Question

Journalizing, Posting & Trial Balance

Paulin Clark operates a laundry shop business in Dipolog City. The given chart of accounts are as follows:

101	Cash in Bank	301	Clark, Capital
102	Accounts Receivable	302	Clark, Drawing
103	Unused Supplies	401	Laundry Income
104	Prepaid Insurance	501	Salaries Expense
105	Laundry Equipment	502	Taxes & Licenses
106	Delivery Equipment	503	Utilities Expense
201	Notes Payable	504	Repairs & Maintenance
202	Accounts Payable	505	Rental Expense
203	Unearned Laundry Income

Transactions:

March   1          Opened an account with the Bank of the Philippine Island and made initial deposit of P500,000 under savings account.

            2          Bought laundry machine on account costing P250,000 and issued a promissory note.

            5          Bought laundry supplies on account, P12,000.

            7          Laundry income for the week:

                                    Cash Basis                   14,500

                                    On account                   10,300

            9          Paid P5,000 for vehicle insurance.

            11         Paid P8,300 for taxes and licenses to the city government.

            12         Partial collection from customers account on March 7, P2,300.

            14         Received a bill from Caltex Gasoline Station for gasoline and oil, P8,000.

            15         Laundry income for the week:     Cash basis       30,000

                                                                        Billings to various customers      20,000

            16         Withdrew cash of P5,000 for personal use.

            18         Full collection of customers’ account on March 7.

            20         Partial payment of account on bill from Caltex Gasoline Station of May 14 P5,000.

            21         Laundry Income for the week:    Cash basis                   12,000

                                                                        Billings to various customers      15,000

            23         Received cash from customers but service has yet to be rendered, P3,000.

            24         Received a bill from Caltex Gasoline Station for gasoline withdrawn, P10,000.

            25         Full payment of account on bill from Caltex Gasoline Station of May 14, P3,000.

            28         Laundry income for the week:     Cash basis                   P15,000

                                                                        Billings to various customers      25,000

            29         Full payment of promissory note issued on March 2 for laundry machine P250,000.

            30         Paid electric and water bills for the month P25,000.

            31         Paid salaries to employees, P20,000.

            31         Full payment of laundry supplies bought on March 5, P12,000

            31         Received a bill from Caltex Gasoline Station, P4,500.

            31        Paid rental in the amount of P5,000.

            31        Made additional investment of P50,000 and deposited to the bank.

           

Required:

1. Record the completed transactions during the first month of operation.
2. Post the entries to the ledger accounts. Make the appropriate posting references in the journal and ledger.
3. Prepare the Trial Balance.

Answer 1