The Accounting Equation and the Double Entry System | 91 ——_———————————— NAME: SCORE: SECTION: PROFESSOR: Fill in the Blanks 1. Cash, Accounts Receivable and Equipment are examples of 2. Increasing expenses ultimately cause owner's equity to 3. An increase in rent expense is a by the rules of debits and credits. 4. A debit to one asset and a credit to another asset for the same transaction reflect an of assets, 5. The effect of each transaction is recorded in either the or __column of each ledger account. * 6. The double-entry recording rule states that for every transaction, total debits must total credits. In addition, every transaction affects at least ledger accounts. 7. Chubby Cat Food Supplies delivered cat food to Jolly Pet Shop but did not receive payment from Jolly Pet Shop: till’ the- following month. This is known as a transaction. 8. Enchanted Paws Pet Shop paid Chubby Cat Food Supplies immediately for the cat food purchased. This is known as a transaction. . 9. The basic unit to record all business transactions is called 10. create an outward or poténtial outward flow of assets. 11, Revenue earned on account creates an asset entitled 12) record personal expenses that are not related to the business. They are a subdi jon of owner's equity. \ 13. The left side of any T-account is called the : 14, Assets are increased by 15. Withdrawals are increased by 16. is the recording function of the accounting process. 17. Assets = + Owner’s Equity 18, The owner's current investment or equity in the assets of a business is called 19, A'list of assets, liabilities, and owner’s equity as of a particular date is reported on a92 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada ——— NAME: ‘SCORE: SECTION: PROFESSOR: ill in the Blanks Rules of Debit and Credit The account type determines how increases or decreases in it are recorded. . Determing whether the word debit or credit is appropriate for each statement. | 1, Asset accounts normally have balances. An increase in asset is recorded as | a while a decrease in asset is recorded as a ss 2. Liability accounts normally have balances. An increase in liability is recorded bya and a decrease is entered as a 3. The. owner's capital account normally has a balance. This’ account | increases on the side and decreases on the side. 4. Income accounts normally have balances. These accounts increase on the side and decrease on the side. 5. Expense accounts normally have * balances. These accounts increase on the side and decrease on the side, :The Accounting Equation and the Double Entry System | 93 NAME: “ SCORE: SECTION: PROFESSOR: True or False 1. The liability created when supplies are bought on account is called an account payable, 2. Equipment is listed as an asset because it is used up in a relatively long period of time. 3, The owner's Withdrawais account is listed with the other expenses of a business. 4, Awithdrawal by the owner is recorded as a deduction from assets and an increase in expenses. : 5. Assets are things of value owned by a business entity. 6. Every transaction is recorded in terms of increases and/or decreases in two or more accounts. 7. Liabilities represent amounts owed to creditors. 8, In the fundamental accounting equation, assets are added to liabilities. 9. Business transactions are expressed in terms of money. 10. Thefirst step in analyzing a transaction is to determine what accounts are involved. 11. Capital represents the owner's investment, or equity, in a business. 12. When a business receives cash, it is always recorded as an increase to Cash and a decrease to an Expense. 13. Accounts Receivable is considered an asset. 14, An owner can invest cash or other assets of value in the business 45. Both sides of the fundamental accounting equation must always be equal.94 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Multiple choice 1. The accounting equation can be stated as: | A+L-OE=0 A-L+0E=0 -A+L-OE=0 A-L-OE=0 pose 2. Which of the following accounts has a debit balance? Accounts Payable a. b. Accrued Taxes c. Accumulated Depreciation d.’ Uncollectible Accounts Expense 4 | 3. First staternent:’ In general, debits refer to increases in account balances, and credits refer to decreases. ‘ | Second statement: All liability and equity accounts are increased on the credit side and decreased on the debit side. a. True, True b. True, False c. False, True d. False, False 4, Factors that shape an accounting information system include the a. nature of the business. b. size of the firm. c. volume of data to be processed. d. all of these. 5, Debit always means’ right side of an acedunt. a b. increase. c. decrease. d. none of these.The Accounting Equation and the Double Entry System | 95 NAME: SCORE: ‘SECTION: PROFESSOR: Multiple Choice 1 Which of the following is true? The debit is on the right side of an asset account. The debit is on the left side of an asset account. The credit is on the left side of a liability account. The debit is on the right side of an expense account. aos Which of the following accounts has a normal debit balance? Accounts Payable Notes Payable Consulting Revenues Advertising Expense pepe Which of the following accounts is increased by a credit? a, Accounts Receivable b. Sales c. Withdrawals 4. Advertising Expense Which of the following is true? , A debit will increase a liability account. Accredit will increase an asset account. A credit will increase a revenue account. A debit will decrease an expense account. eaoge In applying the rules of debits and credits, which of the following statements is correct? The word “debit” means to increase, and the word “credit” means to decrease. Asset, expense and capital accounts are debited’for increases. Liability, revenue and capital accounts are debited for increases. Asset, expense and withdrawals are debited for increases. ano‘Accounting ond Reporting 2021 Edition by Prof. WIN Ballada 6. If assets total P700,000 and liabilities total 400,000, how much are the net assets) 300,000 400,000 700,000 P1,100,000 aooe 7. What are increases in resources that a firm earns by providing goods or services t) its customers? Assets Income Expenses Liabilities i aos x | 8. if assets increase by P100,000 and liabilities decrease by 30,000, owner's equity must remain unchanged. . increase by P130,000. decrease by P70,000. decrease by P130,000. aeoce 9. AT-account consists of how many parts? a. One b. Two c. Three . d. FourThe Accounting Equation and the Double Entry System | 97 NAME: SCORE: SECTION: PROFESSOR: Problem #1. Accounting Events Which of the following events would be recognized in the accounting records of Ruth Chew HR Consultants on the date indicated? . Feb. 15 Chew HR Consultants offers to purchase a piece of land for P1,400,000. There is @ high likelihood that the offer will be accepted. Chew HR Consultants receives notice that its rentals for an office space will increase from PS0,000 to P60,000 per month effective April 1. Apr. 29 Chew HR Consultants receives its electricity bill for the month of April. The bill is due on May 9. Mar. * July 10 Chew HR Consultants places an order for an office equipment costing P108,000. Aug. 6 The office equipment ordered on July 10 is delivered. Payment is ‘not due until Sept. 1. cTAbe 7 tke ‘ , Tier x 2 WORRY = oo ,se rrr ge98 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Problem #2 Elements of Financial Statements | 1. Using the accounting equation, complete the following table: | Assets Liabilities Equity “al a. P457,000 270,000 b. P 1,006,000 PS00,000 ¢. 309,000 P120,000 | d. 756,000 451,000 =. P895,000 P148,000 f. 668,000 222,000 2. The following figures are extracted from various sole proprietorships. Using the expanded accounting equation, complete the following table: Assets Liabilities Equity Capital Income Expenses a P96,000 P56,000 P46,500 P32,500 b. | P151,000 P39,000 P86,000 P48,000 c. | P182,000 P65,000 : P37,000 P25,500 d. | P123,000 P54,000 42,000 P26,000 e 94,000 P25,000 P37,000 P67,500The Accounting Equation and the Double Entry System | 99 NAME: z SCORE: SECTION: PROFESSOR: Problem #3A Elements of Financial Statements Assets "Liabilities. Owner's Equity a. 760,000 "360,000 ? b. 860,000 - ? 592,000 & ? 108,000. - 760,000 d. 626,600 376,240 ? e. 2 800,000 (100,000) Required: Fill in the amount of the missing element of financial position. Problem #3B ‘ ose e Jimmy Delgado Pest Control has assets of P600,000 and owner's equity of P450,000. Margie Clavano Realtors has liabilities of P530,000 and owner's equity of P410,000. Marko Fuentes Plumbing Contractor has assets of P473,000 and liabilities of P153,700, Ryan Morales Acting. Studio has liabilities of P147,000 and owner's equity of 236,500. “> Fely Monarca Dance has assets of P624,000 and liabilities of P237,000. Required: Compute the amount of the missing element of financial position. Problem #3C ‘At the beginning of the year, thé assets of Cleofe ‘Arib Services were P360,000 and its owner's equity was P200,000: During the year, assets increased by P120,000 and liabilities increased by P20,000. What was the owner's equity at the end of the year? b. At the beginning of the year, Cora Gabayan Calling Station had liabilities of P100,000 and owner's equity of P96,000. If assets increased by P40,000 and liabilities decreased by P30,000, what was the owner’s equity at the end of the yéar? The liabilities of Lenore Loqueloque Stylist equal one-third of the total assets, and the owner's equity is P240,000. What is the amount of the liabilities? Required: Use the accounting equation to answer each of the questions above.100 | Bosic Financial Accounting and Reporting 2021 Edition by Proj. WIN Ballado [NAME: [ SCORE: (SECTION: | PROFESSOR: Problem #4 Transaction Effects on the Basic Accounting Model ‘The following are some transactions of Maricel Supan Services: OE 2. Received cash as additional investment. Purchased supplies on account. A L b. ¢___ Charged customers for services made on account. g, Rendered services to cash customers. 2, Paid eash for rent on building. ¢,_ Gollected on account receivable in full. g._ Paidcash for supplies. h, Returned supplies purchased on account. : i Paid cash to settle accounts. j. Paid ash to owner for personal use. 3 Required: ic liabilities (L) or owner's equity For each transaction, indicate whether the assets (A), ” eq (OE) increased (+), decreased (-) or did not change (0) by placing the appropriate sign in the appropriate column.The Accounting Equation and the Double Entry Systern | 101 NAME: 7 SECTION: SCORE! PROFESSOR: Problem #5 Owner’s Equity Transactions a. Received cash for rendering services. b. Withdrew cash for personal expenses. c. Received cash from a customer who have been rendered service on account. d. Transferred personal assets to the business. e. Paid a service station for gasoline for a business service vehicle. Performed a service and received a promise of payment. g. Paid cash to acquire equipment. h Paid cash to an employee for services rendered. Required: . Identify the foregoing transactions by identifying each as either one of the following: ‘owner's investment (01), owner's withdrawal (OW), income (|), expense (E) or not an owner's equity transaction (NO).102 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: ‘SCORE: SECTION: PROFESSOR: Problem #6 Transactions that Affect the Elements of Financial Statements Decrease an asset and decrease owner's equity (use of assets event). Increase a liability and decrease owner's equity (exchange of claims event). Increase an asset and increase owner's equity (source of assets event). Increase’an assetand decrease another asset (exchange of assets event). Increase an asset and increase a liability (source of assets event). Decrease an asset and decrease a liability (use of assets event). a b c d. Decrease a liability and increase owner's equity (exchange of claims event). e fi e Required: Be able to give an example of a transaction for each of the above. Problem #7 Classification of Events J Received cash investment from the owner. . Paid cash on accounts payable. .. Collected cash from accounts receivable. Made cash distribution to the owner. Paid cash for rent expense. Invested cash in time deposit. Purchased land with cash. Performed services for clients on account. Incurred operating expenses on account. Performed services for cash, Required: Indicate whether each of the above transactions is a source of assets (SA), use of aseets (UA), exchange of assets (EA), or exchange of claims (EC) transaction.The Accounting Equation and the Double Entry System | 103 NAME: SCORE: SECTION: " PROFESSOR: Problem #8 Effects of Transactions The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2020: Cash received from delivery services, P92,700. Paid creditors on account, P20,000. , Received cash from owner as additional investment, P600,000. Paid advertising expense, P5,000. y Billed customers for delivery services on account, P55,200. Purchased supplies for cash, P6,000. Paid rent for July, P20,000. Received cash from customers orf account, P25,440. Determined that the cost of supplies on hand was P1,440 so P4,560 of supplies were used during the month. 10. Owner withdrew cash for personal use, P20,000. paonanayne Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset. b. Increase an asset, increase a liability. c. Increase an asset, increase owner's equity. d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner's equity.flada 21 Edition by Prof. WIN Bal ee Dc Financial Accounting and Reporting 202: ‘ SCORE: ane PROFESSOR: Problem #9 Financial Transaction Worksheet The assets, liabilities and owner's equity of Deogracia Corpuz who operates 2 repair shop are expressed in equation form below. Corpuz completed the following transactions: 1. Organized a repair shop and deposited 500,000 cash in the bank for use by the business. 2. Purchased P20,000 of supplies on account. 3. Purchased land for future repair site for P140,000 cash. 4. Paid P18,000 to creditors, 5. Withdrew P25,000 for personal use, 6. Paid P28,000 for site and equipment rent for the month, 7 During the month, 8 9. 10. 10,000 expenses were incurred on account by the business, During the month, Corpuz + Invested another P100,000 of personal ‘nds in the business Received P5,000 for g Sh service call, Corp Used P6000 veh of supplies, E Assets abit oe | Aes Cesh+Supplies+land = Accounts + —corpuz, Payable Capital a ‘ 2) Bal, Sree (3) Bal. ee (4) Bal, (7) ea ee ee ee , 8) (9) : (10) .The Accounting Equation and the Double Entry System | 105 I Required: On each of the numbered lines, show by addition or subtraction the effect of each of the transactions on the equation, For each transaction, identify the changes in owner's equity by placing the letter | (income), E (expense), W (withdrawal), or INV (investment) at the right of each increase or decrease in owner's equity. On the lines labeled “Bal.” {i.e, Balance) show the new equation resulting from the transaction, Problem #10 . Transactions in a Completed Worksheet Nine transactions are reflected in the October transaction worksheet of the Teresita Galang Financial Planner presented below: Teresita Galang Financial Planner Financial Transaction Worksheet Month of October 2020 x A = L + OE Cash + Accounts + Supplies + Office = Accounts + Galang, Receivable Equipment Payable Capital Bal, —_P.15,000 17,500 P4,500 153,000 = P 60,000 P 130,000 1 7,000 (7,000) \ 2 (5,000) 5,000 3 25,000 = 25,000 4 24,500 24,500 5 16,000 (16,000) 6 (6,500) = (6,500) 7 3,700 = 3,700 8 (2,500) = (2,500) 9 (5,000) = (5,000) 3,000 + P3500 + P1320 + p178,000 = p 98200 + 131,000 P229,200 =P 229,200 Required: Describe each of the above transactions. The last transaction is the only transaction affecting the capital account that does not affect profit. 2. What,was the change in the Cash account for the month? In Galang, Capital?106 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada —E NAME: SCORE: SECTION: me PROFESSOR: . 2 Problem #11 Recording Transactions in a Financial Transaction Worksheet Nelson Daganta formed the Liceo Signages on Oct. 1, 2020. He deposited P250,000 in | GE Money Bank under the name of the new business entity. During the month of October 2020, the following transactions occurred: ° Oct." 2 Acquired a service vehicle in the amount of P195,000 on account. 3. Acquired supplies for cash, P57,000. 9 Received P87,500 cash for signs painted. 10 Paid the month's rent, P25,000. 11. Painted signs for Cagayan Mobile on account, P170,000. 12 Paid P55,000 on account from Oct. 2. 16 Withdrew P25,000 for personal use. 23 Collected P35,000 from Cagayan Mobile. 27 __ Paid salaries of P57,000 for the month. 30 Paid BayanTel P7,500 for communication services for the month. 31 Paid a bill from AdAsia for P5,500 of advertising for the month. Required: Establish the following accounts in a financial transaction worksheet: Cash; Accounts | Receivable; Supplies; Service Vehicle; Accounts Payable; and Daganta, Capital. Record in the worksheet the transactions listed,above.The Accounting Equation and the Double Entry System | 107 NAME: SCORE: SECTION: PROFESSOR: Problem #12 Recording Transactions in a Financial Transaction Worksheet Stephanie Calamba is the owner of the Calamba Repairs Specialist. On Jan, 1, 2021, the assets, liabilities. and proprietor's capital of the business were: Cash, P25,000; Accounts Receivable, P4,000; Supplies, P5,000; Equipment, P60,000; Accounts Payable, P9,000; Calamba, Capital, P85,000. The transactions for the month of January were as follows: Accounts : Accounts Calamba, Cash + Receivable + Supplies + Equipment = Payable Capital Jan. . Balance P25,000 + 4000 + P5000 + 60,000 = P9000 + 85,000 a b G108 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: SCORE: PROFESSOR: SECTION: Problem #13 Recording Transactions in a Financial Transaction Worksheet Emerita Modesto established her own business called Modesto's Self-Storage. The account headings are presented below. Transactions completed during the month follow: Assets . = Cash + Accounts Receivable + Prepaid Insurance + Office Equipment Liabilities + Owner's Equity _ = . Modesto, Capital + Revenue — Expenses Accounts Payable | i Deposited P120,000 in a bank account in the name of the business. Bought officé equipment on account from PHINMA Corporation, P31,000. Paid rent for the month, P24,000, . Bought supplies for cash, P4,500. Paid salaries, P9,800. Received cash for storage services, P36,000. Received and paid the utility bill, P2,520. Paid Errol Umerez Graphics for advertising, P4,280. (The bill was not previously a. b. 4 d. e. & g. h ‘ recorded.) Paid for a one-year liability insurance policy, P8,350. Billed customers for storage services on account, P33,700. Received cash for storage services, P23,000. |. Paid salaries, P9,900. Paid PHINMA Corporation P11,000 as part payment on the office equipment bought in transaction b. Modesto withdrew P12,000 for personal use. Required: 1. Record the transactiogs in columnar form, write plus and minus signs, and show the balance after each transaction to be sure the equation remains in balance. 2. Write the proof of totals at the bottom to show that one side of the equation equals the other side. . i ;The Accountis NAME: SCORE: ‘SECTION: PROFESSOR: Problem #14 Recording Transactions in a Financial Transaction Worksheet Ludivinia Victorino, a veteran photographer, opened a studio for her professional practice on July 1.-Transactions completed during the month follow: a. Deposited P146,200 in a bank account in the name of the business, Victorino PhotoProfiles. b. Bought new photography equipment on account from Canon Equipment, P71,210. 3 c. Invested personal photography equipment into the business, P51,620. d. Paid office rent for the month, P5,500. e. Bought photography supplies for cash, P7,960. {. Paid premium for insurance cover on photography equipment, P1,240. g. Received P8,960 as professional fees for services rendered. h. Paid salary of part-time assistant, 6,000. i. Received and paid bill for telephone service, P640. j. Paid Canon Equipment part of the amount owed on the purchase of photography equipment, P4,200. k. _ Received P15,480 as professional fees for services rendered. |.” Paid for minor repairs to photography equipment, P760. m. Victorino withdrew cash for personal use, P9,600. Required: Record the transactions for the month of July 2020 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 acount is affected by a transaction, identify it as revenue, expense, investment or withdrawal.porting 2021 Edition by Prof. WIN Ballada 1 Accounting or NAME: SCORE: SECTION: PROFESSOR: Problem #15 Transaction Analysis Transactions: Received P260,000 cash from clients for services rendered, + Paid P480,000 of salaries to employees. Collected P120,000 from clients on account. The owner, Virginia Ruben, withdrew P80,000 cash for personal use. Purchased P140,000 of supplies on account. Billed clients P180,000 for services rendered. g. Paid P100,000 to suppliers on account. For each of the transactions for Virginia Ruben Antique Restorer, a sole proprietorship, fill in the spaces to answer the following questions: 4 Ppaoee 1. What are the two accounts affected by the transaction? 2. What type of account is affected—asset, liability, owner's capital, owner's withdrawal, income or expense account? 3. Should the account be increased or decreased? 4, Should the account be debited or credited? . Accounts Type of Increase or Debit or Trans. Affected Account Decrease Credit a ob 2 boo Z, fb 3 2 d. L 2 eo. 2, i. ___ 2. nr 27The Accounting Equation and the Double Entry System | 111 Beg cas is: Ss ites Sey ey as See NAME: SCORE: ‘SECTION: PROFESSOR: Problem #16 Recording Transactions in a Financial Transaction Worksheet Dolores Aguilar started Aguilar Industrial Spray Service on Apr. 1, 2020. During April, ‘Aguilar completed the following transactions: a. b. PoresFe ween Invested cash in the business, P60,000. Bought a service vehicle from CDO Motors for P112,500, paying P22,500 in cash, with the remainder due in thirty days. Bought spray equipment on account from Misamis Farm Supplies, P18,000, Paid rent for the month, P5,600. Paid cash for insurance on service vehicle for the year, P5,760. Received cash for spray services done on a building, P21,750. Bought supplies for cash, P5,730. Billed customers on account for services performed, P4,440. Paid cash for utilities, P960. Received bill for gasoline used by the service vehicle during the month, P3,270, Receipts from cash customers, P16,420. Aguilar withdréw cash for personal use, P10,500. Paid salaries to employees, P20,400. Required: Record the transactions for the month of April 2020 using a financial transaction worksheet, Use the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Spray Equipment; Service Vehicle; Accounts Payable; and Aguilar, Capital. If the owner’s equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal. .\ccounting and Reporting 2021 Edition by Prof. WIN Ballada 112 [ NAME: SCORE: SECTION: PROFESSOR: Problem #17 Recording Transactions in a Financial Transaction Worksheet On June 1, 2020, Teofila Albay, Optometrist, established the Albay Eye Clinic. Transactions completed during the month are as follows: Albay deposited P200,000 in a bank account in the name of the business. Paid office rent for the month, P8,400. Bought supplies for cash, P7,750. Sought office equipment on account from Dagupan Equipment, 91,800. Bought a computer from Del Rosario Office Outfitters, P18,400, paying P6,000 in cash and the balance on account. Performed professional services for cash, P24,210. Paid accounts to Del Rosario Office Qutfitters, P9,000. Received and paid the bill for utilities, P2,430. Paid salaries of the part-time assistants, P9,900. Performed professional services for cash, P25,150. k. Albay withdrew cash for personal use, P12,500. a, b. ie, d. e. Required: Record the transactions for the month of June 2020 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.The Accounting Equation and the Double Entry System | 113 SS NAME: SCORE: , SECTION: : PROFESSOR: Problem #18 Recording Transactions in T-Accounts Remedios Palaganas is an experienced events planner. The transactions and accounts for the business are as follows: Invested P100,000 in cash to start her own business. Paid P5,000 for one month's rent. Bought office furniture for P15,000 in cash. Received delivery of laptop computer, PS4,000. * Paid 50% down, balance due in 30 days. Performed services for P12,000 in cash. Performed services for P10,800 on credit. Acquired a fax machine for P7,500; paid P3,000 in cash, balance due in 10 days. s Received P5,400 from clients on account. Paid P10,000 for salaries. Settled in full the 4,500 balance for the fax machine. Received P7,000 in cash for services performed. Performed services for P12,000 on credit. .. Paid P1,350 for the monthly telephone bill. Paid P2,400 for the electric and water bills. Collected P2,000 from clients on account. Palaganas withdrew P7,000 in cash for personal expenses. poop amo crwves Fe re 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; Palaganas, Capital; Palaganas, Withdrawals; Consulting Revenues; Salaries Expense; Rent Expense; Utilities Expense and Miscellaneous Expense. 2. Determine the balances of the T-accounts.F f Eaition —— NNR NAME: _ SCORE: _ SECTION: PROFESSOR: Problem #19 Recording Transactions in T-Accounts The accounts and transactions of Evelyn Tria, Systems Consultant, are shown below: "Sanee Parre ee ° Pp. q. Req i Invested P150,000 in cash to start the business. Paid P7,500 for one month's rent. Bought office furniture for P26,000 in cash. Performed services for P10,500 in cash, Performed services for P12,750 on credit. Bought a desktop computer for P55,000; paid 50% down, balance in 30 days. Acquired a personal copier for P39,500 on credit; paid P9,500 cash, balance due in 30 days. Received P7,000 from credit clients. Bought additional office chairs for P8,000 on credit. Issued a check for P32,500 to pay for salaries. Performed services for P10,250 in cash. Performed services for P11,500 on credit. . Collected P6,000 on accounts receivable. Issued a check for P4,000 in partial payment of the amount owed for office chairs. : Paid P2,250 for the monthly telephone bill. Paid P2,500 for the monthly electric bill. Tria withdrew P10,000 in cash for personalexpenses. + 4 juired: 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. Determine the balances of the T-accounts.‘aunting Equation and the Double Eni NAME: SCORE: SECTION: PROFESSOR: Problem #20 Recording Transactions in T-Accounts Julieta Dillena established a proprietorship, The Professional Shoppers. The business charges a fee based on’ the amount of research done to support a cost-effective purchase decision and the actual shopping time required. Dillena with the help of her “professional shoppers” will shop for almost anything from corporate giveaways, computers to office and home furnishings. Business is particularly heavy around Christmas and in early summer. The business operates from a rented office condominium unit. The shoppers receive a commission based on the revenues they produce and a transportation allowance for the use of their personal vehicles for shopping trips. The following transactions are for December 2020: a. _Dillena invested P300,000 in the business. b. Acquired office equipment for P100,000, Dillena paid P20,000 in cash and promised to pay the balance equally every end of the month. c. Paid rent for December, P5,000. d. Provided shopping services for corporate accounts, P52,000. e. Paid telephone bill, P900. f. Borrowed cash from the bank by signing a note payable, PS0,000° 8. Bought a computer for office use, P48,000 cash. h. Collected cash from clients for services performed on account, P40,000, i. Paid commissions to shoppers for revenues generated during the first half of the = month, P18,200. j. Paid electricity bill, P6,000. k. Earned shopping revenues of P'132,000: P60,000 cash, P72,000 on account. |. Paid shoppers’ commissions for last half of month, P46,200. ™. Paid transportation allowances for the month, P15,000. 1. Paid P10,000 on note payable to bank. ©. Paid cash on account for the office equipment purchased in transaction (b), 20,000. P. _Dillena withdrew P20,000 for personal 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.116 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Problem #21 Identification of Errors On Sept. 1, 2020, Christopher Abelinde established Abelinde Delivery Service. During the month, the entity had the following transactions: j a. Christopher Abelinde invested P240,000 in the business (increase Cash; increase Abelinde, Capital) - b. Bought two used delivery vans from The 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), cc. Received P25,000 in cash for delivery services (increase Cash: increase Delivery Revenues). d. Received bill from Bicol News for advertising, P3,500 (increase Advertising Expense; decrease Cash). e. Billed Naga Surgical Supply for delivery services provided, P6,200 (increase Accounts Receivable; increase Delivery Revenues). f. Received and paid telephone bill, P1,000 (decrease Cash; decrease Telephone Expense). 4 g. Abelinde invested in his business office equipment having a fair market value of P9,600 (increase Office Equipment; decrease Cash). h. Received and paid bill for gas and oil, P1,500 (decrease Cash; increase Maintenance Expense). i. Paid P3,500 to Bicol News to pay account in full (increase Advertising Expense; increase Cash), j. Received P29,000 cash for delivery services performed (increase Cash; increase Delivery Revenues). k. Abelinde withdrew 11,000 for personal use (decrease. Cash; increase Salaries Expense). |. Received P4,000 from Naga Surgical Supply to: apply on account (increase Cash; increase Delivery Revenues). i m. Paid salaries to part-time employee, P8,000 (increase Salaries Expense; decrease Cash). Required: Find six errors that were made in recording the transactions, and state how they should have been recorded.