FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1
Name: ___________________________________ Section: __________ Date: ____________
INSTRUCTIONS:
1. Analyze each transaction and identify its effects in the accounting equation.
↑ Asset = ↑ Liability ↑ Liability = ↓ Owner’s Equity
↑ Asset = ↑ Owner’s Equity ↑ Owner’s Equity = ↓ Liability
↑ One Asset = ↓ Another Asset ↑ One Liability = ↓ Another Liability
↓ Asset = ↓ Liability ↑ One OE = ↓ Another OE
↓ Asset = ↓ Owner’s Equity
2. Identify which specific accounts are affected.
3. Establish the accounts in a financial transaction worksheet:
4. Record in the worksheet the transactions listed above.
5. Determine the balances of the T-Accounts.
I. INITIAL TRANSACTION
A. STARTING A BUSINESS
Oct 1 Rey Fernan Refozar obtained the funds to start the business by withdrawing ₱800,000 from
his personal savings. He deposited the money in a new bank account that he opened in the
name of the firm, Refozar Accounting Services.
Effect of the transaction to the Accounting Equation: Accounts Affected:
B. PURCHASING EQUIPMENT ON CREDIT
Oct 3 Manongsong bought a computer, a copy machine, a fax machine, calculators and other
necessary equipment from M. Medina, Inc., at a cost of ₱100,000. M. Medina, Inc., agreed to
allow 60 days for the firm to pay the bill.
Effect of the transaction to the Accounting Equation: Accounts Affected:
C. PURCHASING SUPPLIES FOR CASH
Oct 5 Manongsong placed an order for toner, fax paper, bond paper, CDs, pens, folders, and other
supplies that had a total cost of ₱20,000. The entity that sold the items, Cavite Supplies, Inc.,
requires cash payments from businesses that are under six months old. Refozar Accounting
Services therefore included a check with its order.
Effect of the transaction to the Accounting Equation: Accounts Affected:
D. PAYING A CREDITOR
Oct 9 Manongsong decided to pay ₱40,000 to M. Medina, Inc., to reduce the firm’s debt to that
business.
Effect of the transaction to the Accounting Equation: Accounts Affected:
Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1
II. EFFECTS OF REVENUE AND EXPENSES
E. SELLING SERVICES ON CREDIT
Oct 13 Refozar Accounting Services earned ₱70,000 of revenue from charge account clients. These
clients are allowed 30 days to pay.
Effect of the transaction to the Accounting Equation: Accounts Affected:
F. EMPLOYEES’ SALARIES
Oct 18 Refozar Accounting Services hired an accounting staff on October 1 to help in the business.
The firm paid ₱25,000 in salaries for this employee and Jiexel Manongsong.
Effect of the transaction to the Accounting Equation: Accounts Affected:
G. COLLECTING RECEIVABLES
Oct 23 Refozar Accounting Services received ₱30,000 from clients who had previously bought
services on account. This cash was applied to their accounts.
Effect of the transaction to the Accounting Equation: Accounts Affected:
H. SELLING SERVICES FOR CASH
Oct 27 Refozar Accounting Services earned a total of ₱210,000 in revenue from clients who paid
cash for accounting and bookkeeping services.
Effect of the transaction to the Accounting Equation: Accounts Affected:
I. UTILITIES EXPENSE
Oct 30 Refozar Accounting Services received a ₱35,000 bill for the utilities that it had used during the
month. A check was issued to pay the bill immediately.
Effect of the transaction to the Accounting Equation: Accounts Affected:
J. RENT EXPENSE
Oct 31 Refozar Accounting Services issued a check as a payment for office rent for October. The
lease contract Refozar signed specified a monthly rent of ₱45,000.
Effect of the transaction to the Accounting Equation: Accounts Affected:
III. EFFECT OF OWNER’S WITHDRAWAL
K. OWNER’S WITHDRAWAL
Oct 31 Rey Fernan Refozar withdrew ₱150,000 in cash from the business to pay for personal expenses.
Effect of the transaction to the Accounting Equation: Accounts Affected:
Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1
Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
FINANCIAL TRANSACTION WORKSHEET & T-ACCOUNTS HANDOUT #1
Source: Win Ballada’s Basic Accounting for Senior HS (Made Easy), DomDane Publishers & Made Easy Books
