Prepared by Coby Harmon University of California, Santa Barbara Westmont College

Prepared by
Coby Harmon
2-1 University of California, Santa Barbara
Copyright ©2015 Pearson Education Inc. All rights reserved.
Westmont College
Learning Objective
1. Explain what a transaction is
2-2 Copyright ©2015 Pearson Education Inc. All rights reserved.

EXPLAIN WHAT A TRANSACTION IS
Transaction
 Any event that has a financial impact on the business
 Can be measured reliably
 Provides information about an exchange
► Something given
► Something received
 Accounting records both sides of a transaction

LO 1
EXPLAIN WHAT A TRANSACTION IS
Transaction Examples
Whole Foods Market, Inc.
Purchase
Sell product
fresh produce
Borrow money Repay a loan

LO 1
Learning Objective
2. Define “account,” and list and differentiate

between different types of accounts

DEFINE “ACCOUNT,” AND LIST AND
DIFFERENTIATE BETWEEN DIFFERENT
TYPES OF ACCOUNTS
Stockholders’
Assets = Liabilities + Equity
Account
 Record of all changes in a particular asset, liability, or
stockholders’ equity during a period
 Basic summary device

LO 2
Assets
Economic resources that provide a future benefit
Money including bank account balances,

Cash paper currency, coins, certificates of
deposit, and checks
Accounts Promise for future collection of cash from

Receivable the sale of goods or providing services
 Promise for future collection of cash

Notes
Receivable  Customer signed note
 Interest rate

LO 2
Assets
Inventory Goods the company sells to customers
Prepaid Expenses paid in advance, such as

Expenses insurance and rent
Land Cost of land used in operations

LO 2
Assets
Building Cost of buildings used in operations
 Cost of furniture, fixture, and equipment

Equipment,
used in operations
Furniture, and
Fixtures  Includes heating and air conditioning,
computers, and office furniture
 Depreciated

LO 2
Liabilities
A liability is a debt
Accounts
Promise to pay a debt
Payable
Signed notes promising to pay a future

Notes Payable
amount
Accrued Liability for an expense not yet paid

Liabilities

LO 2
Stockholders’ (Owners’) Equity
Owners’ claims to the assets of a corporation
Common Owners’ investment in the corporation

Stock through the ownership of stock
Retained Net income (loss) earned over the

Earnings company’s lifetime, minus dividends
 Distribution to stockholders
Dividends
 Declared by board of directors

LO 2
Stockholders’ (Owners’) Equity
Owners’ claims to the assets of a corporation
Increase in stockholders’ equity from

Revenues
delivering goods or services to customers
Decrease in stockholders’ equity due to

Expenses
the cost of operating the business

LO 2
Name two things that (1) increase Whole Foods Market,
Inc.’s stockholders’ equity and (2) decrease Whole Foods
Market, Inc.’s stockholders’ equity.
Answer:
(1) Increases in stockholders’ equity: Sale of stock and net
income (revenue greater than expenses).
(2) Decreases in stockholders’ equity: Dividends and net

loss (expenses greater than revenue).
2-13 Advance slide in presentation mode to reveal answers. LO 2

Learning Objective
3. Show the impact of business transactions on the

accounting equation

SHOW THE IMPACT OF BUSINESS
TRANSACTIONS ON THE ACCOUNTING
EQUATION
Example: Freddy’s Auto Service, Inc.
To illustrate the accounting for transactions, let’s assume
Freddy Kish opened Freddy’s Auto Service, Inc., in April 2014.

LO 3
Transaction 1. On April 1, Freddy Kish and a few friends invest $50,000 to
open Freddy’s Auto Service, Inc., in return for common stock.
1. +50,000 +50,000

LO 3
Transaction 2. Freddy’s purchases land for a new location and pays cash
of $40,000.
1. +50,000 +50,000
2. -40,000 +40,000

LO 3
Transaction 3. The business buys supplies on account, agreeing to pay
$3,700 within 30 days.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700

LO 3
Transaction 4. Freddy’s received $7,000 cash by providing services for
customers.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 Service revenue +7,000

LO 3
Transaction 5. Freddy’s repairs a fleet of UPS delivery trucks, and UPS
promises to pay Freddy’s $3,000 within one month.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 Service revenue +3,000

LO 3
Transaction 6. Freddy’s Auto Service, Inc., pays $2,700 for the following
expenses: rent, $1,100; employee salaries, $1,200; and utilities, $400.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 Rent expense - 1,100
Salary expense - 1,200
Utilities expense - 400

LO 3
Transaction 7. Freddy’s pays $1,900 on account, which means to make a
payment toward an account payable.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 - 2,700
7. -1,900 -1,900

LO 3
Transaction 8. Freddy Kish, the major stockholder of Freddy’s Auto
Service, paid $30,000 from his personal bank account to remodel his home.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 -2,700
7. -1,900 -1,900
No Entry

LO 3
Transaction 9. In transaction 5, Freddy’s performed services for UPS on
account. The business now collects $1,000 from UPS.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 -2,700
7. -1,900 -1,900
9. +1,000 -1,000

LO 3
Transaction 10. Freddy’s receives $22,000 from the sale of land, which is
the same amount that Freddy’s paid for the land.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 -2,700
7. -1,900 -1,900
9. +1,000 -1,000
10. +22,000 -22,000

LO 3
Transaction 11. Freddy’s Auto Service, Inc., declares a dividend and pays
the stockholders $2,100 cash.
1. +50,000 +50,000
2. -40,000 +40,000
3. +3,700 +3,700
4. +7,000 +7,000
5. +3,000 +3,000
6. -2,700 -2,700
7. -1,900 -1,900
9. +1,000 -1,000
10. +22,000 -22,000
11. -2,100 Dividends -2,100

LO 3
Financial Statements
Exhibit 2-2 | Financial Statements of Freddy’s Auto Service, Inc.

LO 3

LO 3

LO 3
Illustration
Dr. Luke opened a medical practice specializing in physical
therapy. During the first month of operation (February), the
business, titled Dr. Luke, Professional Corporation (P.C.),
experienced several events.
Requirement
Analyze the effects of the following events on the accounting
equation of the medical practice of Dr. Luke, P.C.

LO 3
Feb. 1 Dr. Luke invested $100,000 in the business in return for
common stock.
2-31 Advance slide in presentation mode to reveal answer LO 3

Feb. 5 The business borrowed $50,000, signing a note payable to
the bank.
2-32 LO 3
Feb. 8 The business paid cash for land costing $105,000. Luke
plans to build an office building on the land.

LO 3
Feb. 11 The business purchased medical supplies for $1,700 on
account.

LO 3
Feb. 12 Dr. Luke, P.C., officially opened for business.
No Entry

LO 3
Feb. 14 Dr. Luke treated patients and earned service revenue of
$5,600, receiving cash for half the revenue earned.
Service Revenue

LO 3
Feb. 16 The business paid employee salaries of $2,300 for the first
half of the month.
Salaries Expense

LO 3
Feb. 25 Dr. Luke treated patients and received $1,500 cash at the
time of service.
Service Revenue

LO 3
Feb. 28 The business paid office rent of $1,000.
Rent Expense

LO 3
Feb. 28 The business paid $500 on account.
$155,500 $155,500

LO 3
Illustration
Requirements
Using the data from the transaction analysis of the medical practice
of Dr. Luke, P.C., answer the following questions.
a. How much are total assets?
b. How much does the business expect to collect from patients?
c. How much does the business owe in total?
d. How much of the business’s assets does Luke really own?
e. How much net income or net loss did the business
experience during its first month of operations?

LO 3
a. How much are total assets?
$ 155,000
$155,000 $155,000

LO 3
b. How much does the business expect to collect from
patients?
$ 2,800

LO 3
c. How much does the business owe in total?
$ 51,200

LO 3
d. How much of the business’s assets does Luke
really own?
$ 103,800

LO 3
e. How much net income or net loss did the business
experience during its first month of operations?
$ 3,800

LO 3
Learning Objective
4. Analyze the impact of business transactions on

accounts

ANALYZE THE IMPACT OF BUSINESS
TRANSACTIONS ON ACCOUNTS
Accounting
 Double-entry system
 Each transaction affects at least two accounts

LO 4
The T-Account
 Record of increases and decreases in
a specific asset, liability, equity,
Account
revenue, or expense element
 Debit = “Left”
 Credit = “Right”
An Account can
be illustrated in a
T-Account form

LO 4
Increases and Decreases in the Accounts:
The Rules of Debit and Credit
Exhibit 2-3 | Accounting Equation and the Rules of Debit and Credit
The type of account determines how to record

increases and decreases.

LO 4
Increases and Decreases in the Accounts:
The Rules of Debit and Credit
To illustrate, Freddy’s Auto Service, Inc., received $50,000 and
issued (gave) stock. What is the effect on the accounts?
Cash Common Stock

Debit for Credit for
increase, increase,
50,000 50,000
Exhibit 2-4 | The Accounting

Equation after Freddy’s Auto
Service’s First Transaction
2-51 LO 4
Freddy’s’ second transaction is a $40,000 cash purchase of
land. What is the effect on the accounts?
Cash Common Stock

Bal 50,000 Credit for Bal 50,000
decrease,
40,000
Bal 10,000
Exhibit 2-5 | The Accounting

Equation after Freddy’s Auto
Land Service’s First Two Transactions
Debit for
increase,
40,000
Bal 40,000

LO 4
Additional Stockholders’ Equity Accounts:
Revenues and Expenses
Two categories of income statement accounts
Increase in stockholders’ equity from

Revenues
delivering goods or services to customers
Decrease in stockholders’ equity due to

Expenses
the cost of operating the business

LO 4
Additional Stockholders’ Equity Accounts:
Revenues and Expenses
Exhibit 2-6 | Expansion of the Accounting Equation

+
Common Stock
Assets Liabilities
+
Retained Earnings
-
Dividends
Stockholders’
Equity +
Revenues
-
Expenses

LO 4
Final Form of the Rules of Debit and Credit
Exhibit 2-7

LO 4
Final Form of the Rules of Debit and Credit
Exhibit 2-7

LO 4
Learning Objective
5. Record (journalize and post) transactions in the

books

RECORD (JOURNALIZE AND POST)
TRANSACTIONS IN THE BOOKS
Journal
 Chronological record of transactions
 Three steps
1. Specify each account affected by the transaction and
classify by type
2. Determine if each account is increased or decreased

(debit or credit)
3. Record in the journal

LO 5
RECORD (JOURNALIZE AND POST)
TRANSACTIONS IN THE BOOKS
Steps to journalize the first transaction of Freddy’s Auto Service
Step 1 Business receives $50,000 cash and issues stock
Step 2 Both Cash and Common Stock increase
Step 3 Journalize the transaction:
A B C D
1 Date Accounts and Explanations Debit Credit
2 Apr 1 Cash 50,000
3 Common Stock 50,000
4 Issued common stock.

LO 5
Individual
asset
accounts
Individual
liability
accounts
Individual
equity
accounts
Exhibit 2-8 | The Ledger (Asset, Liability, and

Stockholders’ Equity Accounts)
LO 5
Copying Information (Posting) from the
Journal to the Ledger Exhibit 2-9 | Journal Entry
and Posting to the Accounts
A B C D
1 Date Accounts and Explanations Debit Credit
2 Apr 1 Cash 50,000
4 Issued common stock.
Cash Common Stock

Posting
to the
Accounts
50,000 50,000

LO 5
The Flow of Accounting Data
Transaction Occurs
Transaction Analyzed
Transaction Entered in the Journal
Amounts Posted to the Ledger

Accounts

LO 5
Transactions from Freddy’s Auto Service
(1) Received $50,000 cash and issued stock to the owners
Accounting Assets = Liabilities + Stockholders’ Equity

Equation
+ 50,000 + 50,000
Journal A B C
Entry 1 Cash 50,000
Ledger Cash Common Stock

Accounts
(1) 50,000 (1) 50,000
2-63 Advance slide in presentation mode to reveal answers LO 5

(2) Paid $40,000 cash for land

Equation
+ 40,000
- 40,000
Journal A B C
Entry 1 Land 40,000
2 Cash 40,000
Ledger Cash Land

Accounts
(1) 50,000 (2) 40,000 (2) 40,000

LO 5
(3) Purchased supplies for $3,700 on account

Equation
+ 3,700 + 3,700
Journal A B C
Entry 1 Supplies 3,700
2 Accounts Payable 3,700
Ledger Supplies Accounts Payable

Accounts
(3) 3,700 (3) 3,700

LO 5
(4) Performed services for clients and received cash of $7,000
Accounting Assets = Liabilities + Stockholders’ Equity + Revenues

Equation
+ 7,000 + 7,000
Journal A B C
Entry 1 Cash 7,000
2 Service Revenue 7,000
Ledger Cash Service Revenue

Accounts
(1) 50,000 (2) 40,000 (4) 7,000
(4) 7,000
LO 5
(5) Performed services for a customer on account, $3,000
Accounting Assets = Liabilities + Stockholders’ Equity + Revenues

Equation
+ 3,000 + 3,000
Journal A B C
Entry 1 Accounts Receivable 3,000
2 Service Revenue 3,000
Ledger Accounts Receivable Service Revenue

Accounts
(5) 3,000 (4) 7,000
(5) 3,000
LO 5
(6) Paid cash expenses: rent, $1,100; employee salary, $1,200;
utilities, $400
Accounting Assets = Liabilities + Stockholders’ Equity - Expenses

Equation
- 2,700 - 2,700
Journal A B C
Entry 1 Rent Expense 1,100
2 Salary Expense 1,200
3 Utilities Expense 400
4 Cash 2,700

LO 5
(6) Paid cash expenses: rent, $1,100; employee salary, $1,200;
utilities, $400
Journal A B C
Entry 1 Rent Expense 1,100
2 Salary Expense 1,200
3 Utilities Expense 400
4 Cash 2,700
Rent Salary Utilities

Cash Expense Expense Expense
(1) 50,000 (2) 40,000 (6) (6) (6)
(4) 7,000 (6) 2,700
1,100 1,200 400
LO 5
(7) Paid $1,900 on the account payable created in transaction 3

Equation
- 1,900 - 1,900
Journal A B C
Entry 1 Accounts Payable 1,900
2 Cash 1,900
Ledger Cash Accounts Payable

Accounts
(1) 50,000 (2) 40,000 (7) 1,900 (3) 3,700
(4) 7,000 (6) 2,700
(7) 1,900
LO 5
(9) Received $1,000 on account

Equation + 1,000
- 1,000
Journal A B C
Entry 1 Cash 1,000
2 Accounts Receivable 1,000
Ledger Cash Accounts Receivable

Accounts
(1) 50,000 (2) 40,000 (5) 3,000 (9) 1,000
(4) 7,000 (6) 2,700
(9) 1,000 (7) 1,900
2-71 LO 5
(10) Sold land for cash at the land’s cost of $22,000

Equation + 22,000
- 22,000
Journal A B C
Entry 1 Cash 22,000
2 Land 22,000
Ledger Cash Land

Accounts
(1) 50,000 (2) 40,000 (2) 40,000 (10) 22,000
(4) 7,000 (6) 2,700
(9) 1,000 (7) 1,900
(10) 22,000
2-72 LO 5
(11) Declared and paid a dividend of $2,100 to the stockholders
Accounting Assets = Liabilities + Stockholders’ Equity - Dividends

Equation
- 2,100 - 2,100
Journal A B C
Entry 1 Dividends 2,100
2 Cash 2,100
Ledger Cash Dividends

Accounts
(1) 50,000 (2) 40,000 (11) 2,100
(4) 7,000 (6) 2,700
(9) 1,000 (7) 1,900
(10) 22,000 (11) 2,100
2-73 LO 5
Accounts after Posting to the Ledger
Exhibit 2-11 | Freddy’s Auto Service, Inc.’s Ledger Accounts after Posting
2-74 LO 5
Accounts
after
Posting to
the Ledger
Exhibit 2-11 | Freddy’s

Auto Service, Inc.’s
Ledger Accounts after
Posting (partial)
2-75
Accounts
after
Posting to
the Ledger
Exhibit 2-11 | Freddy’s

Auto Service, Inc.’s
Ledger Accounts after
Posting (partial)
2-76
Illustration
Architect Wendy Lim purchased supplies on account for $5,000.
Later Wendy paid $1,400 on account. Journalize the two
transactions on the books of Wendy Lim, architect.
Account Debit Credit

Supplies 5,000
Accounts Payable 5,000

Cash 1,400
2-77 LO 5
Post the journal entries to
Illustration T-accounts

Journal Supplies 5,000
Entries Accounts Payable 5,000

Cash 1,400
Cash Supplies Accounts Payable
1,400 5,000 1,400 5,000
2-78 LO 5
Illustration

Journal Supplies 5,000
Entries Accounts Payable 5,000

Cash 1,400
Cash Supplies Accounts Payable
1,400 5,000 1,400 5,000

Bal 3,600
How much does the business owe?

2-79 LO 5
Learning Objective
6. Construct and use a trial balance
2-80
CONSTRUCT AND USE A TRIAL BALANCE
Trial Balance
 Lists all accounts with their balances
 Assets listed first, then liabilities and stockholders’
equity
 Shows that debits equal credits
 Usually prepared at the end of the period
 Facilitates preparation of the financial statements

LO 6
Analyzing Accounts
Suppose Freddy’s Auto Service began May with cash of
$1,000. During May, Freddy’s received cash of $8,000 and
ended the month with a cash balance of $3,000.
You can compute total cash payments by analyzing Freddy’s

Cash account:
Cash
Beginning balance
Cash receipts Cash payments *
1,000
Ending balance
8,000 6,000
3,000
* 1,000 + 8,000 - 3,000 = 6,000
LO 6
Analyzing Accounts
You can compute either sales on account or cash collections
on account by analyzing the Accounts Receivable account
(using assumed amounts):
Accounts Receivable
Beginning balance
Sales on account Collections on account *
6,000
Ending balance
10,000 11,000
5,000
* 6,000 + 10,000 - 5,000 = 11,000

LO 6
Analyzing Accounts
You can determine how much you paid on account by
analyzing Accounts Payable (using assumed amounts):
Accounts Payable
Beginning balance
Payments on account * Purchases on account
9,000
4,000 Ending balance
6,000
11,000
* 9,000 + 6,000 - 11,000 = 4,000

LO 6
Correcting Accounting Errors
• Trace each account from journal to

Missing account
ledger
Divide out-of- • Reversing debits and credits doubles

balance amount
by 2 the error
Divide out-of- • If an integer (no decimals), error may be

balance amount
by 9 a slide or transposition

LO 6
Chart of Accounts
Exhibit 2-13 | Chart of Accounts—Freddy’s Auto Service, Inc.

LO 6
The Normal Balance of an Account
Exhibit 2-14 | Normal Balances of the Accounts

LO 6
Account Formats
Two Formats:
 T-account
 Four column
Exhibit 2-15 | Account in Four-Column Format

LO 6
Analyzing Transactions Using Only
T-Accounts
 Decisions often are made without a complete
accounting system
 T-accounts allow managers to analyze transactions
quickly

LO 6
Analyzing Transactions Using T-Accounts
For example, the managers of Whole Foods Market, Inc.,
may consider borrowing $100,000 to buy equipment. To see
how the two transactions affect Whole Foods Market, Inc., the
manager can go directly to T-accounts.
(a) Borrow Cash
(b) Buy Equipment (a) 100,000 (b) 100,000
Equipment Note Payable

(b) 100,000 (a) 100,000

LO 6
Copyright
This work is protected by United States copyright law and is

provided solely for the use of instructors in teaching their courses
and assessing student learning. Dissemination or sale of any part of
this work (including on the World Wide Web) will destroy the integrity
of the work and is not permitted. The work and materials from it
should never be made available to students except by instructors
using the accompanying text in their classes. All recipients of this
work are expected to abide by these restrictions and to honor the
intended pedagogical purposes and the needs of other instructors
who rely on these materials.

Prepared by Coby Harmon University of California, Santa Barbara Westmont College

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Prepared by Coby Harmon University of California, Santa Barbara Westmont College

Загружено:

Авторское право:

Доступные форматы

Prepared by

1. Explain what a transaction is

2-2 Copyright ©2015 Pearson Education Inc. All rights reserved.

 Accounting records both sides of a transaction

2-3 Copyright ©2015 Pearson Education Inc. All rights reserved.

Whole Foods Market, Inc.

Borrow money Repay a loan

2-4 Copyright ©2015 Pearson Education Inc. All rights reserved.

2. Define “account,” and list and differentiate

2-5 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-6 Copyright ©2015 Pearson Education Inc. All rights reserved.

Money including bank account balances,

Accounts Promise for future collection of cash from

 Promise for future collection of cash

2-7 Copyright ©2015 Pearson Education Inc. All rights reserved.

Inventory Goods the company sells to customers

Prepaid Expenses paid in advance, such as

Land Cost of land used in operations

2-8 Copyright ©2015 Pearson Education Inc. All rights reserved.

Building Cost of buildings used in operations

 Cost of furniture, fixture, and equipment

2-9 Copyright ©2015 Pearson Education Inc. All rights reserved.

Signed notes promising to pay a future

Accrued Liability for an expense not yet paid

2-10 Copyright ©2015 Pearson Education Inc. All rights reserved.

Common Owners’ investment in the corporation

Retained Net income (loss) earned over the

2-11 Copyright ©2015 Pearson Education Inc. All rights reserved.

Increase in stockholders’ equity from

Decrease in stockholders’ equity due to

2-12 Copyright ©2015 Pearson Education Inc. All rights reserved.

(2) Decreases in stockholders’ equity: Dividends and net

2-13 Advance slide in presentation mode to reveal answers. LO 2

3. Show the impact of business transactions on the

2-14 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-15 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-16 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-17 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-18 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-19 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-20 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-21 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-22 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-23 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-24 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-25 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-26 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-27 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-28 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-29 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-30 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-31 Advance slide in presentation mode to reveal answer LO 3

2-33 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-34 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-35 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-36 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-37 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-38 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-39 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-40 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-41 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-42 Copyright ©2015 Pearson Education Inc. All rights reserved.

2-43 Copyright ©2015 Pearson Education Inc. All rights reserved.