ANALYZING BUSINESS TRANSACTIONS USING THE EXPANDED ACCOUNTING EQUATION IN

EXCEL SPREADSHEET
Assets = Liabilities + Owner's Equity (ALOE WS)

Background: Georgie Reyes quit his job in a mobile phone and home appliances repairs
services to put up his own business. At the time of his resignation, he had Php100,000 in his
savings account, the total amount that he was able to save from his former employment.
Below are his transactions for the first month of his business operations.

GR REPAIRS SERVICES COMPANY TRANSACTIONS

Date Transactions
October 2021 Georgie Reyes started a business and invested Php75,000 for GR Repairs
01 Services.
02 GR Repairs purchased repairs equipment for Php20,000.
05 GR Repairs bought supplies for Php7,500 from HRC Store on account.

11 The company received its first cash revenues from customers, Php7,800.
12 The company recorded its first account customers, Php25,900.
The company paid: wages, Php 5,125; rent, Php 5,000; utilities, Php10,000;
15 and others, Php 1,500.
20 GR Repairs paid half of its account with HRC Store.
30 At the end of the month, the cost of supplies on hand is Php 5,000.
31 Georgie Reyes withdrew Php3,350 from his investment.

GR REPAIRS SERVICES CHART OF ACCOUNTS

Code Account Title

A-001 Cash
A-002 Accounts receivable
A-003 Supplies
A-004 Prepaid rent
A-005 Equipment
L-001 Accounts payable
L-002 Loans payable
O-001 G. Reyes, Capital
O-002 G. Reyes, Drawings
R-001 Repairs income
E-001 Wage expense
E-002 Rent expense
E-003 Utilities expense
E-004 Supplies expense
E-005 Miscellaneous expense
 ANALYZING BUSINESS TRANSACTIONS USING THE EXPANDED ACCOUN
ALOE Expanded Worksheet
GR REPAIRS SERVICES COMPANY
A

Date Transactions Cash

SING THE EXPANDED ACCOUNTING EQUATION IN MICROSOFT EXCEL SPREADSHEET
ALOE Expanded Worksheet [ALOE WS]
REPAIRS SERVICES COMPANY TRANSACTIONS
Assets Liabilities Owner's Equity
Accounts
Receivable Supplies Equipment Accounts Payable Account Affected
Owner's Equity

Amount
 ANALYZING BUSINESS TRANSACTIONS USING THE EXPANDED ACCO
Assets = Liabilities + Owne
Background: Georgie Reyes quit his job in a mobile phone and home appliances repairs services to put up his own business. A
account, the total amount that he was able to save from his former employment. Below are his transactions for the first mon
GR REPAIRS SERVICES COMPA

Date Transactions Cash

October 2021 Georgie Reyes started a business and invested Php75,000 for GR Repairs
01 Services.
PhP 75,000.00
02 GR Repairs purchased repairs equipment for Php20,000. (20,000.00)

05 GR Repairs bought supplies for Php7,500 from HRC Store on account.

11 The company received its first cash revenues from customers, Php7,800. 7,800.00
12 The company recorded its first account customers, Php25,900.

The company paid: wages, Php 5,125; rent, Php 5,000; utilities,
15 Php10,000; and others, Php 1,500. (21,625.00)
20 GR Repairs paid half of its account with HRC Store. (3,750.00)
30 At the end of the month, the cost of supplies on hand is Php 5,000.
31 Georgie Reyes withdrew Php3,350 from his investment. (3,350.00)
Totals PhP 34,075.00
GRAND TOTALS

GR REPAIRS SERVICES CHART OF ACCOUNTS

Code Account Title

A-001 Cash
A-002 Accounts receivable
A-003 Supplies
A-004 Prepaid rent
A-005 Equipment
L-001 Accounts payable
L-002 Loans payable
O-001 G. Reyes, Capital
O-002 G. Reyes, Drawings
R-001 Repairs income
E-001 Wage expense
E-002 Rent expense
E-003 Utilities expense
E-004 Supplies expense
E-005 Miscellaneous expense
SING THE EXPANDED ACCOUNTING EQUATION IN MICROSOFT EXCEL SPREADSHEET
Assets = Liabilities + Owner's Equity (ALOE)
put up his own business. At the time of his resignation, he had Php100,000 in his savings
nsactions for the first month of his business operations.
REPAIRS SERVICES COMPANY TRANSACTIONS
Assets Liabilities Owner's Equity
Accounts
Receivable Supplies Equipment Accounts Payable Account Affected

G. Reyes, Capital
PhP 20,000.00

PhP 7,500.00 PhP 7,500.00

Repairs income
PhP 25,900.00 Repairs income
Wage expense
Rent expense
Utilities expense
Miscellaneous expense
(3,750.00)
(2,500.00) Supplies expense
G. Reyes, Drawings
PhP 25,900.00 PhP 5,000.00 PhP 20,000.00 PhP 3,750.00
84,975.00 84,975.00
Owner's Equity

DUAL EFFECTS
Amount
DOUBLE ENTRY ACCOUNTING
PhP 75,000.00

7,800.00
25,900.00 Revenue recognition principle
(5,125.00)
(5,000.00)
(10,000.00)
(1,500.00)

(2,500.00)
(3,350.00) Drawings or Withdrawal account should be used for personal consumption of the owner.
PhP 81,225.00
tion of the owner.