On May 11, 2018, Doña Pura opens Pura Collection Services. On the transaction summary table below, indicate the effect of each transaction on each account. Put "+" to signify increase or "" to signify decrease. Indicate the amount of increase or decrease for each account. The first one is done for you. 44 99
On May 11, 2018, Doña Pura opens Pura Collection Services. On the transaction summary table below, indicate the effect of each transaction on each account. Put "+" to signify increase or "" to signify decrease. Indicate the amount of increase or decrease for each account. The first one is done for you. 44 99
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Can someone help me solve the following, it'll be a great help! Thanks!
Transcribed Image Text:Owner's
Liabilities
Equity
Assets
Notes
Pura
Accounts
Capital
Payable
Supplies
Payable
Accounts
Transaction
Cash
Receivable
8. Paid
P12,000
worth of
onoh
personal
funds for
a Palawan
vacation
9. Made
personal
withdrawal,
P10,000
10. Hired office
secretary
with
monthly
salary of
P13,000
dhow
11. Collections
from various
clients
amounting
to P30,000
for services
rendered
12. Returned
P200 worth
of defective
supplies
bought
using cash
13. Invested
additional
cash,
P24,000
14. Full
collection of
account from
all clients,
P100,000
68
The Accounting Equation
Transcribed Image Text:DRILL 6
Give the effect of the following transactions on the accounting equation:
On May 11, 2018, Doña Pura opens Pura Collection Services. On the transaction summary
table below, indicate the effect of each transaction on each account. Put “+" to signify
increase or "" to signify decrease. Indicate the amount of increase or decrease for each
account. The first one is done for you.
Owner's
Assets
Liabilities
Equity
Transaction
Accounts
Accounts
Notes
Pura
Cash
Supplies
Payable
Capital
Receivable
Payable
1. Doña Pura
invested
P60,000
P60,000
P 60,000
in the
business.
2. Bought
P1,500
worth of
supplies for
cash
3.
Borrowed
P50,000
from
Doña Tekla
4. Cash
services
rendered
to Ms. Ko,
P25,000
5. Issued a
note for the
amount
borrowed
from
Doña Tekla
6. Services
rendered
to client on
account,
P5,000
7. Settled the
note with
Doña Tekla
67
Effects of Transactions on the Accounting Equation
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