Lesson 1-1 - Hopkins High School
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Transcript Lesson 1-1 - Hopkins High School
1
“We are what we repeatedly do.
Excellence, then, is not an act, but a habit.”
--Aristotle
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
Chapter 1
Starting a Proprietorship:
Changes that Affect the Accounting Equation
Accounting:
The Language of Business
Lesson 1-1:
The Accounting Equation
Assignment: Read pp 5-7
CENTURY 21 ACCOUNTING © Thomson/South-Western
3
Terms
pages 6-7
Accounting
Accounting system
Accounting records
Financial statements
Service Business
Proprietorship
Business Entity-(GAAP concepts in purple)
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
4
THE ACCOUNTING EQUATION
Page 8
Asset
Equities:
Equity of those to whom money is owed
Equity of the owner (aka “owner’s equity”)
Liability
Do:
Owner’s Equity
Work together: p 9 text
CENTURY 21 ACCOUNTING © Thomson/South-Western
Working papers: pLESSON
5
1-1
5
TERMS REVIEW
accounting
accounting system
accounting records
financial statements
service business
proprietorship
asset
page 9
equities
Review website
liability
owner’s equity
accounting equation
ethics
business ethics
DO:
Application Prob. 1-1 Text: p 19
Working Papers: p11
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
6
LESSON 1-2
How Business Terms:
Transaction
Activities
Account
Change the Account Title
Accounting Account Balance
Capital
Equation
Unit of Measurement
US=Dollars, Japan=Yen
China=Yuan, France=Euro
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
7
RECEIVING CASH
page 10
Transaction 1 August 1. Received cash from owner as an investment,
$5,000.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
8
PAYING CASH
page 11
Transaction 2 August 3. Paid cash for supplies, $275.00.
Transaction 3 August 4. Paid cash for insurance, $1,200.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
9
TRANSACTIONS ON ACCOUNT
page 12
Transaction 4 August 7. Bought supplies on account from Supply
Depot, $500.00.
Transaction 5 August 11. Paid cash on account to Supply Depot,
$300.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
10
Guided Practice
DO:
Work together 1-2: Text p 13.
Working papers p 7
OYO 1-2: Text p 13. Working papers p 8
Application problem 1-2: Text p 13.
Working papers p 12
CHECK-OFF FOR CLASS PARTICIPATION
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
LESSON 1-3
How Transactions Change Owner’s
Equity in an Accounting Equation
Terms:
Revenue
Sale on Account:
aka: “charge sale”
Expense
Withdrawals
CENTURY 21 ACCOUNTING © Thomson/South-Western
12
REVENUE TRANSACTIONS
page 14
Transaction 6 August 12. Received cash from sales, $295.00.
Transaction 7 August 12. Sold services on account to Oakdale
School, $350.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
13
EXPENSE TRANSACTIONS
page 15
Transaction 8 August 12. Paid cash for rent, $300.00.
Transaction 9 August 12. Paid cash for telephone bill, $40.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
14
OTHER CASH TRANSACTIONS
page 16
Transaction 10 August 12. Received cash on account from
Oakdale School, $200.00.
Transaction 11 August 12. Paid cash to owner for personal use,
$125.00.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1
15
Guided Practice and Chapter Assignment
Do: Work together 1-3: text p 17
Working papers p 9
OYO 1-3: text p 17, working papers p10
Application problem 1-3; text p 20,
working papers p 13
Graded assignments for Chapter 1:
Mastery Problem 1-4: text p 21, working papers p 14
Study Guide Ch 1: correct in class
Chapter 1 test: 125 points: terms, T-F, 2 probs.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 1-1