Chapter 2

Starting a Proprietorship:
Changes that Affect Owner's Equity

ESSENTIAL QUESTIONS

What transactions affect owner's equity for a service business organized as a proprietorship? What are some changes in the accounting equation that affect owner's equity for a service business organized as a proprietorship? How is a balance sheet prepared for a service business organized as a proprietorship from information in an accounting equation?

TERMS FOR CHAPTER 2

- revenue - expense

- sale on account - withdrawals

ASSIGNMENTS

How Transactions Change Owner's Equity in an Accounting Equation What transactions affect owner's equity for a service business organized as a proprietorship? What are some changes in the accounting equation that affect owner's equity for a service business organized as a proprietorship? Read pp. 24-29 1) View Power Point presentation 2-1 2) Complete Application Problems 2-1 & 2-2 pp. 33-34 3) Work on Study Guide 2 September 29-29 Reporting a Changed Accounting Equation on a Balance Sheet How is a balance sheet prepared for a service business organized as a proprietorship from information in an accounting equation? Read pp. 30-32 1) View Power Point presentation 2-2 2) Complete Application Problem 2-3 p. 35 3) Complete Study Guide 2 September 30

Complete Mastery Problem 2-4 pp. 35-36 October 1 Additional Chapter exercises SBA exercise see Aplia course materials September 29- October 5 Tentative Test Date for Chapter 2 is Monday, October 5 Challenge Problem 2-5 p. 36 may be completed and substituted for any graded assignment completed for chapter 2 due by Oct. 6