Problem 1:

Transaction Analysis

For each of the transactions for Winston Apalisoc Company, a sole proprietorship, fill in the spaces to answ
following questions:
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 a
3 Should the account be increased or decreased?
4 Should the account be debited or credited?

1 2
Accounts
Transactions: Type of Account
Affected
Received P260,000 cash from
a 1 Cash Asset
clients for services rendered.
2 Service Revenues Income
Paid P480,000 of salaries to
b 1 Salaries expense Expense
employees.
2 Cash Asset
Collected P120,000 from clients
c 1 Cash Asset
on account.
2 Accounts Receivable Asset
The owner, Winston Apalisoc,
Apalisoc,
d withdrew P80,000 cash for 1 Owner's withdrawal
Withdrawals
personal use.
2 Cash Asset
Purchased P140,000 of supplies
e 1 Supplies Asset
on account.
2 Accounts Payable Liability
Billed clients P180,000 for
f 1 Accounts Receivable Asset
services rendered.
2 Service Revenue Income
Paid P100,000 to suppliers on
g 1 Accounts Payable Liability
account.
2 Cash Asset
oprietorship, fill in the spaces to answer the

ner's withdrawal, income or expense account?

3 4
Increase or
Debit or Credit
Decrease
Increase Debit
SA
Increase Credit
Increase Debit
UA
Decrease Credit
Increase Debit
EA
Decrease Credit

Increase Debit
UA
Decrease Credit
Increase Debit
SA
Increase Credit
Increase Debit
SA
Increase Credit
Decrease Debit
UA
Decrease Credit
 Financial Transaction Worksheet

The assets, liabilities and owner's equity of Deogracia Corpuz who operates a repair shop are expressed in
completed the following tranactions:

ASSETS
Cash + Supplies +

Organized a repair shop and

1 deposited P500,000 cash in the bank 500,000 + +
for use by the business. (1)
Purchased P20,000 of supplies on
2 + 20,000 +
account. (2)
Purchased land for future repair site
3 - 140,000 + +
for P140,000. (3)
4 Paid P18,000 to creditors. (4) -18,000 + +
5 -25,000 + +
Withdrew P25,000 for personal use. (5)
Paid P28,000 for site and equipment
6 -28,000 + +
rent for the month. (6)
During the month, P10,000
7 expenses were incurred on account + +
by the business. (7)
During the month, Corpuz invested
8 another P100,000 of personal funds 100,000 + +
in the business. (8)
Received P5,000 for a cash service
9 5,000 + +
call. (9)
Corpuz used P6,000 worth of
10 + -6,000 +
supplies. (10)
394,000 + 14,000 +

Supplies Expense
Supplies
s a repair shop are expressed in equation form below. Corpuz

TS LIABILITIES OE
Accounts
Land = + Corpuz, Capital
Payable

= + 500,000 Put parenthesis () sign in recording the

decrease of accounts. For example, dec
in cash (500,000)
= 20,000 +

140,000 = +
= -18,000 +
= + -25,000

= + -28,000

= 10,000 + -10,000

= + 100,000

= + 5,000

= + -6,000
140,000 = 12,000 + 536,000
548,000 = 548,000
 sign in recording the
nts. For example, decrease
 Financial Transaction Worksheet

Joel Feliciano has started his own business, Property Appraisals. He inspects property for buyers and sellers
to help with inspections. The transactions for the month of September are as follows:

ASSET
Accounts
Cash + +
Receivable
Feliciano invested cash by making a
1 deposit in a bank account for the 150,000 + +
business, P150,000 (1)
2 Paid rent for the month, P3,000. (2) -3,000 + +
Bought a second-hand service
3 -80,000 + +
vehicle for cash, P80,000. (3)
Bought service tools on account,
4 + +
P30,000. (4)
5 Paid electricity bill, P500. (5) -500 + +

6 Paid a one-year insurance premium -6,000 + +

on the service vehicle, P6,000. (6)
Received cash from clients for
7 20,000 + +
service performed, P20,000. (7)
Paid salaries to assistant for first half
8 -2,000 + +
of the month, P2,000. (8)
Performed appraisal services for
9 + 10,000 +
clients on account, P10,000. (9)
10 Paid water bill, P350. (10) -350 + +
Bought office supplies for cash,
11 -1,000 + +
P1,000. (11)
Received cash from clients for
12 inspections performed on account in 3,000 + -3,000 +
(i), P3,000. (12)
Paid salaries to assistant for last half
13 -2,500 + +
of the month, P2,500. (13)
Made partial payment on service
14 -10,000 + +
tools bought in (d), P10,000. (14)
Additional revenues earned
15 amounted to P20,000: P14,000 for 14,000 + 6,000 +
cash and P6,000 on account. (15)
Feliciano withdrew cash for personal
16 -5,000 + +
expenses, P5,000. (16)
76,650 + 13,000 +
Required:
1. Establish the following accounts mentioned above in a financial transaction worksheet.
2. Compute the ending balances for all accounts.
3. Prepare a Trial balance for this problem.
ts property for buyers and sellers of real estate. Feliciano rents office space and has a part-time assistant to answer the ph
as follows:

ASSETS
Office Supplies Prepaid
+ + Service Tools + Service Vehicle =
Supplies Insurance

+ + + =

+ + + =
+ + + 80,000 =

+ + 30,000 + =
+ + + =

+ 6,000 + + =

+ + + =

+ + + =

+ + + =
+ + + =
1,000 + + + =

+ + + =

+ + + =

+ + + =

+ + + =

+ + + =
1,000 + 6,000 + 30,000 + 80,000 =
206,650 =
ion worksheet.
part-time assistant to answer the phone and

LIABILITIES OWNER'S EQUITY

Accounts Feliciano, Feliciano,
+ + + Revenues + Expenses
Payable Capital Withdrawals

+ 150,000 + + +

+ + + + 3,000
+ + + +

30,000 + + + +
+ + + + 500

+ + + +

+ + + 20,000 +

+ + + + 2,000

+ + + 10,000 +
+ + + + 350
+ + + +

+ + + +

+ + + + 2,500

-10,000 + + + +

+ + + 20,000 +

+ + 5,000 + +
20,000 + 150,000 + -5,000 + 50,000 + -8,350
206,650
Put parenthesis () sign in recording the
decrease of accounts.