PROVIDED THAT THE ACCOUNTING EQUATION, ASSETS = LIABILITIES + EQUITY IS ALWAYS FOLLOWED.INCOME IS REFLECTED AS AN ADDITION TO THE EQUITY COLUMN.EXPENSES ARE REFLECTED AS A DEDUCTION TO THE EQUITY COLUMN.ANALYZE THE FOLLOWING TRANSACTIONS AND PUT IT IN A TABLE.Mr. Potato started a snacks store. The following transactions occurred during the first month of the business.Invested capital amounting to Php 350,000.Purchased merchandise inventories on account, Php 15,000.Leased an office space for 20,000 a month. Paid an advance rental for 6 months equivalent to Php 120,000.Hired a service crew to start selling milktea.Purchased office supplies on account, Php 8,000.Sold Php 35,000 worth of products in cash..Paid the following expenses: Salary, Php 5,500; Utilities, Php 3,000.Incurred 1 month rent expense from the advance rental, Php 20,000.

Name: PROVIDED THAT THE ACCOUNTING EQUATION, ASSETS = LIABILITIES + EQUITY I
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Description: PROVIDED THAT THE ACCOUNTING EQUATION, ASSETS = LIABILITIES + EQUITY IS ALWAYS FOLLOWED.INCOME IS REFLECTED AS AN ADDITION TO THE EQUITY COLUMN.EXPENSES ARE REFLECTED AS A DEDUCTION TO THE EQUITY COLUMN.ANALYZE THE FOLLOWING TRANSACTIONS AND PUT IT I

Accounting equation is an equation which is used in accounting world where the total balance…

Answered: PROVIDED THAT THE ACCOUNTING EQUATION,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PROVIDED THAT THE ACCOUNTING EQUATION, ASSETS = LIABILITIES + EQUITY IS ALWAYS FOLLOWED.INCOME IS REFLECTED AS AN ADDITION TO THE EQUITY COLUMN.EXPENSES ARE REFLECTED AS A DEDUCTION TO THE EQUITY COLUMN.

ANALYZE THE FOLLOWING TRANSACTIONS AND PUT IT IN A TABLE.

Mr. Potato started a snacks store. The following transactions occurred during the first month of the business.

Invested capital amounting to Php 350,000.
Purchased merchandise inventories on account, Php 15,000.
Leased an office space for 20,000 a month. Paid an advance rental for 6 months equivalent to Php 120,000.
Hired a service crew to start selling milktea.
Purchased office supplies on account, Php 8,000.
Sold Php 35,000 worth of products in cash.
.Paid the following expenses: Salary, Php 5,500; Utilities, Php 3,000.
Incurred 1 month rent expense from the advance rental, Php 20,000.

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