Long Quiz #1

TUBICE, LEIRYLLE H.
ABM 10A

1. Assets = 28,000
Owner's Equity = 10,000
Liabilities = ?

Accounting Equation: Assets = Liabilities + Owner's Equity

Assets - Owner's Equity = Liability
28,000 - 10,000 = 18,000
Liabilities = 18,000

FOR ITEM 2-4:

GIVEN:
Accounts Receivable = Php 1,200
Prepaid Insurance = Php 500
Equipment = Php 36,200
Cash = Php 40,650

Glenniel owed the following creditors:

Kien's Supply = Php 12,000 (due in 6 months)
Kian's Equipment = Php 9,500 (due after 2 years)

2. Current Assets = ?
Accounts Receivable + Prepaid Insurance + Cash = ?
Php 1,200 + Php 500 + Php 40,650 = ?
Current Assets = Php 42,350
 Long Quiz #1
TUBICE, LEIRYLLE H.
ABM 10A

3. Current Liabilities also known as short-term liabilities.

Kien's Supply = Php 12,000 (due in 6 months)
Current Liabilities = Php 12,000
4. Total Assets increased by Php 75,000
Total Liabilities decreased by Php 16,000
How much did the owner's equity increase/decrease?

DIFFICULT WAY TO FIND THE ANSWER:

Total Assets:
Accounts Receivable + Prepaid Insurance + Equipment + Cash = ?
Php 1,200 + Php 500 + Php 36,200 + Php 40,650 = ?
Php 78,550 (Total Assets before)
Total Assets increased by Php 75,000
Php 78,550 + Php 75,000 = ?
Php 153,550 (Total Assets after)
Total Liabilities (Glenniel owed)
Kien's Supply + Kian's Equipment = ?
Php 12,000 + Php 9,500 =
Php 21,500 (Total Liabilities before)
Total Liabilities decreased by Php 16,000
Php 21,500 - Php 16,000 = ?
Php 5,500 (Total Liabilities after)
 Long Quiz #1
TUBICE, LEIRYLLE H.
ABM 10A

Total Owner's Equity:

(Before)
Total Assets - Total Liabilities = ?
Php 78,550 - Php 21,500 = ?
Php 57,050 (Total Owner's Equity before)
(After)
Total Assets - Total Liabilities = ?
Php 153,550 - Php 5,500 = ?
Php 148,050 (Total Owner's Equity after)
To find how much the Owner's Equity increases/decreases:
Total Owner's Equity after - Total Owner's Equity before = ?
Php 148,050 - Php 57,050 = ?
The owner's equity was increased by Php 91,000.

EASY WAY TO FIND THE ANSWER:

ACCOUNTING EQUATION
Assets = Liabilities + Owner's Equity
75,000 = -16,000 + n
75,000 + 16,000 = n
91,000
The owner's equity was increased by Php 91,000.
 Long Quiz #1
TUBICE, LEIRYLLE H.
ABM 10A

5. SAMPLE ACCOUNT FORMS SFP/BALANCE SHEET

SAMPLE REPORT FORMS SFP/BALANCE SHEET