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When analyzing transactions remember to ask yourself the following:

1. What are the titles of the accounts affected2. What is each accounts type?3. How is each account balance affected?

Practice:

Analyze the following transactions using the chart attached

1. Received cash from the sale of equipment2. Purchased a desk for cash.3. Purchased supplies on account from XYZ Co.4. Paid cash to ABC Co. on Account5. Owner invests cash into the business6. Owner withdraws cash7. Received cash from sales of services8. Sold services on account to MND Co.9. Receive cash on account from DEF Co.10.Paid cash for rent

Trans.

NoAccount Title

Account ClassificationsChange

in

Account

Debit

or

CreditAssets Liabilities Capital Drawings Revenue Expenses

1.

2.

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It is important to note that your Debits must always equal your credits. . The debit is always stated first

followed by the credit.

Ex. DR=CR=2200.00

Assignment: C21 Page 62 4-D2

Syme Page 124 #1

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C21 Page 62 4-D2- Analyzing the Effect of Transactions on Ledger Accounts

Name:_________________________ Date:_______________________

Trans.

NoAccount Title

Account ClassificationsChange

in

Account

Debit

or

CreditAssets Liabilities Capital Drawings Revenue Expenses

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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Syme Page 124 - Exercise 1

Name:_________________________ Date:_______________________

Trans.

NoAccount Title

Account ClassificationsChange

in

Account

Debit

or

CreditAssets Liabilities Capital Drawings Revenue Expenses

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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When recording to the T-Accounts you need to ask yourself the same questions as you would any other

time you are analyzing transactions.

1. What are the titles of the accounts affected2. What is each accounts type?3. How is each account balance affected?

To post to a T- Account follow this procedure.

1. Identify the account and create a T-Account for it. It is important to be specific in this process asyou do not create a new account for each transaction, you could re-use some of the same

accounts. For example if you have revenue generated from sales and fes, we do not just create

one general account we have to make two separate accounts, one called Fee Revenue and the

other Sales Revenue.

If there is a beginning balance, record this first on the balance side proper side. For example,lets say that Fees Revenue has a beginning balance of $2200.00 and Cash has a beginning

balance of $1500.00 Your T- Account should look like the ones below.

Fee Revenue Cash

DR CR DR CR

$2200.00 Bal. Bal. $1500.00

2. Begin analyzing your transactions. You earned another $300.00 in Fee Revenue. Ask yourselfthe following questions.

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3. Once all of your transactions have been analyzed you need to calculate the balance of your T-Account. To do this you need to do the following.

a. Add separately the two sides of the account.b. Subtract the smaller total from the larger total.c. Write the difference on the larger side and circle it.d. The circled amount is called the account balance.

Example:

One sided calculation:

Fee Revenue Cash

DR CR DR CR

$2200.00 Bal. Bal. $1500.00

$ 300.00 $300.00

2500.00 1800.00

Two sided Calculations

Fee Revenue Cash

DR CR DR CR

100.00 $2200.00 Bal. Bal. $1500.00

$ 300.00 $300.00 200.00

100.00 2500.00 1800.00 200.00

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C21 Page 62 4-1

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

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Syme Page 126 #3

Date:

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Page 63 4-2

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Page 63 4-2 Continued

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Page 64 4-M

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Page 64 4-M Continued

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Frank Towes operates a travel agency. The business contains the accounts below.

Cash Bank Loan Payable

A/R Mark Howe A/P Market Furniture Co.

Equipment Frank Towes, Capital

Furniture Frank Towes, Drawing

Sales

Rent Expense

Transactions:

1. Bought furniture on account from Market Furniture Co. $2400.002. Sold services on account to Mark Howe, $300.003. Bought Equipment for cash $1500.004. Returned equipment originally purchased for cash $200.005. Borrowed cash from TD Bank $1000.006. Received from mark Howe on account $100.007. Paid rent for $150.008. Sold service for cash $300.009. Paid to Market Furntirue Co. on Account $400.0010.Frank Toews withdrew $100.00 from the business for his personal use.

Analyze the above using the T- Account pairs on the following page.

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Towes Travel Agency

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.