Lando, a family man decided to open up his own Laundry Shop. He named it: Lando Laundry The following are the transactions for the month of April 2021 Apr 1 Lando Invested P 200,000 Cash to start up the business Apr 2 He paid Advance rental amounting to P 30,000 to be utilized at the last three months of the rental contract with period covering April 1, 2021 to March 31, 2024 Apr 2 Paid a Security Deposit for the Rent amounting to P 20,000 Purchased 2 pcs. Washing Machines amounting to P 80,000 Purchased Laundry Supplies amounting to P 20,000 Apr 3 Apr 4 Apr 5 Hired Gema to be assist him in the business Apr 6 He officially opened the business Apr 6 First customer paid P3,000 for the Laundry service Apr 7 Various customers availed of the service and the business collected P 10,000 in total Apr 8 More customers availed of the sservice and generated a revenue amounting to P 12,000 Apr 9 Entered into a contract with Madoomee hotel to provide service for 1 year with credit term of 30 days Madoomee hotel availed of the service and availed of the credit term. Laundry costs totalled P 40,000 Lando purchased additional Laundry supplies amounting to P 30,000 Apr 10 Apr 12 Apr 14 Customers paid P 12,000 Apr 15 Lando decided to put up additional cash investment to expand his business amounting to P100,000 Apr 16 Purchased additional Washing machines @ P 130,000 Purchased more Laundry supplies amounting to P 20,000 Apr 17 Apr 18 Customers for the day paid P 19,000 Apr 19 Entered into Loan Agreement with Banco de Plato amounting to P 200,000 to be paid monthly starting april plus 10% interest for 2 years Customers for the day paid P 21,000 Apr 20 Apr 21 Purchased additional Washing machines @ P 150,000 Apr 22 Madoomee hotel availed of the service and availed of the credit term. Laundry costs totalled P 50,000 Apr 23 Entered into another customer contract with Maanta catering services for a 7 days credit term Apr 24 Maanta availed of the service together with the agreed term amounting to P 30,000 Apr 25 Paid the first month due of the Loan with Banco de plato together with the interest Apr 26 Paid salaary to Gemma amounting to P 3,000 Apr 27 customers for the day Apr 28 to 2 Lando closed temporarily to make way for inventories and personal vacation Apr 30 By the end of the inventory count. Laundry supplies remaining amounts to P 10,000 Additional info: 1. The Company depreciates Washing Machine for 2 years without salvage value. Purchases made for the month are depreciated the same month 2. Supplies are recognized as an asset and expensed out the utilization every month end inventory count

Lando, a family man decided to open up his own Laundry Shop. He named it: Lando Laundry The following are the transactions for the month of April 2021 Apr 1 Lando Invested P 200,000 Cash to start up the business Apr 2 He paid Advance rental amounting to P 30,000 to be utilized at the last three months of the rental contract with period covering April 1, 2021 to March 31, 2024 Apr 2 Paid a Security Deposit for the Rent amounting to P 20,000 Purchased 2 pcs. Washing Machines amounting to P 80,000 Purchased Laundry Supplies amounting to P 20,000 Apr 3 Apr 4 Apr 5 Hired Gema to be assist him in the business Apr 6 He officially opened the business Apr 6 First customer paid P3,000 for the Laundry service Apr 7 Various customers availed of the service and the business collected P 10,000 in total Apr 8 More customers availed of the sservice and generated a revenue amounting to P 12,000 Apr 9 Entered into a contract with Madoomee hotel to provide service for 1 year with credit term of 30 days Madoomee hotel availed of the service and availed of the credit term. Laundry costs totalled P 40,000 Lando purchased additional Laundry supplies amounting to P 30,000 Apr 10 Apr 12 Apr 14 Customers paid P 12,000 Apr 15 Lando decided to put up additional cash investment to expand his business amounting to P100,000 Apr 16 Purchased additional Washing machines @ P 130,000 Purchased more Laundry supplies amounting to P 20,000 Apr 17 Apr 18 Customers for the day paid P 19,000 Apr 19 Entered into Loan Agreement with Banco de Plato amounting to P 200,000 to be paid monthly starting april plus 10% interest for 2 years Customers for the day paid P 21,000 Apr 20 Apr 21 Purchased additional Washing machines @ P 150,000 Apr 22 Madoomee hotel availed of the service and availed of the credit term. Laundry costs totalled P 50,000 Apr 23 Entered into another customer contract with Maanta catering services for a 7 days credit term Apr 24 Maanta availed of the service together with the agreed term amounting to P 30,000 Apr 25 Paid the first month due of the Loan with Banco de plato together with the interest Apr 26 Paid salaary to Gemma amounting to P 3,000 Apr 27 customers for the day Apr 28 to 2 Lando closed temporarily to make way for inventories and personal vacation Apr 30 By the end of the inventory count. Laundry supplies remaining amounts to P 10,000 Additional info: 1. The Company depreciates Washing Machine for 2 years without salvage value. Purchases made for the month are depreciated the same month 2. Supplies are recognized as an asset and expensed out the utilization every month end inventory count

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 2FPE

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