DE LA SALLE LIPA

College of Business, Economics, Accountancy and Management

Accountancy and Accounting Information Systems Department
Financial Accounting and Reporting
Assignment # 1

Directions: Read the problems below. Give what is required. On your paper show solutions in
good form for problems A and B. For problems C and D, use the prescribed format.
(handwritten)

A. Elements of Financial Statements: Fill the amount of the missing element of financial
position.

Assets Liabilities Owner's Equity

a. 760,000 300,000 ? __________
b. 800,000 ? ________ 498,000
c. ? _________ 103,520 732,000
d. 625,250 376,110 ? _________
e ? _________ 825,990 (125,115)

B. Use the accounting equation to answer each of the questions below.

a) At the beginning of the year, the assets of Cindy Cleaning Services were P 450,000
and its owner’s equity was P 220,000. During the year, assets increased by P
120,000 and liabilities increased by P 20,000. What was the owner’s equity at the
end of the year?___________

b) At the beginning of the year, Ana Marie Gasoline Station had liabilities of P 100,000
and owner’s equity of P 72,000. If assets increased by 25% and liabilities decreased
by 10%, what was the owner’s equity at the end of the year?
_______________________

c) The liabilities of Salon de Lipa equal one to 3/5 of the total assets and the owner’s
equity is P 225,000, what is the amount of total liabilities? ____________what is the
amount of total assets? ______________
C. Transaction Effects on the Basic Accounting Model
For each transaction, indicate whether the assets (A), liabilities (L) or owner’s equity
(OE) increased (+), decreased (-), 0r did not change (0) by placing the appropriate sign
the columns.
A L OE
1. Paid salaries for July , P 57,200
2. Purchased computer equipment on account, P 55,000
3. Purchased supplies on cash, P 5,500.
4. The owner provides an additional investment cash
P 320,000
5. The owner provides an additional investment land
worth P 500,000
6. Received payment for services rendered P 19,000
7. Billed customers for services performed P 75,000
8. Paid half of the computer equipment purchased in # 2

A L OE
9. Withdrew cash for personal use, P 22,000
10. Received payment from customers already billed P 20,000
11. Received bills from Batelec 2 for the month payable
on the 10th of next month P 5,000
12. Received bills from MLWD for the month payable
on the 10th of next month P 1,300
12. Received bills from PLDT for the month payable
on the 15th of next month P 1,900

D. Financial Transaction Worksheet

Complete the table below by analyzing the transactions that follow. For transactions
affecting Owner’s Equity, indicate whether the items are an Income (I), Expense (E) ,
Withdrawals (W), or Additional Investment (INV) by placing the corresponding letter on
the right side of the amount of increase or decrease.

Transactions for Ana Mabuti repair shop are as follows:

1. Organized a repair shop and deposited P 550,000 cash in bank for business use
2. Purchased P 22,000 of supplies on account
3. Purchased land for future repair site for P 142,500
4. Paid P 15,000 to creditors
5. Withdrew P 30,000 for personal use.
 6. Paid P 28,000 for site and equipment rental for the month of July 2020
7. During the month P 15,000 of expenses on water, electricity and telephone were
incurred by the business on account.
8. Ana Mabuti invested additional P 150,000 cash in the business.
9. Received P 50,000 cash for a service.
10. Ana Mabuti has used P 7,200 worth of supplies for the month.

D
Financial Transaction Worksheet
.

LIABILITIE OWNER's
ASSETS =
S EQUITY
Property, Plant
Accounts I, E, W,
Cash + Supplies+ and Equipment/ = Mabuti Capital
Payable + INV
Land
   
1 =    550,000 INV
550,000
                                                     
BAL  =    550,000
550,000 -  -

2.