Day 9

After completing Lesson 2-3, you will be able to:

• Identify accounting practices related to analyzing transactions into debit and credit parts.
• Use T accounts to analyze transactions showing which accounts are debited or credited for each transaction.
• Analyze how transactions affect owner’s equity accounts. 

Notes 2-3

1. Obtain a Notes 2-3 handout from your instructor and record your notes through the presentation.  You can also view the presentation here.

Working Together 2-3

1. Make a copy of this spreadsheet.
2. Place this file in your Chapter 2 folder.
3. Rename the file to Lesson 2-3-(Your Initials)
4. Complete the spreadsheet according to the directions below.

T accounts are given in the Working Papers.  Your instructor will guide you through the following examples.  Kathy Bergum owns Bergum Services.  Bergum Services uses the following accounts.  

Directions:  

1. Prepare two T accounts for each transaction.  On each T account, type the account title of one of the accounts affected by the transaction.
2. Write the debit or credit amount in each T account to show the transaction’s effect.

Transactions:

Apr. 10 Received cash from sales, $600.00.
Apr. 11 Sold services on account to Sam Erickson, $850.00.
Apr. 14 Paid cash for rent, $250.00.
Apr. 18 Received cash on account from Sam Erickson, $425.00.
Apr. 20 Paid cash to owner for personal use, $300.00.

On Your Own 2-3

1. T accounts are given in the Working Papers.  Your instructor will guide you through the following examples.  Kathy Bergum owns Bergum Services.  Bergum Services uses the following accounts.  
   

   Cash	Accounts Payable-Nash Supply
   Accounts Receivable-Jon Roe	Derrick Hoffman, Capital
   Supplies	Derrick Hoffman, Drawing
   Prepaid Insurance	Sales
   	Advertising Expense
   	Rent Expense

   Directions:  

   1. Prepare two T accounts for each transaction.  On each T account, type the account title of one of the accounts affected by the transaction.
   2. Type the debit or credit amount in each T account to show the transaction’s effect.

   Transactions:

   Sept. 13 Received cash from sales, $1,500.00.
   Sept. 15 Sold services on account to Jon Roe, $500.00.
   Sept. 16 Paid cash for utilities, $450.00.
   Sept. 18 Received cash on account from Jon Roe, $250.00.
   Sept. 21 Paid cash to owner for personal use, $700.00.

Self-Assessment 2-3

1. Complete this self-assessment for Lesson 2-3.  You can use your textbook and notes to complete this assessment.  

Lesson 2-3 Assignment

1. Use the chart of accounts for Hal’s Marketing Services given in Application Problem 2-2.Directions:  
   1. Prepare two T accounts for each transaction.  On each T account, type the account title of one of the accounts affected by the transaction.
   2. Write the debit or credit amount in each T account to show the transaction’s affected that account.

   Transactions:

   Mar. 11 Received cash from sales, $2,200.00.
   Mar. 12 Paid cash for advertising, $150.00.
   Mar. 14 Sold services on account to Dominik Field, $1,700.00.
   Mar. 18 Paid cash to owner for personal use, $500.00.
   Mar. 19 Received cash on account from Dominik Field, $1,000.00.