BONGONGOL SHAINA D BSBA- 1H (NABM) HRM

FABM CHAPTER IV

VI. LEARNING ACTIVITIES

PART I. BASIC EQUATION

Using the basic accounting equation, compute the missing values in the table below:

ASSETS LIABILITIES CAPITAL

P460, 000 P190, 000 P270, 000

P230, 000 P160, 000 P70, 000

P1, 120,000 P990, 000 P130, 000

P1, 020,000 P610, 000 P410, 000

P820, 000 P580, 000 P240, 000

PART II. EXPANDED EQUATION

MULTIPLE CHOICE. Choose the correct answer. Show your solution.

1. At the start of the period, a business has total assets of ₱500,000 and total liabilities of ₱300,000. During the period,
the business earned total income of ₱1,000,000 and incurred total expenses of ₱640,000. No additional investments or
withdrawals were made by the owner. Total liabilities at the end of the period were ₱380,000. How much is the total
assets at the end of the period? = 500,000 – 300, 000 = 200, 000 beginning capital + 1,000, 000 income – 640, 000
expenses = 560 ending capital + 380, 000 ending liabilities = 940, 000 ending assets

a. 980,000

b. 960,000

c. 940,000

d. 880,000

2. A business has total assets of ₱640,000 and total equity of ₱360,000 at the beginning of the period. The business
earned income of ₱220,000 during the period and reported profit of ₱80,000. There were no transactions with the
owner during the period. How much is the ending balance of equity? = 360, 000 – 80, 000 = 440, 000

a. 500,000

b. 440,000

c. 360,000

d. 280,000

3. A business has ending total assets of ₱480,000, ending total liabilities of ₱100,000 and beginning equity of
₱280,000. If the total expenses for the period amount to ₱200,000, how much is the total income? = 480, 000 + 200,
000 – 100, 000 – 280, 000 = 300, 000

a. 300,000

b. 340,000
c. 280,000

d. 420,000

4. A business has ending total assets of ₱680,000, ending total liabilities of ₱320,000 and beginning equity of
₱480,000. If the total income for the period amount to ₱560,000, how much is the total expenses? = 680, 000 -320, 000
= 360, 000

360, 000 – 480, 000 = 120, 000

560, 000 + 120, 000 = 680, 000

a. 680,000

b. 560,000

c. 480,000

d. 420,000

5. A business has total assets, total liabilities, and total equity of ₱100,000, ₱70,000 and ₱30,000, respectively, at the
beginning of the period. During the period, total liabilities decreased to ₱40,000. The business reported profit of
₱50,000 for the period. How much is the ending total assets? = 30, 000 + 50, 000 = 80, 000

80, 000 + 40, 000 = 120, 000

a. 170,000

b. 140,000
c. 120,000

d. 90,000

VII. ASSIGNMENT

Using the table presented below, prepare the analysis of the following transactions of Covid Company:

Date Transaction

Feb 2 Owner invested cash amounting to P350, 000 and delivery car costing P800, 000

Feb 8 bought supplies by cash amounting to P10, 000

 Feb 11 purchased computer amounting to 30,000 and issued promissory note

Feb 14 Owner invested additional furniture worth p10, 000

Feb 15 Paid P15, 000 as partial payment on the computer purchased on Feb 11

Feb 20 Withdraw P5, 000 for personal use

Feb 25 settle the balance on Feb 15 amounting to P15, 000

Date Assets Liability Capital

Cash Supplies Furniture Computer Delivery Car Notes
Payable

Feb 2 350,000 800, 000 P1,150,000

Feb 8 (10,000) 10,000
Feb 11 30,000 30,000
Feb 14 10,000
Feb 15 (15,000) (15,000)
Feb 20 5,000 5,000 (5,000)
Feb 25 (15,000) (15,000)
TOTAL 305, 000 10,000 10,000 30,000 800,000 35,000 1,145,000