LESSON 4: THE ACCOUNTING EQUATION (Recorded Summative Assessment) Problem 01. Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300,000 b. Purchased equipment for cash amounting to P50,000 c. Purchased inventories through credit amounting to P35,000 d. Purchased furniture amounting to P30,000. Made partial payment with cash (P10,000) and incurred an accounts payable for the balance (P20,000) e. Paid cash to the local government for business permit (P9,000) f. Made sales of P17,000- P12,000 cash sales, P5,000 credit sales g. The cost of the sales made in (f) amounted to P8,500 h. Paid the accounts payable in (d) i. Collected P2,500 out of the P5,000 credit sales in (f) J. Paid employees' salaries P12,000 Indicate the effects of the transactions above on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example: Liabilities Equity Revenues Expenses Assets P300,000 a. P300,000 b. C. d. е. f. g. h. i. 1.

LESSON 4: THE ACCOUNTING EQUATION (Recorded Summative Assessment) Problem 01. Listed below are ten business transactions for Puring Company during its first month of operations: a. Owner invested cash in the business amounting to P300,000 b. Purchased equipment for cash amounting to P50,000 c. Purchased inventories through credit amounting to P35,000 d. Purchased furniture amounting to P30,000. Made partial payment with cash (P10,000) and incurred an accounts payable for the balance (P20,000) e. Paid cash to the local government for business permit (P9,000) f. Made sales of P17,000- P12,000 cash sales, P5,000 credit sales g. The cost of the sales made in (f) amounted to P8,500 h. Paid the accounts payable in (d) i. Collected P2,500 out of the P5,000 credit sales in (f) J. Paid employees' salaries P12,000 Indicate the effects of the transactions above on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example: Liabilities Equity Revenues Expenses Assets P300,000 a. P300,000 b. C. d. е. f. g. h. i. 1.

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Description: LESSON 4: THE ACCOUNTING EQUATION(Recorded Summative Assessment)Problem 01. Listed below are ten business transactions for Puring Company during its first month of operations:a. Owner invested cash in the business amounting to P300,000b. Purchased e

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 2PA: B. Kelso established Computer Wizards during November of this year. The accountant prepared the...

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