ID 437 ID Elective 6 (Accounting for Interior Design)
Problem No. 7: Financial Transaction Worksheet
Name: Date:
Section: Score: /40
Problem No. 7 (2pts each except final balance, 4pts)
Financial Transaction Worksheet
The assets, liabilities and owner’s equity of Deogracia Corpuz who operates a furniture
shop are expressed in equation form below. Corpuz completed the following
transactions:
Assets Liabilities Owner’s Equity
Cash + Supplies + Land = Accounts Payable + Corpuz, Capital
1. Organized a furniture shop
and deposited P500,000
cash in the bank for use
by the business. (1) ______________________________________________________________________________
2. Purchased P20,000 of
supplies on account. (2) ______________________________________________________________________________
Bal. _____________________________________________________________________________
3. Purchased land for future
warehouse site for
P140,000 cash. (3) ______________________________________________________________________________
Bal. _____________________________________________________________________________
4. Paid P18,000 to creditors. (4) ______________________________________________________________________________
Bal. _____________________________________________________________________________
5. Withdrew P25,000 for
personal use. (5) ______________________________________________________________________________
Bal. _____________________________________________________________________________
6. Paid P28,000 for site and
equipment rent for the
month. (6) ______________________________________________________________________________
Bal. _____________________________________________________________________________
7. During the month,
P10,000 expenses were
incurred on account by
the business. (7) ______________________________________________________________________________
Bal. _____________________________________________________________________________
8. During the month, Corpuz
invested another P100,000
of personal funds in the
business. (8) ______________________________________________________________________________
Bal. _____________________________________________________________________________
9. Received P5,000 for a cash
service call. (9) ______________________________________________________________________________
Bal. _____________________________________________________________________________
10. Corpuz used P6,000 worth
of supplies. (10) _____________________________________________________________________________
Bal. 00000000000000000000000000000000000000000000000000000000000000
On each of the numbered lines, show by addition or subtraction the effect of each o
the transactions on the equation. For each transaction, identify the changes in
owner’s equity by placing the letter I (income), E (expense), W (withdrawal), or INV
(investment) at the right of each increase or decrease in owner’s equity. On the lines
labeled “Bal,” (i.e. Balance) show the new equation resulting from the transaction.
