Professional Documents
Culture Documents
Transaction
Review
Equipment
Cash
Rent Expense
Owner’s Investment
Accounts Payable
Accounts Receivable
Service Income
Riri, Drawing
Accrued Rent Expense
Salaries Expense
Unearned Service
Income
Supplies on Hand
Sales
Furniture and Fixtures
Prepaid Rent
Accumulated
Depreciation
Accrued Laundry
Income
Rent Income
Bad Debts
Mortgage Payable
For each transaction, indicate whether the ASSETS, LIABILITIES or OWNER’s EQUITY increased
(+), decreased (-) or did not change (o) by placing the appropriate sign in the appropriate
column.
OWNER’s
ASSETS LIABILITIES
EQUITY
1 Bought Equipment, paying cash.
2 Paid the monthly rent expense.
3 Purchased supplies on credit.
4 Made an additional investment in the company.
5 Charged customers for services provided on account.
6 Paid creditor on account.
7 Received payment from customers on account.
8 Received cash for services rendered today.
9 Permanently reduced his investment in the business
by taking out cash.
10 Paid salaries for the week.
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For each transaction, indicate whether the ASSETS, LIABILITIES or OWNER’s EQUITY increased
(+), decreased (-) or did not change (o) by placing the appropriate sign in the appropriate
column.
ASSETS LIABILITIE OWNER’s
S EQUITY
1 Received cash as additional investment.
2 Purchased supplies on account.
3 Charged customers for services made on account.
4 Rendered services to cash customers.
5 Paid cash for rent on building.
6 Collected on account receivable in full.
7 Paid cash for supplies.
8 Returned supplies purchased on account.
9 Paid cash to settle accounts.
10 Paid cash to owner for personal use.
11 Acquired Equipment, paying 50% down, the balance
due in 30 days.
Identify the following transactions by identifying each as either one of the following: owner’s investment (OI),
owner’s withdrawal (OW), income (I), expense (E) or not an owner’s equity transaction (NO).
INC DEC NO TYPE
EFFECT
1 The owner invested P 700 000 in the business.
2 Bought equipment on account, P 250 000.
3 Paid one-third of the bill owed to the creditor.
4 Received P 150 000 in fees.
5 Paid salaries for the week, P 35 000.
6 Withdrew P 20 000 for personal use.
7 Paid rent for the month, P 12 000.
8 Supplies inventory decreased by P 5 000 during the
month
Indicate whether each of the above transactions is a SOURCE of ASSET (SA), USE of ASSETS
(UA), EXCHANGE of ASSETS (EA), EXCHANGE of CLAIMS (EC) transactions.
Total Assets
Current Liabs
Capital
Income
Expenses
Analysis using the Financial
Transaction Worksheet
Financial transactions are analyzed through the
increases/ decreases in the assets, liabilities and
owner’s equity of the business entity.
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Journalizing
Journalizing transactions is the process of keeping a
record of all your business transactions, tracking them
in chronological order, and generally includes the
date, the account you’re debiting or crediting and a
brief description of the transaction that occurred
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Journalizing
Journalizing transactions is the
process of keeping a record of all your business
transactions,
tracking them in chronological order,
Accounts for the debit and the credit
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Journals
BOOK of ORIGINAL
ENTRY
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Note:
Proof of transactions are called
SOURCE
DOCUMENTS
Types of Journals
Sales Journal
General Journal
Cash Receipts
Journals
Journal
Special
Journals
Purchase
Journal
Cash
Disbursements
Journal
Click here for Worksheet