II. - ANALYZING TRANSACTIONS - BASIC ACCOUNTING EQUATION Engineer Shackile Asuncion opened an engineering and design firm. His accountant prepared the following transactions: 1. Shackile Asuncion, the owner invested cash to the business, P150,000. 2. Shackile Asuncion, the owner invested office equipment to the business amounting to P60,000. Note: There is unpaid balance to the supplier of the office equipment to which the company assumed P10,000. 3. Shackile Asuncion, invested additional cash to the business, P15,000. 4. Paid the account in number 2, P10,000 5. Paid personal expenses of the owner because he is currently out of town. The owner will pay his account when he returns in town, P3,000. 6. Bought 2 computer units for cash P30,000. 7. Bought office furniture on credit who paid in cash, P20,000. 8. Rendered services to a client who paid in cash, P20,000. 9. Billed a client for services rendered, P12,000. 10. Rendered services to a client, P10,000. The client paid 40% cash and the balance in note. INSTRUCTION: Identify the effect of the above transactions on the asset, liabilities, and equity of the firm, then indicate the appropriate amount. Use the following format. 20 EQUITY Transactions No. Increase Decrease Increase Decrease Increase Decrease LIABILITIES ASSETS 1 4 7 8 9. 10
II. - ANALYZING TRANSACTIONS - BASIC ACCOUNTING EQUATION Engineer Shackile Asuncion opened an engineering and design firm. His accountant prepared the following transactions: 1. Shackile Asuncion, the owner invested cash to the business, P150,000. 2. Shackile Asuncion, the owner invested office equipment to the business amounting to P60,000. Note: There is unpaid balance to the supplier of the office equipment to which the company assumed P10,000. 3. Shackile Asuncion, invested additional cash to the business, P15,000. 4. Paid the account in number 2, P10,000 5. Paid personal expenses of the owner because he is currently out of town. The owner will pay his account when he returns in town, P3,000. 6. Bought 2 computer units for cash P30,000. 7. Bought office furniture on credit who paid in cash, P20,000. 8. Rendered services to a client who paid in cash, P20,000. 9. Billed a client for services rendered, P12,000. 10. Rendered services to a client, P10,000. The client paid 40% cash and the balance in note. INSTRUCTION: Identify the effect of the above transactions on the asset, liabilities, and equity of the firm, then indicate the appropriate amount. Use the following format. 20 EQUITY Transactions No. Increase Decrease Increase Decrease Increase Decrease LIABILITIES ASSETS 1 4 7 8 9. 10
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:II. - ANALYZING TRANSACTIONS - BASIC ACCOUNTING EQUATION
Engineer Shackile Asuncion opened an engineering and design firm. His accountant prepared the
following transactions:
1. Shackile Asuncion, the owner invested cash to the business, P150,000.
2. Shackile Asuncion, the owner invested office equipment to the business amounting to P60,000.
Note: There is unpaid balance to the supplier of the office equipment to which the company
assumed P10,000.
3. Shackile Asuncion, invested additional cash to the business, P15,000.
4. Paid the account in number 2, P10,000
5. Paid personal expenses of the owner because he is currently out of town. The owner will pay
his account when he returns in town, P3,000.
6. Bought 2 computer units for cash P30,000.
7. Bought office furniture on credit who paid in cash, P20,000.
8. Rendered services to a client who paid in cash, P20,000.
9. Billed a client for services rendered, P12,000.
10. Rendered services to a client, P10,000. The client paid 40% cash and the balance in note.
INSTRUCTION: Identify the effect of the above transactions on the asset, liabilities, and equity of
the firm, then indicate the appropriate amount. Use the following format.
20
ASSETS
LIABILITIES
EQUITY
Transactions No. Increase Decrease Increase Decrease Increase Decrease
1
2
3
4
6
7
8
9
10
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