Chapter 3 analyzing transactions into debit and credit parts l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 29

Chapter 3 Analyzing Transactions into Debit and Credit Parts PowerPoint PPT Presentation


  • 437 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 3 Analyzing Transactions into Debit and Credit Parts. T- Account. Assets =Liabilities + Owners Equity. Each account receives a T-Account so that we may analyze the balance of the account. Analyzing the T-Account. Left Side. Right Side. Debit. Credit.

Download Presentation

Chapter 3 Analyzing Transactions into Debit and Credit Parts

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 3 analyzing transactions into debit and credit parts l.jpg

Chapter 3Analyzing Transactions into Debit and Credit Parts


Slide2 l.jpg

T- Account

Assets =Liabilities + Owners Equity

Each account receives a T-Account so that we may analyze

the balance of the account


Analyzing the t account l.jpg

Analyzing the T-Account

Left Side

Right Side

Debit

Credit

Each account will have its own T-account

Cash,Supplies,Pre-paid Insurance


Slide4 l.jpg

Assets= Liabilities + Owners Equity

Left Side

Right Side

Left Side

Debit Credit

Right Side

Debit Credit

Normal Bal...

Normal Bal...

+-

-+

Cash

Supplies

Prepaid Insurance


Slide5 l.jpg

  • Please work on work together and “ON your own on page 44)


Slide6 l.jpg

Assets

Cash

Supplies

Prepaid Insurance

Accounts Receivable

Liabilities

Accounts Payable

Owners Equity

Barbara Trevino, Capital

All companies have a sheet of paper that tell you what all of their accounts are it is called – Chart of Accounts


4 questions you need to ask l.jpg

4 questions you need to ask….

What two accounts does it effect?

What types of accounts are they?

How is each account balanced changed?

How is each amount entered into the T- Accounts?


Slide8 l.jpg

1. Received cash from owner as an investment $10,000

What two accounts does it effect?

Cash

Barbara Trevino, Capital

What types of accounts are they?

Asset

Owners Equity

How is each account balanced changed?

Cash

Increased

Barbara Trevino, Capital

increase

How is each amount entered into the T- Accounts


4 questions you need to ask9 l.jpg

4 questions you need to ask….

What two accounts does it effect?

What types of accounts are they?

How is each account balanced changed?

How is each amount entered into the T- Accounts?


How is each amount entered into the t accounts l.jpg

How is each amount entered into the T- Accounts

Received Cash from Owner

10,000

Cash

Barbara Trevino, Capital

DebitCredit

DebitCredit

Normal Bal...

Normal Bal...

+-

-+

10,000

10,000

So we say for this transaction we Debit Cash, Credit Capital


Two major rules we must remember l.jpg

Two major rules we must remember……...

  • Accounting Equation - Do our assets = our liabilities + our owners Equity????

  • Do our debits = our credits???


Slide12 l.jpg

1. Paid cash for supplies $1,577

What two accounts does it effect?

Cash

Supplies

What types of accounts are they?

Asset

How is each account balanced changed?

Cash

Decreases

Supplies

increase

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts13 l.jpg

How is each amount entered into the T- Accounts

Paid Cash for supplies 1,577

Cash

Supplies

DebitCredit

DebitCredit

Normal Bal...

Normal Bal....

+-

+-

1,577

1,577

So we say for this transaction we Credit cash, Debit Supplies


Slide14 l.jpg

1. Paid cash for Insurance

What two accounts does it effect?

Cash

Prepaid Insurance

What types of accounts are they?

Asset

How is each account balanced changed?

Prepaid Insurance

Cash

Decreases

increase

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts15 l.jpg

How is each amount entered into the T- Accounts

Paid Cash for Insurance

Cash

Prepaid Insurance

DebitCredit

DebitCredit

Normal Bal..

Normal Bal..

+-

+-

1200

1200

So we say for this transaction we Credit cash, Debit PPI


Slide16 l.jpg

Bought supplies on account from Butler Cleaning Supplies

2,720

What two accounts does it effect?

Supplies

Butler Cleaning Supplies

What types of accounts are they?

Asset

Liability

How is each account balanced changed?

Butler Cleaning Supplies

Supplies

Increase

increase

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts17 l.jpg

How is each amount entered into the T- Accounts

Bought supplies on account

Supplies

Butler Cleaning Supplies

DebitCredit

DebitCredit

Normal Bal..

Normal Bal..

+-

-+

2,270

2,270

So we say for this transaction we Debit supplies, Credit Butler

Cleaning Sup


Slide18 l.jpg

Paid cash on account to Butler Cleaning Supplies 1,360

What two accounts does it effect?

Cash

Butler Cleaning Supplies

What types of accounts are they?

Asset

Liability

How is each account balanced changed?

Cash

Decreases

Butler Cleaning Supply

decreases

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts19 l.jpg

How is each amount entered into the T- Accounts

Paid Cash on Account

Cash

Butler Cleaning Supply

DebitCredit

DebitCredit

Normal Bal..

Normal Bal..

+-

-+

1360

1360

So we say for this transaction we Credit cash, Debit Butler

cleaning supplies


Slide20 l.jpg

  • Please work on “Work together and On Your own” on page 50


Slide21 l.jpg

Assets= Liabilities + Owners Equity

Owners Equity

Left Side

Right Side

Left Side

Debit Credit

Right Side

Normal Bal..

Debit Credit

-+

Revenue

Normal Bal..

+-

Left Side

Right Side

Debit Credit

Cash

Supplies

Prepaid Insurance

Normal Bal..

-+

Expense

Left Side

Right Side

Debit Credit

Normal Bal..

+-


Slide22 l.jpg

Received Cash from Sales $525

What two accounts does it effect?

Cash

Sales

What types of accounts are they?

Asset

Revenue

How is each account balanced changed?

Increase

Cash

Increases

Sales

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts23 l.jpg

How is each amount entered into the T- Accounts

Received Cash from Sales

Cash

Sales

DebitCredit

DebitCredit

Normal Bal..

Normal Bal..

+-

-+

525

525

So we say for this transaction we Debit Cash, Credit Sales


Slide24 l.jpg

Paid Cash for Rent 250

What two accounts does it effect?

Cash

Rent Expense

What types of accounts are they?

Asset

Expense

How is each account balanced changed?

Increase

Cash

Decreases

Rent Expense

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts25 l.jpg

How is each amount entered into the T- Accounts

Paid cash for rent $250

Cash

Rent Expense

DebitCredit

DebitCredit

Normal Bal..

Normal Bal..

+-

+-

250

250

So we say for this transaction we Credit Cash, Debit Rent Exp.


Slide26 l.jpg

Paid cash to owner for personal use $100

What two accounts does it effect?

Cash

Ben Furman, Drawing

What types of accounts are they?

Asset

Drawing

How is each account balanced changed?

Ben Furman, Drawing

Cash

Decrease

Increase

How is each amount entered into the T- Accounts


How is each amount entered into the t accounts27 l.jpg

How is each amount entered into the T- Accounts

Paid cash to owner for personal

Use $100

Cash

Ben Furman, Drawing

DebitCredit

DebitCredit

Normal Bal

Normal Bal

+-

+-

100

100

So we say for this transaction we Credit Cash, Debit Drawing


Slide28 l.jpg

Page 58

Prob 3-1,2,3,4,5


Slide29 l.jpg

1

1


  • Login