98 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada_ NAME: SCORE: SECTION: PROFESSOR: Problem #2 El 1. lements of Financial Statements Using the accounting equation, complete the following table: Assets abilities Equity = PA57,000 P270,000 || b. P1,006,000 500,000 | S P309,000 P120,000 | d. P756,000 451,000 | } @ 895,000 P148,000 f. P668,000| 222,000 The following figures are extracted from various sole proprietorships. Using the 2 expanded accounting equation, complete the following table: Assets Liabilities Equity Capital Income Expenses a. P96,000 P56,000 P46,500 P32,500 | | b. P151,000 P39,000 P86,000 48,000 Se P182,000 P65,000 = P37,000 25,500. d. P123,000 P54,000 P42,000 26,000 e P94,000 P25,000 P37,000 P67,500 us‘The Accounting Equation and the Double Entry System | 99 NAME: SCORE: SECTION: PROFESSOR: Problem #3A Elements of Financial Statements Assets Liabilities. _. Owner's Equity” a. 760,000 360,000 ? b. 860,000 - 7? 592,000 « 2 108,000. 760,000 d. 626,600 376,240 2 e ? 800,000 (100,000) Required: Fill in the amount of the missing element of financial position. Problem #3B ooo e Jimmy Delgado Pest Control has assets of P600,000 and owner's equity of P450,000. Margie Clavano Realtors has liabilities of P530,000 and owner's equity of P410,000. Marko Fuentes Plumbing Contractor has assets of P473,000 and liabilities of P153,700. Ryan Morales Acting Studio has liabilities of P147,000 and owner's equity of P236,500. Seogto : Fely Monarca Dance has assets of P624,000 and liabilities of P237,000. Required: Compute the amount of the missing element of financial position. Problem #3C At the beginning of the year, the assets of Cleofe ‘rib Services were P360,000 and its owner’s equity was P200,000; During the year, assets increased by P120,000 and liabilities increased by P20,000. What was'the owner's equity at the end of the year? . At the beginning of the year, Cora Gabayan Calling Station had liabilities of P100,000 and owner's equity of P96,000. If assets increased by P40,000 and liabilities decreased by P30,000, what was the owner’s equity at the end of the yéar? The liabilities of Lenore Loqueloque Stylist equal one-third of the total assets, and the owner’s equity is P240,000. What is the amount of the liabilities? Required: Use the accounting equation to answer each of the questions above.100 | Bosic Financial Accounting ond Reporting 2021 Edition by Prof. WIN Ballada NAME: SCORE: SECTION: PROFESSOR: Problem #4 Transaction Effects on the Basic Accounting Model The following are some transactions of Maricel Supan Services: A L oF 2. Received cash as additional investment. = = Purchased supplies on account. : <,_ Charged customers for servicesmadeon _——- account. boo eee 4. Rendered services to cash customers. Paid cash for rent on building __ a {Collected on account receivable in ful. == g._Paldcash for supplies. 2S , Returned supplies purchased on account. i. Paid cash to settle accounts. eres j,_ Paid cash to owner for personal use. Pe oF Required: ‘ether the assets (A), liabilities (L) or owner's equity ht ion, indi For each transaction, indicate whi placing the appropriate signin (OE) increased (+), decreased (-) or did not change (0) by the appropriate column.Equation and the Double Entry System | 101 The Accountit scori ane PROFESSOR: Problem #5 Owner's Equity Transactions a. Received cash for rendering services. b. Withdrew cash for personal expenses. c. Received cash from a customer who have been rendered service on account. d. Transferred personal assets to the business. e. Paid a service station for gasoline for a business service vehicle. f. Performed a service and received a promise of payment. g. Paid cash to acquire equipment. h. Paid cash to an employee for services rendered. Required: Identify the foregoing transactions by identifying each as either one of the following: owner's investment (01), owner’s withdrawal (OW), income (I), expense (E) or not an owner's equity transaction (NO).102 | Basic Financial Accounting and Reporting 2021 Edition by Prof. WIN Ballada NAME: ‘SCORE: SECTION: PROFESSOR: Problem #6 Transactions that Affect the Elements of Financial Statements a, Decrease an asset and decrease owner's equity (use of assets event). b. Increase a liability and decrease owner's equity (exchange of claims event). c. Increase an asset and increase owner's equity (source of assets event). d. Decrease a liability and increase owner's equity (exchange of claims event). ' e. Increase’an assetand decrease another asset (exchange of assets event). f, Increase an asset and increase a liability (source of assets event). g. Decrease an asset and decrease a liability (use of assets event). Required: Be able to give an example of a transaction for each of the above. Problem #7 Classification of Events s a. Received cash investment from the owner. b. Paid cash on accounts payable. c.. Collected cash from accounts receivable. d. Made cash distribution to the owner. e. Paid cash for rent expense. f, Invested cash in time deposit. g. Purchased land with cash. h. Performed services for clients on account. ‘ i. Incurred operating expenses on account. . ji Performed services for cash. Required: Indicate whether each of the above transactions is a source of assets (SA), use of eae (UA), exchange of assets (EA), or exchange of claims (ech transaction.The Accounting Equation and the Double Entry System | 103 [INAME: ‘SCORE: [ SECTION: i PROFESSOR: Problem #8 Effects of Transactions The following selected transactions were completed by Roberto Orcajada Delivery Service during July 2020: Cash received from delivery services, P92,700. Paid creditors on account, P20,000. ’ > Received cash from owner as additional investment, P600,000. Paid advertising expense, P5,000. Billed customers for delivery services on account; PS5,200. Purchased supplies for cash, P6,000. Paid rent for July, P20,000. Received cash from customers orf account, P25,440. Determined that the cost of supplies on hand was P1,440 so 4,560 of supplies were used during the month. 10. Owner withdrew cash for personal use, P20,000. pernanaenp Indicate the effects of each transaction on the space provided: a. Increase an asset, decrease another asset. b. Increase an asset, increase a liability, c. Increase an asset, increase owner's equity. d. Decrease an asset, decrease a liability. e. Decrease an asset, decrease owner's equity.