
Ask students to use these steps to analyze the transactions:
1.
2.
3.
4.
5.
Paid cash for Supplies, $50.00.
Wrote a check for Insurance. $498.00.
Received cash for Fees Earned, $230.00.
Paid cash for Advertising, $125.00.
Paid cash to owner for personal use, $2,000.00.
6. Received cash from owner as an investment in the company,
$14,000.00.
7. Donated cash to the Walk America campaign, $225.00.
8. Charged supplies on the Boomer’s Office Supplies account, $221.00.
9. Paid cash for rent, $1,000.00.
Example for the first transaction?
a.
b.
c.
d.
e.
f.
g.
What two accounts are affected? Cash and Supplies
What type of account is supplies? Asset
Do you have more or less supplies? More
How do you increase supplies? Debit
What type of account is cash? Asset
Do you have more or less cash? Less
How do you decrease an Asset? Credit
Assessment:


Observation
Verbal Checking for Understanding
Activity 2.1.8 – Using “T” Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Quiz on Classifying Accounts
1. Supplies is a (n) _______
account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
2. Income Summary is a (n)
________ account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
6. John Beavers, Capital is a (n)
______ account.
a. Asset
b. Liability
c.
Capital
d.
Revenue
e.
Expense
7. Advertising is a (n) ______
account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
3. John Beavers, Drawing is a
(n) _______ account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
8. Fees are a (n) _____ account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
4. Fares Earned is a (n)
______ account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
9. Rent paid is a (n) ______
account.
a. Asset
b. Liability
c. Capital
d. Revenue
e. Expense
5. Equipment is a (n)
________ account.
a. Asset
b.
Liability
c.
Capital
d.
Revenue
e.
Expense
2.1.8 – Quiz on Classifying Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Quiz on Classifying Accounts - KEY
1. Supplies are a (n) _______
account.
*a. Asset
f. Liability
g. Capital
h. Revenue
i. Expense
6. John Beavers, Capital is a (n)
______ account.
j. Asset
k. Liability
*c.
Capital
d.
Revenue
e.
Expense
7. Advertising is a (n) ______
account.
a. Asset
b. Liability
c. Capital
d. Revenue
*e. Expense
2. Income Summary is a (n)
________ account.
c. Asset
d. Liability
*c. Capital
d. Revenue
e. Expense
3. John Beavers, Drawing is a (n)
_______ account.
e. Asset
f. Liability
*c. Capital
d. Revenue
e. Expense
8. Fees is a (n) _____ account.
a. Asset
b. Liability
c. Capital
*d. Revenue
e. Expense
4. Fares Earned is a (n) ______
account.
g. Asset
h. Liability
i. Capital
*d. Revenue
e. Expense
9. Rent paid is a (n) ______
account.
a. Asset
b. Liability
c. Capital
d. Revenue
*e. Expense
5. Equipment is a (n) ________
account.
*a. Asset
b.
Liability
c.
Capital
d.
Revenue
e.
Expense
2.1.8 – Quiz on Classifying Accounts
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity 2.1.9 – Accounting Assumptions
Course Title – Accounting
Lesson Title – Double-Entry Accounting
Activity Purpose – Demonstrate basic knowledge in the most used
accounting assumptions.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C.1.b. Apply basic
accounting concepts and terminology;
7.a. follow oral and written
instructions;
7.b. develop time management skills
by setting priorities for completing
work as scheduled;
7.c. make decisions using
appropriate accounting concepts;
7.e. perform accounting procedures
using manual and automated
methods.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.c
1.a. describe the purpose of
accounting and financial reporting
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:


Textbook
Internet
Teaching Strategies:


Demonstration
Observation
Activity 2.1.9 - Accounting Assumptions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I
Activity Outline:
Have students look up these accounting assumptions to discuss in class:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Accounting Period Cycle
Adequate Disclosure
Business Entity
Consistent Reporting
Going Concern
Historical Cost
Matching Expenses with Revenue
Materiality
Objective Evidence
Realization of Revenue
Unit of Measurement
Ask students to keep their list of assumptions in their notebook because they will
review them often.
Assessment:

Observation
Activity 2.1.9 - Accounting Assumptions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING I