The document discusses how various business transactions affect owner's equity accounts. It provides examples of receiving cash from sales, selling services on account, paying cash for an expense, receiving cash on account, and paying cash to the owner for personal use. For each transaction, it lists the affected accounts, how they are classified, how the classification changes, and how the amounts are entered in the accounts.

1. LESSON 2-3 Analyzing How Transactions Affect Owner’s Equity Accounts

2. RECEIVED CASH FROM SALES LESSON 2-3 page 38 August 12. Received cash from sales, $295.00. 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? 1 1 3 3 4 4 2 2

3. SOLD SERVICES ON ACCOUNT LESSON 2-3 page 39 August 12. Sold services on account to Oakdale School, $350.00. 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? 1 1 3 3 4 4 2 2

4. PAID CASH FOR AN EXPENSE LESSON 2-3 page 40 August 12. Paid cash for rent, $300.00. 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? 1 1 4 4 2 2 3 3 3

5. RECEIVED CASH ON ACCOUNT LESSON 2-3 page 41 August 12. Received cash on account from Oakdale School, $200.00. 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? 1 1 3 3 4 4 2

6. PAID CASH TO OWNER FOR PERSONAL USE LESSON 2-3 page 42 August 12. Paid cash to owner for personal use, $125.00. 1. Which accounts are affected? 2. How is each account classified? 3. How is each classification changed? 4. How is each amount entered in the accounts? 4 4 2 2 3 3 3 1 1