T-Accounts  Answers
	A T-account is an informal, visual aid used in double-entry bookkeeping to represent an individual general ledger account. It is named for its resemblance to the letter "T" and is a fundamental tool for understanding and tracking how financial transactions affect a business's accounts.
	Key components and functions:
	Account Title: Written above the horizontal line (e.g., "Cash," "Accounts Payable").
	Debits (DR): Recorded on the left side of the vertical line. For asset and expense accounts, debits increase the balance, while for liability, equity, and revenue accounts, they decrease the balance.
	Credits (CR): Recorded on the right side of the vertical line. For liability, equity, and revenue accounts, credits increase the balance, while for asset and expense accounts, they decrease the balance.
	Visualization and Balancing: T-accounts help visualize that every transaction has an equal and opposite effect (a debit and a credit) to keep the accounting equation (Assets = Liabilities + Equity) in balance. The final step is to total each side and find the difference to determine the account's ending balance.
			Cash					Inventory					Owner's Equity-Mia
				Debit	Credit	Balance			Debit	Credit	Balance			Debit	Credit	Balance
Transactions			Ref #	Increase	Decrease			Ref #	Increase	Decrease			Ref #	Decrease	Increase
Transaction 1	Investing in the Business		1	5.00		5.00		5	6.00		6.00		1		3.00	3.00		Closing Books-Entries
	Mia invests $3.00 and Leo invests $2.00		2	5.00		10.00		6		6.00	0.00		CE-1	2.75		0.25		CE -Closing Entry	Increase	Decrease
Transaction 2	Loan to the business		3		10.00	0.00		9	7.00		7.00		CE-2		5.25	5.50			Debit	Credit
	Mia loans the business $5.00		4	6.00		6.00		10		7.00	0.00							Owner Draws-Leo		2.75
Transaction 3	Purchase of Equipment		5		6.00	0.00												Owner Draws-Mia		2.75
	Mia wrote a check for $10.00 for Equipment		6	10.00		10.00												Owner Equity-Leo	2.75
Transaction 4	Mom's Loan-Accounts Payable		7		10.00	0.00												Owner's Equity-Mia	2.75
	Mom Loans the business $6.00		8	7.00		7.00
	Accounts Payable-Mom		9		7.00	0.00												Close Owner Draws
Transaction 5	Purchase of Inventory		10	13.50		13.50												to Owners Equity Accounts
	Mia wrote a check for $6.00 to purchase Inventory		11		8.00	5.50
Transaction 6	Sales Day 1-$10.00		12		5.50	0.00												Sales	23.50
	Sales were $10.00 and  Cost Of Sales were $6.00																	Cost Of Sales		13.00
	Cash Received was $10.00 and Inventory decreased by $6.00																	Owner Equity-Leo		5.25
Transaction 7	Paying Off Debts		Equipment										Owner Equity-Leo					Owner Equity-Leo		5.25
	Mia pays off Accounts Payable to Mom of $6.00 And			Debit	Credit	Balance								Debit	Credit	Balance
	Mia pays off $4.00 of her loan balance -Loans Payable-Mia.		Ref #	Increase	Decrease								Ref #	Decrease	Increase			Transfer Profit of $10.50
Transaction 8	Mia Loan to Business		3	10.00		10.00							1		2.00	2.00		To Owner Equity Accounts
	Mia loans the business $7.00												CE-1	2.75		-0.75
Transaction 9	Purchase of Inventory from Mom												CE-2		5.25	4.50		Bookkeeping closing entries are journal entries
	Mia pays Mom $7.00 for Invemtory																	made at the end of an accounting period to transfer
Transaction 10	Sales Day 2-$13.50																	the balances of temporary accounts
	Sales were $13.50 and  Cost Of Sales were $7.00																	(Income Statement Accounts) to permanent accounts
	,Cash Received was $13.50 and Inventory decreased by $7.00																	(Balance Sheet Accounts), effectively resetting
Transaction 11	Paying Debts																	the temporary accounts to zero.
	Mia pays herself $8.00 for the Loan still owed to her.
Transaction 12	Paying Owners		Accounts Payable-Mom					Notes Payable-Mia					Owner Draws-Leo
	The kids wat to draw out some money.			Debit	Credit	Balance			Debit	Credit	Balance			Debit	Credit	Balance
	Mia pays Leo $2.75 and herself $2.75		Ref #	Decrease	Increase			Ref #	Decrease	Increase			Ref #	Increase	Decrease
	for a total cash outlay of $5.50.		4		6.00	6.00		2		5.00	5.00		12	2.75		2.75
			7	6.00		0.00		7	4		1.00		CE-1		2.75	0.00
Closing	See Formal Entries in the Upper Right Corner of the Sheet							8		7.00	8.00
Entries								11	8		0.00
CE-1	Transfer Owner Draws To Equity		See Formal Entries in the Upper Right Corner of the Sheet
	Owner Equity-Leo $2.75
	Owner Equity -Mia $2.75
	Owner Draws-Leo -$2.75
	Owner Draws-Mia -$2.75
CE-2	Transfer Profits of $10.50 to Owner Equity		Sales					Cost Of Sales					Owner Draws-Mia
	Sales $13.50			Debit	Credit	Balance			Debit	Credit	Balance			Debit	Credit	Balance
	Cost Of Sales -$13.00		Ref #	Decrease	Increase			Ref #	Increase	Decrease			Ref #	Increase	Decrease
	Owner Equity-Leo $5.25		6		10.00	10.00		6	6.00		6.00		12	2.75		2.75
	Owner Equity-Mia -$5.25		11		13.50	23.50		10	7.00		13.00		CE-1		2.75	0
			CE-2	23.50	13.50	13.50		CE-2		13.00	0.00
	Reference Formal  Closing Entry
	in Upper Right Corner of this Sheet
	Accounting Equation (Balance Sheet Equation)
	Balances after Posting Transactions		Accounting Equation
			Assets = Liabilities + Owner Equity
	Transaction 1  Investing In Business		5.00	0.00	5.00
	Transaction 2 Loan to Business-Mia		10.00	5.00	5.00
	Transaction 3 Purchase Inventory		10.00	5.00	5.00
	Transaction 4 Mom Loan To Business		16.00	11.00	5.00
	Transaction 5 Purchase Of Inventory		16.00	11.00	5.00
	Transaction 6 Day 1 Sales		20.00	11.00	9.00
	Transaction 7 Pay Off Debts		10.00	1.00	9.00
	Transaction 8 Loan To Business-Mia		17.00	8.00	9.00
	Transaction 9 Purchase Inventory-Mom		17.00	8.00	9.00
	Transaction 10 Dales Day 2		23.50	8.00	15.50
	Transaction 11 Paying Debts		15.50	0.00	15.50
	Transaction 12 Pay Owner Draws		10.00	0.00	10.00
			Note: Must Always Balance