A. At the beginning of the year, Covid Enterprise had total assets of P700,000 and

total liabilities of P500,000. Answer the following questions:

1. If total asset increased by P150,000 during the year and total liabilities decreased by

P80,000, what is the amount of the owner's equity at the end of the year.?

Ans. ____________________________________

2. During the year, total liabilities increased by P10,000 and owner's equity decreased by

P70,000, what is the amount of the total assets t the end of the year?

Ans. ____________________________________

3. If total assets decreased by P90,000 and owner's equity increased by P110,000 during

the year, what is the amount of total liabilities at the end of the year?

Ans. ____________________________________

4. During the year, total liabilities increased to P650,000 and owner's equity increased to

P40,000, what is the amount of total assets at the end of the year?

Ans. ____________________________________

5. If total assets increased to P850,000 during the year and total liabilities decreased to

P400,000, what is the amount of owner's equity at the end of the year?

Ans. ____________________________________

B. Computation of Unknown Accounting Values

Calculate the missing amount that relates to the financial position of an

enterprise.

1. As of the end of the period, Hotel del Luna has a total asset equal to P970,000 and total

liabilities equal to P500,000. What is the equity of Hotel del Luna as of the end of the

period? _____________________

Aduana, N. L. (2016).Fundamentals of Accountancy, Business Management2. C&E Publishing

Lopez, R. M. (2016-2017).Learning the Basic of Accounting.MS Lopez Printing and Publishing

7

2. Jang Man-wol opens a hotel business and started a capital of P200,000. At the

beginning of the year, the creditors' claims are P100,000 and the owners' equity is 80%

of the total assets. How much is total assets at the end of the year?

________________________

3. Park Yoo-na starts a repair shop business in Korea. At the beginning of the period his

capital is P350,000 which equaled to his investment. At the end of the period, his capital

balance is P450,000 which is 60% of total assets. How much represents the total claims

from outside creditors? _______________________

C. Determination of Unknown Accounting Elements

The following relates to the financial position of the enterprise:

Case 1 Case 2 Case 3 Case4

Assets P 175,000 P450,000 P ? P380,000

Liabilities ?___ 100,000 120,000 ?____

Owners Equity P 75,000 P ? P 180,000 P ?

D. IV. Procedures / Instructions:

1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts

Receivable; Office Supplies; Office Equipment; Exploration Equipment; Accounts

Payable; Lee Gon, Capital; Lee Gon, Withdrawals; Revenues; and Expenses.

2. Use additions and subtractions to show the effects of each transaction on the

accounts in the accounting equation. Show new balances after each transaction.

Lee Gon started a new business and completed these transactions during August:

Aug. 1 Gon invested PHP48,000 cash in the business.

1. Rented office space and paid PHP800 cash for the August rent.

3. Purchased exploration equipment for PHP22,000 by paying PHP12,000

cash and agreeing to pay the balance in 3 months.

5. Purchased office supplies by paying PHP1,500 cash.

6. Completed exploration work and immediately collected PHP420 cash for

the work.

8. Purchased PHP1,350 of office equipment on credit.

15. Completed exploration work on credit in the amount of PHP8,000.

18. Purchased PHP700 of office supplies on credit.

20. Paid cash for the office equipment purchased on August 8.

24. Billed a client PHP2,400 for work completed; the balance is

due in 30 days.

28. Received PHP5,000 cash for the work completed on August 15.

30. Paid the assistant's salary of PHP1,100 cash for this month.

30. Paid PHP340 cash for this month's utility bill.

30. Gon withdrew PHP1,050 cash from the business for personal use.

E. A. Filling the blanks. On the space provided, indicate the APPROPRIATE

ACCOUNT TITLE for the following:

____________ 1. It is the obligations of the company payable in money, goods or

services.

____________ 2. These are non-current tangible assets.

____________ 3. These assets are identifiable, non-monetary assets without physical

substance.

____________ 4. It is the claim of the owner also known as the capital.

____________ 5. It is an expense for leased office space, equipment or assets rented

from others.

____________ 6. Examples of this are cash, account receivable and prepaid

expenses.

____________ 7. It is a written promise from the customer to pay his receivables on a

certain future date.

____________ 8. An account title to describe money either paper, or in coins and

money substitute like checks, postal money orders, bank drafts, etc.

____________ 9. An account title for financial obligation of an enterprise that

constitutes oral or verbal promise to pay.

____________ 10. Includes computers, typewriters, adding machines and the like that

are used int the store.

____________ 11. Account title for the income received from selling of goods or

commodities to customers.

____________ 12. Account title for the income received from rendering of professional

or non-professional service to clients or customers.

____________ 13. Represents the allocated portion of property and equipment over

the number of years.

____________ 14. It is the obligations of the company payable in money, goods or

services.

F. Identifying the Current and Fixed Assets. Classify the following asset accounts on

the space provided, Write CA if Current Asset and PE if Property, Plant and Equipment.

_____1. Land ____8. Unused Office Supplies

_____2. Accounts Receivable ____9. Delivery Equipment

_____3. Building ____10. Prepaid Rental

_____4. Unexpected Insurance ____11. Advances to Employees

_____5. Cash on Hand ____12. Furniture and Fixture

_____6. Petty Cash on Hand ____13. Prepaid Rental

_____7. Accrued Income Receivable

G. IV. Procedures / Instructions:

The following paired transaction are related to each other's. Determine the

value received or debit and the value parted with credit.

Debit Credit

A. 1. E. Gevera invested cash in the business. ________ __________

2. E. Gevera withdrew cash from her business. ________ __________

B. 1. Bought supplies inventory on account from Te Co. ________ __________

2. Paid our account with Te Co. __________ __________

C. 1. Rendered services on account to M. Peaflor Co. __________ __________

2. Collected the accounts of M. Peaflor Co. __________ __________

D. 1. Bought a car for cash from Toyota. __________ __________

2. Sold merchandise for cash to R. Berthay & Co. __________ __________

E. 1. Received a note for the merchandise sold. __________ __________

2. Collected cash for the note received __________ __________

H. On the space provided, indicate a "check mark" as to what normal balance

the following account have.

Debit Credit

1. Account Receivable _________ ________

2. Service Income _________ ________

3. Lee Min Ho, Capital _________ ________

4. Cash In bank _________ ________

5. Land _________ ________

6. Furnitures and Fixtures _________ ________

7. Sales _________ ________

8. Taxes and Licenses _________ ________

9. Building _________ ________

10. Note Receivable _________ ________

11. Prepaid Expenses _________ ________

12. Unearned Service Income _________ ________

13. Accounts Payable ________ ________

14. Petty cash fund ________ ________

15. Lee Min Ho, Withdrawal _________ ________

I. On the space provided, indicate a "check mark" as to the effects on the

balance of the following accounts.

Increased Decreased

1. Account Receivable was credited _________ _________

2. Service Income account was credited _________ ________

3. Accounts Payable was debited _________ ________

4. Sung, Sun Woo Capital was credited _________ ________

5. Salaries expense was debited _________ ________

6. Prepaid Insurance account was credited _________ ________

7. Notes Payable account was debited _________ ________

8. Sung, Sun Woo withdrawal was debited _________ ________

9. Cash Account was credited _________ ________

10. Supplies expense was debited _________ ________

J. IV. Procedures / Instruction: Compute the depreciation expense for the following independent cases. Use

the straight-line method of depreciation. Show your computation on the space

provided.

1.Kim Bok-joo purchased a delivery vehicle on January 1, 2016 amounting to

PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold

for PHP10,000 at the end of its useful life. If the accounting period being reported by Kim Bokjoo

is one (1) year from January - December 2016, how much is the depreciation expense?

2. Lee Sung-kyung purchased a delivery vehicle on April 1, 2016 amounting to PHP250,000. It

is estimated that the vehicle will be useful for 10 years. The vehicle can be sold for PHP10,000

at the end of its useful life. If the accounting period being reported by Lee Sung-kyung is one (1)

year from January-December 2016, how much is the depreciation expense?

3. Jong-suk purchased a delivery vehicle on January 1, 2016 amounting to

PHP250,000. It is estimated that the vehicle will be useful for 10 years. The vehicle can be sold

for PHP10,000 at the end of its useful life. If the accounting period being reported by Jong-suk

is one (1) month (January 2016), how much is the depreciation expense for the month?

K. For each of the following items, write the journal entry first (if one is needed) to

record the transactions; and then the adjusting entry, if any is required, for the end of

the accounting year of Ron Car Rental Company on December 31, 2016.

1.On December 1, borrowed PHP300,000 cash from Nation Bank by issuing a

promissory note with an interest of 12% per annum payable in three months.

2. On December 1, paid rental for six months beginning December 1, 2016 to

May 31, 2017, at PHP3,000 per month.

3.On December 31, 2016, received telephone bills for the month December

amounting to PHP5,600. The bill will be paid on January 2017.

L. IV. Procedures / Instructions: Journalizing, Posting and preparations of Trial Balance.

Mr. Naofumi Iwatani is the owner of Shield Hero Fast Delivery Service, a cargo

forwarder that is based on Melromarc but operates within Anime World territory. The

transactions for the month of August follow.

Aug. 2 - Deposited to the Bank of Melly the amount of P400,000 as initial investments.

4 - Purchase supplies on account P5,000.

8 - Acquired a second hand service vehicle for delivery costing P100,000, paying

P25,000 in cash and issued a note for the balance.

13 - Received a rental bill from Idol Rabier Realty for the month, P15,000.

15 - Received cash from a customer, P18,000 for delivery services.

17 - Paid utilities expense, P9,000.

20 - Billed a customer for delivery service on account, P20,000.

22 - Partially collected P15,000 of August 20 accounts.

24 - Partial payment of August 4 account, P2,000.

26 - Received cash from a customer, P15,000 for delivery services.

27 - Received a bill from Shell Station for gasoline withdrawn, P25,000.

28 - Withdrew P5,000 cash from his business for personal use.

30 - Paid salaries of Filo and Raphtalia for the month, P10,000.

31 - Billed a customer for delivery service on account, P18,000.

Required:

1. a journal entry for each transaction in a journal sheet.

2. Set up the following T-Accounts: Cash in Ban ; Accounts

Receivable ;Supplies Inventory; Delivery Equipment; Accounts

Payable; Notes Payable; Iwatani, Capital; Iwatani , Drawing;

Delivery Income; Utilities Expense; Rental Expense; Salaries

Expense and Gas & Oil.

3. T-accounts using the

dates to identify each transaction.

4. a Trial Balance.