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Instruction: Put a check mark under the appropriate column to indicate whether the event described is as follows:
Column Meaning A Business transaction to be recorded B Personal Transaction C A business activity not to be recorded
Events/Activities 1. Mr. Gojou resigned fromJJK Corporation. He received a separation pay of 1,500,000 2. Gojou deposited the cash he received from JJK in a bank account as his initial investment in opening up a business. 3. Paid the shop's licenses and permits 4. Placed an ad in the newspaper for the opening of the shop 5. Hired an assisstant to be assigned in the shop 6. Paid in advance the two month rental of the shop 7. Received a call from a prospective supplier of materialss for the shop. 8. Gave a cash advance to the shop assistant 9. Borrowed money from the bank to finance his personal car 10. Paid the monthly, amortization of his housing loan 11. Paid for the electricity bill of the shop scribed is as follows:
A B C
opening up a business. I:Compute for the missing element under each of the following independent cases
II: Identify the category of the accounts below with a check in the appropriate column
ACCOUNTS ASSETS LIABILITIES OWNER'S EQUITY
Accounts Payable Supplies on Hand Cash Owner's Capital Furnitures and Fixture Notes Payable Equipment Owner's Drawing Machinery OWNER'S EQUITY
350,000
ER'S EQUITY Instructions: Use the accounting equation to answer each of the following questions 1. The assets of Demon Slayer Enterprise amounted to 850,000 and its liabilities amounted to 335,000 at the start of the year. As a result of operations assets increased to 975,000 and liabilities decreased by 50,000. How much is the Owner's Equity at the end of the year?
2. Total Liabilities of Horimiya Transport Servies amounted to 475,000 with an equal amount of Owner's Equity. How much is the total assets?
3. At the start of the year, the assets of Hinata Company amounts to 2,450,000 and liabilities to 1,125,000. By the end of the year, assets increased by 25% and liabilities increased by 15%. How much is the increase in Owner's Equity during the year?
4. The claims of the creditors of Luffy Services are 25% of its total resources, and the net assets amounts to 900,000. How much is the total liabilities of Luffy Services?
5. At the beginning of the year, the assets of Millionaire Detective Company amounts to 5,200,000 and its liabilities amount to 1,510,000. By the end of the year, assets increased by 20% and liabilities increased by 30%. How much is the Owner's Equity at the end of the year? ANSWERS: 1 2 3 4 5 Instructions: For each of the following instructions, indicate whether Assets, Liabilities or Owner's Equity will increas For increase indicate (+), decrease (-) and Not Change (NC) ASSETS 1. The owner invested cash to start the business. 2. Bought supplies by paying cash. 3. The owner made an additional investment in the business. 4. Acquired furniture on account. 5. A partial payment was made on transaction no. 4 6. The owner used his personal cash for the full payment of transaction no.4 7. Collected cash for services rendered to clients. 8. Paid salaries to employees. 9. Purchased equipment by paying cash. 10. The owner took cash from the business for personal use. 11. Paid monthly rent. 12. Sent a bill to clients for services rendered on account. 13. Made a partial collection of customer's account. 14. Settled a personal liability of the owner by using cash of the business. 15. Purcahsed a machine by paying a down payment and the balance on account. or Owner's Equity will increase, decrease or not change.
LIABILITIES OWNER'S EQUITY
Instructions: Analyze the effects of the following transactions in the accounting elements using the format below
1. The owner, Mr. CutyCott invested 900,000 to put up CutyCott Repair Shop 2. Acquired supplies by paying cash 6,000 3. Bought equipment on account 32,000 4. Paid 14,000 for the labor and materials of furniture to be used in the shop. 5. Made a partial payment on the equipment, 11,000. 6. Mr. Cott took 3,000 cash from the shop for his personal use. 7. Settled a personal liability of Mr. Cott for 4,500 using cash of the business. 8. Bought additional supplies on account, 9,500. 9. Made another partial payment on the equipment, 10,000 10. Mr Cott paid the ssupplies using his personal cash.
ASSETS LIABILITIES CASH SUPPLIES EQUIPMENT FURNITURE ACCOUNTS PAYABLE 1 2 3 4 5 6 7 8 9 10 TOTAL TOTAL ASSETS: TOTAL LIABILITIES AND OWNER'S EQUITY: nts using the format below
