I. Classification Of Accounts

I. CLASSIFICATION CLASSIFICATION OF ACCOUNTS

Classify the account titles according to their respective accounting elements and indicate their respective normal balances. Account titles Accounts payable Accounts receivable Prepaid rent Notes payable Baldado, capital Oce supplies epense Buiding !ervice income Business ta payable "nused supplies !alaries epense #and $ncome ta payable Baldado, dra%ing  &raining  &raining epense 'ividend income !!! premium payable E(uipment  &raveling  &raveling epense )epresentation epense *alue added ta payable +iscellaneous $ncome ain on sale of land

Elements

Normal balance

$$. ACCO"N&AB#E ACCO"N&AB#E ECONO+$C &)AN!AC&$ON! &)AN!AC&$ON! 'etermine %hether the business transactions is to be recorded in the boo-s of accounts or not and identify the accounts title for debit and credit. Business transactions

Account titles

)ecordabl e  /es or No

debit

credit

0. O%ner1s contribution to business as initial investement 2. %ithdra%als of o%ners from the business. 3. 4iring of oce cler5. Payment of salary for the oce cler-s 6. billings of services rendered for audit service 7. payment of supplies used in the performance of service. 8. !igning of contract %ith the ne% client 9. payment of transportation cost incurred during the signing of contract :. unpaid oce rent incurred 0;. purchase of ne% computer on account

$*. C#A!!$ 0. Asset Accounts 2. #iability Accounts 3. Capital@Proprietorship 5. $ncome 6. Epense Account

*. CO+P)E4EN!$*E P)OB#E+ October 0. /=abhelle /u invested P26;,;;; in an account entitled E*E)/&4$N services. &he deposit slip %as number 65320. October 3. $nvested e(uipment %ith an appraised value of P036,;;; the appraisal sheet %as numbered 0;;82;;3 October 6. Purchased P6;,;;;  %orth of e(uipment by issuing chec- ;02356 October 9. Purchased P06,;;; %orth of e(uipment on account from the !O" !uppliers. &he invoice number %as 6789: October 07. Purchased P76,;;; %orth of e(uipment from the !A+! !upply Co. Chec- 0;0; %as issued in the amount of P2;,;;; as a do%n payment. &heir invoice number %as A3355. October 09. Provided P59,;;; %orth of services to a cash customer. &he billing entries %ere number 205. October 2;. Provided P:;,;;; %orth of services to a charge customer. &he billing slip %as number 235 October 3;. Provided P0;;,;;; %orth of services to a customer, collecting 76D in cash. &he billing slip %as number 7;97. )E"$)E'> 0. C)EA&E A C4A)& O< ACCO"N&! 2.  Fournali=e the above transactions