ACCOUNTING PROBLEM 1

Transaction effects on the Basic Accounting Model

TRANSACTIONS
a Bought equipment, paying cash A L
b Paid the monthly rent expense
c Purchased supplies on credit
d Made an additional investment in the entity
e Charged custmomers for services provided on account
f Paid creditor on account
g Received payment from customers on account
h Received cash for services rendered today
i Permanently reduce his investment in the business by taking out cash
j Paid salaries for the week
k Acquired equipment, paying 50% down, the balance due in 30 days.

Required:

For each transaction, indicate whether the assets (A) , liabilities (L) or owner's equity (OE) increased (+), decreased (-)
or did not changed (0) by placing the appropriate sign in the appropriate column.
 C

+), decreased (-)

ACCOUNTING PROBLEM 1

Transaction effects on the Basic Accounting Model

TRANSACTIONS A L
a Bought equipment, paying cash +-
b Paid the monthly rent expense -
c Purchased supplies on credit + +
d Made an additional investment in the entity +
e Charged custmomers for services provided on account +
f Paid creditor on account - -
g Received payment from customers on account +-
h Received cash for services rendered today +
i Permanently reduce his investment in the business by taking out cash -
j Paid salaries for the week -
k Acquired equipment, paying 50% down, the balance due in 30 days. +- +
100
-50 50
50 50

Required:

For each transaction, indicate whether the assets (A) , liabilities (L) or owner's equity (OE) increased (+), decreased (-)
or did not changed (0) by placing the appropriate sign in the appropriate column.
 C

+
+

+
-
-

ased (+), decreased (-)

Recording Transactions in T Account

On Nov. 1, 2018, Leah May Santiago purchased a pest control enity from its previous owner.
Santiago paid P520,000 from her personal checking account for assets consisting of pesticide supplies, P175,000
and spraying equipment P345,000. The entity is to operate under the name Santiago Pest Control. The following transactions
November:

Nov-01 Santiago invested additional P230,000 in the business.

2 Pest control service for customers was done on account P42,000.
3 Pesticide supplies were acquired on account P39,500.
6 Spraying equipment costing P67,000 was acquired on account.
8 Pest control service was rendered for cash, P87,000.
10 Reairs were made to the equipment P28,000 was paid in cash.
14 Paid P17,000 for pesticide suppliers acquired on Nov. 3.
15 Rendered pest control service for customers on account P63,000
17 Paid for utilities P9,500.
24 Paid P1,500 in salaries
27 Withdrew P60,000 for personal use.
29 Collected P12,000 for pest control services done on Nov. 2

Required:

Record the transactions using T account. The following accounts will be needed:
Cash, Accounts Receivable, Pesticide Supplies; Spraying Equipment, Accounts Payab;e
and Santiago Capital
pplies, P175,000
ol. The following transactions occurred during the month of
 Cash Accounts receivable Pestiside Suplies
175,000.00

Spraying Equipment Accounts Payable Santiago Capital

345,000.00 520,000.00