PROBLEMS 7: COMPUTATIONS - ACCOUNTING EQUATION Instruction: determine the effects of the transactions or events described below on the basic accounting equation. Example: you invested P20 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 total of the assets, liabilities and equity, INCLUDING, the effects of the given example. Check if the accounting equation is balanced