Davao Laundry Services

Investment by owner
March 1 – Mr. Severo Santos opens a current account with Allied Banking
Corporation in the amount of P850,000 to start with his laundry shop business under the
trade name Davao Laundry Services.
March 2 – Purchased laundry supplies inventory on account, P90,000 from the
following suppliers:
SM City – Davao P 35,000
Gaisano Mall 25,000
NCCC Mall 30,000
Total Payable P 90,000

March 3 – Purchase of laundry machine for cash, P150,000.

March 4 – Rendered laundry services on account, P80,000 to the following customers:
Apo View Hotel P 5,000
Grand Men Seng Hotel 35,000
The Marco Polo Hotel 30,000
Royal Mandaya Hotel 10,000
Total Receivable 80,000

March 10 – Paid taxes and licenses due to government, P4,000.

March 12 – Mr. Santos withdrew P10,000 cash from the business for his personal use.
March 17 – The business borrowed money from Land Bank of the Philippines P100,000
by issuing a 15-day note. It was deposited to the account of Davao Laundry Services by
way of a Credit Memorandum issued by the bank.
March 17 – The bank issued a debit memo, P1,000 for interest and bank charges.
March 21 – Received cash of P45,000 representing collection from the following
customer’s account:
Grand Men Seng Hotel P30,000
The Marco Polo Hotel 10,000
 Royal Mandaya Hotel 5,000
Total Collection 45,000
March 25 – Partial payment of accounts, P60,000 to the following suppliers:
SM City P25,000
Gaisano Mall 20,000
NCCC Mall 15,000
Total Payable 60,000
March 30 - Mr. Severo Santos ‘hired an accountant/manager for his business as he has
plenty of things to attain to at P10,000 per month effective April 1, 20A.
March 30 - The following expenses were paid by Davao Laundry Services for the
month of March 20A:
Space Rental P5,000
Telephone, light water 12,000
Salaries of Employees (contractual) 10,000
Total Expenses Paid 27,000