I.

CLASSIFICATION OF ACCOUNTS

Classify the account titles according to their respective

accounting elements and indicate their respective normal
balances.

Account titles Elements Normal balance

Accounts
payable
Accounts
receivable
Prepaid rent
Notes payable
Baldado, capital
Office supplies
expense
Buiding
Service income
Business tax
payable
Unused supplies
Salaries expense
Land
Income tax
payable
Baldado,
drawing
Training expense
Dividend income
SSS premium
payable
Equipment
Traveling
expense
Representation
expense
Value added tax
payable
Miscellaneous
Income
Gain on sale of
land

II. ACCOUNTABLE ECONOMIC TRANSACTIONS

Determine whether the business transactions is to be recorded in

the books of accounts or not and identify the accounts title for
debit and credit.

Business transactions Account titles

 Recordabl debit credit
e?
Yes or No
1. Owners contribution to business
as initial investement
2. withdrawals of owners from the
business.
3. Hiring of office clerk
4. Payment of salary for the office
clerks
5. billings of services rendered for
audit service
6. payment of supplies used in the
performance of service.
7. Signing of contract with the new
client
8. payment of transportation cost
incurred during the signing of
contract
9. unpaid office rent incurred
10. purchase of new computer on
account

IV. CLASSIFICATION OF ACCOUNTS

The following are the existing accounts of Sisig Sizzlers:

Accounts payable Interest expense Interest Income

Accounts receivable Land Sales income
Accrued interest Notes payable Rent expense
payable
Asunta, capital Prepaid insurance SSS premium
payable
Asunta Drawings Utilities expense Supplies expense
Cash Withholding tax Unearned revenues
payable
Expired insurance Professional fees Unused supplies

Required: From the above existing accounts, list the following:

1. Asset Accounts
2. Liability Accounts
3. Capital/Proprietorship
4. Income
5. Expense Account
V. COMPREHENSIVE PROBLEM

October 1. Yzabhelle Yu invested P250,000 in an account entitled

EVERYTHING services. The deposit slip was number #54321.

October 3. Invested equipment with an appraised value of

P135,000 the appraisal sheet was numbered 10-07-2003

October 5. Purchased P50,000 worth of equipment by issuing

check #012345

October 8. Purchased P15,000 worth of equipment on account

from the SOU Suppliers. The invoice number was #56789

October 16. Purchased P65,000 worth of equipment from the

SAMS Supply Co. Check 1010 was issued in the amount of
P20,000 as a down payment. Their invoice number was A3344.

October 18. Provided P48,000 worth of services to a cash

customer. The billing entries were number 214.

October 20. Provided P90,000 worth of services to a charge

customer. The billing slip was number 234

October 30. Provided P100,000 worth of services to a customer,

collecting 65% in cash. The billing slip was number 6086.

REQUIRED:

1. CREATE A CHART OF ACCOUNTS

2. Journalize the above transactions