ACTIVITY: Use the Accounting Equation in solving.1. Equate assets with liabilities and owner's equity using each item on businesstransactions activities.2. Write the accounting equation with its corresponding figures after solving the totalasset, liabilities and owner's equityOn October of the current year, Ms. D. Diaz started an auto repair business.1. She invested P 200,000 to start an auto repair business.She bought repair equipment on credit, P 100,000.3. Bought shop supplies for cash, P 62,000.4.5.Paid partial on equipment bought on account, P 60,000Received a bank loan for business use, P 100,000.6. Customers pay cash for auto repairs rendered, P 25,0007. Repair services rendered on account, P 50,000.8. Paid a month's rent, P 10,000.9. Collects partial from customers' account, P30,000.10. Pays the salaries and wages of laborers, P15,000.11. Billed a customer, P6,000; P 2,000 was partially received.12. Supplies purchased, P 15,000 and P5,000 was partially paid.13. Shop supplies used and paid, P 18,00014. Diaz withdrew P 20,000 for personal useSLIDESM journalize and make a special ledger of each​

1. She invested P 200,000 to start an auto repair business.Total Assets: P 200,000(Owner's Equity is increased by P 200,000)2. She bought repair equipment on credit, P 100,000.Total Assets: P 200,000 (no change)Liabilities: P 100,000(Equipment increased by P 100,000, and there's a corresponding increase in liabilities)3. Bought shop supplies for cash, P 62,000.Total Assets: P 262,000 (P 200,000 + P 62,000)Liabilities: P 100,000 (no change)Owner's Equity: P 162,000(Shop supplies increased, and owner's equity decreased)4. Paid partial on equipment bought on account, P 60,000.Total Assets: P 262,000 (no change)Liabilities: P 40,000 (P 100,000 - P 60,000)Owner's Equity: P 162,000 (no change)(Decreased equipment payable, decreased liabilities)5. Received a bank loan for business use, P 100,000.Total Assets: P 362,000 (P 262,000 + P 100,000)Liabilities: P 40,000 (no change)Owner's Equity: P 322,000(Increased cash, increased owner's equity)6. Customers pay cash for auto repairs rendered, P 25,000.Total Assets: P 387,000 (P 362,000 + P 25,000)Liabilities: P 40,000 (no change)Owner's Equity: P 347,000(Increased cash, increased owner's equity)Now, let's continue with the remaining transactions:7. Repair services rendered on account, P 50,000.Total Assets: P 387,000 (no change)Liabilities: P 90,000 (P 40,000 + P 50,000)Owner's Equity: P 297,000(Increased accounts receivable, increased liabilities)8. Paid a month's rent, P 10,000.Total Assets: P 377,000 (P 387,000 - P 10,000)Liabilities: P 90,000 (no change)Owner's Equity: P 287,000(Decreased cash, decreased owner's equity)9. Collects partial from customers' account, P 30,000.Total Assets: P 407,000 (P 377,000 + P 30,000)Liabilities: P 60,000 (P 90,000 - P 30,000)Owner's Equity: P 347,000 (no change)(Increased cash, decreased accounts receivable, decreased liabilities)10. Pays the salaries and wages of laborers, P 15,000.Total Assets: P 392,000 (P 407,000 - P 15,000)Liabilities: P 60,000 (no change)Owner's Equity: P 332,000(Decreased cash, decreased owner's equity)Now, let's continue with the remaining transactions:11. Billed a customer, P 6,000; P 2,000 was partially received.Total Assets: P 398,000 (P 392,000 + P 6,000)Liabilities: P 60,000 (no change)Owner's Equity: P 338,000(Increased accounts receivable, increased owner's equity)12. Supplies purchased, P 15,000, and P 5,000 was partially paid.Total Assets: P 398,000 (no change)Liabilities: P 55,000 (P 60,000 - P 5,000)Owner's Equity: P 343,000 (no change)(Increased supplies payable, decreased liabilities)13. Shop supplies used and paid, P 18,000.Total Assets: P 380,000 (P 398,000 - P 18,000)Liabilities: P 55,000 (no change)Owner's Equity: P 325,000(Decreased supplies, decreased cash, decreased owner's equity)14. Diaz withdrew P 20,000 for personal use.Total Assets: P 360,000 (P 380,000 - P 20,000)Liabilities: P 55,000 (no change)Owner's Equity: P 305,000(Decreased cash, decreased owner's equity)So, after all transactions, the accounting equation stands as follows:Total Assets: P 360,000Liabilities: P 55,000Owner's Equity: P 305,000

Answered by meowfeyeh14 | 2024-09-03