The following transactions were entered into by Dr.

Jo Valdez for the month of June:

4 Jo Valdez opened " Jo's Health Spa" by investing P1,500,000 cash and half of a lot inherited by Jo and her sister wor
7 Interviewed a nurse and business graduate to work for her for a salary of P15,000
8 Valdez bought for cash P900,000 worth of equipment and P15,000 worth of supplies.
10 Bought furniture and fixtures from a friend at a cost of P150,000 promising to pay after
7 days. Only P80,000 of this was placed in the clinic. The remaining P70,000 furniture and fixtures were placed in he
12 Applied for P2,500,000 business loan from a bank by mortgaging her inherited lot. The money will be used to const
14 Withdrew supplies worth P2,000 for personal use.
15 The loan was approved and the money deposited for the account of the health spa.
17 Paid one-half of the amount due on furniture and fixtures.
30 A two-story clinic was constructed on the inherited lot. The construction cost amounted to P2,400,000. Terms: dow
50%, and a note for the balance.
erited by Jo and her sister worth P500,000

and fixtures were placed in her condo unit.

e money will be used to construct the clinic

ed to P2,400,000. Terms: down payment

 Asset Liabilities
Date Cash Supplies Land Building Equipment Furnitire & Accounts
Fixtures Payable
Jun-04 1,500,000 250,000
8 -915,000 15,000 900,000
10 80,000 80,000
14 -2,000
15 2,500,000
17 -40,000 -40,000
30 -1,200,000 2,400,000
Balance 1,845,000 13,000 250,000 2,400,000 900,000 80,000 40,000
Total 5,488,000 5,488,000
Liabilities Equity
Notes Loans Valdez,
Payable Payable Capital
1,750,000

-2,000
2,500,000

1,200,000
1,200,000 2,500,000 1,748,000
a Mini Mart has net assets of P123,000 after liabilities of P53,000 at the end of the year.
What is Mini's equity at year-end?

Net Assets = Equity

123,000

b At the beginning of the year, Lone Company's asset were P200,000 and its equity
was P150,000. During the year, assets increased by P70,000 and liabilities increased by
P30,000. What is the amount of liability of Lone at the end of the year?

A = L + E
beg 200,000 = 50,000 + 150,000
changes 70,000 = 30,000 + 40,000
end 270,000 = 80,000 + 190,000

c At the beginning of the year, Casey Company's liabilities equal P60,000. During the year,
assets increased by P80,000, and at year-end assets equal P180,000. Liabilities decreased
by P10,000 during the year. What are the beginning and ending balance of Casey's equity?

A = L + E
beg 100,000 = 60,000 + 40,000
changes 80,000 = -10,000 + 90,000
end 180,000 = 50,000 + 130,000
 ASSET LIABILITIES
Medical Office Furniture & Office Accounts Notes
Cash
Equipment Supplies Fixtures Equipment Payable Payable
a 500,000 1,500,000 0 0 0 0 0
b 500,000 1,500,000 15,000 0 0 15,000 0
c 495,000 1,500,000 15,000 25,000 0 15,000 20,000
d 495,000 1,500,000 15,000 25,000 80,000 15,000 20,000
e 480,000 1,500,000 15,000 25,000 80,000 10,000 10,000
f 480,000 1,500,000 14,000 25,000 80,000 10,000 10,000

a Zobel invested P500,000 cash and P1,500,000 worth of medical equipment.

b Bought office supplies on account, P15,000.
c Bought furniture and fixtures for P25,000. Paid P5,000 and issued a note for the balance.
d Zobel invested an office equipment worth P80,000.
e Paid P5,000 on the accounts payable and P10,000 on the notes payable.
f Withdrew P1,000 worth of suppliew for personal use.
 EQUITY

Zobel, Capital

2,000,000
2,000,000
2,000,000
2,080,000
2,080,000
2,079,000