posting and trial balance preparation

II. Journalizing, Posting and Trial Balance Preparation Michael Otis opens a laundry shop business in Golabits City. The following were the transactions for the first month of operation in 2021: July 1 Opened an account with Union Bank, P350,000. N Acquired Laundry Equipment costing P75,000, paying cash of P25,000 and issued a note for the balance. Bought a second-hand delivery van on account, P65,000. Application Bought laundry supplies for cash, P25,000. 15 Rendered laundry services to various hotels in the city and received cash, P30,000 and on account, P15,000. 17 Paid light and water expense, P6,000. (utilities expense) 19 Full payment of laundry equipment, P25,000. 22 Billed a customer for services rendered, P25,000. 25 Paid rental for the month, P4,000 28 Collected P10,000 from customer's account of July 15 31 Paid salaries for the month, P8,000 Paid telephone bills, P4,000 Received cash P15,000 but services has to be rendered yet Required: 1. Prepare a journal entry using a 2-column general journal. Use the following list of account titles and prepare T-account for each. Cash in Bank; Accounts Receivable; Laundry Supplies Inventory; Laundry Equipment; Delivery Van; Accounts Payable; Notes Payable; Unearned Laundry Revenue; M. Otis, Capital; M. Otis, Drawing; Laundry Revenue; Rent Expense; Salaries Expense; Telephone Expense and Utilities Expense 2. Post the entries to the T-account and foot. 3. Prepare a Trial Balance. Example: 2021 July 1 Cash in Bank P350,000 M. Otis, Capital P350,000 Initial investment. Cash in Bank M. Otis, Capital Dr. Cr. Dr. Cr. Jul-01 P350,000 P350,000 Jul-01L. Modified True or False Write TRUE if the statement is correct and FALSE if incorrect, and give brief explanation as to why it is False. 1. Posting is in itself the classifying function of accounting. 2. Footing is considered an entry posted in the General Ledger. 3. The arrangement of account in the General Ledger is patterned from the chart of accounts. 4. The use of "folio" is for cross-indexing or cross-referencing. 5. An error in the trial balance can be discovered upon audit of the accounts. 6. A trial balance can be prepared in any given period of time regardless of whether or not financial statement is prepared. 7. Accuracy wise, when the trial balance is "in balance" we take an assumption that no error has been committed in the process of posting only. 8. A trial balance will not disclose an error, if the error is a journal entry that has not been posted in its entirety. 9. Posting an entry twice in the general ledger will cause the trial balance to be "out of balance". 10. The purpose of the trial balance is to check the arithmetical and mathematical amount recorded in the General Journal