MODULE 3

ENABLING ASSESSMENT 03

Transactions for the month of December 2020 are as follows:

Rey Millora opened an account with Union Bank under Rey's Laundromat business name in the amount of
1-Dec P1,500,000. He also invested a computer worth P100,000 with a fair market value of P90,000.

2 Paid municipal taxes of P5,500 including his license to operate.

Bought a P900,000 condominium for his office paying P500,000 down payment and signing a mortgage with Metro
5 Bank payable in 10 years for the balance.

7 Bought furniture on credit from Furniture World, P45,000.

8 Returned P7,000 worth of furniture bought due to wrong specifications.

9 Bought cash register P24,000 paid in cash.

10 Paid furniture and fixtures purchased on account.

11 Bought P5,600 office supplies paid in cash.

Bought a P600,000 van from Jade Motors for use in the business. Terms: 25% cash, 40% thru a 30-day, 10% note,
12 and the balance on account.

Made an additional investment of P500,000 and equipment worth P60,000 with an unpaid balance of P10,000 to
13 Baguio Trading. The business will assume the liability.

14 Returned damaged supplies worth P880.

15 Withdrew P75,000 cash and office supplies worth P500 for personal use.

16 Paid the salary of the office secretary, P7,600.

17 Paid utilities, P1,200.

18 Collected laundry services from various customers, P200,000.

Rendered laundry services on account to the following customers: Gabriel - P20,000; Michael - P10,000; Daniel -
19 P8,000; Uriel - P7,000.

20 Paid repairs, P2,000.

 Collected from laundry services rendered last December 19 from the following customers: Gabriel - P5,000;
30 Michael - P10,000; Daniel - P15,000; Uriel - P4,000.

The company's Chart of Accounts follow:

Account Code Account Title
101 Cash
102 Accounts Receivable
102a Allowance for Bad Debts
103 Office Supplies

201 Office Condominium

201a Accumulated Depreciation - Office Condominium
202 Equipment
202a Accumulated Depreciation - Equipment
203 Furniture and Fixtures
203a Accumulated Depreciation - Furniture and Fixtures
204 Vehicle
204a Accumulated Depreciation - Vehicle

301 Accounts Payable

302 Notes Payable
303 Interest Payable
304 Salaries Payable
305 Mortgage Payable

401 Millora, Capital

402 Millora, Personal

501 Laundry Service Income

601 Bad Debts Expense

602 Depreciation Expense
603 Taxes and Licenses
604 Salaries Expense
605 Utilities Expense
606 Repairs and Maintenance
607 Supplies Expense
608 Interest Expense

Requirements:
1 Journalize the December transactions using a general journal and the
account titles given in the chart of accounts.

2 Post the journal entries to the General Ledger.

3 Extract the balances of each account in the General Ledger and
prepare a trial balance, Accounts Receivable Schedule and Accounts Payable Schedule.
name in the amount of
of P90,000.

d signing a mortgage with Metro

40% thru a 30-day, 10% note,

unpaid balance of P10,000 to

0; Michael - P10,000; Daniel -

tomers: Gabriel - P5,000;
 General Journal

Date Particulars f Dr Cr
Dec 1 Cash 1,500,000.00
Equipment
Millora, Capital
Initial investment

2 Taxes and Licenses 5,500.00

Cash 5,500.00
Payment for municipal taxes.

5 Office Condominium
Cash 500,000.00
Mortgage Payable
Purchase of office condominium.

7 Furniture and Fixtures 45,000.00

Accounts Payable - Furniture World 45,000.00
Purchase of furniture on account.

8 Accounts Payable - Furniture World 7,000.00

Furniture and Fixtures 7,000.00
Return of furniture due to wrong specs.

9 Equipment 24,000.00
Cash 24,000.00
Purchase of cash register.

10 Accounts Payable - Furniture World

Cash
Payment of account.

11 Office Supplies 5,600.00

Cash 5,600.00
Purchase of supplies.

12 Vehicle
Cash 150,000.00
Notes Payable 240,000.00
Accounts Payable - Jade Motors
Purchase of van.
General Journal

Date Particulars f Dr Cr
Dec 13 Cash 500,000.00
Equipment 60,000.00
Accounts Payable - Baguio Trading 10,000.00
550,000.00
Additional investment.

14 Cash 880.00
Office Supplies 880.00
Return of damaged supplies.

15 Millora, Personal 75,500.00

Cash 75,000.00
Office Supplies 500.00
Withdrawal of assets for personal use.

16 Salaries Expense 7,600.00

Cash 7,600.00
Salary of office secretary.

17 Utilities Expense 1,200.00

Cash 1,200.00
Payment for utilities.

18 Cash 200,000.00
Laundry Service Income 200,000.00
Collection from various customers.

19 Accounts Receivable - Gabriel 20,000.00

Accounts Receivable - Michael 10,000.00
Accounts Receivable - Daniel 8,000.00
Accounts Receivable - Uriel 7,000.00
Laundry Service Income
Services rendered on account.

20 Repairs and Maintenance 2,000.00

Cash 2,000.00
Payment for repairs.

General Journal

Date Particulars f Dr Cr
Dec 30 Cash
Accounts Receivable - Gabriel 5,000.00
Accounts Receivable - Michael 10,000.00
 Accounts Receivable - Daniel 5,000.00
Accounts Receivable - Uriel 4,000.00
Collection of customers' accounts.

General Journal

Date Particulars f Dr Cr
 Page 1

Cr

5,500.00

500,000.00

45,000.00

7,000.00

24,000.00

5,600.00

150,000.00
240,000.00

Page 2

Cr
 10,000.00
550,000.00

880.00

75,000.00
500.00

7,600.00

1,200.00

200,000.00

2,000.00

Page 3

Cr

5,000.00
10,000.00
 5,000.00
4,000.00

Page 4

Cr
 GENERAL LEDGER

CASH
Date Particulars f Dr Date Particulars f

ACCOUNTS RECEIVABLE
Date Particulars f Dr Date Particulars f

ALLOWANCE FOR BAD DEBTS

Date Particulars f Dr Date Particulars f

OFFICE SUPPLIES
Date Particulars f Dr Date Particulars f
 OFFICE CONDOMINIUM
Date Particulars f Dr Date Particulars f

ACCUMULATED DEPRECIATION - OFFICE CONDOMINIUM

Date Particulars f Dr Date Particulars f

EQUIPMENT
Date Particulars f Dr Date Particulars f

ACCUMULATED DEPRECIATION - EQUIPMENT

Date Particulars f Dr Date Particulars f

FURNITURE AND FIXTURES

Date Particulars f Dr Date Particulars f
 ACCUMULATED DEPRECIATION - FURNITURE AND FIXTURES
Date Particulars f Dr Date Particulars f

VEHICLE
Date Particulars f Dr Date Particulars f

ACCUMULATED DEPRECIATION - VEHICLE

Date Particulars f Dr Date Particulars f

ACCOUNTS PAYABLE
Date Particulars f Dr Date Particulars f

NOTES PAYABLE
Date Particulars f Dr Date Particulars f
 INTEREST PAYABLE
Date Particulars f Dr Date Particulars f

SALARIES PAYABLE
Date Particulars f Dr Date Particulars f

MORTGAGE PAYABLE
Date Particulars f Dr Date Particulars f

MILLORA, CAPITAL
Date Particulars f Dr Date Particulars f

MILLORA, PERSONAL
Date Particulars f Dr Date Particulars f
 INCOME AND EXPENSE SUMMARY
Date Particulars f Dr Date Particulars f

LAUNDRY SERVICE INCOME

Date Particulars f Dr Date Particulars f

BAD DEBTS EXPENSE

Date Particulars f Dr Date Particulars f

DEPRECIATION EXPENSE
Date Particulars f Dr Date Particulars f

TAXES AND LICENSES

Date Particulars f Dr Date Particulars f
 SALARIES EXPENSE
Date Particulars f Dr Date Particulars f

UTILITIES EXPENSE
Date Particulars f Dr Date Particulars f

REPAIRS AND MAINTENANCE

Date Particulars f Dr Date Particulars f

SUPPLIES EXPENSE
Date Particulars f Dr Date Particulars f
 INTEREST EXPENSE
Date Particulars f Dr Date Particulars f
 101
Cr

102
Cr

102a
Cr

103
Cr
 201
Cr

201a
Cr

202
Cr

202a
Cr

203
Cr
203a
Cr

204
Cr

204a
Cr

301
Cr

302
Cr
 303
Cr

304
Cr

305
Cr

401
Cr

402
Cr
 403
Cr

501
Cr

501
Cr

602
Cr

603
Cr
 604
Cr

605
Cr

606
Cr

607
Cr
 608
Cr
 SUBSIDIARY LEDGERS

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER OR CUSTOMERS' CARD

CUSTOMER'S NAME: Gabriel

Date Particulars f Dr Cr Balance

CUSTOMER'S NAME: Michael

Date Particulars f Dr Cr Balance

CUSTOMER'S NAME: Daniel

Date Particulars f Dr Cr Balance

CUSTOMER'S NAME: Uriel

Date Particulars f Dr Cr Balance

CUSTOMER'S NAME:
Date Particulars f Dr Cr Balance
ACCOUNTS PAYABLE SUBSIDIARY LEDGER OR SUPPLIERS' CARD

SUPPLIER'S NAME: Furniture World

Date Particulars f Dr Cr Balance

SUPPLIER'S NAME: Jade Motors

Date Particulars f Dr Cr Balance

SUPPLIER'S NAME: Baguio Trading

Date Particulars f Dr Cr Balance

SUPPLIER'S NAME:
Date Particulars f Dr Cr Balance
Rey's Laundromat
TRIAL BALANCE
DECEMBER 31, 2020
Amounts in Philippine Peso
Dr Cr
Cash
Accounts Receivable
Office Supplies
Office Condominium
Equipment
Furniture and Fixtures
Vehicle
Accounts Payable
Notes Payable
Mortgage Payable
Millora, Capital
Millora, Personal
Laundry Service Income
Taxes and Licenses
Salaries Expense
Utilities Expense
Repairs and Maintenance
Total

Rey's Laundromat
ACCOUNTS RECEIVABLE SCHEDULE
December 31, 2020
Amounts in Philippine Peso
Gabriel
Daniel
Uriel
Total

Rey's Laundromat
ACCOUNTS PAYABLE SCHEDULE
December 31, 2020
Amounts in Philippine Peso
Jade Motors
Baguio Trading
Total