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ACC100.101 Analyzing Transactions - Practice Questions

Sincere Faith opened a dance studio business called Dance with Father Studio. She invested $550,000 of personal funds. She purchased office supplies costing $6,500 and dance equipment costing $400,000, paying half down. She provided dance lessons and billed customers, generating income. Expenses included rent, supplies, advertising, salaries, and utilities. The transactions resulted in increases and decreases to various asset, liability, equity, income and expense accounts through debit and credit entries.

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251 views7 pages

ACC100.101 Analyzing Transactions - Practice Questions

Sincere Faith opened a dance studio business called Dance with Father Studio. She invested $550,000 of personal funds. She purchased office supplies costing $6,500 and dance equipment costing $400,000, paying half down. She provided dance lessons and billed customers, generating income. Expenses included rent, supplies, advertising, salaries, and utilities. The transactions resulted in increases and decreases to various asset, liability, equity, income and expense accounts through debit and credit entries.

Uploaded by

ZACARIAS, Marc Nickson DG.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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University of Luzon

COLLEGE OF ACCOUNTANCY
ACC100/101

Practice on Accounting Equation

Henry’s Taxes, a tax preparation business had the following transacti


Example: Received cash the stockholder, P15,000.
1. Received cash for providing accounting services, P8,000.
2. Billed customers on account for providing services, P4,000.
3. Paid advertising expense, P400.
4. Received cash from customers on account, P3,500.
5. Dividends were paid to stockholders, P1,000.
6. Received telephone bill, P100.
7. Paid telephone bill, P100.

Required:
1) In the table below, state the accounts affected by each transaction.
2) Indicate the effect on the accounting equation of each transaction.
A L
Assets = Liabilities +
Example: Cash + 15,000

ransaction.
ansaction.
E
Stockholders’ Equity
Investment + 15000
University of Luzon
COLLEGE OF ACCOUNTANCY
ACC100/101

Practice on Transaction Analysis and Double-Entry System

INSTRUCTION: Analyze the following transactions, identify the accounts


affected, state whether such account increased or decreased and apply
debit and credit.

Sincere Faith opened her Dance Studio near a Mall at Manila. She is the
owner of the proprietorship which she named Dance with Father Studio. The
following are the transaction during September 2021: NAME OF ACCOUNTS

1.       Invested P 550,000 of personal funds to the business

2.       Purchased Office Supplies costing P 6,500, on account

3.       Purchased Dance Equipment P 400,000; paying 50% down and the
balance due on 30 days

4.       Invested her personal DVD Speaker as part of the Dance Equipment

5.       Rendered her professional skills as dance instructress for school children
wanted to learn Valet and received P 168,000 cash

6.       She receives a notice that the monthly rent for her office building will
increase from P 5,000 to P 6,000 per month, effective next month

7.       Paid the balance for office supplies purchased on account

8.       Billed customers for services, P 153,000

9.       Bought office supplies, P 20,000

10.   Paid P 5,000 of the office rent for the month

11.   Collected the balance of previously billed customer


12.   Charged customer for services made on account, P 262,000

13.   She finalized her plans with the architect for the set-up and some
renovations for the studio. The offer is P 200,000

14.   She hired her new assistant. As per contract, she will received P 10,000
as her monthly salary

15.   50% of the account on September 12 were collected

16.   Received bill from “Your Times” for advertising P 3,800

17.   Provided Dance lesson for Senior Citizens, P 125,000

18.   Paid the premium for 1 year insurance policy for fire P 3,000

19.   Received and paid bills for utilities, P 250,000

20.   Paid the bill previously recorded for advertising

21.   Returned some office supplies worth P 1,500 due to damage

22.   The customer on September 12 settled their account balance

23.   Received P 40,000 for professional service, (previously unbilled)

24.   Withdrew P 50,000 for personal use

25.   Paid salaries of her assistant.


Total Salaries P5,000
SSS Premium withheld P1,000
Tax Payable withheld P 100
Cash P3,900
ACCOUNT TYPE
(Asset,Liability,Equity,I EFFECT
ncome,Expense) (Increase/Decrease) DEBIT/CREDIT

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