Transactions Assets Liabilities Equity

1.Invested cash in the business (+) (NE) (+)

2.Purchase computer
(NE) (NE) (NE)
equipment on cash
3.Built a customer services
(+) (NE) (+)
render
4.Paid salaries (─) (NE) (─)
5.Purchase office supplies on
(+) (+) (NE)
credit
6.Paid advertising expense (─) (NE) (─)
7.Paid rent [for 3 months
(NE) (NE) (NE)
advanced]
8.Receive cash from customers
(+) (NE) (+)
on account
9.Withdraw cash from personal
(─) (NE) (─)
use
10. Invested land into the
(+) (NE) (+)
company
 Account Asset Liabilities Equity Income Expense Balance
1. Accounts Receivable × -
2. Advertising Expense × -
3. Bonds Payable × -
4. Building × -
5. Cash × -
6. De Jesus’ Capital × -
7. De Jesus’ Drawings -
×
(Personal Use)
8. Delivery truck × -
9. Interest Payable × -
10. Inventories × -
11. Land × -
12. Mortgage Loans × -
13. Notes Payable × -
14. Notes Receivable × -
15. Office Supplies × -
16. Pre-paid Expense × -
17. Rent Expense × -
18. Salary Expense × -
19. Salary Payable × -
20. Service Fee / Income × -
21. Accrued Income ×
22. Utility Expense × -
ASSETS
Assets – any resources owned by the company.
1. Current assets – assets that can be realized within the physical year. It is cash and other assets that are expected
to be converted to cash within a year. [pwedeng mapalitan ng pera]
Under current assets:
 Cash – most liquid type of asset
 Accounts Receivables – amounts due from customers to buy things. It is the money due to a company for
goods or services delivered or used but not yet paid for by customers [nagbenta na walang bayad]
a. Cash Sales – the opposite of accounts receivables. The money for goods/services are paid by the
customers [nagbenta na may bayad]
 Notes Receivables – amounts due from clients supported by promissory notes.
 Supplies – items purchased by enterprise which are unused as of the reporting date.
Supplies Used – it is now an expense [dahil nagamit mo na]
Supplies Unused – it is a part of asset [kasi di mo pa nagagamit o ginagamit]
 Accrued income – revenue earned but not yet collected
 Prepaid expenses, insurances, and rents – expenses paid in advanced
a. It is an asset since it is already paid [nagpa-load ka lamang at nabayadan mo na]
b. It becomes an expense if it is spent. For example: prepaid cellphone load [kapag ni-register mo na sa
isang promo, dun mo na masasabi na expense na siya kasi nagamit mo na]
 Inventories – items or merchandises held for sale
 Short-term Investment – investment made by firm that are sold immediately.

2. Non-current assets – opposite of current assets. They are intended for longer-term use (one year or longer) and
are not often easily liquidated. [mahirap palitan ng pera]
Under non-current assets:
 Long-term investment - assets that they intend to hold for more than a year.
 Tangible Assets - physical assets or property owned by a company. The main type of assets that companies
use to produce their products and services. Example: computer equipment, delivery trucks, buildings, land,
and fixtures [bagay na nahahawakan o makikita]
 Intangible Assets - goods that have no physical presence. Example: Copyrights and Trademarks [bagay na
hindi nahahawakan]
 Fixed assets - property and equipment
  Property, Plant, and Equipment (PP&E)

LIABILITIES

Liabilities – obligations of the firm / the debt ought by the company.

1. Current Liabilities – obligation that is payable within one year
Under current liabilities:
 Accounts Payable - amounts due to vendors or suppliers for goods or services received that have not yet
been paid for.
 Notes Payable – also called promissory notes, is a loan between two parties written under agreement.
 Interest Payable - the amount of interest currently owed to lenders
 Salary Payable - amounts of any salaries owed to employees, which have not yet been paid to them
 Accrued Expense - expenses that are recognized at the time they are incurred, even though cash has not
yet been paid [nakagastos pero hindi nagbayad]
 Unearned income - money received by an individual or company for a service or product that has yet to be
provided or delivered. Example: Rent paid in advanced
2. Noncurrent Liabilities – those liabilities which are not likely to be settled within one financial year
Under noncurrent liabilities:
 Bonds payable - a form of long-term debt usually issued by corporations, hospitals, and governments
 Mortgage Loans - a type of secured loan where you can avail funds by providing your asset as collateral to
the lender

CAPITAL

Capital – or owner’s equity, residual interest by the company

Drawings – also called withdrawals [from banks], accounts debited for assets for personal use
What affects capital?
 1. Income – increase in economic activities during accounting period; it increases (+) capital.
Under income:
 Service Fee/Income - revenue that a financial institution earns on services
2. Expense – decrease in economic benefit; it decreases (─) capital.
 Rent expense – expense used in rent
 Salary Expense – expense used in salary
 Utility expense – expense used in utilities
 Advertising expense – expense used in ads

Chart of Accounts – listings of accounts used by the owner.