JORDAN RIVER LAUNDRY

General Journal
Debit Credit
Sep 2 Cash 120,000
Laundry Equipment 35,000
Furniture and Fixtures 22,500
Office Supplies 4,200
Laundry Supplies 5,000
Jordan, Capital 186,700
To record initial investment

Sep 8 Laundry Equipment 40,000

Cash 12,000
Accounts Payable 28,000
To record purchase of dryers and spinners on cash and on account

Sep 10 Cash 117,000

Accounts Receivable 78,000
Laundry Service Revenue 195,000
To record laundry revenue

Sep 12 Cash 220,000

Loan Payable 220,000
To record bank loan proceeds

Sep 14 Delivery Vehicle 250,000

Cash 220,000
Accounts Payable 30,000
To record purchase of delivery van

Sep 15 Utilities Expense 34,000

Repairs Expense 3,500
Cash 37,500
To record payment of various expenses

Sep 18 Accounts Receivable 126,000

Notes Receivable 54,000
Laundry Service Revenues 180,000
To record laundry revenue

Sep 20 Cash 90,000

Advances from Clients 90,000
To record laundry advances

Sep 22 Cash 70,200

Accounts Receivable 70,200
To record cash collection

Sep 26 Laundry Supplies 12,000

Cash 8,000
Accounts Payable 4,000
To record purchase of detergents and fabric conditioners

Sep 28 Accounts Payable 2,000

Laundry Supplies 2,000
To record return of damaged detergents and fabric conditioners
Sep 29 Jordan, Drawing 3,000
Cash 3,000
To record owner's drawing

Sep 30 Wages Expense 20,000

Cash 20,000
To record payment of wages

Sep 30 Interest Receivable 180

Interest Income 180
To record interest earned

Sep 30 Interest Expense 1,320

Interest Payable 1,320
To record interest incurred

Sep 30 Laundry Supplies Expense 12,000

Laundry Supplies 12,000
To record laundry supplies used

Sep 30 Office Supplies Expense 2,520

Office Supplies 2,520
To record office supplies used

Sep 30 Depreciation Expense 375

Accumulated Depreciation - Furniture and Fixtur 375
To record depreciation of furniture and fixtures for the month

Sep 30 Depreciation Expense 1,125

Accumulated Depreciation - Laundry Equipment 1,125
To record depreciation of laundry equipment for the month

Sep 30 Depreciation Expense 1,875

Accumulated Depreciation - Delivery Vehicle 1,875
To record depreciation of delivery vehicle for the month

Sep 30 Doubtful Accounts Expense 2,676

Allowance for Doubtful Accounts 2,676
To record doubtful accounts
JORDAN RIVER LAUNDRY
General Ledger (T-Accounts)

Cash Accounts Receivable Notes Receivable Laundry Supplies

120,000 12,000 78,000 70,200 54,000 5,000 2,000
117,000 220,000 126,000 12,000 12,000
220,000 37,500
90,000 8,000
70,200 3,000
20,000
617,200 300,500 204,000 70,200 54,000 - 17,000 14,000
316,700 133,800 54,000 3,000

Office Supplies Furniture and Fixtures Laundry Equipment Delivery Vehicle

4,200 2,520 22,500 35,000 250,000
40,000
4,200 2,520 22,500 - 75,000 - 250,000 -
1,680 22,500 75,000 250,000

Accounts Payable Loan Payable Advances from Clients Interest Payable

2,000 28,000 220,000 90,000 1,320
30,000
4,000
2,000 62,000 - 220,000 - 90,000 - 1,320
60,000 220,000 90,000 1,320

Jordan, Capital Jordan, Drawing Laundry Service Revenue Interest Income

186,700 3,000 195,000 180
180,000
- 186,700 3,000 - - 375,000 - 180
186,700 3,000 375,000 180

Utilities Expense Wages Expense Repairs Expense Interest Expense

34,000 20,000 3,500 1,320

34,000 - 20,000 - 3,500 - 1,320 -

34,000 20,000 3,500 1,320

Office Supplies Expense Depreciation Expense Doubtful Acc Exp Allow for Doubtful Acc
2,520 375 2,676 2,676
1,125
1,875
2,520 - 3,375 - 2,676 - - 2,676
2,520 3,375 2,676 2,676
 Interest Receivable
180

180 -
180

Acc Dep - Furn & Fixt Depreciation Expense = Acquisition value - salvage value
375 (annual) Useful life in years

- 375 (monthly) = divide by 12

375

Acc Dep - Laundry Equip

1,125

- 1,125
1,125

Acc Dep - Delivery Veh

1,875

- 1,875
1,875

Laundry Supplies Expense

12,000

12,000 -
12,000

Debit: 939,251
Credit: 939,251
 JORDAN RIVER LAUNDRY
Income Statement
For the Month Ended September 30, 2015

Revenues
Laundry Service Revenue ₱ 375,000
Interest Income 180
Total Revenues ₱ 375,180
Expenses
Utilities Expense 34,000
Wages Expense 20,000
Laundry Supplies Expense 12,000
Repairs Expense 3,500
Depreciation Expense 3,375
Doubtful Accounts Expense 2,676
Office Supplies Expense 2,520
Interest Expense 1,320
Total Expenses 79,391
Net Income ₱ 295,789

JORDAN RIVER LAUNDRY

Statement of Changes in Owner's Equity
For the Month Ended September 30, 2015

Jordan, Capital - September 2 ₱ 186,700

Add: Net Income 295,789
Subtotal ₱ 482,489
Less: Jordan, Drawing 3,000
Jordan, Capital - September 30 ₱ 479,489

JORDAN RIVER LAUNDRY

Statement of Financial Position
As of September 30, 2015

Assets
Current Assets
Cash ₱ 316,700
Accounts Receivable ₱ 133,800
Less: Allowance for Doubtful Accounts 2,676 131,124
Notes Receivable 54,000
Interest Receivable 180
Laundry Supplies 3,000
Office Supplies 1,680
Total Current Assets ₱ 506,684
Noncurrent Assets
Furniture and Fixtures 22,500
Less: Accumulated Depreciation - Furniture and Fixtures 375 22,125
Laundry Equipment 75,000
Less: Accumulated Depreciation - Laundry Equipment 1,125 73,875
Delivery Vehicle 250,000
Less: Accumulated Depreciation - Delivery Vehicle 1,875 248,125
Total Noncurrent Assets 344,125
Total Assets ₱ 850,809
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable 60,000
Advances from Clients 90,000
Loan Payable 220,000
Interest Payable 1,320
Current Liabilities 371,320
Owner's Equity
Jordan, Capital 479,489
Total Owner's Equity 479,489
Total Liabilities and Owner's Equity ₱ 850,809