PROBLEM 3-1.

Give the effects of the following transactions on the assets,

liabilities and owner’s equity by indicating I for increase, D for
decrease and NE for no effect. Use the format below.

1. Antonio de la Cruz invested P500,000 cash in the business.

2. Bought repair equipment on account, P100,000.

3. Paid rent of the shop, P3,000.

4. Bought for cash additional equipment, P55,000.

5. Paid P80,000 of the amount due relative to the purchase of equipment on

account.

6. Bought on account supplies worth P15,000.

7. Sent a bill for P5,400 to a customer for services rendered to them.

8. Salaries of workers were paid, P5,950.

9. Collected P3,000 on the bill sent to customers.

10. Antonio de la Cruz withdrew P10,000 cash for personal use.

ASSETS LIABILITIES CAPITAL

1
2
3
4
5
6
7
8
9
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PROBLEM 3-2 The following transactions pertain to Gold and Silver Mine
Video, a video rental store owned and managed by Jess
Dominguez. Give the effects of the following transactions on
 the accounting equation indicating the specific accounts
affected and the amount.

Jan.2 Mr. J. Dominguez invested P350,000 cash to open a video rental

store.

4 Paid P12,000 for registration fees.

5 Acquired video tapes costing P55,000, on account.

6 Acquired furniture and fixtures worth P35,000.

8 Received P28,500 from various customers for rental fees.

9 Sent video rental bills to customers, P10,500.

11 Paid rent for the month P3,000.

12 Paid electric bills for the month, P1,850.

15 Dominguez withdrew P5,000 for personal use.

20 Collected P6,875 from customers who were earlier billed.

22 Paid the account incurred on January 5.

25 Bought additional video tapes worth P15,000 paying P10,000 and

balance, on account.

28 Paid in full the account incurred on January 25.

29 Collected in full accounts from customers.

31 Paid wages of P10,000.

REQUIREMENTS:
1. JOURNAL ENTRY
2. POSTING TO THE LEDGER

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