Professional Documents
Culture Documents
1. ________
___________is
___is the recording
recording function
function of the accounting
accounting process
process..
2. Assets = __
__________
____________
____ + Own
Owner's
er's Equity
3. The owner'
owner's
s current investment
investment or equity
equity in the assets
assets of a busine
business
ss is
called _______________.
4. A list of a
assets,
ssets, liabilitie
liabilities,s, and owner's
owner's equity
equity as of a pa particular
rticular
date is reported on a ________________.
5. ________
______________
______ create
create an outward
outward or potential
potential outward fl flow
ow of assets.
6. Revenue ea
earned
rned on account
account creates an asset
asset entitled
entitled _______
______________
_________.
__.
7. ________
______________
______ record
record personal
personal expenses
expenses that
that are not rerelated
lated to tthe
he
business. They are a subdivision of owner's equity.
8. The left s
side
ide of any T-accoun
T-accountt is called the _____
____________
_________.
__.
9. Assets
Assets are inc
increas
reased
ed by ____
________
_______.
___.
10. Withdraw
Withdrawals
als ar
are
e incr
increas
eased
ed by ________
________
_______
______.
___.
11. Cash,
Cash, Acco
Accounts
unts Re
Receiv
ceivable
able aand
nd Equ
Equipme
ipment
nt are ex
exampl
amples
es of
________________.
12. Increasi
Increasing
ng exp
expense
ensess ultim
ultimate
ately
ly caus
cause
e owne
owner's
r's eq
equity
uity to
________________.
13. An increase
increase in
in rent expense is a ________
________________
________ by the rules of
debits and credits.
14. A debit
debit to one a asse
sset
t and a cre
credit
dit to anot
another
her as
asset
set fo
forr the sa
same
me
transaction reflect an ________________ of assets.
15. Chubby Cat Food
Food Sup
Supplies
plies d delivere
eliveredd cat food t to
o Joll
Jolly
y Pet Shop b but
ut did
not receive payment from Jolly Pet Shop till the following month. This
is known as a ________________ transaction.
16. Enchanted
Enchanted Paws Pet ShShop
op pai
paid
d Chub
Chubby
by Cat Food S
Supplies
upplies immedia
immediately
tely fo
for
r
the cat food purchased. This is known as a ________________ transaction.
17. The basic
basic unit
unit to reco
record
rd all busine
business
ss tra
transac
nsaction
tions
s is call
called
ed
________________.
18. The effec
effect
t of eac
each
h transact
transaction
ion is r
recor
ecorded
ded in e
eithe
itherr the
________________ or ________________
_____ ___________ column of each ledger
l edger account.
19. The double-en
double-entry
try recording
recording rule states that for e every
very transac
transaction,
tion,
total debits must ________________ total credits. In addition, every
transaction affects at least ________________ ledger accounts.
1. Asset acco
accounts
unts normally
normally have ____________
____________ balances.
balances. An iincrease
ncrease in as
asset
set
is recorded as a ____________ while a decrease in asset is recorded as a
____________.
2. Liabilit
Liability
y accounts normally
normally have
have ____________
____________ balan
balances.
ces. An incre
increase
ase in
liability is recorded by a ____________ and a decrease is entered as a
____________.
3. The owner'
owner's
s capital account
account normally
normally has a ____________
____________ bal
balance.
ance. This
account increases on the ____________ side and decreases on the
____________ side.
4. Income acc
accounts
ounts normally
normally have ___________
____________
_ balances
balances.
. These accou
accounts
nts
increase on the ____________ side and decrease on the ____________ side.
5. Expense ac
accounts
counts normally
normally have __________
____________
__ balance
balances.
s. These acco
accounts
unts
increase on the ____________ side and decrease on the ____________ side.
10.account
The liability
liapayable.
bility created when supplies
supplies are bought
bought on account is cal
called
led an
11. Equipment
Equipment is listed as an asset because it is used up in a relative
relatively
ly
long period of time.
12. The owner's
owner's Withdrawa
Withdrawals
ls account
account iis
s liste
listed
d with the Oth
Other
er exp
expenses
enses o
of
f a
business.
13. A Withdrawal
Withdrawal by the Owner is rec
recorded
orded a
as
s a ddeductio
eduction
n from assets and
an increase in expenses.
14. Assets
Assets are tthing
hings
s of val
value
ue owned
owned by a bu
busine
siness
ss ent
entity.
ity.
15. Every transact
transaction
ion is recorde
recorded
d in terms oof
f incr
increases
eases aand/or
nd/or decrease
decreases
s
in two or more accounts.
Multiple Choice
1. If assets total P700,000 and liabilities total P400,000, how much are the
net assets?
a. P300,000
b. P400,000
c. P700,000
d. P1,100,000
b. Sales
c. Withdrawals
d. Advertising Expense
1. Which Of tthe
he following
following accounting
accounting equations
equations are
are correct
correct?
?
1. Non-cur
Non-current
rent assets
assets + Current
Current assets = Non-cur
Non-current
rent liab
liabilities
ilities -
Current liabilities + Capital
2. Assets - Liabilities
Liabilities = Capital + Revenue
Revenue – Exp
Expenses
enses
3. Capital + Non-current
Non-current liabilities
liabilities = Non-curr
Non-current
ent asset
assets
s + Workin
Working
g
capital
2. Which of t
the
he following
following is not an
an example of additi
additional
onal capi
capital?
tal?
a. A sole proprietor purchases a car through the bank account of the
entity.
b. A sole proprietor brings a second-hand computer from his home to
the office.
c. A sole proprietor transfers P 1,000 from his own bank account to
the entity's
account.
d. A sole proprietor uses his own building as an Office without
receiving any rent.
3. Which Of t
the
he following
following is not an
an example of non-cu
non-current
rrent ass
assets?
ets?
a. a second-hand computer used in the office
b. a van that is purchased through installments the total amount of
which is not fully settled
c. P40,000 cash
d. a building bought by the entity
a.
b. (1)
(1) and
and (2)
(3) only
only
c. (2) and (3) only
d. (1), (2) and (3)
5. The entity pu
purchases
rchases P10,000
P10,000 fixtures
fixtures for entity
entity use on credi
credit.
t. Which of
the following will be affected?
1. assets
2. liabilities
3. capital
8. Which of tthe
he following
following is correct
correct under
under the double-entry
double-entry system?
a. Asset amount must be equal to liability amount.
b. The change in asset must be compensated by a change in liability.
c. The change in a debit-side entry must be compensated by a change in
credit-side entry.
d. An increase in asset must be compensated by a decrease in asset.
9. Which Of the fo
following
llowing sta
statements
tements regarding
regarding the
the double-e
double-entry
ntry syste
system
m is
incorrect?
a. An increase in asset means a credit entry in assets account.
b. A decrease in liability means a debit entry in liabilities account.
c. An increase in drawings means a debit entry in capital account.
d. A decrease in non-current asset means a credit entry in assets
account.
10. Which
Which of the fol
follow
lowing
ing tra
transac
nsactio
tions
ns affe
affects
cts th
the
e total v
value
alue o
of
f
liabilities of a firm?
a. goods purchased from suppliers by cash
b. interest received from bank
c. office equipment bought on credit
d. goods sold to customers on credit
11. On Apr.
Apr. 1, 201
2019,
9, Jerome
Jerome Ma
Marque
rquez
z sets u
up
p a firm a
and
nd bri
brings
ngs in o
offi
ffice
ce
equipment of P50,000
Marquez puts P80,000 and
intoinventory Ofcash
the firm's P30,000
box to
andthe business.
into Jerome
the firm's bank
account. Meanwhile, the firm lends P50,000 cash to SJ and Associates and
borrows P200,000 from the bank to acquire a piece of premises. What is
the amount of the firm's capital on Apr. 1, 2019?
a. P510,000
b. P210,000
c. P260,000
d. P460,000
12. Which Of
Of the followin
following
g is correct if the sole p
proprieto
roprietor
r of an enti
entity
ty
borrows P30,000 in the name of the entity and deposits it into the
entity's bank account?
a. The assets of the entity increase by P30,000.
b. The liabilities of the entity decrease by P30,000.
c. The capital of the entity increases by P30,000.
d. The drawings of the entity increase by P30,000.
Problem #1
Accounting Events
Kersey Sampang owns a comic shop called Kersey Manga Cards and works in the
shop. For each of the following, explain whether it is a transaction to be
recorded in the accounting books of the business:
a. Sampang t
took
ook P5,000
P5,000 from his personal bank account
account and le
lent
nt it to his
friend, Fatima.
b. Sampang d
deposited
eposited P35,000 from
from his personal
personal bank
bank accoun
account
t into the
business bank account.
c. Sampang so
sold
ld comic books
books worth P2,500
P2,500 from the shop to Alend.
Alend. The mon
money
ey
was deposited into the business bank account.
d. Sampang pa
paid
id P95,000 from
from the business
business bank account
account for his holi
holiday
day to
Europe.
e. Sampang t
took
ook home P1,000wor
P1,000worth
th of comic
comic books from
from the sho
shop.
p.
Problem #2
Elements of Financial Statements
2. The follow
following
ing figures
figures are extracted
extracted from various
various sole propr
proprietorsh
ietorships.
ips.
Using the expanded accounting equation, complete the following table:
Liabilitie Equity
Assets
s Capital Income Expenses
a P96,000 P56,000 P46,000 P32,500
.
b P151,00
P39,000 P86,000 P48,000
. 0
c P182,00
P65,000 P37,000 P25,500
. 0
d P123,00
P54,000 P42,000 P25,500
. 0
e
P94,000 P25,000 P37,000 P67,500
.
Problem #3
Accounting Events
Mar. 2 Che
Chew HR Cons
onsultan
tants receiv
eives notice that
hat its rent
entals for an
office space will increase from P50,000 to P60,000 per month
effective April 1.
Apr 29 Che
Chew H
HR
R C
Con
ons
sultan
tants r
re
eceiv
eives it
its e
el
lectri
tricity bill
ill f
for
or the m
mo
onth
nth
of April. The bill is due on May 9.
Ju
July
ly 10 Ch
Chew
ew HR Co
Cons
nsul
ulta
tant
nts
s pl
plac
aces
es an orde
order
r for
for an offi
office
ce equi
equipm
pmen
ent
t
costing P108,000.
Aug. 6 The
The Offi
ffice equipm
ipment order
dered on July
uly 10 is delive
ivered. Payme
yment
is not due until Sept. 1.
Problem #4A
Elements of Financial Statements
a 760,000 360,000 ?
.
b 860,000 ? 592,000
.
c ? 108,000 760,000
.
d 626,600 376,240 ?
.
e ? 800,000 (100,000)
Problem #4B
a. Jimmy Delgado Pest Control has assets of P600,000 and owner's equity of
P450,000.
b. Margie Clavano Realtors has liabilities Of P530,000 and owner's equity Of
P410,000.
c. Marko Fuentes Plumbing Contractor has assets of P473,000 and liabilities of
P153,700.
d. Ryan Morales. Acting Studio has liabilities of P147,000 and owner's equity
of P236,500.
e. Fely Monarca Dance has assets of P624,000 and liabilities of P237,000.
Problem #5A
Income and Expenses
a 840,000 ? 360,000
.
b 2,400,000 ? 540,000
.
c 1,300,000 860,000 ?
.
d
. ? 2,000,000 720,000
e ? 1,800,000 (400,000)
Problem #6
Transaction Effects on the Basic Accounting Model
A L OE
a Received cash as additional investment. _____ _____ _____
.
b Purchased supplies on account. _____ _____ _____
.
c Charged customers for services made on _____ _____ _____
. account.
d Rendered services to cash customers. _____ _____ _____
.
e
. Paid cash for rent on building. _____ _____ _____
f Collected on account receivable in full. _____ _____ _____
.
g Paid cash for supplies. _____ _____ _____
.
h Returned supplies purchased on account. _____ _____ _____
.
i Paid cash to settle accounts. _____ _____ _____
.
j Paid cash to owner for personal use. _____ _____ _____
.
Required: For each transaction, indicate whether the assets (A), liabilities
(L) or owner's equity (OE) increased (+), decreased (-) or did not change (O)
by placing the appropriate sign in the appropriate column.
Problem #7
Effects of Transactions
______
______ 3. Paid
4. Received cash from
fro expense,
advertising m owner as additional investment,
P5,000. invest ment, P600,000.
______ 5. Billed customers for delivery services on account,
acc ount, P55,200.
______ 6. Purchased supplies
supplie s for cash, P6,000.
______ 7. Paid rent for July,
Jul y, P20,000.
______ 8. Received cash from
fro m customers on account, P25,440.
P25, 440.
______ 9. Determined that the
t he cost of supplies on hand was PI,440 so P4,560
of supplies were used during the month.
______ 10. Owner withdrew cash
c ash for personal use, P20,000.
P20,00 0.
a. Increase an asset,
asset, decrease another asset.
b. Increase an asset,
asset, increase a liability.
liability.
c. Increase an asset,
asset, increase owner's equity.
d. Decrease an asset,
asset, decrease a liability.
liability.
e. Decrease an asset,
asset, decrease owner's equity.
Problem #8
Financial Transaction Worksheet
The assets, liabilities and owner's equity of Deogracia Corpuz who operates a
repair shop are expressed in equation form below. Corpuz completed the
following transactions:
Assets Liabilitie OE
s
Cash + Supplies + Land = Accounts + Corpuz,
Payable Capital
1. Organi
shop zeddeposited
and a repair
P500,000 cash in the
bank for use by the (1
(1)
) __
_____
_____
_____
______
_____
_____
_____
_____
_____
_____
_____
_____
______
_____
__
business.
2. Purcha
chased P20,0
0,000 of
supplies on account. (2) __________________________ ____________
______________________________________
Bal. ______________________________________
__________________________ ____________
3. Purchased land for
future repair site for
P140,000 cash.
(3) __________________________ ____________
______________________________________
Bal. ______________________________________
__________________________ ____________
4. Paid P18,000 to
creditors. (4) __________________________ ____________
______________________________________
Bal. ______________________________________
__________________________ ____________
5. Withdr
hdrew P25,00
,000 for
for
personal use. (5) ______________________________________
Bal.
Bal. ____
_______
_______
________
________
________
________
_______
_______
________
____
6. Paid P28,0
8,000 for sit
site
and equipment rent for
the month. (6) __________________________ ____________
______________________________________
Bal. ______________________________________
__________________________ ____________
7. During t
th
he m
mo
onth,
P10,000 expenses were
incurred on account by
Problem #9
Transactions in a Completed Worksheet
1 +70,000 +70,00
. 0
2 -45,000 +45,000
.
3 +30,000 +10,000 +20,000
.
4 +18,000 +18,00
. 0
5 -5,000 -5,000
.
6 +7,000 +7,000
.
7 -10,000 -10,000
.
8 +15,000 -15,000
.
9 -7,000 -7,000
.
Required:
1. Describe each of the above transactions.
2. If these transactions represent the operations of AA Tutorial Services
during the month of May, what was the amount of profit or loss before
depreciation?
Problem #10
Classification of Events as to Source, Use or Exchange of Assets
Selected transactions:
a. Set-up a s
salon
alon business
business with cash investments
investments from
from owner
owner.
.
b. Hired an expe
experienced
rienced salon
salon general
general manager and five
five all-aro
all-around
und salon
staff.
c. Paid rent deposit and
and advance
advance rent on the
the Lapu-L
Lapu-Lapu
apu City sasalon
lon space
space.
.
d. Received cash proceeds
proceeds of clean
clean loan from
from the Bank
Bank of the Ph
Philippine
ilippine
Islands.
e. Finalize
Finalizedd plans with
with the architect
architect for
for the salon
salon physica
physical
l set-up a and
nd
renovations.
f. Paid for
for 50% oof
f the renova
renovatio
tionn cost
costs.
s.
g. Bought
Bought sal
salon
on equ
equipm
ipment
ent wi
with
th cas
cash.
h.
h. Renovati
Renovations
ons completed.
completed. Balance
Balance payable
payable within
within 30 days f
from
rom actua
actual
l
completion.
i. Purchase
Purchasedd salo
salonn supp
supplies
lies wi
with
th cas
cash.
h.
j. Provided
Provided serv
services
ices for c cash.
ash.
k. Owner
Owner with
withdrew
drew cacash
sh for pe
perso
rsonal
nal use
use..
l. Paid for oopera
perating
ting expe
expenses
nses.
.
m. Bought a ccommercia
ommercial l condominium
condominium near Paseo de Mandaue
Mandaue fo
for
r future
expansion; 30% cash down, balance on bank loan.
n. Received cash for services that have have been performe
performed.
d.
o. Paid part of th
the
e cle
clean
an lo
loan.
an.
Required: Identify each of the above unrelated events as a source, use or
exchange of assets transaction. Some events may not be recordable under
current accounting practice. In this case, classify the events as not
applicable (n/a). Also, for each event, indicate whether total assets will
increase, decrease or remain unchanged.
Problem #11
Recording Transactions in a Financial Transaction Worksheet
Oct.
Oct. 2 Acqu
Acquired
ired a se
servic
rvice e vehi
vehicle
cle in th
the
e amount
amount of P195
P195,00
,000
0 on acco
account.
unt.
3 Acq
Acquir
uired
ed su
supp
pplie
liess for c cash
ash,
, P57
P57,00
,000.
0.
9 Rece
Received
ived P87,
P87,500
500 cash for sign
signss ppain
ainted.
ted.
10 Paid
Paid th
the
e mo
mont
nth's
h's ren
rent,
t, P25
P25,0
,000.
00.
11 Painted
Painted ssigns
igns for CaCagay
gayan
an Mo
Mobile
bile o on
n acc
account
ount,
, P17
P170,0
0,000.
00.
12 Paid
Paid P5
P55,
5,000
000 on a acco
ccoun
unt
t fr
from
om OOct
ct.
. 2.
16 Withdr
Withdrew
ew PP25
25,0
,000
00 for
for p
pers
erson
onal
al use.
use.
23 Collecte
Collectedd P
P35,
35,000
000 from Caga
Cagayan
yan Mobi
Mobile.
le.
27 Paid sal
salarie
aries
s oof
f PP57,0
57,000
00 for the monmonth.
th.
30 Paid BayanT
BayanTel
el P7,
P7,500
500 fo
forr commu
communica
nicatio
tion
n servi
services
ces fo
for
r the mon
month.
th.
31 Paid a bill
bill from
from AdA
AdAsia
sia fo
for
r P5,5
P5,500
00 Of adadvert
vertisin
ising
g for th
the
e mont
month.
h.
Problem #12
Recording Transactions in a Financial Transaction Worksheet
a. ____
____ ________ _______
_ ________ _______
_ ________
b. _______ ________ _______ ________ _______ ________
_ _ _
c. _______ ________ _______ ________ _______ ________
_ _ _
d. _______ ________ _______ ________ _______ ________
_ _ _
e. _______ ________ _______ ________ _______ ________
_ _ _
f. _______ ________ _______ ________ _______ ________
_ _ _
g. _______ ________ _______ ________ _______ ________
_ _ _
h. _______ ________ _______ ________ _______ ________
_ _ _
i. _______ ________ _______ ________ _______ ________
_ _ _
a. Aid P3
P3,000
,000 th
the
e outs
outstanding
tanding accounts
accounts payable.
payable.
b. Received P1,000 on account (part
(part payment)
payment) from customer
customers.
s.
c. Purchase
Purchased
d P2,500 worth
worth of supplies
supplies on account (on
(on credit
credit).
).
d. Returned a de
defective
fective piece
piece of equipment
equipment that was purchased
purchased la
last
st month
and received a cash refund Of P12,000.
e. Borrowed P10,000 from
from a supplier,
supplier, to repay
repay the loan
loan in 30 dadays.
ys.
f. Paid c
creditor
reditor P2,000on account (part payment)
payment).
.
g. Purchase
Purchased
d equipment
equipment for P10,000,
P10,000, giving P2,000
P2,000 cash and pro
promising
mising to pa
pay
y
the balance in 60 days.
h. Bought
Bought supp
supplies
lies,
, payin
payingg P1,650
P1,650 cash.
i. Received a P2,500 check from
from customer
customer on account
account..
Problem #13
Recording Transactions in a Financial Transaction Worksheet
a. Deposite
Depositedd P146,200
P146,200 in a bank account in
in the name of
of the busi
business,
ness,
Victorino PhotoProfiles.
b. Bought ne
neww photography
photography equipment
equipment on account
account from
from Canon E
Equipment
quipment,
,
P71,210.
c. Invested ppersonal
ersonal photograph
photography
y equipment
equipment into the business,
business, P51,6
P51,620.
20.
d. Paid office rent for t the
he mo
month,
nth, P5,500.
e. Bought photogr
photography
aphy supplies
supplies for cash,
cash, P7,
P7,960.
960.
f. Paid premi
premium
um for insurance
insurance cover on photograph
photography
y equipmen
equipment,
t, P1,240.
g. Received P8,960 as professional
professional fees for services
services rende
rendered.
red.
h. Paid s
salary
alary oof
f .par
.part-time
t-time assista
assistant,
nt, P6,000.
P6,000.
i. Received and paid bill for telephone
telephone service,
service, P640
P640.
.
j. Paid Cano
Canon
n Equipment
Equipment part of the amount
amount owed on the
the purchas
purchase
e of
photography equipment, P4,200.
k. Received P15,480 as
as professional
professional fees
fees for services
services rend
rendered.
ered.
l. Victorin
m. Paid forominor
Victorino repairs
repairs
withdrew
withdrew cashto
tfor
o photography
photographyuse,
personal
personal equipment
eq,
useuipment,
P9,60, P760.
P9,600.
0.
Required: Record the transactions for, the month of July 2019 using a
financial transaction worksheet. Use the following accounts: Cash; Accounts
Receivable; Supplies; Prepaid Insurance; Photography Equipment; Accounts
Payable; and Victorino, Capital. If the owner's equity account is affected by
a transaction, identify it as revenue, expense investment or withdrawal.
Problem #14
Recording Transactions a Financial Transaction Worksheet
a. Labausa ddeposited
eposited P165,000 in a bank account
account in the name of the
business.
b. Bought a sservice
ervice vehicle
vehicle from
from Elpidio Motors for
for P194,90
P194,900,
0, paying
P25,000 in cash and placing the balance on account.
c. Bought cat
catering
ering equipment
equipment on account
account from Quirino
Quirino Equipm
Equipment,
ent, P28,5
P28,500.
00.
d. Paid rent
rent fo
for
r the mo
month,
nth, P6,2
P6,200.
00.
e. Rendered catering services for cash for for the first
first half of m month,
onth,
P24,200.
f. Bought
Bought sup
supplie
pliess for cas
cash,
h, P1,800.
P1,800.
g. Bought in
insurance
surance for
for the service
service Vehicle
Vehicle for one
one year, P4
P4,000.
,000.
h. Received and paid
paid the utilities
utilities bill,
bill, P6,040.
P6,040.
i. Received a bill from
from Manila Gas
Gas for gas and
and oil use
used
d by the se
service
rvice
vehicle for the month, P6,080.
j. Rendered catering services on account,
account, PP28,240.
28,240.
k. Performe
Performedd catering services
services for cash
cash for the remainder
remainder Of the P2
P25,200.
5,200.
l. Paid sal
salaries
aries of
of the part-time
part-time assistants,
assistants, P11,200.
P11,200.
m. Labausa withdrew
withdrew cash for personal
personal use, P
P15,500.
15,500.
Required: Record the transactions for the month of March 2019 using a
Worksheet. Use the following accounts: Cash; Accounts Receivable; Prepaid
Insurance; Service Vehicle; Equipment; Accounts Payable; and Labausa, Capital.
If owner’s equity account is affected by a transaction, identify it as
revenue, expense, investment or withdrawal.
Problem #15
Transaction Analysis
Transactions:
For each of the transactions for Virginia Ruben Antique Restorer, a sole
proprietorship, fill in the spaces to answer the following questions:
2. owner's
What type of ac
account
countincome
withdrawal, is affe
affected—ass
cted—asset,
or et,
expense liability,
liability, owner
account? owner's
's capital
capital,
,
3. Should the ac
account
count be incr
increased
eased or dec
decreased?
reased?
4. Should the ac
account
count be debi
debited
ted or credited?
credited?
Problem #16
Recording Transactions in a Financial Transaction Worksheet
Pio Baconga started Baconga Industrial Spray Service on Apr. 1, 2019. During
April, Baconga completed the following transactions:
a. Invested cash in th
the
e bus
business,
iness, P60,000.
P60,000.
b. Bought a serv
service
ice vehicle
vehicle from CDO Motors
Motors for P112,500,
P112,500, paying P2
P22,500
2,500 in
c. cash, with
Bought spr the
spray
ay remainder
nt ondue
equipment
equipme in thirty
account from days.
from Misamis Farm
Farm Supplie
Supplies,
s, P18,000
P18,000.
.
d. Paid rent
rent fo
for
r the mo
month,
nth, P5,6
P5,600.
00.
e. Paid cash for insurance
insurance on service
service vehicle
vehicle for the
the year, P5
P5,760.
,760.
f. Received cash for spray
spray services
services done on a building,
building, P21,
P21,750.
750.
g. Bought
Bought sup
supplie
pliess for cas
cash,
h, P5,730.
P5,730.
h. Billed cu
customers
stomers on
on account for services
services performed,
performed, P4,
P4,440.
440.
i. Paid cash for u utili
tilities
ties,
, P96
P960.
0.
j. Received bbill
ill for gasoline
gasoline used by the service
service vehi
vehicle
cle during th
the
e month,
P3,270.
k. Receipts from cash customer
customers,
s, P16,420.
P16,420.
l. Baconga withdrew
withdrew cash for
for personal
personal use,
use, PIO,500.
PIO,500.
m. Paid salar
salaries
ies to emp
employe
loyees,
es, P20
P20,40
,400.
0.
Required: Record the transactions for the month of April 2019 using a
financial transaction worksheet. Use the following accounts: Cash; Accounts
Receivable; Supplies; Prepaid Insurance; Spray Equipment; Service Vehicle;
Accounts Payable; and Baconga, Capital. If the owner's equity account is
affected by a transaction, identify it as revenue, expense, investment or
withdrawal.
Problem #17
Recording Transactions in a Financial Transaction Worksheet
On June 1, 2019, Teofila Albay, Optometrist, established the Albay Eye Clinic.
Required: Record the transactions for the month of June 2019 using a financial
transaction worksheet. Use the following accounts: Cash; Accounts Receivable;
Office Equipment Accounts Payable; and Albay, Capital. If the owner's equity
account is affected by a transaction, identify it as revenue, expense,
investment or withdrawal.
Problem #18
Recording Transactions in T-Accounts
Required:
1. With the aid of T-
T-accounts
accounts,
, record the transacti
transactions
ons listed ab
above.
ove. Use
the following accounts: Cash; Accounts Receivable; Office Furniture;
Office Equipment; Accounts Payable; Palaganas, Capital; Palaganas,
Withdrawals; Consulting Revenues; Salaries Expense; Rent Expense;
Utilities Expense and Miscellaneous Expense.
2. Determin
Determine
e the balances of the
the T-a
T-accounts.
ccounts.
Problem #19
Recording Transactions in T-Accounts
The accounts and transactions Of Evelyn Tria, Systems Consultant, are shown
below:
Required:
1. With the aid of T-accounts, record the transactions listed above. Use the
following accounts: Cash; Accounts Receivable; Office Furniture; Office
Equipment; Accounts Payable; Tria, Capital; Tria, Withdrawals; Consulting
Revenues; Salaries Expense; Rent Expense; Utilities Expense and Miscellaneous
Expense.
2. Determine the balances of the T-accounts.
Problem #20
Recording Transactions In T-Accounts
a. Dillena invested
invested P300,000
P300,000 in th
the
e bus
business.
iness.
b. Acquired ooffice
ffice equipment
equipment for P100,000.
P100,000. Dillena
Dillena paid P20
P20,000
,000 in cash an
and
d
promised to pay the balance equally every end of the month.
c. Paid rent
rent fo
for
r Dece
December
mber,
, P5,0
P5,000.
00.
d. Provided shopping services for corporate
corporate accounts,
accounts, P52
P52,000.
,000.
e.
f. Paid tele
telephon
Borrowed phone
cashe from
bil
bill,
l,
theP9
P900.
00.
bank by
by signing a note paya
payable,
ble, P50,
P50,000.
000.
g. Bought a computer for office
office use, P48,000 cash.
h. Collecte
Collected
d cash from clients
clients for serv
services
ices performed
performed on accou
account,
nt, P40,00
P40,000.
0.
i. Paid commi
commissions
ssions to shoppers
shoppers for revenues
revenues generated
generated duri
during
ng the first
half of the month, P18,200.
j. Paid elect
electrici
ricity
ty bil
bill,
l, P6,
P6,000
000..
k. Earned sh
shopping
opping revenues
revenues Of P132,000:
P132,000: cash, P72,000
P72,000 on aaccount.
ccount.
l. Paid shop
shoppers'
pers' commissions
commissions for last half
half of month,
month, P46,2
P46,200.
00.
m. Paid tra
transporta
nsportation
tion allowances
allowances for the month, P15,000.
n. Paid P1O,0
P1O,000
00 on not
note
e payable
payable to ban
bank.
k.
o. Paid cash on ac
account
count for the ofoffice
fice equip
equipment
ment purch
purchased
ased in trans
transaction
action
(b), P20,000.
p. Dillena withdrew
withdrew P20,000
P20,000 ffor
or pe
personal
rsonal use.
Required:
1. Record the transactions using T-accounts. Use the accounting equation as a
guide for setting up the T-accounts. The following accounts will be needed:
Cash; Accounts Receivable; Office Equipment; Notes payable; Accounts payable;
Dillena, Capital; Dillena, Withdrawals; Shopping Revenues; Commissions
Expense; Transportation Expense; Rent Expense and Utilities Expense.
2. Determine the balances of the T-accounts.
Problem #21
Identification of Errors
a. Christop
Christopher
her Abelinde
Abelinde invested
invested P240,000 in the
the business (
(increase
increase C
Cash;
ash;
Abelinde,
b. Bought tw
twooCapital).
used delivery
delivery vans
vans from The Van
Van Lot for P200,000 and paid
P50,000 as a down payment (increase Delivery Equipment, P200,000;
decrease Cash, P50,000; increase Accounts Payable, P150,000).
c. Received PP25,000
25,000 in cash
cash for delivery
delivery services (increase
(increase Ca
Cash;
sh; increa
increase
se
Delivery Revenues).
d. Received bill from Bicol News
News for advertising,
advertising, P3,500 (i
(increase
ncrease
Advertising Expense; decrease Cash).
e. Billed Nag
Nagaa Surgical Supply
Supply for delivery
delivery services
services provid
provided,
ed, P6,200
(increase Accounts Receivable; increase Delivery Revenues).
f. Received and paid telephone
telephone bill, P1,000
P1,000 (decrease
(decrease Cash
Cash;
; decreas
decrease
e
Telephone Expense).
g. Abelinde iinvested
nvested in his
his business office
office equipment
equipment havin
having
g a fair market
value of P9,600 (increase Office Equipment; decrease Cash).
h. Received aand
nd paid bill for gas
gas and oil, P1,
P1,500
500 (decrea
(decrease
se Cash; inc
increase
rease
Maintenance Expense).
i. Paid P3,50
P3,5000 to Bicol News to pay
pay account in full
full (increa
(increase
se Adverti
Advertising
sing
Expense; increase Cash).
j. Received P
P29,000
29,000 cash
cash for delivery
delivery services performed
performed (i
(increase
ncrease Ca
Cash;
sh;
increase Delivery Revenues).
k. Abelinde w
withdrew
ithdrew P11,000
P11,000 for personal
personal use (decrease
(decrease Cas
Cash;
h; increas
increasee
Salaries Expense).
l. Received P
P4,000
4,000 from Naga
Naga Surgical
Surgical Supply to apply
apply on account (i
(increase
ncrease
Cash; increase Delivery Revenues).
m. Paid salar
salaries
ies to part-time
part-time employee,
employee, P8,000 (increase
(increase Sa
Salaries
laries Exp
Expense;
ense;
decrease Cash).
Required: Find six errors that were made in recording the transactions, and
State how they Should have been recorded.