Ms. Kathryn B. Padilla opened a Laundry shop business to be known as Got to Believe in Washing. The following transactions were completed during the first month of operation in August 2014.

Required:

Analyze the given transactions.

Identify the rules of debit and credit for the given transactions.

Determine the balances of accounts using T Accounts.

Directions:

Prepare a Trial balance and answers the following:

Heading

Solution

Total Trial balance (Peso sign and double rule)

Date Transaction Ms. Padilla made the following investments: cash. P225,000, Aug 1 laundry shop equipment, P375. office chairs and tables P45,000 and laundry supplies P30,000 Aug 4 Accepted laundry services for cash P6,750 Aug 8 Accepted laundry services on account P11.250, 50% down and the balance at the end of the month Paid rental for the month amounting to P3,750, Aug 15 Aug 15 Paid the salary of helpers, P7,500 Aug 18 Received the money borrowed from the bank P100,000 secured by Promissory Note