Business Transactions and Their

Analysis As Applied to the

Accounting Cycle of a Service
Business

FABM1

by: ZORINA LUGO

(Yuan Vani)
A. Content Standards:

The learners demonstrate an

understanding of the accounting
cycle of a service business.
Performance Standards:

The learners shall be able to prepare

journal entries, post to the ledger,
prepare the trial balance,
worksheet, adjusting entries and
complete the accounting cycle of a
service business.
Learning Competencies:
The learners shall be able to
1. describes the nature of
transactions in a service business

2. records transactions of
a service business in
the general journal
Learning Competencies:

3. posts transactions in
the ledger
4. prepares a trial balance
 
GIVE SOME WORD OR PHRASES
ASSOCIATED WITH THE WORD
“CYCLE”
 
WA.S.H

WAter, Sanitation, Hygiene

 
WinS
Wash In School
 
WinS
Wash In School
ACTIVITY 1 BBQ

 BATTLE OF THE BRAIN- QUIZ

(Group Activity)
  MECHANICS:
1.5 chairs are positioned at the center aisle
 
2.Each group will assign a member who will
answer the question. One member, one
question
3.One point will be given to the member who
gives the correct answer
4.Points are accumulated
 
 MECHANICS:

 5. Group/groups who earned the

highest points will receive a BONUS
of 10 POINTS in the performance
task.
6. Discipline and Honesty are
expected
  
START
 
 1. The list of account titles used by the
business is called

Chart of
A Trial balance B Accounts
Accounting
C Equation D Journal Entries

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 1. The list of account titles used by the
business is called

Chart of
A Trial balance B Accounts
Accounting
C Equation D Journal Entries

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 2. The first step in the accounting cycle is

Preparing Trial Preparing

A Balance B journal entries
Posting to the Identifying
C ledger D transactions
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 2. The first step in the accounting cycle is

Preparing Trial Preparing

A Balance B journal entries
Posting to the Identifying
C ledger D transactions
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 3. The process of transferring the records
from the journal to the ledger is called

A Journalizing B Adjusting

C Posting D Listing

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 3. The process of transferring the records
from the journal to the ledger is called

A Journalizing B Adjusting

C Posting D Listing

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 4. The simple form of a ledger is

A Journal B T account

Chart of
C Account D Trial Balance

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 4. The simple form of a ledger is

A Journal B T account

Chart of
C Account D Trial Balance

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 5. Which of the following is a need for a
ledger?

Items of similar nature Accounts are arranged

A are grouped together B according to
transactions.

Heading in the Always use T

C ledger is a need D account
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 5. Which of the following is a need for a
ledger?

Accounts are arranged

Items of similar nature
A are grouped together B according to
transactions.

Heading in the Always use T

C ledger is a need D account
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 6. The process of recording business
transactions in a journal is called

A Journalizing B Posting

C Identifying D Analyzing

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 6. The process of recording business
transactions in a journal is called

A Journalizing B Posting

C Identifying D Analyzing

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 7. A journal entry with two or more
debits and credits is

Simple journal Compound

A entry B Journal entry
Multiple journal Adjusting
C entry D journal entry
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 7. A journal entry with two or more
debits and credits is

Simple journal Compound

A entry B Journal entry
Multiple journal Adjusting
C entry D journal entry
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 8. A record of business transactions in
the journal

A Special Journal B Journal Entry

Subsidiary
C Ledger Entry D Ledger
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 8. A record of business transactions in
the journal

A Special Journal B Journal Entry

Subsidiary
C Ledger Entry D Ledger
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 9. The principle assumes that the business
has a continuous life or operation

A Prudence B Materiality

C Going concern D Accrual

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 9. The principle assumes that the business
has a continuous life or operation

A Prudence B Materiality

C Going concern D Accrual

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 10. Accrued Income is an example of

A Asset B Revenue

C Equity D Expense

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 10. Accrued Income is an example of

A Asset B Revenue

C Equity D Expense

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POST ASSESSMENT # 1
 1. In journalizing, which of the following is
TRUE?

The year is written in The debit account is written first

A small figures at the top

of the second column
B at the right margin of the
account titles and explanation
column

The debit amount is written

There is already an
C on the debit column
opposite the debit accounts
D entry in PR column.

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 2. Which is written first at the left margin
of the account titles column?

A debit account B debit amount

C credit account D credit amount

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 3. The following information are
transferred to the ledger EXCEPT:

A date B amount

C explanation D heading

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 4. The second line of the heading of the
trial balance is

the name of the date of the trial

A business B balance
title of the list
C or trial balance D account titles

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 5. The last step in preparing Trial balance
is

Foot the money Double rule the

A columns
Write the amounts on
C the debit or credit
column
B totals
Write the accounts
D according to five major
accounts

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 6. Yuan Vani invested Cash P100,000 and Delivery
truck, P500,000 in his newly opened business.
What is credit entry and credit amount?

Delivery truck
A Cash P100,000 B P500,000
Cash P100,000, Kali, Capital
C Delivery truck P500,000 D P600,000
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 7. Yuan Vani purchased repair tools P25,000 on
account with a promisorry note to pay 20 days after.
What is the credit entry?

Accounts Notes Receivable

A receivable P25,000 B P25,000
Accounts Notes Payable
C payable P25,000 D P25,000
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 8. Which of the following is a possible
account number of a capital account?

A 103 B 103

C 301 D 303

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 9. If the difference in the debit totals and
credit totals is multiple of 9, the error may be

A misplacement B transposition

C omission D wrong footing

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 10. Which way maybe applied to correct
errors committed?

Use correction Draw a single line

A tape B through the wrong item

Write the correct item Re write the entries

C on the opposite side D on the next line

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1. C 6. D
2. A 7. D
3. D 8. C
4. C 9. B
5. B 10.B
Compute for the MPS
1. Find the MEAN
a. Add the total scores
b. Divide by the total no. of
examinees.
2. Divide by 10
3. Multiply by 100
1. MEAN
X = Total Scores
Total Students
2. Mean Percentage Score
MPS = X (100)
20
Closing Questions:
1. Trial Balance is the fourth step of
the accounting cycle. Even though you
got an equal amount of the debit
totals and credit totals, how sure are
you if it is correct?
Processing Questions:
2. How will you obtain a correct Trial
Balance?
Processing Questions:
3. What value or attitude should you
observe in working on the four step of
the accounting cycle?
Processing Questions:
4. Why is it important to be careful?
Processing Questions:
4. Did you enjoy the activity?
Processing Questions:
4. What practical applications of
concepts and skills can you suggest?
Generalization:

What important concept did

you learn from the first four
steps of the accounting cycle?
Assignment:
What are the adjusting
accounts? Define each and
give examples.
Note: photos in this presentation credit to owners