Judylaine Berley opened a laundry shop in General Santos City. With the given chart of accounts, record the following narrative transactions in a two column General Journal:
Problem Solving:
Judylaine Berley opened a laundry shop in General Santos City. With the given chart of accounts, record the following narrative transactions in a two column General Journal:
CHART OF ACCOUNTS
|
FOLIO |
ACCOUNT TITLES |
FOLIO |
ACCOUNT TITLES |
|
|
ASSETS |
|
OWNER’S EQUITY |
|
110 |
Cash in Bank |
310 |
J. Berley, Capital |
|
111 |
|
320 |
J. Berley, Drawing |
|
112 |
Unused Laundry Supplies |
|
INCOME |
|
140 |
Prepaid Insurance |
410 |
Laundry Income |
|
150 |
Laundry Equipment |
|
EXPENSES |
|
160 |
Delivery Equipment |
510 |
Salaries Expense |
|
|
LIABILITIES |
511 |
Taxes & Licenses |
|
210 |
Accounts Payable |
513 |
Utilities Expense |
|
220 |
Notes Payable |
514 |
Repairs & Maintenance |
|
230 |
Unearned Laundry Income |
515 |
Rental Expense |
Transactions:
March 1 Opened an account with the Bank of the Philippine Island and made initial deposit of P500,000 under savings account.
2 Bought laundry machine on account costing P250,000 and issued a promissory note.
5 Bought laundry supplies on account, P12,000.
7 Laundry income earned for the week:
Cash basis P14,500
Billings to various customers 10,300
9 Paid P5,000 for vehicle insurance.
- Paid P8,300 for taxes and licenses to the city government.
- Partial collections from customers’ account of March 7, P2,300.
14 Received a bill from Caltex Gasoline Station for gasoline and oil, P8,000.
Laundry income earned for the week:
On Cash basis P30,000
Billings to various customers 20,000
16 Withdrew cash of P5,000 for personal use.
18 Partial collection of customers’ accounts of March 7, P8,000.
- Partial payment of account on bill from Caltex Gasoline Station of March 14, P5,000.
- Laundry income earned for the week:
On Cash basis P12,000
Billings to various customers 15,000
23 Received cash from customer but service has yet to be rendered, P3,000.
24 Received a bill from Caltex Gasoline Station for gasoline withdrawn, P10,000.
25 Full payment of account on bill from Caltex Gasoline Station of March 14, P3,000.
- Laundry income earned for the week:
On Cash basis P15,000
Billings to various customers 25,000
- Full payment of the promissory note issued on March 2 for laundry machine.
30 Paid electric and water bills for the month, P25,000.
31 Paid salaries to employees, P20,000.
Full payment of laundry supplies bought on March 5.
Received a bill from Caltex Gasoline Station, P4,500.
Paid rental in the amount of P5,000.
Made additional investment of P50,000 and deposited to the bank.
Required:
Journal Entry
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
