For each transaction, indicate the effects in the assets, liabilities, or capital by placing the corresponding amount in the

appropriate columns specifying each

account then balance each column after

Assets Liabilities Equity

ACCOUNT AMOUNT ACCOUNT AMOUNT ACCOUNT AMOUNT
a. Paid
transportation
costs of Cash (P2,500) Transportation (P2,500)
officer for Expense
seminar,
P2,500
b. Bought
experiment
for P40,000
and made Equipment 40,000 Cash P1,500
partial
payment for
P15,000
Cash (15,000) Account 25,000
Payable
c. Receipt of
telephone bill
for the month Utilities 1,800 Utilities (18,000)
amounting to Payable Expense
P1,800
d. Customers
paid in
advance for
services to be Cash 25,000 Unearned 25,000
rendered in Income
the future,
P25,000
e. Availed
loan from the
bank and Cash 20,000 Loans 20,000
received Payable
P20,000
f. Owner
withdraw
cash to pay Cash (10,000) Rent Expense (10,000)
for office
rent, P10,000
g. Rendered
services to
customers in
the amount of
P7,500 with Accounts 5,000 Service 7,500
the customers Receivable Revenue
paying
P2,500
outright
h. Paid
electric bill Cash (3,000) Utilities (3,000)
of last month, Payment
P3,000
i. Rendered
services to
customers Unearned (10,000) Service 10,000
who paid in Income Revenue
advance,
P10,000
j. Purchased
supplies on
credit and Supplies (20,000) Notes 2,000
issued a Payable
promissory
note, P2,000
 P34,000 = P42,800 + P3,200

WORD PROBLEMS. Compute for the amount/s asked in the problems.

ASSETS LIABILITIES EQUITY

Company A had a total Assets of
P500,000, 75% of which comes P500,000 75% of Assets – P125,000[500,000-315,000]
from Liabilities. How much was P375,000[500,00x.75]
the total Equity?
Company B had a total Liabilities
of 120,000 and total Equity of 220,000[120,000+100,000] 120,000 100,000
P100,000. How much is the total
Assets?
Company C had a total Equity of
250,000 which is 50% of Assets. 500,000[250,000+250,000] 250,000 250,000 (50% of Assets)
How much is the total Liabilities?

ASSETS LIABILITIES EQUITY

The Total Assets increased Beginning 600,000 300,000 ½ of BA
by 150%. Liabilities 300,000
remained constant all Changing ↑ by 150% 0 900,000
throughout the year. If the 900,000[750x25%]
owner’s equity is 300,000
which is half of the
beginning balance of the
Total assets, how much is Ending 1,500.00 300,000 1,200,000
the change in total assets
amount?
 ASSETS LIABILITIES EQUITY
The liability of the Beginning (150% of Equity) 250,000 x2
company amounts to 750,000 500,000
250,000 and the equity is Changing 187,500 ↑ by 25%
twice the amount of the [750x25%]

liabilities. The amount of

assets is 150% of the
equity. What will be the Ending 937,500
ending balance of the total
assets if it would increase
by 25%?

ASSETS LIABILITIES EQUITY

The ending balance of Beginning 100% 270,833.33[325,000÷1.2] 54,166.67 216,666.66
assets is 325,000. If the Changing 20% 54,166.67

increase in assets is 20%.

If the increase in the
amount of assets is the
equal to the beginning Ending 325,000
liabilities, what is the
beginning balance or the
owner’s equity?

ASSETS LIABILITIES EQUITY

At the end of the year, the Beginning 240,000 60,000 180,000
assets of Creola were Changing 120,000[180,000-60,000] 100,000 20,000
360,000 and its owner’s
equity was 200,000.
During the year, assets Ending 360,000[240,000+120,000] 160,000 200,000[180,000+20,000]
increased by 120,000 and
equity increased by
20,000.

ASSETS LIABILITIES EQUITY

At the beginning of the Beginning 181,818.18 81,818.18 100,000 (55% of Assets)
year, Gigi had equity of Changing (50% of Changing)
100,000 which is 55% of 134,090.91
the assets. Assets increased Ending
to 250,000 and liabilities
decreased by 50% of the
change in assets.
JOURNALIZING

Mr. Cielito Andar, opens her own taxi fleet this month of December for the first time. In establishing the business, the following business transaction
occurred:

1 Invested cash, a service vehicle, computer, and furniture worth 400,000, 200,000, 30,000, and 6,000

3 Acquired 3 second-hand taxi cabs for 80,000 each for cash

5 Bought office supplies worth 8,000 on account

8 Paid 20,000 for taxes, permits, and licenses

10 Starred operations and received 5,000 from cash receipts

12 Paid 2,000 for the supplies purchased on account last December 5

15 Owner withdrew 6,000 for personal use

GENERAL
Date JOURNAL
Account Title & DEBIT CREDIT
Explanation
Dec 1 Cash P 4 0 0 0 0 0
Service Vehicle 2 0 0 0 0 0
Computer 3 0 0 0 0
Furniture 6 0 0 0
Andar, Capital P 6 3 6 0 0 0
Invested in the
business
3 Service Vehicle 2 4 0 0 0 0
Cash 2 4 0 0 0 0
80,000x3 taxis 4 8 0 0 0 0

5 Office Supplies 8 0 0 0
Accounts 8 0 0 0
Payables
Bought supplies 1 6 0 0 0
on account

8 Miscellaneous 2 0 0 0 0
Expenses
Cash 2 0 0 0 0
Paid Taxes, 4 0 0 0 0
Licenses, and
Permits

10 Cash 5 0 0 0
Service Revenue 5 0 0 0
Cash receipts 1 0 0 0 0

12 Accounts Payable 2 0 0 0
Cash 2 0 0 0
Paid supplies on 4 0 0 0
Dec 5

15 Andrew, 6 0 0 0
withdrawal
Cash 6 0 0 0
For personal use 1 2 0 0 0
Mr. Khalil Escarian, opens her own music studio this month of January for the first time. During the first month, the following business transaction occurred:

3 Owner transferred the following business: Cash of 80000, musical equipment worth 40000, and office supplies worth 5000

5 Paid rental space for 6,000

7 Rendered services to customers for cash amounting 3,500

9 Bought a laptop on account amounting to 30,000

11 Rendered services for cash amounting to 8,000

14 Paid 1,500 for the repairs of some musical equipment

16 Owner invested additional cash of 20,000

19 Customers availed services on account worth 13,000

GENERAL JOURNAL
Account Title & Explanation
Date DEBIT CREDIT
Jan 3 Cash P 8 0 0 0 0 0
Equipment 4 0 0 0 0 0
Office Supplies 5 0 0 0
Escava, Capital P 1 2 5 0 0 0
Invented to the business

5 Rent Expense 6 0 0 0
Cash 6 0 0 0
Paid rental space 1 2 0 0 0

7 Cash 3 5 0 0
Service Revenue 3 5 0 0
 Rendered service 7 0 0 0

9 Laptop 3 0 0 0 0
Accounts Payable 3 0 0 0 0
Bought laptop on account
6 0 0 0 0

11 Cash 8 0 0 0
Service Revenue 8 0 0 0
Rendered service 1 6 0 0 0

Repairs & Maintenance Expense

14 1 5 0 0
Cash 1 5 0 0
Paid for repairs 3 0 0 0

16 Cash 2 0 0 0 0
Escarian, Capital 2 0 0 0 0
Invented cash 4 0 0 0 0

19 Accounts Receivable 1 3 0 0 0
Service Revenue 1 3 0 0 0
Rendered service on account 3 0 0 0 0
On January 1, 2019, LAV Company started its operations. Below are the transactions for the month of January:

1 Lav, the owner, initially invested P100,000 cash in the business

2 Purchased supplies, P5,000

3 Provided services, P15,000

4 Paid rent, P3,000

5 The owner withdrew P2,000 cash from the business

Date GENERAL JOURNAL

Account Title & Explanation
DEBIT CREDIT
Jan 1 Cash P 1 0 0 0 0 0
Lav, Capital 1 0 0 0 0 0
Invented cash P 2 0 0 0 0 0

2 Supplies 5 0 0 0
Accounts Payable 5 0 0 0
Purchased Supplies 1 0 0 0 0

3 Accounts Receivable 1 5 0 0 0
Service Revenue 1 5 0 0 0
Rendered Service 3 0 0 0 0

4 Rent Expense 3 0 0 0
Cash 3 0 0 0
Paid Rent 6 0 0 0

5 Lav, withdrawal 2 0 0 0
Cash 2 0 0 0
Owner’s withdrawal 4 0 0 0
On April 1, Mercurial started her own beauty salon and had the following transactions:

1 Mercurial invested 120,500

4 Acquired equipment costing 59,000, paying 20,000 in cash and issuing a note payable for the balance

6 Paid rent for the month of April, 17,500

8 Acquired supplies on account, 15,250

10 Received 17,000 in cash from customers for services

12 Paid an outsourced work for 18,000

14 Paid salaries for 19,600

16 Billed 13,000 for services rendered to account customers

18 Paid supplies purchased

20 Paid utilities expense for 1,150

22 Received 7,000 from billed customers

24 Withdrew 5,000 from the salon for son’s laptop

Date GENERAL JOURNAL DEBIT CREDIT

Account Title
Apr 1 Cash P 1 2 0 5 0 0
Mercurial, Capital P 1 2 0 5 0 0

4 Equipment 5 9 0 0 0
Cash 2 0 0 0 0
Notes Payable 3 9 0 0 0
6 Rent Expense 1 7 5 0 0
Cash 1 7 5 0 0

8 Supplies 1 5 2 5 0
Accounts Payable 1 5 2 5 0

10 Cash 1 7 0 0 0
Service Revenue 1 7 0 0 0

12 Salaries Expense 1 8 0 0 0
Cash 1 8 0 0 0

14 Salaries Expense 1 9 6 0 0
Cash 1 9 6 0 0

16 Accounts Receivable 1 3 0 0 0
Service Revenue 1 3 0 0 0

18 Accounts Payable 1 5 2 5 0
Cash 1 5 2 5 0

20 Utilities Expense 1 1 5 0
Cash 1 1 5 0

22 Cash 7 0 0 0
Accounts Receivable 7 0 0 0

24 Mercurial, Withdrawal 5 0 0 0
Cash 5 0 0 0
Mr. A, a CPA, opened his accounting and consultancy office. The following are the transactions for the first month of operations. March:

1 The owner invested cash of 20,000 to the business

2 Hired 2 staffs for the office with salary of 15,000 per month

3 Bought office Supplies of 2,000

4 Bought equipment of 7,000 on account

5 Rendered accounting services to customer which immediately paid in cash amounting to 32,000

6 Paid the March 4 purchase

7 Billed the clients for the following services related: bookkeeping, 7,000 and consultancy, 45,000

15 Paid the salaries of the staffs 15,000

17 Owner withdrew 2,000 for personal use

20 Rendered service to customer on account amounting to P44,000

21 Collected 50% on the March 20 billing

25 Rendered consultancy services for 50,000

27 Rendered accounting services with the customer paying a down payment of 30%

29 Paid rent for the month, 15,000

30 Paid the salaries of staffs 15,000

31 Received utility bills to be paid next month

 Date GENERAL JOURNAL DEBIT CREDIT
Account Title
March 1 Cash P 2 0 0 0 0
Mr. A, Capital P 2 0 0 0 0

2 No entry

3 Supplies 2 0 0 0
Accounts Payable 2 0 0 0

4 Equipment 7 0 0 0
Accounts Payable 7 0 0 0

5 Cash 3 2 0 0 0
Service Revenue 3 2 0 0 0

6 Accounts Payable 7 0 0 0
Cash 7 0 0 0

7 Accounts Receivable 5 2 0 0 0
Service Revenue 5 2 0 0 0

15 Salaries Expense 1 5 0 0 0
Cash 1 5 0 0 0

16 Cash 5 2 0 0 0
Accounts Receivable 5 2 0 0 0

17 Mr. A, withdrawal 2 0 0 0
Cash 2 0 0 0

20 Accounting Receivable 4 4 0 0 0
Service Revenue 4 4 0 0 0
21 Cash 2 2 0 0 0
Accounts Receivable 2 2 0 0 0

25 Accounts Receivable 5 0 0 0 0
Service Revenue 5 0 0 0 0

27 Accounts Receivable 7 0 0 0
Cash 3 0 0 0
Service Revenue 1 0 0 0 0

29 Rent Expense 1 5 0 0 0
Cash 1 5 0 0 0

30 Salaries Expense 1 5 0 0 0
Cash 1 5 0 0 0

31 Utilities Expense 1 0 0 0
Utilities Payable 1 0 0 0
Explore Travel Company owned by Joe had the following transactions for the month of March

1 Joe invested cash worth P120,000 and supplies worth P10,000

2 Entered into contract of lease and made a rent deposit of P45,000

4 Paid for the worth P15,000

5 Bought supplies and paid amounting to P2,500

8 Bought a bus for P400,000, on account

10 Rendered service to clients and collected P3,000

12 Create a Bohol trip for the clients and collected commission amounting to P7,500

13 Entered into a with Yolo Travel Agency for processing of travel papers

15 Billed clients for processing of the employees, P25,000

Paid for the salaries of the employees, P15,000

16 Hired another employee with salary of P5,000

17 Joe withdraw P1,000 for personal use

18 Joe withdraw P1,000 for business expenses

24 Collected billings to client last Mar 15

26 Used supplies amounting to P1,000

29 Bought other supplies and paid against Joe’s personal bank account

30 Paid PLDT P4,000

 Paid Meralco P3,000

Date GENERAL JOURNAL DEBIT CREDIT

Account Title
March 1 Cash P 1 2 0 0 0 0
Supplies 1 0 0 0 0
Joe, Capital P 1 3 0 0 0 0

2 Prepaid Rent 4 5 0 0 0 0
Cash 4 5 0 0 0 0

4 Advertising Expense 1 5 0 0 0
Cash 1 5 0 0 0

5 Supplies 2 5 0 0
Cash 2 5 0 0

8 Bus/Service Vehicle 4 0 0 0 0 0
Accounts Payable 4 0 0 0 0 0

10 Cash 3 0 0 0
Service Revenue 3 0 0 0

12 Cash 7 5 0 0
Service Revenue 7 5 0 0

13 No Entry

15 Accounts Receivable 2 5 0 0 0
Service Revenue 2 5 0 0 0

16 No Entry
17 Joe, Withdrawals 1 0 0 0
Cash 1 0 0 0

18 Misc, Expenses 1 0 0 0
Cash 1 0 0 0

24 Cash 2 5 0 0 0
Accounts Receivable 2 5 0 0 0

26 Supplies Expense 1 0 0 0
Supplies 1 0 0 0

29 Supplies 3 0 0 0
Joe, Capital 3 0 0 0

30 Utilities Expense 7 0 0 0
Cash 7 0 0 0