Assignment 1

During the month of May, Inday Badiday Review Center had the following transactions:

A L OE
a. Paid salaries for May, P54,000
b. Acquired equipment on credit, P90,000

c. Purchased supplies in cash, P3,000

d. Received payment for services rendered, P 18,000

e. Additional Investment by owner, P120,000
f. Made partial payment of equipment acquired on credit,
P30,000
g. Billed customers for services performed, P48,000
h. Received payment from customers already billed, P9,000
i. Withdrew cash for personal use, P45,000
j. Received bills for utilities to be paid next month, P2,100
Required: For each transaction, indicate whether the assets (A), Liabilities (L) or owner’s equity (OE) increased (+),
decreased (-), or did not change (o) by placing appropriate sign in the appropriate column.

Assignment 2

Naig Miranda established a proprietorship, The Professional Shoppers. The business charges a fee based on the amount
of research done to support a cost-effective purchase decision and the actual shopping required. Miranda with the help
of her “professional shoppers” will shop for almost anything from corporate giveaways, computers to office and home
furnishing.

Business is particularly heavy around Christmas and in early summer. The business operates from a rented condominium
unit. The shoppers receive a commission based on the revenues they produce and a transportation allowance for the
use of their personal vehicles for shopping trips. The following transactions are for December 2015:

a. Miranda invested P300,000 in the business.

b. Acquired office equipment for P100,000. Miranda paid P20,000 in cash and promised to pay the balance equally
every end of the month
c. Paid rent for December P5,000
d. Provided shopping services for corporate accounts P52,000
e. Paid telephone bill, P900
f. Borrowed cash from the bank by signing a note payable, P50,000
g. Bought a computer for office use, P48,000 cash.
h. Collected cash from clients for services performed on account, P40,000
i. Paid commission to shoppers for revenue generated during the first half of the month, P18,200
j. Paid electricity bill P6,000
k. Earned shopping revenues of P132,000: P60,000 cash, P72,000 on account.
l. Paid shoppers commission for last half of month, P46,200
m. Paid transportation allowance for the month, P15,000
n. Paid 10,000 on note payable to bank
o. Paid cash on account for the office equipment purchased in transaction (b), P20,000
p. Miranda withdrew P20,000 for personal use

Required:

1. Record the transactions using T-accounts. Use the accounting equation as a guide for setting up the T-accounts.
The following accounts will be needed: Cash; Accounts Receivable; Office Equipment; Notes Payable; Accounts
Payable; Miranda Capital; Miranda Withdrawals; Shopping Revenues; Commission Expense; Transportation
Expense; Rent Expense and Utilities Expense.
2. Determine the balances of the T-accounts.