A. Activity Proper
B. Abstraction
C. Application/Seatwork
D. QUIZ
E. Assignment
Answer the following question with your group
mates in ¼ pad paper.
1.
It is the amount of collectible from
customers or clients.
Notes Receivables
b) Cash
c) Accounts Receivables
a)
2. Heavy metallic and movable items that are
capable of performing certain functions or
used to perform certain function.
Merchandise Inventory
b) Machinery and Equipment
c) Tools
a)
3. Obligations to suppliers for items bought
and are not supported by promissory
notes.
a) Expense Payable
b) Accounts Payable
c) Notes Payable
4. This account title is used for withdrawal
made by the owner.
a) Accounts Payable
b) Owner’s Capital
c) Owner’s Drawing
5. The amounts of rentals incurred based on
occupancy of space or usage of property
and equipment.
a) Service Income
b) Rent Expense
c) Tools Expense
Account Titles – are the terms used to
identify the specific element of
accounting to be used in the
recording
process.
Proper
identification is necessary right at the
recording phase they are brought
forward to accounting reports.
 Cash – currency (bills and coins), checks
postal money orders and treasury warrants
received by the business.
 Accounts
Receivable
(AR)
–
amounts
collectible from the customers or clients (for
goods sold and services rendered) in this
account is not supported by promissory notes
so that it is often referred to as arising from
sales “open account”
 Merchandise Inventory (MI) – goods
acquired for sale and are still unsold.
 Notes Receivable (NR) – Amounts collectible
that are covered by promissory notes.
 Prepaid Expense – expenses to be incurred
yet
in the future but are already paid.
Example: Prepaid rent, Prepaid Interest,
and
Prepaid Insurance.
 Unused Supplies – supplies that are still
unused as of the end of an accounting
period.
 Land – land acquired by the business for its
use.
 Building – structures of edifices acquired for
use of the business.
 Machinery and Equipment – Heavy metallic
and movable items that are capable of
performing certain functions or used to
perform certain functions.
Examples:
Sewing
Machine,
Cutting
Machines a
computers.
 Delivery Equipments – wheeled items used in
making deliveries to customers or clients.
Example: Van and trucks
 Furniture and Fixtures (F/F) – This account
title is used in referring to movable items
significant value and acquired to improve the
workable condition of place
such as tables, chairs, electric fans and air
conditioners.
 Tools – Handy, small and usually metallic
items used in performing certain functions
such as saws, hammers, pliers, scissors,
screw drivers, and jacks. Tools in general,
have long useful life but do not have
significant to peso value.
Liabilities
 Accounts Payable (A/P) – obligations to
suppliers for items bought and are not
supported by promissory notes. It is often
referred to as arising from purchase “on
open accounts”.
 Notes Payable (N/P) – obligations covered
by promissory notes.
 Expenses Payable (Accrued Expenses) –
obligations for expenses already incurred
but not yet paid.
 Loans Payable – obligations arising from
loans obtained.
Owner’s Equity
 Owner’s Capital – capital of the sole
proprietor in his business. If the owner is
Jose P. Gonzales, the account becomes
Jose P. Golez, Capital. At the end of the
accounting period, it is adjusted for
withdrawals and net income ( net loss).
 Owner’s Drawing – this account title is
used for withdrawals made by the owner.
If the owner’s name is Jose P. Golez, the
account title is Jose P. Golez, Drawing or
Jose P. Golez, Personal.
Revenue
 Service Income – revenue realized by
providing services to customers.
 Fees Income – revenue realized by providing
professionals service to clients.
Example: legal , dental, and medical fees.
 Sales – revenue from sale of goods that were
previously acquired for sale.
Expenses
 Taxes and Licenses – cost of permits and
taxes incurred.
 Advertising Expense – incurred in making
the public aware of the goods and
services being offered by the business.
Example: advertisement in the news
paper, and through radio and television.
 Salaries and Wages – the compensation
earned by employees for service rendered to
the business.
 Supplies Expense – cost of supplies already
used.
 Light, power and water – cost of light,
power and water consumption as indicated
on bills presented by utility company.
 Telephone and Telegram – telephone and
telegraph charges as indicated on bills
presented by telecommunications
companies.
 Rent Expense – the amount of rentals
incurred based on occupy of space or
usage of property equipment.
 Tools Expense – cost of goods treated as
expense.
 Depreciation expense – the portion of
property cost allocated to an accounting
period.
 Insurance Expense – Insurance premiums
related to current period.
 Bad Debts – provision for uncollectible
receivables.
 Miscellaneous Expense – the different
minor expenses incurred and for which no
specific account title has been adopted.
.
Seatwork. Write in ¼ pad paper
Instruction: Classify the following account title
according to Assets, Liabilities, Owner’s Equity
ASSETS
LIABILITES
OWNER’S EQUITY
CHOICES
Furniture, Prepaid Expense, Dental Fees,
Supplies Used, Salaries Expense,
Loans Payable, Service Income,
Cruz Personal, Notes Receivable,
Notes Payable, Accounts Payable.
Answers
ASSETS
LIABILITIES
OWNER’S EQUITY
Furniture
Loans Payable
Dental Fees
Prepaid Expense
Notes Payable
Salaries Expense
Notes Receivable
Accounts Payable
Service Income
Cruz Personal
QUIZ
Identify the following account titles. Write Asset,
Liability, Owner’s Equity and Revenue.
______1. Cash
______2.
______3.
______4.
______5.
______6.
______7.
______8.
Service Income
Dentals Fees
Expenses Payable
Accounts Receivables
Buildings
Notes Payable
Cruz, Capital
1. Assets
2. Revenue
3. Revenue
4. Liability
5. Assets
6. Assets
Liability
8. Owner’s
Equity
7.
Assignment: Identify the account titles in the
given statements.
1. Cost of placing advertisements is new paper.
2. Rentals incurred for spaces being used.
3. Revenue earned by professionals for service
rendered to clients.
4. Receivables covered by promissory notes.
5. Withdrawals by the sole proprietor J.
Rizaldy.
PRESENTE BY:
MS. LOUISSE MARCELINO
AREVADA