Name: Ernie S.

Abe
Course/Section: BSBA-FM 1B
B193 | BACC 1B | Basic Financial Accounting and Reporting

CONCEPTUAL PORTFOLIO

1. Analyze whether the transaction is accountable or not. Then identify the

accounts that are affected, and the effects on such accounts.

Transaction Accounts affected Effect (increase)

or (decrease)

1. The owner withdrew cash from the Drawing Increase

business.
Cash Decrease
2. The business obtained a loan from the Cash Increase
bank.
Loans payable Increase
3. Payment of the loan from the bank. Loans payable Decrease
Cash Decrease
4. Sale on account. Sale Decrease
Accounts Increase
receivable
5. Purchase in cash. Purchase Increase
Cash Decrease
6. Purchase on account. Purchase Increase
Accounts payable Decrease
7. Sale for cash. Cash Increase
Sale Increase
8. Payment of salaries expense. Salaries expense Increase
Cash Decrease
9. Payment of accounts payable. Accounts payable Decrease
Cash Decrease
10. Purchase of inventory on account. Inventory Increase
Accounts payable Increase
11. Purchase of inventory in cash. Inventory Increase
Cash Decrease
12. Purchase of equipment on account. Equipment Increase
Accounts payable Increase
13. Collection of receivable from Cash Increase
customer.
 Accounts Decrease
receivable
14. Payment of various small expenses. Expenses Increase
Cash Decrease
15. The business posted a job hiring. Not accountable

16. Sale partly in cash and on account. Cash Increase

Sale Increase
Accounts Increase
receivable
17. The dog of the owner won 2nd place Not accountable
in a pet contest.

2. Provide the journal entries to record the transactions described below. You do
not need to provide a short description for the journal entries.
1. Owner contributes ₱600,000 to the business.

2. The business obtains a loan of ₱400,000.

3. Purchase of inventory worth ₱200,000 on cash basis.

4. Purchase of inventory worth ₱500,000 on account.

5. Sale of goods for ₱900,000, on account. The cost of the goods sold is
₱400,000.

6. Payment of ₱400,000 as settlement of accounts payable.

7. Collection of ₱500,000 on accounts receivable.

8. Purchase of equipment worth ₱480,000.

9. Drawings of owner amounting to ₱10,000.

10. Payment for interest expense of ₱5,000.

JOURNAL
Date Account titles Debit Credit
1 Cash ₱600,000
Capital ₱600,000
To record cash contribution of the owner

2 Cash ₱400,000
Loans payable ₱400,000
To record the loan obtained by the business
3 Inventory ₱200,000
Cash ₱200,000
To record purchase of inventory on cash basis

4 Inventory ₱500,000
Accounts payable ₱500,000
To record purchase of inventory on account

5 Accounts receivable ₱900,000

Sales ₱900,000
To record sale on account

Cost of goods sold ₱400,000

Inventory ₱400,000
To record the cost of inventory sold as
expense

6 Accounts payable ₱400,000

Cash ₱400,000
To record the payment of accounts payable

7 Cash ₱500,000
Accounts receivable ₱500,000
To record the collection of accounts
receivable

8 Equipment ₱480,000
Cash ₱480,000
To record the purchase of equipment in cash

9 Drawing ₱10,000
Cash ₱10,000
To record the drawing made by the owner

10 Interest expense ₱5,000

Cash ₱5,000
To record the payment for interest expense
3. Record the transactions in the journal provided below. Indicate the dates and
provide a brief description for each journal entry.

JOURNAL
Date Account titles Debit Credit
Nov. 1, 20x1 Cash ₱2,000,000
Owner’s capital ₱2,000,000
To record the investment made by the
owner

Nov. 5, 20x1 Cash ₱500,000

Notes payable ₱500,000
To record the loan obtained by the
business on account

Nov 8, 20x1 Equipment ₱1,000,000

Cash ₱1,000,000
To record the acquiring of equipment
bought on cash

Nov 16, 20x1 Inventory ₱200,000

Cash ₱200,000
To record the purchases of inventory
on cash basis

Nov 30, 20x1 Cash ₱300,000

Sales ₱300,000
To record cash sales

Cost of goods sold ₱135,000

Inventory ₱135,000
To record the costs of inventory sold as
expense

Dec 1, 20x1 Account receivable ₱400,000

Sales ₱400, 000
To record sale on account

Cost of goods sold ₱180,000

Inventory ₱180,000
To record the cost of inventory sold

Dec 4, 20x1 Inventory ₱600,000

 Accounts payable ₱600,000
To record the purchase of inventory on
account

Dec 9, 20x1 Cash ₱100,000

Accounts receivable ₱100,000
To record the collection of accounts
receivable

Dec 17, 20x1 Accounts payable ₱200,000

Cash ₱200,000
To record the payment for accounts
payable

Dec 28, 20x1 Drawing ₱120,000

Cash ₱120,000
To record the withdrawal made by the
owner