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 Step-by-step explanation

Problem 11




Accounts Service Accounts Daganta, Date Cash + Receivable + Supplies + Vehicle = Payable + Capital Oct. 01 250,000 250,000 Bal. 250,000 250,000 Oct. 02 195,000 195,000 Bal. 250,000 195,000 195,000 250,000 03 (57,000) 57,000 Bal. 193,000 57,000 195,000 195,000 250,000 09 87,500 87,500 Bal. 280,500 57,000 195,000 195,000 337,500 10 (25,000) (25,000) Bal. 255,500 57,000 195,000 195,000 312,500 11 170,000 170,000 Bal. 255,500 170,000 57,000 195,000 195,000 482,500 12 (55,000) (55,000) Bal. 200,500 170,000 57,000 195,000 140,000 482,500 16 (25,000) (25,000) Bal. 175,500 170,000 57,000 195,000 140,000 457,500 23 35,000 (35,000) Bal. 210,500 135,000 57,000 195,000 140,000 457,500 27 (57,000) (57,000) Bal. 153,500 135,000 57,000 195,000 140,000 400,500 30 (7,500) (7,500) Bal. 146,000 135,000 57,000 195,000 140,000 393,000 31 (5,500) (5,500) Bal. 140,500 + 135,000 + 57,000 + 195,000 = 140,000 + 387,500

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Problem 9




Problem 8


1. C

2. D

3. C

4. E

5. C

6. A

7. E

8. A

9. E

10. E


Problem 10


Requirement 1:

1. Collected cash from customers previously billed, P7,000.

2. Purchased supplies for cash, P5,000.

3. Purchased office equipment on account, P25,000.

4. Provided service on account, P24,500.

5. Incurred expenses on account, P16,000.

6. Paid cash to suppliers on account, P6,500.

7. Purchased supplies on account, P3,700.

8. Paid expenses, P2,500.

9. Withdrew cash for personal use, P5,000.


Requirement 2:

Change in cash = Ending cash balance ‒ Beginning cash balance

= P3,000 ‒ P15,000

= Decrease of P12,000 in cash balance


Change in Galang, Capital = Ending capital balance ‒ Beginning capital balance

= P131,000 ‒ P130,000

= Increase of P1,000 in Galang, Capital balance


Problem 6


a. Payment of expenses; Asset withdrawal from the business

b. Incurrence of expenses; Conversion of equity to debt

c. Investment of assets in the business; Provision of services on account

d. Recognition of realized income; Conversion of debt to equity

e. Purchase of asset for cash; Sale of assets for cash; Exchange of asset for another asset 

f. Purchase of asset on account; Loan borrowing

g. Payment of suppliers on account; Payment of creditors


Problem 7


a. SA

b. UA

c. EA

d. UA

e. UA

f. If it's a "new" investment (i.e. invested cash in the business and placed in a time deposit), SA; if it's an "old" investment (i.e. placed existing cash in a time deposit), EA. The word "invested" should be clarified.

g. EA

h. SA

i. EC

j. SA


ST

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