Chapter 2

Analyzing Transactions: The Accounting Equation

 Learning Objectives

  • LO1    Define the accounting elements.
  • LO2    Construct the accounting equation.
  • LO3    Analyze business transactions.
  • LO4    Show the effects of business transactions on the accounting equation.
  • LO5    Prepare and describe the purposes of a simple income statement, statement of owner’s equity, and balance sheet.
  • LO6    Define the three basic phases of the accounting process.

LO4

  1. WATCH THIS VIDEO and read the following about Expanding the Accounting Equation: Revenue, Expenses, and Withdrawals
  2. In-Class Exercise:
    1. Complete Exercises E2-4A, E2-4B on pages 43 & 45
    2. Complete Problems P2-9A, P2-9B on pages 44 & 47–USE THIS VIDEO TO HELP YOU
    3. Download them to your Accounting folder & save them when you are done. You will use the files again.
    4. Here are the spreadsheets you need:  P2-9A  & P2-9B
    5. Show me when you are done
  3. In-Class Exercise:
    1. Study Guide Review Questions 11, 12, 13, 14, 15;
    2. Study Guide Exercises 2, 6, 7, 8
    3. Study Guide Problem 13
    4. End of Chapter Review Question 2
    5. Show me all of them when you are done