Name: Sasutil, Steffane Mae L.

Transactions:

May 1 – Mr. James Berhay opens a current account with Allied Banking Corporation in the amount of
850,000 to start with his laundry shop business under the trade name “Batanes Laundry Services”.

May 2 – Purchased laundry supplies on account, 90,000 from the following suppliers:

Sm City- 35,000

Gaisano Mall – 25,000

NCC Mall - 30,000

Total Payable – 90,000

May 3 – Purchase of laundry machine for cash, 150,000

May 4 – Rendered laundry services on account, 80,000 to the following customers:

Apo View Hotel – 5,000

Grand Men Seng Hotel – 35,000

The Marco Polo Hotel - 30,000

Royal Mandaya Hotel - 10,000

Total Receivable - 80,000

May 10 – Paid taxes and licenses due to government, 4,000.

May 12 – Mr. James Berhay withdrew 10,000 cash from the business for his personal use.

May 17 – The business borrowed money from Allied Banking Corporation, 100,000 by issuing a 15-day
note. It was deposited to the account of Batanes Laundry Services by way of Credit Memorandum issued
by the bank.

May 17 – The bank issued a debit memo, 1,000 for interest and bank charges.

May 21 – Received cash of 45,000 representing collection from the following customer’s account:

Grand Men Seng Hotel - 30,000

The Marco Polo Hotel - 10,000

Royal Mandaya Hotel - 5,000

Total Collection - 45,000

May 25 – Partial payment of account’s, 60,000 to the following suppliers:

SM City -25,000
 Gaisano Mall - 20,0000,

NCCC Mall - 15,000

Total Payable - 60,000

May 30 – Mr. James Berhay hired an accountant/ manager for his business as he has plenty of things to
attain to at 10,000 per month affective June 1, 2015.

May 30 – The following expenses were paid by Batanes Laundry Services for the month of May 2015:

Space Rental – 5,000

Telephone, light and water – 12,000

Salaries of Employees (contractual) – 10,000

Total Expenses Paid - 27,000

Journal

Date Particulars Debit Credit

1 Cash in Bank 850,000

J. Berhay , Capital 850,000
#
2 Laundry Supplies 90,000
Accounts Payable 90,000
#
3 Laundry Equipment 150,000
Cash in Bank 150,000
#
4 Accounts Receivable 80,000
Laundry Income 80,000
#
10 Taxes and Licenses 4,000
Cash in Bank 4,000
#
12 J. Berhay, Drawing 10,000
Cash in Bank 10,000
#
17 Cash in Bank 100,000
Notes Payable 100,000
#
17 Interest Expense 1,000
Cash in Bank 1,000
#
21 Cash In Bank 45,000
Accounts Receivable 45,000
#
25 Accounts Payable 60,000
Cash in Bank 60,000
#
30 Rent Expense 5,000
Utilities Expense 12,000
Salary Expense 10,000
Cash in Bank 27,000
#
T-Accounts

Cash in Bank

May 1 850,000 3 150,000

17 100,000 10 4,000 Laundry Supplies

21 45,000 12 10,000 May 2 90,000
17 1,000

25 60,000

30 27,000
995,000 252,000

BAL: 743,000

Laundry Equipment
May 31 150,000

Accounts Receivable

May 4 80,000 21 45,000

BAL: 35,000

Accounts Payable Notes Payable

May 25 60,000 2 90,000 May 17 100,000

BAL: 30,000

J. Berhay, Capital
 May 1 850,000

J. Berhay, Drawing
Laundry Income
May 12 10,000
May 4 80,000

Salaries Expense
Rent Expense
May 30 10,000
May 30 5,000

Utilities Expense
May 30 12,000 Taxes and Licenses

May 10 4,000

Interest Expense

May 17 1,000
 Batanes Laundry Shop

Unadjusted Trial Balance

May 31, 2015

Cash in Bank 743,000

Accounts Receivable 35,000

Laundry Supplies 90,000

Laundry Equipment 150,000

Notes Payable 100,000

Accounts Payable 30,000

J. Berhay, Capital 850,000

J. Berhay, Drawings 10,000

Laundry Income 80,000

Salaries Expense 10,000

Rent Expense 5,000

Utilities Expense 12,000

Taxes and Licenses 4,000

Interest Expense 1,000

Total 1,060,000 1,060,000

Adjusting Entries

Date Particulars Debit Credit

31 Uncollectable Account Expense 350
Estimated Uncollectable Account 350
#
31 Laundry Supplies Expense 20,000
Laundry Supplies 20,000
#
31 Depreciation Expense- Laundry Equipment 2,500
Accumulated Depreciation-Laundry Equipment 2,500
#
31 Advertising Expense 3,000
Accrued Advertising Expense 3,000
#
 Batanes Laundry Shop

Adjusted Trial Balance

For the Month Ended May 31, 2015

Cash in Bank 743,000

Accounts Receivable 35,000

Laundry Supplies 70,000

Laundry Equipment 150,000

Accumulated Depreciation 2,500

Notes Payable 100,000

Accounts Payable 30,000

J. Berhay, Capital 850,000

J. Berhay, Drawings 10,000

Laundry Income 80,000

Laundry Supplies Expense 20,000

Depreciation Expense 2,500

Advertising Expense 3,000

Salaries Expense 10,000

Rent Expense 5,000

Utilities Expense 12,000

Taxes and Licenses 4,000

Interest Expense 1,000

 Uncollectable Accounts 350

Estimated Uncollectable Account 350

Accrued Advertising 3,000

Total P1,065,850 P1,065,850

Batanes Laundry Shop

Income Statement

For the Month Ended May 31, 2015

Revenue

Laundry Income 80,000

Expenses

Uncollectable Accounts

Laundry Supplies Expense 20,000

Depreciation Expense 2,500

Advertising Expense 3,000

Salaries Expense 10,000

Rent Expense 5,000

Utilities Expense 12,000

Taxes and Licenses 4,000

Interest Expense 1,000

Total 56,850

Profit 23,150
 Batanes Laundry Shop

Statement of Changes in Owners’ Equity

For the Month Ended May 31, 2015

J. Berhay, Owners Equity- May 1,2015 850,000

Add: Additional Investment -

Profit 22,150 22,150

Total 872,150

Less: Withdrawal 10,000

J. Berhay, Owners Equity- End 862,150

 Batanes Laundry Shop

Income Statement

For the Month Ended May 31, 2015

ASSETS

Current Assets

Cash in Bank 743,000

Accounts Receivable 35,000

Less: Estimated Uncollectable Accounts 350 34,650

Laundry Supplies 70,000

Total Current Assets 847,650

Non-Current Assets

Laundry Equipment 150,000

Less: Accumulated Depreciation 2,500

Total Non-Current Assets 147,500

Total Assets 995,150

LIABLITIES

Current Liabilities

Notes Payable 100,000

Accounts Payable 30,000

 Accrued Advertising 3,000

Total Current Liabilities 133,000

OWNERS EQUITY

J. Berhay, Capital 862,150

Total Liabilities and Owners Equity 995,150

Batanes Laundry Shop

Statement of Cash Flows

For the Month Ended May 31, 2015

Cash Flows from Operating Activities

Cash collections from customers P45,000

Payment of taxes and licenses (4,000)

Purchase of laundry supplies (60,000)

Payment of salaries (10,000)

Payment of rental (5,000)

Payment of utilities (12,000)

Payment of interest (1,000)

Net cash provided by (used in) operating activities (47,000)

Cash Flows from Investing Activities

Purchase of laundry equipment (150,000)

Net cash provided by (used in) investing activities (150,000)

Cash Flows from Financing Activities

Cash received as investment by owner 850,000

Cash received from bank loan 100,000

Payment for withdrawal by owner (10,000)

Net cash provided by (used in) financing activities (940,000)

Net Increase (Decrease) in Cash 743,000

Add: Cash Balance at the beginning of the period

Cash Balance at the end of the period 743,000

Closing Entries

Date Particulars Debit Credit

May
2015
31 Laundry Income 80,000
Income and Expense Summary 80,000
To close the Income and Expense Summary.

31 Income and Expense Summary 57,850

Uncollectable Account Expense 350
Depreciation Expense 2,500
Salaries Expense 10,000
Rent Expense 5,000
Utilities Expense 12,000
Laundry Supplies Expense 20,000
Taxes and Licenses 4,000
Advertising Expenses 3,000
Interest Expenses 1,000
To close all expenses accounts to Income
and Expense Summary.
31 Income and Expense Summary 22150
J. Berhay, Capital 22150
To close profit to capital account.

31 J. Berhay, Capital 10,000

J. Berhay, Drawing 10,000
To close drawing to capital account.
 Batanes Laundry Shop

Post- Closing Trial Balance

For the Month Ended May 31, 2015

Cash In Bank 743,000

Accounts Receivable 35,000

Estimated Uncollectable Account 350

Laundry Supplies 70,000

Laundry Equipment 150,000

Accumulated Depreciation 2,500

Notes Payable 100,000

Accounts Payable 30,000

Accrued Advertising Expense 3,000

J. Berhay, Capital 862,150

Total 998,000 998,000

REVERSING ENTRY

Date Particulars Debit Credit

31 Accrued Advertising Expense 2,000
Advertising Expense 2,000