I. INSTRUCTIONS: Answer accordingly.

I. On the space provided below, indicate BT if the statement is a business

transaction and NBT if the statement is not a business transaction.
_______1) Received cash for room accommodations.
_______2) Investment of kitchen equipment in a restaurant business.
_______3) Purchased on credit food and beverages.
_______4) Received loan proceeds to upgrade hotel facilities.
_______5) Purchased potato crisps and salted peanuts as bar stock.
_______6) Sales from restaurant and bar outlets paid thru credit cards.
_______7) Billed clients for use of conference facilities.
_______8) Promotion of a supervisor to a managerial position.
_______9) Paid suppliers.
_______10) Received check from SSS as educational loan for business owner’s
daughter
_______11) Withdrew cash from business for family use.
_______12) Hired new employees.
_______13) Paid taxes and other business permits.
_______14) Paid item Number 3 above.
_______15) Closed contract for an audit engagement.

II. INSTRUCTIONS: Answer accordingly.

Indicate the normal balance (debit or credit) of each of the following types of
accounts:

Type of Accounts Normal Balance

_______________ _____________
Assets _ _____________
Liabilities _____________
____Capital_____ _____________
____Drawing____ _____________
____Revenues __ _____________
Expenses ___ _____________
III. INSTRUCTIONS: Put a star ( ) in the appropriate column that would identify
whether the following items are assets, liabilities, capital, revenue, or expense.

Assets Liabilities Capital Revenue Expense

Professional Fees
Food Inventory
Accounts Receivable
Unearned Rental Income
Cash & Cash Equivalents
Rooms Revenue
Nathaniel, Capital
Cost of Food
Kitchen Fuels
Beverage Revenue
Golf Car Repairs/Maintenance
China, Glassware & Silver
Catering Income
Aircraft
Patents
Operating Supplies
Kitchen Equipment
Delivery Truck
Inventory – Food & Beverages
Furniture and Fixtures
Golf Course Revenue
Housekeeping Expenses
Admission Fees
Loans Payable
Cost of Beverages
Mortgage Payable
Building
Miscellaneous Expenses
Valet Fees
 IV. INSTRUCTIONS: On the space provided below, write the letter that
corresponds to each of the given statements.

a) Accounts Receivable k) Tour Income

b) Revenue, Golf Shop l) Depreciation
c) Taxes & Licenses Payable m) Drawing
d) Cash n) Commission Expense
e) Professional Fees o) Inventory, F & B
f) Accounting equation p) Store Supplies
g) Notes Receivable q) Assets
h) Freight – out s) Salary Expense
i) Capital t) Tip
j) Utilities Payable u) Freight – in

_______1) Stock of food and beverages.

_______2) Perk for good service.
_______3) Coins and bills in the possession of the business.
_______4) Income from sales of golf accessories, apparel, balls, hats, umbrellas, jackets,
etc.
_______5) Income derived from tour services.
_______6) Payments to authorized agents for securing guests.
_______7) Delivery expense for merchandise sold.
_______8) Assets equal liabilities and owner’s equity.
_______9) Properties of the business, tangible or intangible.
_______10) Amount paid for services of employees.
_______11) Income derived in the practice of procession.
_______12) Residual interest.
_______13) Systematic allocation of the cost of fixed assets over its estimated useful life.
_______14) Diminution of capital.
_______15) Collectible from clients for services rendered on account.
_______16) Obligations owed for the use of electricity.
_______17) Amount due to government.
_______18) Amount collectible from clients and supported with promissory notes.
_______19) Cost of transportation for merchandise purchased.
_______20) Plastic bags, tapes, stapler fillers, etc. used in the stores.
 V. Indicate any change (s), increase or decrease, or both words to show the
effect of the following transactions on the total assets, liabilities, and capital.

Assets Liabilities,
Capital
Example: Initial investment. Increase Increase
1.Purchased operating supplies on account.
2.Received cash for tour services rendered.
3.Collection dues from condominium owners.
4.Paid fitness consultants in a health center.
5. Received membership dues in a health club.
6. Paid repairs and maintenance of golf cars.
7. Acquired tour bus on account.
8. Received parking fees.
9. Withdrawal for family use.
10.Paid amount due bank.
11. Collection from customers on account.
12. Collection from cash customers.
13.Issued promissory note to an open account.
14 Additional investment.
15. Received a promissory note from customer on
open account.