Accounting Chap 2 notes:

- T account- device used to analyze transactions

- Left side: Debit [assets]

- Right side: Credit [liabilities + owner's capital]
- Debit/Credit are just titles

- The side of the account increased-normal balance

- Chart of accounts: list of accounts used by a business

Transactions:

Received $2,000 cash from owner as investment Cash and Owners equity is cash is an asset,
so Debit Increases $ 2,000 Credit increase $2,000

Paid cash for supplies Debit increases $165 Credit decreases 165

Paid Cash for insurance Debit Increases $900 Credit decreases $900

Bought $220 supplies from canyon office supplies on account Debit increases $220

Paid $100 cash on account to canyon office supplies Debit decreases $100 credit decrease
$100
Received cash on sales Debit increases $1,100 Credit Increases $1,100

Sold Services on Account to main st Services $500 Debit + Credit both Increase $500

Paid $80 for cellphone bill Debit decrease under assets - debit and credit Increase under
Liabilities

Received $200 Cash on account from main st services Debit increases credit Decreases

Owners Withdrew Equity Credit decreases under assets Debit -increases Under Normal
Balance decreases under liabilities