INSTRUCTIONS.

IDENTIFY THE MANNER IN WHICH THE EACH OF THE INCREASES OR DECREASES

OF THE ACCOUNT WOULD BE RECORDED.

ANSWERS
DEBIT CREDIT
0. Decrease in Supplies /
1. Increase in Accounts Receivable /
2. Cash is decreased /
3. Incurred Salaries Expense /
4. Decrease in Notes Receivable /
5. Increase in Accounts Payable /
6. Prepaid Rent is increased /
7. Increase in the value of Land /
8. Service Revenue is increased /
9. Capital is increased /

INSTRUCTIONS. Indicate the effect of each of the following transactions for the current month
on assets, liabilities, and owner’s equity by inserting “+” for increase, “-“ for decrease, on the
corresponding columns.

ANSWERS
A L O/E
0. Received cash as initial investment + +
1. Collected cash on account from customers +,-
2. Purchased land by issuing a note payable + +
3. Paid rent for the month - -
4. Owner's withdrawal - -
5. Paid creditors on account - -
6. Received cash from services + +
7. Issued receipts for services rendered on account + +
8. Paid employee wages - -
9. Purchased equipment for cash +,-
 10. Purchased equipment by paying cash as downpayment +,- +
and issued a note for the remaining balance

11. Paid interest due on note payable - -

12. Paid first installment on the non- interest

- -
bearing note payable

INSTRUCTIONS. Listed below are a summary of accounts used by Wasabe Inc. in recording
financial transactions in the company. Indicate the account(s) to be debited and credited during
each transaction. Write the letter of your answer on the corresponding columns.
A. Cash E. Wasabe, Capital I. Accounts Receivable
B. Accounts Payable F. Note Payable J. Equipment
C. Land G. Wasabe, Withdrawal K. Interest Expense
D. Supplies H. Wages Expense L. Supplies Expense
M. Service Income

ANSWERS
DEBIT CREDIT
0. Shin Wasabe invested cash into the business A E
1. Received cash for services rendered A M
2. Purchased land by issuing a note payable C F
3. Puchased supplies on account D B
4. Shin Wasabe withdrew cash from the business G A
5. Paid creditors on account B A
6. Received cash from services rendered on account A I
7. Issued receipts for services rendered on account I M
8. Paid employee wages H A
9. Purchased equipment for cash J A

10. Purchased equipment by paying cash as downpayment and issued

J A, F
a note for the remaining balance

11. Paid interest due on note payable K A

 12. Paid first installment on the non- interest bearing note
F A
payable

13. Recorded supplies used during the period L D

Recording Transactions with Fin. Transaction Worksheet

Accounts Calamba,
Jan 1. CASH ACCOUNTS RECEIVABLE SUPPLIES EQUIPMENT
Payable Capital
Balance
25000 4000 5000 60000 9000 85000
a -3000 -3000
b 1000 -1000
c 2500 2500
d 12000 -12000
e 10000 10000
f -2000 -2000
g -2000 10000 8000
h -1650 1650
i 2500 -2500
Balances 41850 500 9150 58000 24500 85000

Assets = Liabilities + Owner’s Equity

109 500 = 109 500
 Recording Transactions with Fin. Transaction Worksheet

Jan 1. SERVICE Accounts Daganta,

CASH ACCOUNTS RECEIVABLE SUPPLIES
Balance VEHICLE Payable Capital

2-Oct 195000 195000

3-Oct -57000 57000
9-Oct 87500 87500
10-Oct -25000 -25000
11-Oct 170000 170000
12-Oct -55000 -55000
16-Oct -25000 -25000
23-Oct 35000 -35000
27-Oct -57000 -57000
30-Oct -7500 -7500
31-Oct -5500 -5500
Balances -109500 135000 57000 195000 140000 137500

Assets = Liabilities + Owners Equity

277 500 = 277 500
 TERESITA GALANG FINANCIAL PLANNER
1. Received cash on account from customers
2. Purchased supplies for cash
3. Purchased equipment on account
4. Rendered services to customer on account
5. Incurred expenses on account
6. Paid cash on outstanding accounts
7. Purchased supplies on account
8. Paid cash for expenses incurred
9. Owner’s withdrawal