GO OVER THE CHAPTER 1 & 2 TEST
You have today and the next 4 classes to finish this lesson plan. Take your time and LEARN!!!
TURN IN YOUR HOMEWORK!!
TAKE THE CHAPTER 3 TUTORIAL QUIZ–PRE-TEST–WILL NOT IN MY GRADE–This is done to provide you with an overview of Chapter 3. You will take this again when you are done with chapter 3.
The Double-Entry Framework
- LO1 Define the parts of a T account.
- LO2 Foot and balance a T account.
- LO3 Describe the effects of debits and credits on specific types of accounts.
- LO4 Use T accounts to analyze transactions.
- LO5 Prepare a trial balance and explain the purpose and link with the financial statements.
LO1–The T Account
- Other kinds of accounts will be illustrated later after the T accounts. However, T accounts are the most effective way to learn the double-entry system. Practicing accountants use them frequently when analyzing business transactions.
- Double-entry accounting represents the fact that every transaction has a dual effect on the accounting equation.
- A separate account records the increases and decreases in each type of asset, liability, owner’s equity, revenue, and expense
- Use T accounts to analyze transactions.
- Each account has a title.
- The left side is the debit side of each account.
- The right side is the credit side of each account.
- WATCH THIS VIDEO ABOUT LEARNING OBJECTIVE 1 FOR CHAPTER 3
- You may find it helpful to think of the T account like a scale. The heavier side will weigh down the lighter side, so the balance is always written on the side with the larger or “heavier” footing (or balance).
- Balancing a T Account (See Figure 3-1)
- Footings are totals on the debit and credit sides.
- The difference between the footings is called the balance of the account.
- The balance is written on the side with the larger footing.
- WATCH THIS VIDEO ABOUT LEARNING OBJECTIVE 2 FOR CHAPTER 3
- In-Class Exercise: Complete Exercise E3-1A, E3-1B (10 minutes each)–WE WILL CHECK THEM TOGETHER IN CLASS