Here's the problems for the honor students.

Problem 1:

a. At the beginning of the year, the assets of Cleo Services were P360,000 and its owners equity was
P200,000. During the year, assets increased by P120,000 and liabilities increased by P20,000. What was
the owner's equity at the end of the year?

b. At the beginning of the year, Cora Gabayan Calling Station had liabilities of P100,000 and owners
equity of P96,000. If assets increased by P40,000 and liabilities decreased by P30,000, what was the
owner's equity at the end of the year?

c. The liabilities of Lenore Company equal one-third of the total assets, and the owner' equity is
P240,000. What is the amount of liabilitues?

PROBLEM 2

Emerita Modesto established her own business called Modesto's Self storage.

A. Deposited P120,000 in a bank account in the name of the business.

B. Bought Office Equipment on account from PHINMA Company, P31,000.

C. Paid rent for the month, P24,000.

D. Bought office supplies for cash, P4,500.

E. Paid salaries, P9,800.

F. Received cash for storage service, P36,000.

G. Paid the utility bill, P2,520.

H. Paid Erol Graphics for advertising, P4,280.

I. Billed customers for storage services on account, P33,700.

J. Received cash for storage services, P23,000.

K. Paid salaries, P9,900.

Required:

1. Record the transaction in Accounting Equation form, write plus and minus signs.

2. Write proof of totals at the bottom to show that one side of the equation equals the other side.