pp.

19 Guide Questions
1. As a student, accounting helps us to recognize our allowances and daily expenses. It also tells us about the expenses we will
2. A perso engages into business to earn profit and increase in funds.
3. Business benefits the owner thru income, it benefits the government thru tax, it gives jobs to employees and provides good
4. ^Sole-proprietorship: owned by one person. (A): Profit all by himself. (D): Loss all by himself.
^Partnership: owned by two or more persons. (A): better management and lesser risk of loss. (D): easy to terminate.
^Corporation: owned by large number of people called stockholders. (A): has indefinite life. (D): has BOA and Higher tax
tells us about the expenses we will use through our studies.

s to employees and provides good and services to the public.

loss. (D): easy to terminate.

fe. (D): has BOA and Higher tax
pp. 39 Exercise #1
Assets
Cash 7,500.00
Furniture & Fixture 8,750.00
Aerobic Equipment 10,000.00
Dancing Equipment 7,500.00
Total Assets 33,750.00

Liabilities
Accounts Payable 15,000.00
Notes Payable 5,000.00
Total Liabilities 20,000.00

Total Assets 33,750.00

Total Liabilities (20,000.00)
Total Owner's Equity 13,750.00

pp. 39 Exercise #2
Assets Liabilities Equity
Campo Carne Inc. 393,210.00 215,380.00 177,830.00
Einstein Inc. 400,180.00 222,460.00 177,720.00
Tagalog Printers 114,100.00 53,640.00 60,460.00
Arce's Daity Products 900,000.00 300,000.00 600,000.00
Pepsico 120,000.00 24,000.00 96,000.00

pp. 39-40 Exercise #3

A.) Invested cash P50,000 and dental equipment worth P500,000
B.) Bought Dental Supplies for P5,000 in cash
C.) Acquired F&Fs costing P15,000 on account
D.) Purchased office equipment worth P80,000 on note
E.) Paid P20,000 cash for the outstanding Notes Payable
F.) Leo made a withdrawal of P5,000 for personal purposes

pp. 40 Exercise #4
Assets
Cash 579,400.00
Car 140,000.00
Office Supplies 600.00
Total Asset 720,000.00

Liabilities & O's Equity

Accounts Payable 70,000.00
Loans Payable 500,000.00
Andrew, Capital 150,000.00
Total Liab. & O's Equity 720,000.00

pp. 40 Exercise #5
Cash Supplies Equipment Accts Payable
120,000.00
(5,000.00) 5,000.00
115,000.00 5,000.00
(5,000.00) 45,000.00 40,000.00
110,000.00 5,000.00 45,000.00 40,000.00
10,000.00
110,000.00 5,000.00 55,000.00 40,000.00
(2,000.00) 2,000.00
108,000.00 7,000.00 55,000.00 40,000.00
(8,000.00) (8,000.00)
100,000.00 7,000.00 55,000.00 32,000.00
162,000.00

pp. 45 Quiz No. 3

A.
1.) Invested 50,000 cash and 30,000 worth of furniture and fixtures.
2.) Bought 50,000 worthof equipment on account.
3.) Bought 5,000 supplies, cash.
4.)Paid 20,000 for transaction number 2.
5.)invested additional 5,000 to pay for the otstanding accounts payable
6.) Withdrew 5,000 cost of furniture&fixture

B.
1.) a
2.) a
3.) c
4.) c
5.) d

C.
Assets
Cash 250,000.00
Building 3,000,000.00
Furniture & Fixtures 300,000.00
Equipment 100,000.00
Total Assets 3,650,000.00

Liab. & O's Equity

Accounts Payable 50,000.00
Loans Payable 500,000.00
Cely, Capital 3,100,000.00
Total L&O'sE 3,650,000.00

pp. 47 Quiz No. 4

1. Balance Sheet
2. Assets
3. Liabilities
4. Owner's Equity
5. Asset
6. Liabilities
7. capital
8. exchange
9. double entry
10. transaction

B.
Abe's Car Rental Agency
Balance Sheet
For the year ended, December 31, 1996

ASSETS
Cash $ 17,500.00
Accounts Receivables 30,000.00
Office Furniture & Fixture 14,500.00
Cars 2,500,000.00
Total Assets 2,562,000.00

Liabilities an Owner's Equity

Salaries Payable $ 4,000.00
Accounts Payable 6,000.00
West, Capital 2,552,000.00
Total Liabs. & O's Equity 2,562,000.00

pp. 51 Quiz No. 6

1. false
2. true
3. true
4. false
5. false

Date Cash Furniture Equipment Supplies Accts Payable

4-May 120,000.00
6-May (500.00) 500.00
Balance 119,500.00 500.00
10-May 40,000.00
Balance 119,500.00 40,000.00 500.00
15-May 10,000.00
Balance 119,500.00 40,000.00 10,000.00 500.00
20-May (4,000.00) 8,000.00 4,000.00
Balance 115,500.00 48,000.00 10,000.00 500.00 4,000.00
29-May (2,000.00) (2,000.00)
Balance 113,500.00 48,000.00 10,000.00 500.00 2,000.00
31-May 5,000.00
118,500.00 48,000.00 10,000.00 500.00 2,000.00
177,000.00
Notes Payable Casino, Capital
120,000.00

120,000.00

120,000.00
10,000.00
10,000.00 120,000.00

10,000.00 120,000.00

10,000.00 120,000.00
162,000.00
Notes Payable Adv. Fm. Client Josua, Capital Josua, Drawing
120,000.00

120,000.00
40,000.00
40,000.00 120,000.00
10,000.00
40,000.00 130,000.00

40,000.00 130,000.00

40,000.00 130,000.00
5,000.00
40,000.00 5,000.00 130,000.00
177,000.00
pp.66 Exercise 1
a. (P20,000+15,000) P35,000
b. (P25,000+20,000+150,000-50,000) P145,000
c. Additional investment, Loan

pp.66 Exercise 2

Assets