Create the answer sheets for and submit the following: 1. Balance Sheet 2. Closing Entries 3. Post-Closing Trial Balance
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The
IRENE’S COIN LAUNDRY
Trial Balance
June 30, 2015
Account No. Account Title Debit Credit
101 Cash P 8,750
112
126 Supplies 1,900
157 Equipment 9,000
201 Accounts Payable P 800
206 Notes Payable 5,500
301 Irene Bora, Capital 15,670
Total P 21, 970 P 21,970
The July transactions were as follows:
July 5 Received P850 cash from customers for services rendered
10 Billed customers for services performed, P 6,300
15 Paid Salaries of employees, P1,400
20 Paid P2,000 cash to creditors for the notes payable
21 Received P250 for services rendered on cash basis
26 Purchased supplies on account, at a cost of P350
27 Paid P250 for the July 26 transaction
29 Withdrew P600 cash for personal use
30 Paid utilities P900
31 Paid salaries of employees, P1,400
Additional Information
Provision should be made for the following additional accounts, No. 306, Irene Bora,
Drawings, No. 426 Laundry Revenue, No. 726 Salaries Expense, No. 732 Utilities Expense, and
No. 802 Revenue and Expense Summary.
Instructions: Create the answer sheets for and submit the following:
1.
2. Closing Entries
3. Post-Closing Trial Balance
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