The effects on the

Accounting Equation of some

B u s i n e s s Tr a n s a c t i o n s o f
R E G E N E R AT I N G C L I N I C
f o r t h e m o n t h o f J a n u a r y.
ASSETS LIABILITIES C A P I TA L
• Cash • Accounts Payable
• Accounts • Yin, Capital
• Notes Payable
Receivable • Yin,Withdrawing
• Utilities Payable
• Supplies
• Prepaid Insurance

EXPENSES
REVENUE • Salaries expense
• Rent expense
• Professional • Utilities expense
Fees • Supplies expense
• Advertising expense
Jan. 1- Dr. Yin, a cosmetic doctor openened the
Regenerating Clinic in January 1, 2017 with a
cash investment of P100,000 and supplies
worth P20,000

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Jan 1 100,000 20,000 120,000

Jan. 2- Dr. Yin purchased for cash supplies
amounting P5,000 from Shin Medical Supplies

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Jan 1 100,000 20,000 120,000

2 -5,000 +5,000
Balance 95,000 25,000 120,000
Jan. 4- Bought P55,000 worth of cosmetic
equipment on account from Wang, Inc.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 95,000 25,000 120,000

Jan 4 +55,000 +55,000

New 95,000 25,000 55,000 55,000 120,000

Balances
Jan. 6- Rendered professional services to
clients received a check amounting to P13,500.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 95,000 25,000 55,000 55,000 120,000

Jan 6 +13,500 +13,500

New 108,500 25,000 55,000 55,000 133,500

Balances
Jan. 8- Paid MERALCO and NAWASA bill
amounting P8,790.
ASSETS = LIABILITIES + CA PITAL
Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 108,500 25,000 55,000 55,000 133,500

Jan 8 -8,790 -8,790

New 99,710 25,000 55,000 55,000 124,710

Balances
Jan. 10- Issued check payable to Beauty
Secrets Magazine for advertising worth P2,100.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 99,710 25,000 55,000 55,000 124,710

Jan 10 -2,100 -2,100

New 97,610 25,000 55,000 55,000 122,610

Balances
Jan. 12- Returned defective supplies worth
P820 to Shin Medical Supplies.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 97,610 25,000 55,000 55,000 122,610

Jan 12 +820 -820

New 98,430 24,180 55,000 55,000 122,610

Balances
Jan. 14- Sent invoices to clients amounting
P32,100 for services rendered on account.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 98,430 24,180 55,000 55,000 122,610

Jan 14 +32,100 +32,100

New 98,430 24,180 32,100 55,000 55,000 154,710

Balances
Jan. 15- Paid salaries of employees,
P15,200.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 98,430 24,180 32,100 55,000 55,000 154,710

Jan 15 -15,200 -15,200

New 83,230 24,180 32,100 55,000 55,000 139,510

Balances
Jan. 16- The owner withdrew P3,500 for
personal use.
ASSETS = LIABILITIES + CA PITAL
Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 83,230 24,180 32,100 55,000 55,000 139,510

Jan 16 -3,500 -3,500

New 79,730 24,180 32,100 55,000 55,000 136,010

Balances
Jan. 20- Paid half of the liability from the
Wang, Inc.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 79,730 24,180 32,100 55,000 55,000 136,010

Jan 20 -27,500 -27,500

New 52,230 24,180 32,100 55,000 27,500 136,010

Balances
J a n . 2 2 - P u rc h a s e d v a r i o u s e q u i p m e n t f ro m L i u L a b
& Equipment amounting to P105,000 with down payment
of P20,000 and the balance on account issuing a
p ro m i s s o r y n o t e .

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 52,230 24,180 32,100 55,000 27,500 136,010

Jan 22 -20,000 +105,000 +85,000

New 32,230 24,180 32,100 160,000 27,500 85,000 136,010

Balances
J a n . 2 4 - R e n d e re d v a r i o u s s e r v i c e s t o c l i e n t s o n
account, P20,900.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 32,230 24,180 32,100 160,000 27,500 85,000 136,010

Jan 24 +20,900 +20,900

New 32,230 24,180 53,000 160,000 27,500 85,000 156,910

Balances
Jan. 26- Collected from credit customers for
January 14 transaction.
ASSETS = LIABILITIES + CA PITAL
Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 32,230 24,180 53,000 160,000 27,500 85,000 156,910

Jan 26 +32,100 -32,100

New 64,330 24,180 20,900 160,000 27,500 85,000 156,910

Balances
Jan. 28- Returned defective equipment
worth P3,000 purchased from Liu Laboratories
to be deducted from the account balance .

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 64,330 24,180 20,900 160,000 27,500 85,000 156,910

Jan 28 -3,000 -3,000

New 64,330 24,180 20,900 157,000 27,500 82,000 156,910

Balances
Jan. 29- Paid rent for the month, P7,100.

ASSETS = LIABILITIES + CA PITAL

Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 64,330 24,180 20,900 157,000 27,500 82,000 156,910

Jan 29 -7,100 -7,100

New 57,230 24,180 20,900 157,000 27,500 82,000 149,810

Balances
Jan. 30- Paid Liu Lab & Equipment, P26,500.
ASSETS = LIABILITIES + CA PITAL
Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 57,230 24,180 20,900 157,000 27,500 82,000 149,810

Jan 30 -26,500 -26,500

New 30,730 24,180 20,900 157,000 27,500 55,500 149,810

Balances
 Jan. 31- Supplies consumed during the period.
ASSETS = LIABILITIES + CA PITAL
Date Cash Supplies Accounts Equipment Account Notes Yin,
Rec'ble Payable Payable Capital

Balances 30,730 24,180 20,900 157,000 27,500 55,500 149,810

Jan 30 -18,030 -18,030

New 30,730 6,150 20,900 157,000 27,500 55,500 131,780

Balances

Total Assets: P30,730 + P6,150 + P20,900 + P157,000 = P214,780

Total Liabilities and Capital: P27,500 + P55,500 + P131,780 = P214,780
 Tabular Analysis in
Business Transactions of
REGENERATING
CLINIC for the month of
January
 DATE ACCOUNTS AFFECTED ACCOUNT EFFECT
CLASSIFICATION (DECREASE/INCREASE)

Jan 1 Cash Asset Increase

Supplies Asset Increase
Yin, Capital Owner's Equity Increase
2 Cash Asset Decrease
Supplies Asset Increase
4 Equipment Asset Increase
Account Payable Liabilities Increase
6 Cash Asset Increase
Yin, Capital Owner's Equity Increase
8 Cash Asset Decrease
Yin, Capital Owner's Equity Decrease
10 Cash Asset Decrease
Yin, Capital Owner's Equity Decrease
 DATE ACCOUNTS AFFECTED ACCOUNT EFFECT
CLASSIFICATION (DECREASE/INCREASE)

Jan 12 Cash Asset Increase

Supplies Asset Decrease
14 Accounts Receivable Asset Increase
Yin, Capital Owner's Equity Increase
15 Cash Asset Decrease
Yin, Capital Owner's Equity Decrease
16 Cash Asset Decrease
Yin, Capital Owner's Equity Decrease
20 Cash Asset Decrease
Accounts Payable Liabilities Decrease
22 Cash Asset Decrease
Equipment Asset Increase
Notes Payable Liabilities Increase
 DATE ACCOUNTS AFFECTED ACCOUNT EFFECT
CLASSIFICATION (DECREASE/INCREASE)

Jan 24 Accounts Receivable Asset Increase

Yin, Capital Owner's Equity Increase
26 Cash Asset Increase
Accounts Receivable Asset Decrease
28 Equipment Asset Decrease
Notes Payable Liabilities Decrease
29 Cash Asset Decrease
Yin, Capital Owner's Equity Decrease
30 Cash Asset Decrease
Notes Payable Liabilities Decrease
31 Supplies Asset Decrease
Yin, Capital Owner's Equity Decrease