Professional Documents
Culture Documents
Jordan River Laundry, a sole proprietorship service business, which started on September 2, 2015. The
initial investments of Mr. Jordan were:
Sept 8
Bought dryers and spinners from Mirzi Outlet for P40,000. Jordan paid 30% down payment and the balance
on account.
Sept 10
Laundry services rendered totaled P 195,000, of which 40% on account.
Sept 12
Received proceeds of P220,000 from a bank loan for business use. Jordan would use this to purchase a
van for pick-up and delivery of laundry from and to clients.
Sept 14
Purchased a delivery van from Renzo Motors for P250,000. Jordan used the entire proceeds from the bank
loan to pay for the delivery van and the balance on account.
Sept 15
Paid various operating expenses during the month: Water and electricity, P28,000; Telephone expense,
P6,000; and Repairs expense, P 3,500.
Sept 18
Laundry services rendered totaled P 180,000, of which 30% was settled with a note and the balance on
account.
Sept 20
Received laundry advances from Madeleine Hotel for services to be rendered next month, P 90,000.
Sept 22
Collected 90% of the outstanding receivable from September 10 transaction.
Sept 26
Purchased detergents and fabric conditioners from Ivana Cleaning Scents, P12,000. Paid P8,000 cash and
the balance on account.
Sep 28
Returned P 2,000 worth of damaged detergents and fabric conditioners bought last September 26.
Sept 29
Mr. Jordan withdrew P 3,000 for personal use.
Sept 30
Paid wages of two staff, P10,000 each.
Laundry Services
Notes Payable Advances from Clients Utilities Expense
Revenue
REQUIRED:
Record the following transactions into the general journal using the
above accounting title in the chart.