Here are the answers to your accounting questions:
1. The normal balances are:
- Asset - Debit balance
- Liability - Credit balance
- Owners Equity - Credit balance
- Income - Credit balance
- Expenses - Debit balance
2. Double entry bookkeeping is a system of recording transactions where every transaction recorded increases or decreases at least two different accounts. This ensures the accounting equation (Assets = Liabilities + Owners Equity) remains in balance.
3. An account is a record of increases and decreases to a specific item in the accounting equation like assets, liabilities, income, expenses, etc.
4. We debit:
a. Asset accounts
b.
Here are the answers to your accounting questions:
1. The normal balances are:
- Asset - Debit balance
- Liability - Credit balance
- Owners Equity - Credit balance
- Income - Credit balance
- Expenses - Debit balance
2. Double entry bookkeeping is a system of recording transactions where every transaction recorded increases or decreases at least two different accounts. This ensures the accounting equation (Assets = Liabilities + Owners Equity) remains in balance.
3. An account is a record of increases and decreases to a specific item in the accounting equation like assets, liabilities, income, expenses, etc.
4. We debit:
a. Asset accounts
b.
Here are the answers to your accounting questions:
1. The normal balances are:
- Asset - Debit balance
- Liability - Credit balance
- Owners Equity - Credit balance
- Income - Credit balance
- Expenses - Debit balance
2. Double entry bookkeeping is a system of recording transactions where every transaction recorded increases or decreases at least two different accounts. This ensures the accounting equation (Assets = Liabilities + Owners Equity) remains in balance.
3. An account is a record of increases and decreases to a specific item in the accounting equation like assets, liabilities, income, expenses, etc.
4. We debit:
a. Asset accounts
b.
• Accounts Receivable Beg. P 156,750 • Accounts Receivable End. 249,700 • Sales 818,125 2. Compute for the amount of cash paid to suppliers • Inventory Beg. P 282,287.5 • Inventory End. 335,225 • Accounts Payable beg. 132,770 • Accounts Payable end 158,675 • Cost of Goods Sold 273,515 1. A P 30,000 loan was due on October 30. If a man obtained the loan on May 23 at 6.5% simple interest of the same year, how much will he pay on thye due date? 2. Mr. Reyes obtained a loan of P 234,000 from a credit union that charges 12.33% simple interest for 5 3/5 years. Determine the: a) Amount of interest per annum b) Total amount of interest due on the loan 3. Find the maturity value of the loan of P 40,500 borrowed on October 5 and payable on December 30 of the same year at 6 2/5% simple interest. 4. An amount of P 54,000 is invested at 8% simple interest on March 15. Find the amount of a. Exact interest b. Ordinary interest earnings by August 11 of the same year c. Difference in earnings between ordinary interest and the exact interest. 5. A sum of P 43,200 is borrowed for 11 months at 7 1/5% simple interest. 1. What are the normal balances of the following: • Asset • Liability • Owners Equity • Income • Expenses 2. Explain the concept of double entry bookkeeping. 3. Define “Account”. 4. We debit a. b. c. 5. We Credit a. b. c.