LESSON 2-1
Using T Accounts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
ANALYZING THE ACCOUNTING
EQUATION
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 28
LESSON 2-1
3
ACCOUNTS
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 29
LESSON 2-1
4
ACCOUNT BALANCES
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 29
LESSON 2-1
5
INCREASES AND DECREASES IN
ACCOUNTS
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 30
LESSON 2-1
6
Audit Your Understanding
 Draw the accounting equation on a T account.
 What are the two accounting rules that regulate
increases and decreases of account balances?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
7
Chapter 2-1 Work Together
Book pg. 31 Workbook pg. 21
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
9
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
10
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
11
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
12
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
13
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
14
Audit Your Understanding
 State the four questions used to analyze a
transaction.
 What two accounts are affected when a business
pays cash for supplies?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
15
Chapter 2-2 Work Together
Book pg. 37 Workbook pg. 21
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
LESSON 2-3
Analyzing How
Transactions Affect
Owner’s Equity Accounts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
17
RECEIVED CASH FROM SALES
page 38
August 12. Received cash from sales, $295.00.
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 2-3
18
SOLD SERVICES ON ACCOUNT
page 39
August 12. Sold services on account to Oakdale School, $350.00.
2
1
2
1
4
3
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
LESSON 2-3
19
PAID CASH FOR AN EXPENSE
page 40
August 12. Paid cash for rent, $300.00.
1
2
3
2
4
3
1
4
1. Which accounts are affected?
3
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 2-3
20
RECEIVED CASH ON ACCOUNT
page 41
August 18. Received cash on account from Oakdale School, $200.00.
2
1
4
1
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 2-3
21
PAID CASH TO OWNER
FOR PERSONAL USE
page 42
August 12. Paid cash to owner for personal use, $125.00.
2
1
3
4
3
1
2
4
1. Which accounts are affected?
3
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 2-3
22
CHAPTER SUMMARY
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
23
Audit Your Understanding
 What two accounts are affected when a business
receives cash from sales?
 What two accounts are affected when services are
sold on account?
 What two accounts are affected when a business
pays cash to the owner for personal use?
 Are revenue accounts increased on the debit side or
credit side?
 Are expense accounts increased on the debit side or
credit side?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1
24
Chapter 2-3 Work Together
Book pg. 44 Workbook pg. 25
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 2-1