Learning Objectives

1. Set up T accounts for assets, liabilities, and owner’s equity.
2. Analyze business transactions and enter them in the accounts.
3. Determine the balance of an account.
4. Set up T accounts for revenue and expenses.
5. Prepare a trial balance from T accounts.
6. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
7. Develop a chart of accounts.
8. Define the accounting terms new to this chapter.