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ACTIVITY 06 Accounting For A Service Provider Additional Exercises

The document provides a self-review test for an accounting fundamentals course. It includes two problems - the first asks the student to journalize transactions for a laundry service business, post to accounts receivable and payable ledgers, and prepare schedules. The second problem asks the student to prepare a chart of accounts, post transactions to the general ledger, prepare a trial balance, and reconcile receivables and payables.

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218 views3 pages

ACTIVITY 06 Accounting For A Service Provider Additional Exercises

The document provides a self-review test for an accounting fundamentals course. It includes two problems - the first asks the student to journalize transactions for a laundry service business, post to accounts receivable and payable ledgers, and prepare schedules. The second problem asks the student to prepare a chart of accounts, post transactions to the general ledger, prepare a trial balance, and reconcile receivables and payables.

Uploaded by

이시연
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTEGRATED ACCOUNTING FUNDAMENTALS

1st Term., A.Y. 2020-2021


BAINTE1X
Module 5 - Accounting for Service Provider – Additional Exercises
Self-Review Test

NAME: (surname first)________________________________ SCORE: __________________


YR./ SEC.: _________________ DATE: ___________________

Problem 1: The Royal Laundry Services was opened along the university belt by Pauline
De Jesus on October 1 with a cash investment of P50,000 and furniture and fixtures
worth P5,000. The following additional transactions occurred during the month:

2 Purchased four washing machines worth P24,000 from Automatic Centre using
the Citibank personal credit card. Applied for a one-year credit term, the liability to
be paid by the business starting at the end of the month.

3 Rented a store space for a monthly fee of P5,000 to be paid in advance at the
start of every month.

4 Hired a clerk and two workers at a monthly salary of P4,000 each.

5 Bought washing supplies and paid cash of P4,500.

6 Rendered services to the boarders of Laredo’s Dormitory and received P2,500 in


cash.

9 Bought office equipment worth P6,000 using Citibank credit card. Applied for a
term of six months, the liability to be paid by the business.

10 Billed the following clients for washing services rendered: San Lorenzo boarders
– Mitch Eulogio P1,000 and Helen Narvasa, P500; Holy Spirit boarders – Kristy
Gatdula, P1,500 and Myrna Tan. P750.

11 Cash receipts for washing services, P2,500

13 Paid P1,500 for taxes and licenses


14 Collected in full the account of Mitch Eulogio

15 Paid P6,000 for salaries of the clerk and workers

16 Collected P500 each from the following account customers; Helen Narvas, Kristy
Gatdula and Myrna Tan.

17 Collected P1,500 cash for washing services rendered by the business.

25 Received bills from: PLDT, P1,875; Meralco, P4,550 and Manila Water, P750.’

26 Paid the Meralco bill.

29 Paid P6,000 for salaries, and the first monthly installment to Automatic Centre.

31 Washing supplies used up amounted to P2,000.

Required:

a) Journalize the above transactions using a two-column general journal.


b) Post to the accounts receivable and accounts payable subsidiary ledgers.
c) Prepare a schedule of accounts receivable and accounts payable.

Problem 2:

a) Based on the entries in Problem 1, prepare a Chart of Accounts for Royal Laun-
dry Services, using Account No. 101 for Assets, 201 for Liabilities, 301 for Capi-
tal, 401 for income, 501 for expenses.

b) Based on the Chart of Accounts, open the general ledger and post the journal en-
tries.

c) Extract the account balances and prepare a trial balance.

d) Compare the balance of the accounts receivable and accounts payable ledgers
against the schedules of accounts receivable and accounts payable that you pre-
pared in Problem.

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