II. - ANALYZING TRANSACTIONS - EXPANDED BASIC ACCOUNTING EQUATION Ghee Lando, a certified public accountant, opens an accounting firm. Transactions during the period follow: 1. Gee Lando, the owner, invested cash to the business, P200,000. 2. Gee LAndo, the owner, invested office equipment to the business P60,000. 3. Borrowed money from the bank for the working capital of the business, P50,000. 4. Paid personal expenses of the owner because she is currently out of town. The owner will pay her account when she returns in town, P5,000. 5. Bought office furniture on credit P14,000. 6. Bought computer and printer costing P40,000, paying 30% of the total amount and the balance on account. 7. Billed a client for services rendered, P30,000. 8. Rendered services to a client, P20,000. The client paid 40% cash and the balance on account. 9. The client in number 7 rendered repair services to the company's computer equipment. The amount is offset against his receivable, P30,000. 10. Billed another client for services rendered, P6,000.00 11. The client in number 8 settled his balance, P12,000. 12. Paid electricity bill amounting to P3,000. INSTRUCTION: Indicate the amount on the appropriate side of the affected elements of the above transacrions, Plus sign (+) for increase and minus sign (-) for decrease, Use the following format.
II. - ANALYZING TRANSACTIONS - EXPANDED BASIC ACCOUNTING EQUATION Ghee Lando, a certified public accountant, opens an accounting firm. Transactions during the period follow: 1. Gee Lando, the owner, invested cash to the business, P200,000. 2. Gee LAndo, the owner, invested office equipment to the business P60,000. 3. Borrowed money from the bank for the working capital of the business, P50,000. 4. Paid personal expenses of the owner because she is currently out of town. The owner will pay her account when she returns in town, P5,000. 5. Bought office furniture on credit P14,000. 6. Bought computer and printer costing P40,000, paying 30% of the total amount and the balance on account. 7. Billed a client for services rendered, P30,000. 8. Rendered services to a client, P20,000. The client paid 40% cash and the balance on account. 9. The client in number 7 rendered repair services to the company's computer equipment. The amount is offset against his receivable, P30,000. 10. Billed another client for services rendered, P6,000.00 11. The client in number 8 settled his balance, P12,000. 12. Paid electricity bill amounting to P3,000. INSTRUCTION: Indicate the amount on the appropriate side of the affected elements of the above transacrions, Plus sign (+) for increase and minus sign (-) for decrease, Use the following format.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:II. - ANALYZING TRANSACTIONS - EXPANDED BASIC ACCOUNTING EQUATION
Ghee Lando, a certified public accountant, opens an accounting firm. Transactions during the
period follow:
1. Gee Lando, the owner, invested cash to the business, P200,000.
2. Gee LAndo, the owner, invested office equipment to the business P60,000.
3. Borrowed money from the bank for the working capital of the business, P50,000.
4. Paid personal expenses of the owner because she is currently out of town. The owner will pay
her account when she returns in town, P5,000.
5. Bought office furniture on credit P14,000.
6. Bought computer and printer costing P40,000, paying 30% of the total amount and the balance
on account.
7. Billed a client for services rendered, P30,000.
8. Rendered services to a client, P20,000. The client paid 40% cash and the balance on account.
9. The client in number 7 rendered repair services to the company's computer equipment. The
amount is offset against his receivable, P30,000.
10. Billed another client for services rendered, P6,000.00
11. The client in number 8 settled his balance, P12,000.
12. Paid electricity bill amounting to P3,000.
INSTRUCTION: Indicate the amount on the appropriate side of the affected elements of the above
transacrions. Plus sign (+) for increase and minus sign (-) for decrease. Use the following format.
ASSETS
LIABILITIES CAPITAL
DRAWINGS INCOME EXPENSES
+
+
1
3
4
6
7
9
10
11
12
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