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.

Chapter 3

The Double-Entry Framework

Learning Objectives

  • 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

  1. 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.
  2. Double-entry accounting represents the fact that every transaction has a dual effect on the accounting equation.
  3. A separate account records the increases and decreases in each type of asset, liability, owner’s equity, revenue, and expense
  4. Use T accounts to analyze transactions.
    1. Each account has a title.
    2. The left side is the debit side of each account.
    3. The right side is the credit side of each account.
  5. WATCH THIS VIDEO ABOUT LEARNING OBJECTIVE 1 FOR CHAPTER 3

LO2

  1. 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).
  2. Balancing a T Account (See Figure 3-1)
    1. Footings are totals on the debit and credit sides.
    2. The difference between the footings is called the balance of the account.
    3. The balance is written on the side with the larger footing.
  3. WATCH THIS VIDEO ABOUT LEARNING OBJECTIVE 2 FOR CHAPTER 3
  4. In-Class Exercise: Complete Exercise E3-1A, E3-1B (10 minutes each)–WE WILL CHECK THEM TOGETHER IN CLASS