FINANCIAL

ACCOUNTING AND
REPORTING

SUBMITTED BY
Mepua, Cedric O.

GRADE/SECTION
BSA 1-A-1

SUBMITTED TO
Mr. Ariel Serrano
To check on your understanding of Lesson 2,
answer/discuss/explain each item below.

1. What are different types of accounting transactions?

 The different types of accounting transaction are
external transaction, internal transaction, cash
transaction, non-cash transaction, credit transaction
etc.
2. Make an example of different accounting transactions and
make a tabular analysis.
Candice Madrigal opens her own law office on July 1, 2022. During
the first month of operation, the following transactions below.
JULY
1 Invested 10,000 in cash in law practice.
2 Paid 800 for July rent on office space.
5 Purchased office equipment on account 3,000.
7 Provided legal services to clients for each 1,500.
20 Borrowed 700 cash from a bank on a note payable.
25 Performed legal services for clients on account 2,000
31 Paid monthly expenses; salaries 500, utilities 300, and
telephone 100.
31 The owner withdrew 300 during July for personal expenses.
TABULAR ANALYSIS

3. Journalize the transactions you used in item #2.

 JOURNAL

4. What is the rule of debit and credit and why is it

important?
 The following are the rules of debit and credit which guide the
system of accounts, they are known as the Golden Rules of
accountancy: First: Debit what comes in, Credit what goes out.
Second: Debit all expenses and losses, Credit all incomes and
gains. Third: Debit the receiver, Credit the giver.
5. What are the normal balances of the elements of the
financial statements? Explain briefly.
 The normal balance for asset and expense accounts is the
debit side, while for income, equity, and liability accounts it is
the credit side. An account's assigned normal balance is on the
side where increases go because the increases in any account
are usually greater than the decreases.