Problem #4

Transactions Effects on the Basic Accounting Model

A L OE
a. Received cash as additional investment. + 0 +
b. Purchased supplies on account. + + 0
c. Charged customers for services made on account. + 0 +
d. Rendered services to cash customers. + 0 +
e. Paid cash for rent on building. - 0 -
f. Collected on account receivable in full. + 0 0
g. Paid cash for supplies. + 0 0
h. Returned supplies purchased on account. + - 0
i. Paid cash to settle. - - 0
Problem #7
Effects of transactions

C.
D.
C.
E.
C.
A.
E.
A.
E.
E.
1. Cash received from delivery services, P92,700.
2. Paid creditors on account, P20,000.
3. Received cash from owner as additional investment, P600,000.
4. Paid advertising expense, P5,000
5. Billed customers for delivery services on account, P55,200.
6. Purchased supplies for cash, P6,000.
7. Paid rent for July, P20,000.
8. Received cash from customers on account, P25, 440.
9. Determined that the cost of supplies on hand was P1,440 so P4,560 of supplies were used during the month.
10. Owner withdrew cash for personal use,P20,000.
Problem #9
Transactions in a Completed Worksheets

Cash + Accounts Receivable + Office Equipment =

1 70,000
2 -45,000 45,000
3 30,000
4 18,000
5 -5,000
6 7,000
7 -10,000
8 15,000 -15,000
9 -7,000

Requirement 1.
1 Asunsion Alcala invested 70,000 cash in AA Tutorial Services.
2 AA Tutorial Services bought office equipment in cash amounting 45,500
3 AA Tutorial Services bought office equipment worth 30,000 by issuing 20,000 notes payable and 10,000 accounts paya
4 AA Tutorial Services billed students amounting to 18,000
5 AA Tutorial Services paid expenses amounting to 5,000
6 AA Tutorial Services billed and collected fees amounting to 7,000
7 AA Tutorial Services paid 10,000 to the supplier of the office equipment bought in no.3
8 AA Tutorial Services collected 15,000 receivable from students
9 AA Tutorial Services paid expenses amounting to 7,000

Requirement 2.
Service fees 25,000
Less: Expenses 12,000
Net Profit before depreciation 13,000
 Accounts Payable + Notes Payable + Alcala, Capital
70,000

10,000 20,000
18,000
-5,000
7,000

-10,000
-7,000

and 10,000 accounts payable.