Type of account Assets Liabilities Stockholders' equity Operating revenues Operating expenses Non-operating revenues & gains Non-operating expenses & losses Normal balance Debit Credit Credit Credit Debit Credit Debit To increase Debit Credit Credit Credit Debit Credit Debit To decrease Credit Debit Debit Debit Credit Debit Credit In this chapter, we will record the transactions, similar to what we recorded in chapter one, in a T account form and prove the equality of both sides of the fundamental accounting equation using a trial balance. You will do the following: (1) Determine the balances of T accounts (2) Present the fundamental accounting equation using the T account form and label the plus and minus side of an account. (3) Prepare a trial balance. Assets Liabilities Equity TOTAL ASSETS TOTAL LIAB & EQUITY Trial Balance Cash Equipment Prepaid Insurance Truck sactions Peterson invests 3,000 Into company 250 is paid for rent (rent expense Co. borrows 25,000 from bank. Co. buys inventory. 5.000. Co. buys truck for 8,000 Co. buys building for 12,000 Sale on account for 6.000. Inventory cost 3,600 Expense paid with cash, 500 Insurance for next year is bought, 800 Expense on account. 600 11 Received 3.000 payment for AIR 12 Made a 300 payment on A/P Accounts Payable Note Payable Bank Loan Revenue Capital, Peterson Type of account Assets Liabilities Stockholders' equity Operating revenues Operating expenses Non-operating revenues & gains Non-operating expenses & losses Normal balance Debit Credit Credit Credit Debit Credit Debit To increase Debit Credit Credit Credit Debit Credit Debit To decrease Credit Debit Debit Debit Credit Debit Credit In this chapter, we will record the transactions, similar to what we recorded in chapter one, in a T account form and prove the equality of both sides of the fundamental accounting equation using a trial balance. You will do the following: (1) Determine the balances of T accounts (2) Present the fundamental accounting equation using the T account form and label the plus and minus side of an account. (3) Prepare a trial balance. Assets Liabilities Equity TOTAL ASSETS TOTAL LIAB & EQUITY Trial Balance Cash Equipment Prepaid Insurance Truck sactions Peterson invests 3,000 Into company 250 is paid for rent (rent expense Co. borrows 25,000 from bank. Co. buys inventory. 5.000. Co. buys truck for 8,000 Co. buys building for 12,000 Sale on account for 6.000. Inventory cost 3,600 Expense paid with cash, 500 Insurance for next year is bought, 800 Expense on account. 600 11 Received 3.000 payment for AIR 12 Made a 300 payment on A/P Accounts Payable Note Payable Bank Loan Revenue Capital, Peterson