1.

ACCOUNTABLE ECONOMIC TRANSACTIONS

Determine whether the business transaction is to be recorded in the
books of accounts or not and identify the accounts title for debit and
credit.
Recordable? Account Titles
Business Transactions:
Yes or No Debit Credit
1. Owner's personal contribution to business.
2. Owner's personal withdrawal from the
business.
3. Hiring of office secretary.
4. Payment of salary for the office secretary.
5. Billings of services rendered for audit service.
6. Payment of supplies used in the performance
of service.
7. Signing of contract with the new client.
8. Payment of transportation cost incurred during
the signing of contract.
9. Unpaid office rent incurred.
10. Purchase of new computer on account.
11. Periodic allocation of the cost of the
computer acquired.

2. ACCOUNTS

On a separate paper, prepare the T – account for each of the following

items and indicate the amount on its normal side in the T – account:

1 Accounts receivable, $150,000

2 Accrued interest income, $2,000
3 Accumulated depreciation - furniture, $2,000
4 Allowance for bad debts$2,000
5 Bad debt expense, $1,000
6 Cash, $50,000
7 Depreciation expense $1,000
8 Expired insurance, $2,000
9 Interest income, $500
10 Notes payable, $80,000
11 Owner's capital, $70,000
12 Owner's drawing, $5,000
13 Prepaid insurance expense, $10,000
14 Rent income, $6,000
15 Salaries and wages, $60,000
16 Service income, $109,500
17 SSS premium payable, $2,000
18 Taxes and licenses, $1,000
19 Unearned rent, $3,000
20 Withholding tax payable, $3,000
21 Furniture, $20,000

3. ACCOUNTING EQUATION

Supply the missing amount for each independent case.

CASE ASSETS LIABILITY CAPITAL REVENUE EXPENSE
1 $100,000 $40,000 $ $0 $0
2 20,000 120,000 0 0
3 120,000 80,000 0 0
4 150,000 60,000 40,000 90,000
5 200,000 50,000 100,000 60,000
6 220,000 120,000 100,00 110,000
7 100,000 120,000 150,000 120,000
8 150,000 200,000 160,000 90,000
9 60% 144,000 0 0
10 400,000 80% 0 0
11 500,000 40,000 130,000 30,000
12 30,000 700,000 200,000 100,000
13 1,200,000 250,000 400,000 420,000
14 800,000 1,200,000 2,000,000 2,100,000
15 35,000 65% 0 0