I.

Listed below are ten business transactions for JL Car Wash Services during its first month of
operations: Indicate the effects of the given transactions on each of elements in the accounting
equation. Put + if the account has increased or – if the account has decreased. Put the
amount of increase or decrease for each account. USE THE EXPANDED ACCOUNTING
EQUATION

a. James Lee invested P150,000 and equipment valued at P40,000.

b. JL Car Wash paid 5,000 for government permits.
c. JLCWS bought car shampoo worth 2,700 on account to MSC Supplies.
c. Customers paid 10,850 for car cleaning.
d. Customer A made an advance payment of 3,600 for cleaning and vacuum services.
e. JL Car Wash obtained a loan from BTS Bank worth 100,000 for 1.5 years.
f. Paid for workers’ salaries worth 8,000 and 1,000 for water expense
g. Rendered services to various clients, 3,500 was paid cash and 1,200 was on account.
h. Made payment to MSC Supplies
i. Additional equipment was purchased worth 5,500, 50% down payment. Credit Terms for
balance: 2/15, n/45.
j. 2,000 worth of supplies was consumed for the month.