document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1179643>Question 1179643</A>: <I><SPAN STYLE=\"word-break: break-all;\"> B. Problem Solving: Compute the value of assets, liabilities, and equity for the <BR>\n" );
document.write( "Adventure Ads owned by Mrs. Suarez. Write your answer on the yellow paper. <BR>\n" );
document.write( "1. On May 5, The Adventure Ads borrowed cash ₱500,000.00 from A+ Lending Corp. <BR>\n" );
document.write( "to purchase printing machine for his business amounting to ₱120,000.00.<BR>\n" );
document.write( "a. Illustrate the basic accounting equation.<BR>\n" );
document.write( "2. On May 15, the company rendered printing services for ₱200,000.00 in cash and <BR>\n" );
document.write( "paid ₱65,000.00 for his employee’s salary.<BR>\n" );
document.write( " b. Illustrate the expanded accounting equation at the end of the accounting <BR>\n" );
document.write( "period </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #850203 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=850203\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Absolutely! Let's break down the accounting equations for Adventure Ads.\r<BR>\n" );
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document.write( "**1. May 5th Transactions**\r<BR>\n" );
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document.write( "* **Borrowed cash:** ₱500,000.00 (This increases both cash and liabilities)<BR>\n" );
document.write( "* **Purchased printing machine:** ₱120,000.00 (This converts cash into a fixed asset)\r<BR>\n" );
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document.write( "   **a. Basic Accounting Equation (Assets = Liabilities + Equity)**\r<BR>\n" );
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document.write( "   * **Assets:**<BR>\n" );
document.write( "      * Cash: ₱500,000.00<BR>\n" );
document.write( "      * Printing Machine: ₱120,000.00<BR>\n" );
document.write( "      * Total Assets: ₱620,000.00<BR>\n" );
document.write( "   * **Liabilities:**<BR>\n" );
document.write( "      * Loan from A+ Lending Corp.: ₱500,000.00<BR>\n" );
document.write( "   * **Equity:**<BR>\n" );
document.write( "      * ₱120,000.00 (The value of the purchased printing machine. This is the difference between the assets and liabilities)\r<BR>\n" );
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document.write( "**2. May 15th Transactions**\r<BR>\n" );
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document.write( "* **Rendered printing services (cash):** ₱200,000.00 (This increases cash and revenue, which increases equity)<BR>\n" );
document.write( "* **Paid employee salary (cash):** ₱65,000.00 (This decreases cash and increases expenses, which decreases equity)\r<BR>\n" );
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document.write( "   **b. Expanded Accounting Equation (Assets = Liabilities + Owner's Capital + Revenues - Expenses)**\r<BR>\n" );
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document.write( "   * **Assets:**<BR>\n" );
document.write( "      * Cash: ₱500,000.00 + ₱200,000.00 - ₱65,000.00 = ₱635,000.00<BR>\n" );
document.write( "      * Printing Machine: ₱120,000.00<BR>\n" );
document.write( "      * Total Assets: ₱755,000.00<BR>\n" );
document.write( "   * **Liabilities:**<BR>\n" );
document.write( "      * Loan from A+ Lending Corp.: ₱500,000.00<BR>\n" );
document.write( "   * **Equity:**<BR>\n" );
document.write( "      * Initial Equity: ₱120,000.00<BR>\n" );
document.write( "      * Revenue: ₱200,000.00<BR>\n" );
document.write( "      * Expenses (Salary): ₱65,000.00<BR>\n" );
document.write( "      * Total Equity: ₱120,000 + ₱200,000 - ₱65,000 = ₱255,000.00<BR>\n" );
document.write( " </SPAN>\n" );
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