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Drawing T Accounts (On the board)
Definitions
Types of Accounts
Debit or Credit?
What accounts are being used?
100

The company starts with an owner’s cash investment of $50,000 into the business.

On the board


100
A business that preforms a activity for a fee.
What is service business?
100
A transaction for the sale of goods or services results in an increase in owners equity.
What is revenue?
100

An increase in cash.

Debit

100

Purchased additional inventory for $3,000, paying cash

Cash and Inventory


200

Bought inventory worth $8,000 on account (credit) from a supplier.

On the board


200
An equation showing the relationship among assets, liabilites, and owners equity.
What is accounting equation?
200
A decrease in owners equity resulting from the operation a business.
What is expense?
200

An increase in expense requires a?

What is debit?

200

Provided services to a client for $3,000, billed on account (credit).

Service Revenue/Fees Earned
Accounts Receivable

300

Paid $2,000 of the accounts payable owed to the supplier.

On the Board

300

What is the name of the statement that shows a businesses' financial position. 

The Balance Sheet

300
located on the left side of the accounting equation.
What is Assets?
300
amount recorded on the right side of the accounting equation.
What is credit?
300

Paid salaries to employees, $4,500, in cash.

Cash and Salaries Expense

400

March 2, 2025: Purchased equipment for $10,000, paying $4,000 in cash and signing a note payable for the remaining $6,000.

Equipment - Debited 10000

Cash Credited 4000

Note Payable Credited 6000


400

The account used to summarize the owners equity in a business.

What is captial?

400
Assets taken out of a business for the owners personal use.
What is withdrawals?
400

A decrease in liability?

Debit

400

The owner withdrew $1,000 cash for personal use.

Cash and Capital (or Withdrawal)

500

Sold inventory costing $5,000 for $9,000 cash to a customer.

Answer on Board
500
The amount in an account
What is account balance?
500

An example of an owners equity account

What is capital?

500

An increase in Revenue

A credit

500

Paid utility bill of $300 in cash.

Utility Expense
Cash