I.

BASIC ACCOUNTING EQUATION: (WATCH VIDEO)

ASSETS – resources owned by the company • LIABILITIES – debt owed by the
company • EQUITY – residual interest of the owners.
ASSETS = LIABILITIES + EQUITY
Using the accouting equation, complete the following table:

ASSETS LIABILITIES EQUITY

1. P457,000 P270,000
2. P1,006,000 P500,000
3. P309,000 P120,000
4. P756,000 P451,000
5. P895,000 P148,000
6. P668,000 P222,000
7. P80,000 P10,000
8. P150,000 P950,000
9. P900,500 P900,500
10. P1,120,000 P70,000

11. Padilla Pest Control has assets of P1,000,000, and owner’s equity of P850,000.
12. Caborales Realtors has liabilities of P1,030,000 and owners equity of P910,000.
13. Dela Cruz Plumbing Contractor has assets of P673,000 and liabilities of P353,700.
14. Villaran Services has liabilities of P747,000 and owner’s equity of P1,036,500.
15. Atienza Dance has assets of P2,624,000 and liabilities of P1,237,000.
16. Magcalas Studioos has assets of P900,000 and owners equity of P900,000.
17. Cuison Security Agency has liabilities of P42,000 and owners equity of 84,000.
18. At the beginning of the year, the assets of Paguio Laundry Shop were P480,000
and its owners equity was P320,000. During the year, assets increased by P240,000
and liabilities increased by P140,000. What was the owner’s equity at the end of the
year?
19. At the beginning of the year, De Guzman Calling Station had liabilities of P456,678
and the owner’s equity of P452,678. If assets increased by P40,000 and liabilities
decreased by P30,000. What was the owner’s equity at the end of the year?
20. The liabilities of Gatuna Cleaning Services equal one-third of the total assets, and
the owner’s equity is P240,000. What is the total amount of the liabilities?
II. EXPANDED ACCOUNTING EQUATION: (WATCH VIDEO)
ASSETS = LIABILITIES + (CAPITAL – WITHDRAWALS +INCOME -EXPENSES)

Assets Liabilities Equity

Capital Income Expenses
1. P96,000 P56,000 P46,500 P32,500
2. P151,000 P39,000 P86,000 P48,000
3. P182,000 P65,000 P37,000 P25,500
4. P123,000 P54,000 P42,000 P26,000
5. P94,000 P25,000 P37,000 P67,500
6. P200,000 P80,000 P40,000 P50,000
7. P100,500 P80,000 P30,000 P20,000
8. P1,000,000 P540,000 P100,000 P89,000
9. P870,000 P230,000 P130,000 P120,000
10 P450,000 P260,000 P450,000 P210,000
.
11 P675,000 P390,000 P675,000 P315,000
.
12 P1,305,000 P345,000 P645,000 P180,000
.
13 P1,500,000 P810,000 P150,000 P133,500
.
14 P301,500 P240,000 P90,000 P60,000
.
15 P600,000 P240,000 P120,000 P150,000
.
16 P282,000 P75,000 P111,000 P202,500
.
17 P369,000 P162,000 P126,000 P78,000
.
18 P364,000 P130,000 P74,000 P51,000
.
19 P302,000 P78,000 P172,000 P96,000
.
20 P192,000 P112,000 P93,000 P65,000
.