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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

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 4SEB: EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first...
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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
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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