Can you check if my answers are correct. And can you explain if it is wrong.

Case 1: Identification of element

Indicate whether the following transactions result in an INCOME, EXPENSE, LIABILITY or EQUITY.

Indicate N/A if the transaction doesn't give rise to an income, expense, liability or equity.

1.Receipt of cash for services rendered to clients INCOME

2.Receipt of cash from collection of receivables N/A

3.Collection of rental from lessees INCOME

4.Receipt of electric bill for the previous month EXPENSE

5.Purchase of goods for cash EXPENSE

6.Purchase of supplies on credit LIABILITY

7.Payment of cash to owner EQUITY

8.Investment of additional funds by owner EQUITY

Case 2: Identification of an asset, expense or withdrawal

For each of the following transactions, indicate the following:

ASSET - if the transaction results to an asset

EXPENSE - if the transaction results to an expense

WITHDRAWAL - if the transaction results to capital withdrawal by the owner N/A - if the transaction does not result to an asset or expense

ASSET1.

Payment for loans payable.

ASSET2.

Payment for the purchase of building.

N/A3.

Collection of interest income.

WITHDRAWAL4.

Payment for fund withdrawal of the business owner.

EXPENSE5.

Payment for rent of the office building.

EXPENSE6.

Payment for rental for the next three months.

7.

Payment for accrued interest liability.

N/A8.

Accrued and unpaid salaries of employee.

ASSET9.

Exchange of land asset for a machinery asset.

WITHDRAWAL10. The owner took goods from the business for his personal consumption.

ASSET11. Newly born animal offspring

ASSET12. Accrued and unpaid interest on borrowings of clients

ASSET13. Accrued and unpaid interest on borrowings of the business

ASSET14. Theft of several goods in the business premises

ASSET15. Sale of 10,000 goods for 7,000 cash

16. Rendering of services to a client on account

Case 3: Identification of a liability, income or equity infusion

For each of the following transactions, indicate the following:

LIABILITY - if the transaction results to a liability INCOME - if the transaction results to an income

EQUITY - if the transaction results to capital infusion from the owner N/A - if the transaction does not result to a liability, income or equity.

LIABILITY1.

Receipt of rentals for the next twelve months

N/A2.

Receipt of interest on loans receivable for the last six months.

INCOME3.

Collection of receivables previously billed to clients.

EQUITY 4.

Receipt of cash from owner as additional capital

EQUITY 5.

Contribution of land and building from the owner to be used as the new business office.

INCOME6.

Receipt of goods from a supplier with a billing invoice

LIABILITYN/A7.

Temporary borrowing of a certain machinery from the friend of the business owner

INCOME8.

Sale of building costing 1,000,000 for 1,400,000

INCOME9. Billed a client for services already done

LIABILITY 10. Receipt of cash from clients for services to be provided in the future

Case 4: Duality Principle and Identification of Elements

Identify which element is affected by the foregoing transaction by identifying if it is ASSET

LIABILITY

EQUITY

INCOME

EXPENSE that corresponds with the elements affected and indicate the amount for the element.

1.The owner of the business invested a building worth 500,000 to the business.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

2.Receipt of 100,000 cash from a client whom the business provided services.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

3.Sale of supplies costing 50,000 for 40,000 cash.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

4.Receipt of 100,000 merchandise from a supplier on credit.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

5.Purchase of equipment for 100,000.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

6.Payment for 10,000 rental of the office space of the business.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

7.Receipt of 5,000 interest from a debtor of the business.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

8.Sale of supplies costing 50,000 for goods worth 70,000.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

9.Accrual of 5,000 unpaid salaries of employees.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE

10.Accrual of 8,000 unpaid interest due from debtor of the business.

ASSET

LIABILITY

EQUITY

INCOME

EXPENSE