TASK SHEET 1.
The following are the transactions of Davao Laundry Services: As a bookkeeper, you are ask to
record the following transactions on a general journal of the company:
Illustrative Problem I:
DAVAO LAUNDRY SERVICES
(Complete Accounting Process for Service Concern)
DAVAO LAUNDRY SERVICES
Chart of Accounts
Balance Sheet Accounts Income Statement Accounts
ASSETS INCOME
Page Account Page Account
No. No. No. No.
1 111 Cash in Bank 13 441 Laundry Income
2 112 Accounts Receivable
3 112-A Allowance for Bad Debts EXPENSES
4 113 Laundry Supplies 14 551 Bad Debts
5 114 Laundry Equipment 15 552 Depreciation Expense
6 114-A Accumulated 16 553 Salaries Expense
LIABILITIES 17 554 Rent Expense
7 221 Notes Payable 18 555 Utilities Expense
8 222 Accounts Payable 19 556 Laundry Supplies Expense
9 223 Accrued Advertising 20 557 Taxes and Licenses
OWNER'S EQUITY 21 558 Advertising Expense
10 331 S. Santos, Capital 22 559 Interest Expense
11 332 S. Santos, Drawing
12 333 Income & Expense Summary
The following are the transactions of Davao Laundry Services: As a bookkeeper, you are ask to
record the following transactions on a general journal of the company:
March 1 Mr. Severo Santos opens a current account with Allied Banking Corporation in the
amount of P850,000 to start with his Laundry business under the trade name "Davao Laundry
Services".
March 2 Purchased Laundry Supplies on account, P90,000 from the following suppliers:
SM City Davao - P35,000
Gaisano Mall- 25,000
NCCC Mall- 30,000
Total Payable
P90,000
March 3 Purchased Laundry Machine for cash, P150,000.
March 4 Rendered Laundry services on account, P80,000 in 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 the government, P4,000.
March 12 Mr. Severo Santos withdrew P10,000 cash from the business for his personal use.
March 17 The business borrowed money from Allied Banking Corporation, P100,000 by
issuing a 15- day note. It was deposited to the account of Davao Laundry Services by
way of a Credit Advise 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 customers' account.
Grand Men Seng Hotel 30,000
The Marco Polo Hotel 10,000
Royal Mandaya Hotel
5,000 Total Receivable 45,000
March 25 Partial payment of accounts, P60,000 to the following suppliers:
SM City Davao - P25,000
Gaisano Mall- 20,000
NCCC Mall- 15,000
Total Payable
P60,000
March 30 Mr. Severo Santos hired an accountant/manager for his business as he has plenty of
things to attain to at P10,0000 per month effective April 01,20A .
March 30 The following expenses were paid by Davao Laundry Services for the month of March
20A:
Space rental P 5,000
Telephone, Light and Water 12,000
Salaries of employee (contractual) 10,000
Total Expenses Paid P27,000
The following are the given data for adjustments:
1. 1% of the outstanding receivable account is estimated to be doubtful of collection
2. P20,000 cost of supplies inventory was actually consumed:
3. The laundry machine has an estimated life of 5 years without salvage value.
4. Advertising expense has been incurred already but still unpaid, P30,000.
Required:
1. Prepare Journal Entries
2. Post the balances to its ledger accounts.
3. Prepare adjusting entries.
4. Prepare unadjusted trial balance.
5. Prepare 8 column worksheet.
ANSWER SHEET 1.3
GENERAL JOURNAL Page 1
20A
Particulars F Debit Credit
Month Day
GENERAL JOURNAL Page 2
20A
Particulars F Debit Credit
Month Day
