NAME: ALEJAGA, ANDREA MONIQUE MAHINAY

YEAR AND COURSE: FIRST YEAR- BSA

BSA 101 – FINANCIAL ACCOUNTING AND REPORTING

ASSIGNMENT ON WEEK 2

I. The Accounting Equation: Computations- Accounting Equation (15 points)

Instruction: Determine the effects of the transactions or events described below on the basic accounting
equation by using the following format:

ASSETS LIABILITIES EQUITY

1 ₱100 000 0 ₱100 000
2 ₱500 000 ₱500 000 0
3 ₱800 000 0 ₱800 000
4 (₱300 000) 0 (₱300 000)
5 (₱75 000) (₱75 000) 0
6 (₱20 000) 0 (₱20 000)
7 ₱1 005 000 ₱425 000 ₱580 000

1. You invested P100,000 cash from your personal savings to start your business.
2. Your business obtained a loan of P500,000 from Midsayap Bank.
3. Your business earned income of P800,000 during the period. The income did not affect your liabilities.
4. Your business incurred expenses of P300,000 during the period. The expenses did not affect your
liabilities.
5. You made a partial payment on your loan from Midsayap Bank in the amount of 75,000.
6. You withdraw P20,000 cash from the business for personal use.
7. Get the totals of the assets, liabilities, and equity. Check if the accounting equation is balanced.

II. Types of Major Accounts: Identification (50 points)

Instruction: Indicate the classification of the accounts listed below as either Asset, Liability, Equity, Income
or Expense account under COLUMN A and as either a Balance Sheet account or an Income Statement
account under COLUMN B.
Account Titles COLUMN A COLUMN B
1 Accounts Receivable Asset Balance Sheet
2 Bad Debts Expense Expense Income Statement
3 Building Asset Balance Sheet
4 Notes Payable Liability Balance Sheet
5 Share Premium Equity Balance Sheet
6 Lopez, Capital Equity Balance Sheet
7 Interest Income Income Income Statement
8 Cash Asset Balance Sheet
9 Gain on Sale of Equipment Income Income Statement
10 Computer Equipment Asset Balance Sheet
11 Depreciation Expense Income Statement
12 Accrued Utilities Expense Liability Balance Sheet
13 Freight Out Expense Income Statement
14 Rent Income Income Income Statement
15 Unearned Commission Income Liability Balance Sheet
16 Accounts Payable Liability Balance Sheet
17 Prepaid Insurance Expense Asset Balance Sheet
18 Taxes and Licenses Expense Income Statement
19 Treasury Shares Equity Balance Sheet
20 Merchandise Inventory Asset Balance Sheet
21 Notes Receivable Asset Balance Sheet
22 Land Asset Balance Sheet
23 Retained Earnings Equity Balance Sheet
24 Loss on Sale of Furniture Expense Income Statement
25 Unused Office Supplies Asset Balance Sheet
 III. Books of Accounts and Double-entry System: Identification /Rules of Debit and Credit (25
points)
Instruction: Indicate how the accounts listed below are increased, that is, DEBIT or CREDIT.

Account Titles Increased by a

1 Cash DEBIT
2 Sales CREDIT
3 Accumulated Depreciation CREDIT
4 Depreciation DEBIT
5 Merchandise Inventory DEBIT
6 Santos, Capital CREDIT
7 Rent Expense DEBIT
8 Rent Income CREDIT
9 Accrued Interest Income DEBIT
10 Prepaid Rent Expense DEBIT
11 Interest Expense DEBIT
12 Santos, Drawing DEBIT
13 Accounts Payable CREDIT
14 Unearned Rent Income CREDIT
15 Cost of Sales DEBIT
16 Equipment DEBIT
17 Notes Payable CREDIT
18 Retained Earnings CREDIT
19 Prepaid Insurance Expense DEBIT
20 Gain on Sale of Equipment CREDIT
21 Notes Receivable DEBIT
22 Land DEBIT
23 Share Premium CREDIT
24 Treasury Shares DEBIT
25 Freight Out DEBIT