Prepare the Balance Sheet and Income Statement on the following hypothetical business Note: Read the notes below before proceeding August 1 - Kevin opened a laundry shop and made the following investments: cash P150,000; laundry shop equipment P250,000; office chairs and tables P30,000 and laundry supplies P20,000 August 8 - Accepted laundry services for cash P4,500; used P500 for laundry supplies August 10 - Accepted laundry services on account P7,500; 50% down and the balance at the end of the month; used P750 laundry supplies August 15 - Paid the rental for the month P2,500 August 15 - Paid salary of staff P5,000 August 20 - Received proceeds of bank loan P300,000 August 30 - Partial collection from Aug 10 services P3,000 August 31 - Paid the salary of staff P5,000 August 31 - Kevin withdrew P500 for personal use September 1 - Paid rental for the month September 2 - Made an additional capital investment of P50,000 September 2 - Rendered services on account P65,000 10% down and the balance on the account; used P3,500 of laundry supplies September 5- Full collection of 10 transactions (Hint: take note of the partial collection made on Aug 30 September 10 - Rendered laundry services for cash P15,000; used P800 of laundry supplies September 15 - Paid salary of staff P5,000 September 16 - Paid electricity bill for Aug P4,500 September 20 - Purchased laundry supplies on account P7,800 September 25 - Partial collection of Sept 2 transactions P10,000 September 26 - Paid one year advance rental P30,000 September 27 - Rendered laundry services on account P12,750; used P800 of laundry supplies September 28 - Paid water consumption P3,500 September 30 - Paid salary of staff P5,000 Notes: All laundry supplies used for rendering service must be accounted as COS Laundry supplies can be accounted for as office supplies
Prepare the
Note: Read the notes below before proceeding
August 1 - Kevin opened a laundry shop and made the following investments: cash P150,000; laundry shop equipment P250,000; office chairs and tables P30,000 and laundry supplies P20,000
August 8 - Accepted laundry services for cash P4,500; used P500 for laundry supplies
August 10 - Accepted laundry services on account P7,500; 50% down and the balance at the end of the month; used P750 laundry supplies
August 15 - Paid the rental for the month P2,500
August 15 - Paid salary of staff P5,000
August 20 - Received proceeds of bank loan P300,000
August 30 - Partial collection from Aug 10 services P3,000
August 31 - Paid the salary of staff P5,000
August 31 - Kevin withdrew P500 for personal use
September 1 - Paid rental for the month
September 2 - Made an additional capital investment of P50,000
September 2 - Rendered services on account P65,000 10% down and the balance on the account; used P3,500 of laundry supplies
September 5- Full collection of 10 transactions (Hint: take note of the partial collection made on Aug 30
September 10 - Rendered laundry services for cash P15,000; used P800 of laundry supplies
September 15 - Paid salary of staff P5,000
September 16 - Paid electricity bill for Aug P4,500
September 20 - Purchased laundry supplies on account P7,800
September 25 - Partial collection of Sept 2 transactions P10,000
September 26 - Paid one year advance rental P30,000
September 27 - Rendered laundry services on account P12,750; used P800 of laundry supplies
September 28 - Paid water consumption P3,500
September 30 - Paid salary of staff P5,000
Notes:
- All laundry supplies used for rendering service must be accounted as COS
- Laundry supplies can be accounted for as office supplies
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