Classifying and Recording Transactions

For the given transactions below, indicate whether it is a Source of Asset (SA), Use of Asset (UA),
Exchange of Asset (EA) or Exchange of Claims (EC).  On the succeeding columns, indicate the effects of
the transactions to the Assets, Liabilities and Equity by putting (+) if it will increase or (-) if it will
decrease.  If the transaction doesn’t need to be recorded, simply write “N/E” for every column. 

Transactions A L Eq ToT Debit Credit

The owner, Mr. Sicat received     N/E  N/E 

P1.5M from his employer when
he retired from his job.

Mr. Sicat invested half of his +   +    Cash  Sicat, 

retirement pay into his own
Capital 
business named Sicat Cleaning
Services.

Mr. Sicat also invested his +    +    Building  Sicat, 

building to be used for his
Capital 
business

Acquired Computer Equipment +  +      Computer Account

worth P50, 000 on account.
Equipment Payable

Purchased Furniture and  + +     Furniture and Account

Fixtures amounting to P25,000 Fixtures
Payable
on credit

Loaned a Delivery Vehicle from  + +     Delivery Vehicle Accounts Payable

PS Bank worth P500, 000
 
payable every end of the year.

Issued a promissory note for  +  +                           Office Supplies Notes Payable

the purchase of office supplies
worth P7, 500.

Bought a desktop computer for +  +      Desktop Notes Payable

P40, 000; paid 50% down and Computer

issued a promissory note for

N/E N/E
the balance due in 60 days.
Acquired a personal copier for           Equipment Accounts Payable
P39, 500 on credit; paid P9, 500 + +
Cash
cash, balance in due in 30 days.

Bought office furniture for P50,       +    Furniture Cash

000 in cash. +

Interviewed and hired the                  N/E                 N/E        

office staff that he needs in
running his business

Rendered services and received +    +    Cash  Service Revenue

P12, 0000 cash.

Performed services and +     +    Notes  Service Revenue

received a note from his client Receivable
amounting to P15, 000.

Performed services for P27,  +    +    Accounts  Service Revenue

750 on credit. Receivable

Services worth P10, 000 was  +    +   Account  Service Revenue

earned on account by cleaning receivable 
OYG Bldg. in the CSF.

Received P7, 000 from the  +    +    Cash  Notes Receivable

client who issued the
promissory note.

Bought additional office chairs  + +       Furniture  Account Payable

for P8, 000 on credit

Issued a check for P32, 500 to  +  +      Salaries Payable  Cash

pay for salaries.

Performed services for P10,  +    +    Cash  Service Revenue

250 cash

Performed services for P11,  +   +     Accounts  Service Revenue

500 on credit. Receivable

Collected P6, 000 on accounts  +    +    Cash  Accounts

receivable. Receivable

Issued a check for P4, 000 in  +    +   Utilities Payable  Cash

partial payment of the amount
owed for office computer
equipment.

Received the Electric bill  +  +      Notes  Utilities Payable

amounting to P2, 250 to be Receivable
paid next month.

Billed by TFX Advertising          N/E  N/E

Company for the advertisement
of Sicat Cleaning Services

Paid P2, 500 for the repair of          N/E  N/E

his personal car usually used by
his son.

Mr Sicat withdrew P50, 000 in  +    +    Cash  Sicat, Capital

cash from the business for
personal use.

Collected P10, 000 from his  +    +    Cash Accounts Receivable

previously billed clients.