Assignment

Assignment:
A. At the beginning of the year, Makulay Enterprises had a total assets of P700,000 and total
liabilities of P500,000. Answer the following questions:
P=A–L
= P700,000 – P500,000
P = P200,000
1. If total assets increased by P150,000, during the year and total liabilities decreased by P80,000,
what is the amount of owner’s equity at the end of the year?
A = P700,000 + P150,000 = P850,000

L = P500,000 – P80,000 = P420,000
P=A–L
= P850,000 – P420,000
P = P430,000
2. During the year, total liabilities increased by P100,000 and owner’s equity decreased by P70,000,
what is the amount of total assets at the end of the year?
L = P500,000 + P100,000 = P600,000

P = P200,000 – P70,000 = P130,000
A=L+P
= P600,000 + P130,000
A= P730,000
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?
A = P700,000 – P90,000 = P610,000

P = P200,000 + P110,000 = P310,000
L=A–P
= P610,000 – P310,000
L = P300,000
4. 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?
A = P700,000 + P850,000 = P1,550,000
L = P500,000 – P400,000 = P100,000
P=A–L
= P1,550,000 – P100,000
P = P1,450,000
5. During the year, total liabilities increased to P650,000 and owner’s equity increased to P400,000,
what is the amount of total assets at the end of the year?
L = P500,000 + P650,000 = P1,150,000

P = P200,000 + P400,000 = P600,000
A=L+P
= P1,150,000 + P600,000
A = P1,750,000
B. Calculate the missing amount that relates to the financial position of an enterprise:
1. A business firm has an obligation P450,000. If the total assets are P950,000, how much is the
amount of owner’s equity?
P=A–L
= P950,000 – P450,000
P = P500,000
2. If a firm has an owner’s equity of P700,000 and a financial obligation of P300,000, how much is
the Firm’s total assets?
A=L+P
=P300,000 + P 700,000
A = P1,000,000
3. As of the end of the period, Rosette Mariano’s brokerage firm has a total assets equal to P970,000
and total liabilities equal to P500,000. What is the equity of Rosette Mariano as of the end of the
period?
P=A–L
= P970,000 – P500,000
P = P470,000
4. Jenny Lee’s residual interest showed a balance of P350,000. If it claims an ownership in assets
worth P1,000,000, how much is the liabilities?
L=A–P
= P1,000,000 – P350,000
L = P650,000
5. Tessie Coral’s owner’s equity at the beginning of the period is 70% of the total assets. If total
assets is P300,000, how much is the total creditor’s claim at the end of the year?
L=A–P
=P300,000 – P210,000
L = P90,000
1.
The chart of accounts of Makulay Auto Repair Shop is presented as follows:
MAKULAY AUTO REPAIR SHOP

Chart of Accounts
For the month of January 31, 2020
Assets
01 Cash
02 Accounts Receivable
03 Repair Equipment
Liabilities
21 Accounts Payable
Proprietorship
31 Makulay, Capital
32 Makulay, Drawing
Income
41 Service Income
Expenses
51 Rent Expense
52 Supplies Expense
53 Salaries and Wages
Jan. 2, 2020 – Mr. Red Makulay opened an auto repair shop investing cash of P5,000.
Jan. 3, 2020 – Paid rent for the month, P200.
Jan. 5, 2020 – Bought tools and repair equipments from Joseph Repair Equipments, P3,000 paying P1,000
and the balance on account.
Jan. 8, 2020 – Collected P400 for service rendered.
Jan. 9, 2020 – Repair supplies paid, P350.
Jan. 15, 2020 – Partial payment to Joseph Repair Equipments, P1,000.
Jan. 20, 2020 – Paid salaries of trainee – mechanic P100
Jan. 25, 2020 – Mr. Makulay withdraws P500 for personal use.
Jan. 30, 2020 – Collected P480 cash for service rendered.
Jan. 31, 2020 – Billed Mulan Trading for service rendered, P250.
Required:
Prepare a journal entries.
2.
On May 1, Francis Alfonso established the Alfonso Travel Agency. The following transactions were
completed during the month:
May 1 Invested P40,000 cash in Manila Bank in the name of the agency.
2 Paid P800 cash for May rent
3 Purchased office equipment for P5,000 cash.
4 Incurred P600 of advertising costs in the Newsmaker, on account.
5 Paid P1,200 cash for office supplies
6 Earned P18,000 for services rendered: Cash of P2,000 is received from customers, and the
balance of P16,000 is billed to customers on account.
7 Withdrew P400 cash for personal use.
8 Paid Newsmaker amount due on May 4.
9 Received P16,000 in cash from customers who have been previously billed on May 6.
Alfonso Travel Agency’s chart of accounts shows:
01 Cash
03 Supplies
04 Office Equipment
05 Accounts Payable
06 Alfonso, Drawing
07 Alfonso, Capital
08 Service Revenue
09 Rent Expense
10 Advertising Expense
11 Salaries Expense
Required: Prepare a journal entries

3.
Presented below is information related to Nemo Real Estate Agency:
Nov. 1 Nemie Morales begins business as a real estate agent with a cash investment of P130,000.
2 Hires an administrative assistant.
3 Buys office furniture for P19,000 on account.
6 Sells a house and lot for Mr. Flores; fees due from Mr. Flores, P32,000 (not paid by Mr.
Flores at this time).
10 Receives cash of P1,400 as fees for renting an apartment for the owner.
27 Pays P7,000 on the balance indicated in the transaction of November 3.
27 Pays the administrative assistant P9,600 in salary for November.
Nemo Real Estate Agency’s chart of accounts shows:
01 Cash
03 Furniture and Fixtures
04 Accounts Payable
05 Morales, Capital
06 Service Revenue
07 Rent Income
08 Salaries Expense
Required: Prepare a journal entries.
4.
The Greeny Hillside Park was started on May 1 by Don Pacito. The following events and transactions
occurred during May.
May 1 Invested P300,000 cash in the business.
4 Purchased land costing P150,000 for cash.
8 Incurred advertising expense of P9,000 on account.
11 Paid salaries to employees P7,500.
12 Hired a park manager at a salary of P20,000 per month, effective June 1
13 Paid P7,500 for a one-year insurance policy.
17 Withdrew P3,000 cash for personal use.
20 Received P28,000 in cash for admission fees.
25 Sold 100 coupon books for P125 each. Each book contains 10 coupons that entitle the
holder to one admission to the park.
30 From the tickets sold on May 25, half was earned.
30 Paid P3,500 on account for Advetising incurred on May 8.
Don Pacito uses the following accounts:
01 Cash
02 Prepaid Insurance
03 Land
04 Accounts Payable
05 Unearned Admissions
06 Pacito, Capital
07 Pacito, Drawing
08 Admission Revenue
09 Advertising Expense
10 Salaries Expense
Required: Prepare a journal entries.
5.
Jessie Sy is a licensed CPA. During the first month of operations of his business, the following events and
transactions occurred.
Jan. 1 Invested P84,000 cash.
2 Hired a secretary-receptionist at a salary of P2,000 a month.
3 purchased P2,400 of supplies on account from Tristan Supply Company.
7 Paid office rent of P1,800 for the month.
11 Completed a tax assignment and billed client P2,200 for services rendered.
12 Received P7,000 advance on a management consulting engagement.
17 Received cash of P2,400 for services completed for T. Gok Co.
31 Paid secretary-receptionist P2,000 salary of the month.
31 Paid 40% of balance due Tristan Supply Company.
Sy uses the following cart of accounts:
01 Cash
03 Supplies
04 Accounts Payable
05 Unearned Fees
06 Sy, Capital
07 Fees Earned
08 Salaries Expense
09 Rent Expense
Required: Prepare a journal entries;
Note:
Use a memo entry if transactions is not accountable.
Just put an explanation as an entry.

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Assignment:

A = P700,000 + P150,000 = P850,000

L = P500,000 + P100,000 = P600,000

A = P700,000 – P90,000 = P610,000

L = P500,000 – P400,000 = P100,000

L = P500,000 + P650,000 = P1,150,000

The chart of accounts of Makulay Auto Repair Shop is presented as follows:

MAKULAY AUTO REPAIR SHOP

Jan. 3, 2020 – Paid rent for the month, P200.

Jan. 8, 2020 – Collected P400 for service rendered.

Jan. 9, 2020 – Repair supplies paid, P350.

Jan. 15, 2020 – Partial payment to Joseph Repair Equipments, P1,000.

Jan. 20, 2020 – Paid salaries of trainee – mechanic P100

Prepare a journal entries.

2 Paid P800 cash for May rent

3 Purchased office equipment for P5,000 cash.

4 Incurred P600 of advertising costs in the Newsmaker, on account.

5 Paid P1,200 cash for office supplies

7 Withdrew P400 cash for personal use.

8 Paid Newsmaker amount due on May 4.

Alfonso Travel Agency’s chart of accounts shows:

Required: Prepare a journal entries

Required: Prepare a journal entries.

Required: Prepare a journal entries.

Required: Prepare a journal entries;

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