Analyzing Transactions Using T-Accounts

Accounting I/IIChapter 2, Section 2

Analyzing Transactions

What accounts are affected?

How is each account classified?

How is each classification changed? Increased or decreased?

How is each amount entered in the accounts? Debit or credit?

Received cash from owner as an investment, $5,000.00.

What accounts are affected? How is each account classified? How is each classification changed? How is each amount entered in the

accounts?Cash Kim Park, Capital

Asset Owner’s Equity

5000.00

Debit Credit Debit Credit

5000.00

Paid cash for supplies, $275.00.

What accounts are affected? How is each account classified? How is each classification changed? How is each amount entered in the

accounts?Supplies Cash

Asset Asset

275.00

Debit Credit Debit Credit

275.00

Paid cash for insurance, $1,200.00.

What accounts are affected? How is each account classified? How is each classification changed? How is each amount entered in the

accounts?Prepaid Insurance Cash

Asset Asset

1200.00

Debit Credit Debit Credit

1200.00

Bought supplies on account from Supply Depot, $500.00.

What accounts are affected? How is each account classified? How is each classification changed? How is each amount entered in the

accounts?Supplies

Accounts Payable,Supply Depot

Asset Liability

500.00

Debit Credit Debit Credit

500.00

Paid cash on account to Supply Depot, $300.00.

What accounts are affected? How is each account classified? How is each classification changed? How is each amount entered in the

accounts?Accts. Pay—Supply Depot Cash

LiabilityAsset

300.00

Debit Credit Debit Credit

300.00

Problems2-2 Work Together and On Your Own

2-2 Application Problem