Question
On September 1, 2020, Mr. Bob Bartolome opened a laundry shop with a company name Quick Flash Laundry Shop. During the first month of operations
On September 1, 2020, Mr. Bob Bartolome opened a laundry shop with a company name Quick Flash Laundry Shop. During the first month of operations the following transactions occurred.
September 1 - Bob invested P20,000 cash in the business.
September 2 - The company paid P1,000 cash for store rent for September.
September 3 - Purchased washers and dryers for P25,000, paying P10,000 in cash and signing P15,000, 6 month, 12% note payable.
September 4 - Paid P1,200 for a one-year accident insurance policy.
September 10 - Received a bill from the Daily News for advertising the opening of the Laundry Shop, P200.
September 20 - Mr. Bartolome withdrew P700 cash for personal use.
September 30 - The company determined the cash receipts for laundry services for the month were P6,200.
The chart of accounts for the company is the same as that for Pioneer Advertising Agency plus the following:
No. 154 - Laundry Equipment
No. 610 - Advertising Expense
No. 301 - Bob Bartolome, Capital
No. 306 - Bob Bartolome, Drawing
a. Journalize the September transactions.
b. Open ledger accounts and post the September transactions.
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Accounting Best Practices
Authors: Steven M Bragg
7th Edition
1118404149, 9781118404140
