View
216
Download
1
Category
Preview:
Citation preview
CENTURY 21 ACCOUNTING © Thomson/South-Western
1
LESSON 1-2
Lesson 1-1 THE ACCOUNTING EQUATIONLesson 1-1 THE ACCOUNTING EQUATION page 8
CENTURY 21 ACCOUNTING © Thomson/South-Western
2
LESSON 1-2
TERMS REVIEWTERMS REVIEW
accounting accounting system accounting records financial statements service business proprietorship asset
equities liability owner’s equity accounting equation ethics business ethics
page 9
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-2LESSON 1-2
How Business Activities Change the Accounting Equation
CENTURY 21 ACCOUNTING © Thomson/South-Western
4
LESSON 1-2
RECEIVING CASHRECEIVING CASH
Transaction 1 August 1. Received cash from owner as an investment, $5,000.00.
page 10
CENTURY 21 ACCOUNTING © Thomson/South-Western
5
LESSON 1-2
PAYING CASHPAYING CASH
Transaction 2 August 3. Paid cash for supplies, $275.00.
Transaction 3 August 4. Paid cash for insurance, $1,200.00.
page 11
CENTURY 21 ACCOUNTING © Thomson/South-Western
6
LESSON 1-2
TRANSACTIONS ON ACCOUNTTRANSACTIONS ON ACCOUNT
Transaction 4 August 7. Bought supplies on account from Supply Depot, $500.00.
Transaction 5 August 11. Paid cash on account to Supply Depot, $300.00.
page 12
CENTURY 21 ACCOUNTING © Thomson/South-Western
7
LESSON 1-2
TERMS REVIEWTERMS REVIEW
transaction account account title account balance capital
page 13
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-3LESSON 1-3
How Transactions Change Owner’s Equity in an Accounting Equation
CENTURY 21 ACCOUNTING © Thomson/South-Western
9
LESSON 1-2
REVENUE TRANSACTIONSREVENUE TRANSACTIONS
Transaction 6 August 12. Received cash from sales, $295.00.
Transaction 7 August 12. Sold services on account to Oakdale School, $350.00.
page 14
CENTURY 21 ACCOUNTING © Thomson/South-Western
10
LESSON 1-2
EXPENSE TRANSACTIONSEXPENSE TRANSACTIONS
Transaction 8 August 12. Paid cash for rent, $300.00.
Transaction 9 August 12. Paid cash for telephone bill, $40.00.
page 15
CENTURY 21 ACCOUNTING © Thomson/South-Western
11
LESSON 1-2
OTHER CASH TRANSACTIONSOTHER CASH TRANSACTIONS
Transaction 10 August 12. Received cash on account from Oakdale School, $200.00.
Transaction 11 August 12. Paid cash to owner for personal use, $125.00.
page 16
CENTURY 21 ACCOUNTING © Thomson/South-Western
12
LESSON 1-2
TERMS REVIEWTERMS REVIEW
revenue sale on account expense withdrawals
page 17
Recommended