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Financial Transaction Worksheet

This document provides instructions and a series of financial transactions for a new accounting business. Students are asked to analyze how each transaction affects the accounting equation and identify which specific accounts are involved. The transactions include starting the business with a cash investment, purchasing equipment on credit and supplies for cash, paying a creditor, earning revenue on credit and for cash, paying expenses like salaries, utilities, and rent, collecting receivables, and an owner's withdrawal.

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Christian paul Laguerta
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879 views4 pages

Financial Transaction Worksheet

This document provides instructions and a series of financial transactions for a new accounting business. Students are asked to analyze how each transaction affects the accounting equation and identify which specific accounts are involved. The transactions include starting the business with a cash investment, purchasing equipment on credit and supplies for cash, paying a creditor, earning revenue on credit and for cash, paying expenses like salaries, utilities, and rent, collecting receivables, and an owner's withdrawal.

Uploaded by

Christian paul Laguerta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Paying a Creditor: Explains the transaction effect of paying a creditor in cash on the accounts.
  • Initial Transactions: Covers basic accounting transactions and their effects on assets, liabilities, and owner's equity.
  • Purchasing Supplies for Cash: Discusses the effects of cash purchases of supplies on the accounting equation.
  • Purchasing Equipment on Credit: Describes the accounting impact of buying equipment on credit.
  • Selling Services for Cash: Explores direct cash sales and their effects on revenue accounts.
  • Employees' Salaries: Accountancy of salaries paid and the impact on business expenses and liabilities.
  • Rent Expense: Describes the transactions involved in paying rent and their accounting treatment.
  • Collecting Receivables: Details the cash collection from receivables and its accounting impact.
  • Effects of Revenue and Expenses: Analyzes how revenue and expense activities alter financial accounts and equations.
  • T-Accounts Diagram: Provides a visual representation of T-accounts for various transaction categories.

FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1

Name: ___________________________________ Section: __________ Date: ____________

INSTRUCTIONS:
1. Analyze each transaction and identify its effects in the accounting equation.
↑ Asset = ↑ Liability ↑ Liability = ↓ Owner’s Equity

↑ Asset = ↑ Owner’s Equity ↑ Owner’s Equity = ↓ Liability

↑ One Asset = ↓ Another Asset ↑ One Liability = ↓ Another Liability

↓ Asset = ↓ Liability ↑ One OE = ↓ Another OE

↓ Asset = ↓ Owner’s Equity


2. Identify which specific accounts are affected.
3. Establish the accounts in a financial transaction worksheet:
4. Record in the worksheet the transactions listed above.
5. Determine the balances of the T-Accounts.

I. INITIAL TRANSACTION

A. STARTING A BUSINESS
Oct 1 Rey Fernan Refozar obtained the funds to start the business by withdrawing ₱800,000 from
his personal savings. He deposited the money in a new bank account that he opened in the
name of the firm, Refozar Accounting Services.

Effect of the transaction to the Accounting Equation: Accounts Affected:

B. PURCHASING EQUIPMENT ON CREDIT


Oct 3 Manongsong bought a computer, a copy machine, a fax machine, calculators and other
necessary equipment from M. Medina, Inc., at a cost of ₱100,000. M. Medina, Inc., agreed to
allow 60 days for the firm to pay the bill.

Effect of the transaction to the Accounting Equation: Accounts Affected:

C. PURCHASING SUPPLIES FOR CASH


Oct 5 Manongsong placed an order for toner, fax paper, bond paper, CDs, pens, folders, and other
supplies that had a total cost of ₱20,000. The entity that sold the items, Cavite Supplies, Inc.,
requires cash payments from businesses that are under six months old. Refozar Accounting
Services therefore included a check with its order.

Effect of the transaction to the Accounting Equation: Accounts Affected:

D. PAYING A CREDITOR
Oct 9 Manongsong decided to pay ₱40,000 to M. Medina, Inc., to reduce the firm’s debt to that
business.

Effect of the transaction to the Accounting Equation: Accounts Affected:

Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1

II. EFFECTS OF REVENUE AND EXPENSES


E. SELLING SERVICES ON CREDIT
Oct 13 Refozar Accounting Services earned ₱70,000 of revenue from charge account clients. These
clients are allowed 30 days to pay.

Effect of the transaction to the Accounting Equation: Accounts Affected:

F. EMPLOYEES’ SALARIES
Oct 18 Refozar Accounting Services hired an accounting staff on October 1 to help in the business.
The firm paid ₱25,000 in salaries for this employee and Jiexel Manongsong.

Effect of the transaction to the Accounting Equation: Accounts Affected:

G. COLLECTING RECEIVABLES
Oct 23 Refozar Accounting Services received ₱30,000 from clients who had previously bought
services on account. This cash was applied to their accounts.

Effect of the transaction to the Accounting Equation: Accounts Affected:

H. SELLING SERVICES FOR CASH


Oct 27 Refozar Accounting Services earned a total of ₱210,000 in revenue from clients who paid
cash for accounting and bookkeeping services.

Effect of the transaction to the Accounting Equation: Accounts Affected:

I. UTILITIES EXPENSE
Oct 30 Refozar Accounting Services received a ₱35,000 bill for the utilities that it had used during the
month. A check was issued to pay the bill immediately.

Effect of the transaction to the Accounting Equation: Accounts Affected:

J. RENT EXPENSE
Oct 31 Refozar Accounting Services issued a check as a payment for office rent for October. The
lease contract Refozar signed specified a monthly rent of ₱45,000.

Effect of the transaction to the Accounting Equation: Accounts Affected:

III. EFFECT OF OWNER’S WITHDRAWAL


K. OWNER’S WITHDRAWAL
Oct 31 Rey Fernan Refozar withdrew ₱150,000 in cash from the business to pay for personal expenses.

Effect of the transaction to the Accounting Equation: Accounts Affected:

Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1

Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1

Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books

FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1 Name: ___________________________________ Section: __________ Date: _
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1 II. EFFECTS OF REVENUE AND EXPENSES E. SELLING SERVICES ON CREDIT Oct
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1 Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), Dom
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1 Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), Dom

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