Engineer Shacka Co opened an engineering and design firm.

Her accountant prepared the following

transactions:

1. Shacka Co, the owner, invested cash to the business, P150,000

2. Co also 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. Co invested additional cash to the business P15,000

4. Paid the account in number 2, P10,000

5. The business paid personal expenses of the owner because he is currently out of town, P3,000

6. Bought two computer units for cash, P30,000

7. Bought office furniture on credit, P12,000

8. Rendered service to client who paid cash. P20,000

9. Billed client for service rendered P12,000

10. Rendered services to client, P10,000. The client 40% cash and the balance in note.

11. Received the statement of accounts for Meralco amounting to P3,500.

Instruction: Identify the affected on the above transactions accounts and their effects on the asset, liabilities,
and equity of the firm, then indicate the appropriate amount.

Transactions No. Assets Liabilities Equity

Increase Decrease Increase Decrease Increase

1. 150,000 - cash 150,000 - cash

2. 60, 000 – 10000 – accounts 50000 – cash

equipment payable

3. 150000 – cash 150000 – cash

4. 10000 – cash 10000 – accounts

payable

5. 3000 - cash

6. 30000 - 30000 - cash

equipments

7. 12000 – accounts 12000 – accounts

receivable payable
8. 20000 - cash 20000 –
income/sales

9. 12000 – accounts 12000 –

receivable income/sales

10. 6, 000 – Notes

Receivable

11. 3, 500 – accounts

payable