PROBLEM 8: COMPUTATIONS - ACCOUNTING EQUATION Instruction: Determine the effects of the transactions or events described below on the basic accounting equation. Example: You invested $20 cash from your personal savings to your business. Answer: ASSETS LIABILITIES + EQUITY P20 0 P20 1. You found additional P10 in your shoe. You also invested this amount to your business. 2. Your business obtained a loan of P200. 3. Your business earned income of P2,000 during the period. The income did not affect your liabilities.* 4. Your business incurred expenses of P800 during the period. The expenses did not affect your liabilities.* 5. Get the totals of the assets, liabilities and equity, INCLUDING the effects of the given example. Check if the accounting equation is balanced