An ABM graduate named Jason decided to start a bakery business in Cateel,

Davao Oriental. Their house is in the heart of the Poblacion and so his mother

allowed him to use a spare portion of their house for his bakeshop. For his

startup capital, he loaned P200,000 from his father. He then proceeded to

purchase an oven, a mixer and other related equipment, machines and tools

for his baking needs. He also purchased raw materials such as flour, sugar,

and all sort of baking supplies.

Because it is the only bakeshop operating in town, the sale of bakery products

rises steeply. In order for him to keep track of sales and expenses, he applied

what he learned in Senior High School about the importance of record

keeping. He uses a journal and a ledger for record keeping purposes.

As his business continues to grow, he sees the opportunity to borrow bigger

capital from the bank. The bank requires a Financial Report showing the

health and operation of his business. He then furnishes the bank the copy of

the Financial report as part of their requirement before a loan will be granted.

Questions:

1. Name the transactions or events which can be considered "IDENTIFYING"

based on the definition of Accounting?

2. Name the transactions or events which can be considered "RECORDING"

based on the definition of Accounting?

3. Name the transactions or events which can be considered

"COMMUNICATING" based on the definition of Accounting?