Download - Transaction Analysis for a Service Entity
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TRANSACTIONTRANSACTIONANALYSIS FOR AANALYSIS FOR A
SERVICE ENTITYSERVICE ENTITYCHAPTER 2CHAPTER 2
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Transaction analysis usingTransaction analysis using
the accounting euationthe accounting euation
The !ollo"ing are the selecte#The !ollo"ing are the selecte#
transaction o! a laun#ry sho$transaction o! a laun#ry sho$
#uring its !irst %onth o!#uring its !irst %onth o!
o$erationso$erations
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Transaction &' cashTransaction &' cash
in(est%ent )y o"nerin(est%ent )y o"ner
Tessie Ra%os #eci#es to o$en aTessie Ra%os #eci#es to o$en a
laun#ry sho$ registere# aslaun#ry sho$ registere# as
Tessie Laun#ry Sho$ on *uly &+Tessie Laun#ry Sho$ on *uly &+
2,&&-2,&&-
She in(este# P.,,+,,, cashShe in(este# P.,,+,,, cash
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Transaction 2' Purchase o!Transaction 2' Purchase o!
eui$%ent "ith #o"n $ay%ent/eui$%ent "ith #o"n $ay%ent/
)alance on account)alance on account On *uly 2+ 2,&&+ she )oughtOn *uly 2+ 2,&&+ she )ought
"ashers an# #ryers !or"ashers an# #ryers !or
P0,+,,,/ $aying P1,+,,, asP0,+,,,/ $aying P1,+,,, as
#o"n $ay%ent an# the )alance#o"n $ay%ent an# the )alance
$aya)le in 1 #ays-$aya)le in 1 #ays-
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Transaction .' $ay%ent o!Transaction .' $ay%ent o!
%onthly rental%onthly rental
On *uly .+ 2,&&+ $ai# the *ulyOn *uly .+ 2,&&+ $ai# the *uly
rental !or P1+,,,-rental !or P1+,,,-
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Transaction ' recei(e# a )illTransaction ' recei(e# a )ill
!or ra#io a#(ertise%ent!or ra#io a#(ertise%ent
On *uly .+ 2,&&+ recei(e# a )illOn *uly .+ 2,&&+ recei(e# a )ill
!ro% ra#io )eretas !or!ro% ra#io )eretas !or
a#(ertising the o$ening o!a#(ertising the o$ening o!
Tessie Laun#ry Sho$+ P2+,,,-Tessie Laun#ry Sho$+ P2+,,,-
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Transaction 1' $ai# the annual !ireTransaction 1' $ai# the annual !ire
insurance $re%iu% in a#(anceinsurance $re%iu% in a#(ance
On *uly + 2,&&+ $ai# one3yearOn *uly + 2,&&+ $ai# one3year
insurance $olicy e!!ecti(e *uly &+insurance $olicy e!!ecti(e *uly &+
P2+,,-P2+,,-
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Transaction 4' $urchase#Transaction 4' $urchase#
laun#ry su$$lies on accountlaun#ry su$$lies on account
On *uly 1+ 2,&&+ $urchase#On *uly 1+ 2,&&+ $urchase#
laun#ry su$$lies on account+laun#ry su$$lies on account+
P+2,,-P+2,,-
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Transaction 5' $urchase#Transaction 5' $urchase#
laun#ry su$$lies !or cashlaun#ry su$$lies !or cash
On *uly 5+ 2,&&+ $urchase#On *uly 5+ 2,&&+ $urchase#
laun#ry su$$lies !or cash+laun#ry su$$lies !or cash+
P+,,,-P+,,,-
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Transaction 0' $ay%ent o!Transaction 0' $ay%ent o!
salariessalaries
On *uly &1+ 2,&&+ $ai# t"o "ee6sOn *uly &1+ 2,&&+ $ai# t"o "ee6s
salaries o! e%$loyees+ P5+,,,salaries o! e%$loyees+ P5+,,,
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Transaction 7' ren#ere# laun#ryTransaction 7' ren#ere# laun#ry
ser(ices "ith #o"n $ay%entser(ices "ith #o"n $ay%ent
On *uly &4+ 2,&&+ laun#ry ser(icesOn *uly &4+ 2,&&+ laun#ry ser(ices
$ro(i#e# to custo%ers$ro(i#e# to custo%ers
a%ounte# to P2&+,,,- Cash o!a%ounte# to P2&+,,,- Cash o!
P&1+,,, is recei(e# an# theP&1+,,, is recei(e# an# the
)alance o! P4+,,, is )ille# on)alance o! P4+,,, is )ille# on
account-account-
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Transaction &,' $artialTransaction &,' $artial
$ay%ent o! accounts$ay%ent o! accounts
On *uly 2,+ 2,&&+ $artial $ay%entOn *uly 2,+ 2,&&+ $artial $ay%ent
!or the *uly 1 $urchase o!!or the *uly 1 $urchase o!
laun#ry su$$lies+ P.+,,,laun#ry su$$lies+ P.+,,,
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Transaction &&' recei(e# cash inTransaction &&' recei(e# cash in
a#(ance !or laun#ry ser(ices nota#(ance !or laun#ry ser(ices not
yet ren#ere#yet ren#ere#On *uly 2&+ 2,&&+ cash a#(anceOn *uly 2&+ 2,&&+ cash a#(ance
a%ounting to P.+,,, is recei(e#a%ounting to P.+,,, is recei(e#
!ro% custo%er *oil Pension!ro% custo%er *oil Pension
House+ the laun#ry ser(ices areHouse+ the laun#ry ser(ices are
e8$ecte# to )e $ro(i#e# )y thee8$ecte# to )e $ro(i#e# )y the
en# o! *ulyen# o! *uly
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Transaction &2' $ay%ent o!Transaction &2' $ay%ent o!
electricityelectricity
On *uly 20+ 2,&&+ $ai# electric )illOn *uly 20+ 2,&&+ $ai# electric )ill
!or P.+1,,!or P.+1,,
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Transaction &.' "ith#ra"nTransaction &.' "ith#ra"n
cash !or $ersonal usecash !or $ersonal use
On *uly 27+ 2,&&+ Tessie Ra%osOn *uly 27+ 2,&&+ Tessie Ra%os
"ith#ra"s P.+,,, !or $ersonal"ith#ra"s P.+,,, !or $ersonal
use-use-
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Transaction &' ren#ere#Transaction &' ren#ere#
laun#ry ser(ices !or cashlaun#ry ser(ices !or cash
On *uly .,+ 2,&&+ ren#ere#On *uly .,+ 2,&&+ ren#ere#
laun#ry ser(ices !or cashlaun#ry ser(ices !or cash
P25+,,,P25+,,,
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Transaction &1' $ay%ent o!Transaction &1' $ay%ent o!
tele$hone an# "ater )illtele$hone an# "ater )ill
On *uly .,+ 2,&&+ recei(e# an#On *uly .,+ 2,&&+ recei(e# an#
$ai# tele$hone an# "ater )ill !or$ai# tele$hone an# "ater )ill !or
P5,, an# P1,, res$ecti(elyP5,, an# P1,, res$ecti(ely
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Transaction &4' $ay%ent o!Transaction &4' $ay%ent o!
salaries at %onth3en#salaries at %onth3en#
On *uly 27+ 2,&&+ $ai# salaries o!On *uly 27+ 2,&&+ $ai# salaries o!
e%$loyees !or P 5+,,,- there ise%$loyees !or P 5+,,,- there is
un$ai# salaries o! P&+,,,un$ai# salaries o! P&+,,,
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Pre$aration o! !inancialPre$aration o! !inancial
state%entsstate%ents
State%ent o! !inancialState%ent o! !inancial
$er!or%ance or Inco%e$er!or%ance or Inco%e
state%entstate%ent
State%ent o! changes in euityState%ent o! changes in euity
State%ent o! !inancial $ositionState%ent o! !inancial $osition
or )alance sheetor )alance sheet
Cash !lo" state%entCash !lo" state%ent
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9sing the accounting euation+9sing the accounting euation+
ans"er each o! the !ollo"ingans"er each o! the !ollo"ing
uestions'uestions'
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&- The lia)ilities o! Ace :i!t Sho$&- The lia)ilities o! Ace :i!t Sho$
are P.,,+,,, an# the O"ner;are P.,,+,,, an# the O"ner;
euity is P12,+,,,-
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The total assets o! ThreeThe total assets o! Three
Angels; Ca!> are P.2,+,,, an#Angels; Ca!> are P.2,+,,, an#
its o"ner;s euity is P4+,,,-its o"ner;s euity is P4+,,,-
"hat is the a%ount o! its total"hat is the a%ount o! its total
lia)ilities=lia)ilities=
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The total assets o! 9no Tra#ingThe total assets o! 9no Tra#ing
are P4&,+,,, an# its lia)ilitiesare P4&,+,,, an# its lia)ilities
are eual to ? o! total assets-are eual to ? o! total assets-
Ho" %uch is the o"ner;sHo" %uch is the o"ner;s
euity=euity=
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The lia)ilities o! S6y Tra(elThe lia)ilities o! S6y Tra(el
Agency are P2,+,,, an#Agency are P2,+,,, an#
o"ner;s euity is P&0,+,,,-o"ner;s euity is P&0,+,,,-
"hat is the a%ount o! total"hat is the a%ount o! total
assets=assets=
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The total assets o! ElginThe total assets o! Elgin
Truc6ers are P2+&,,+,,, an# itsTruc6ers are P2+&,,+,,, an# its
o"ner;s euity is P&+1,,+,,,-o"ner;s euity is P&+1,,+,,,-
"hat is the a%ount o! total"hat is the a%ount o! total
lia)ilities=lia)ilities=
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In the colu%ns )elo" in#icateIn the colu%ns )elo" in#icate
"hether the transactions"hether the transactions
increase# @B+ #ecrease# @3B+ orincrease# @B+ #ecrease# @3B+ or
ha# no e!!ect @neB on assets-ha# no e!!ect @neB on assets-
Lia)ilities an# o"ner;s euityLia)ilities an# o"ner;s euity
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Purchase# su$$lies on accountPurchase# su$$lies on account
ille# custo%ers !or ser(icesille# custo%ers !or ser(ices
ren#ere#ren#ere#
Collections o! accounts recei(a)leCollections o! accounts recei(a)le Recei(e# a )ill !ro% s6yca)leRecei(e# a )ill !ro% s6yca)le
Pro$rietor;s cash "ith#ra"alPro$rietor;s cash "ith#ra"al
Purchase o! eui$%ent on accountPurchase o! eui$%ent on account Pay%ent o! salariesPay%ent o! salaries
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Pay%ent o! cre#itorsPay%ent o! cre#itors
Incurre# a#(ertising e8$ense onIncurre# a#(ertising e8$ense on
accountaccount
Recei(e# a )ill !ro% :lo)eRecei(e# a )ill !ro% :lo)e
Teleco%Teleco%
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Transaction'Transaction'
Recor# the transaction as theyRecor# the transaction as they
ta6e $laceta6e $lace
Transactions "ill result in anTransactions "ill result in an
#ecrease or #ecrease in one or#ecrease or #ecrease in one or
%ore o! assets+ lia)ilities an#%ore o! assets+ lia)ilities an#
euity accountseuity accounts
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Account'Account'
9se# to grou$ an# su%%ariDe9se# to grou$ an# su%%ariDe
the changes cause# )ythe changes cause# )y
transactiontransaction
Is a recor# in the general le#gerIs a recor# in the general le#ger
to collect #e)it an# cre#itto collect #e)it an# cre#it
a%ountsa%ounts
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T3ACCO9NT'T3ACCO9NT'
Si%$li!ie# !or%at o! an accountSi%$li!ie# !or%at o! an account
It has . $artsIt has . $arts
Nor%al )alance o! an account isNor%al )alance o! an account ison the si#e "here an increase inon the si#e "here an increase in
the account is recor#e#the account is recor#e#
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O9LE3ENTRYO9LE3ENTRY
ACCO9NTIN: SYSTEACCO9NTIN: SYSTE
Transaction is recor#e# "ith atTransaction is recor#e# "ith at
least & #e)it an# & cre#itleast & #e)it an# & cre#it
e)it an# cre#it %ust )e euale)it an# cre#it %ust )e eual
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Rules o! #e)it an# cre#it an#Rules o! #e)it an# cre#it an#
nor%al )alancesnor%al )alances
e)ite)it Cre#itCre#it NN
AA 33 #r#r
LL 33 crcrEE 33 crcr
33 #r#r
RR 33 crcrEE 33 #r#r
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AnalyDe the transaction )yAnalyDe the transaction )y
entering the account in theentering the account in the
a$$ro$riate #e)it or cre#ita$$ro$riate #e)it or cre#it
colu%ncolu%n a6e a T3ACCO9NTa6e a T3ACCO9NT
COP9TE THE ACCO9NTCOP9TE THE ACCO9NT
ALANCESALANCES
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E8ercises'E8ercises'