INSTITUTE OF COMPUTING STUDIES

Accounting Cycle – Module 6 Week 6

WORKSHEET ACTIVITY/IES:

Student’s Name: Bondoc, John Paulo P. Score:

Year and Section: ACT-2B Date: 12/26/2020

The trial balance of Irene’s Laundry on June 30 is shown below:

IRENE’S COIN LAUNDRY
Trial Balance
June 30, 2015
Account No. Account Title Debit Credit
101 Cash 8,750.00
112 Accounts Receivable 2,320.00
126 Supplies 1,900.00
157 Equipment 9,000.00
201 Accounts Payable 800.00
206 Notes Payable 5,500.00
301 Irene Bora, Capital 15,670.00
Total 21,970.00 21,970.00

The July transactions were as follows:

Jul 5 Received P850.00 cash from customers for services rendered

y
1 Billed customers for services performed, P6,300.00
0
1 Paid salaries of employees, P1,400.00
5
2 Paid P2,000.00 cash to creditors for the notes payable
0
2 Received P250.00 for services rendered on cash basis
1
2 Purchased supplies on account, at a cost of P350.00
6
2 Paid P250.00 for the July 26 transaction
7
2 Withdrew P600.00 cash for personal use
9
3 Paid utilities P900.00
0
3 Paid salaries of employees, P1,400.00

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 INSTITUTE OF COMPUTING STUDIES
1

Additional Information
Provision should be made for the following additional accounts, No. 306, Irene Bora,
Drawings, No. 426 Laundry Revenue, No. 726 Salaries Expense, No. 732 Utilities Expense, and
No. 802 Revenue and Expense Summary.
Instructions: Create the answer sheets for and submit the following:
1. Chart of Accounts
2. July Journal Entries
3. General Ledger postings for the month
4. Trial Balance
5. Income Statement
6. Balance Sheet
7. Closing Entries
8. Post-Closing Trial Balance

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 INSTITUTE OF COMPUTING STUDIES
I. CHART OF ACCOUNTS
IRENE'S COIN LAUNDRY
CHART OF ACCOUNTS
JULY 31, 2015

ASSETS
101 Cash
112 Accounts Receivable
126 Supplies
157 Equipment
201 Accounts Payable

LIA BILITIES
206 Notes Payable

INCOME
426 Laundry Revenue

EXPENSE
726 Salaries Expense
732 Utilities Expense

OWNER'S EQUITY
301 Irene Bora, Capital
306 Irene Bora, Drawings
802 Revenue and Expense Summary

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 INSTITUTE OF COMPUTING STUDIES
II. GENERAL JOURNAL
Date A ccount Titles and Explanation F Debit Credit
2015
JUL 5 Cash 101 850.00
Laundry Revenue 426 850.00
Received 850.00 cash from customers for services rendered

10 Accounts Receivable 112 6,300.00

Laundry Revenue 426 6,300.00
Billed customers for services rendered amounting to 6,300.00

15 Salaries Expense 726 1,400.00

Cash 101 1,400.00
Paid salaries of employees

20 Notes Payable 206 2,000.00

Cash 101 2,000.00
Paid creditors in payment of notes payable

21 Cash 101 250.00

Laundry Revenue 426 250.00
Received 250.00 cash from customers for services rendered

26 Supplies 126 350.00

Accounts Payable 201 350.00
Purchase supplies on account

27 Accounts Payable 201 250.00

Cash 101 250.00
Paid creditors in payment of accounts payable - July 26

29 Irene Bora, Drawings 306 600.00

Cash 101 600.00
Withdrew cash for personal use

30 Utilities Expense 732 900.00

Cash 101 900.00
Paid utilities for the month

31 Salaries Expense 726 1,400.00

Cash 101 1,400.00
Paid salaries of employees

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 INSTITUTE OF COMPUTING STUDIES
III. GENERAL LEDGER
CASH ACCT. NO. 101
Date F Debit Date F Credit
JUL 1 Beginning Balances 8,750.00 JUL 15 Paid salaries of employees J1 1,400.00
5 Received cash for services rendered J1 850.00 20 Paid creditors in payment of notes payableJ1 2,000.00
21 Received cash for services rendered J1 250.00 27 Paid creditors in payment of accounts J1 250.00
29 Withdrew cash for personal use J1 600.00
30 Paid utilities for the month J1 900.00
31 Paid salaries of employees J1 1,400.00
9,850.00 6,550.00
- 6,550.00
BALANCES 3,300.00

ACCOUNTS RECEIVABLE ACCT. NO. 112

Date F Debit Date F Credit
JUL 1 Beginning Balances 2,320.00
10 Billed customers for services rendered J1 6,300.00
BALANCES 8,620.00

SUPPLIES ACCT. NO. 126

Date F Debit Date F Credit
JUL 1 Beginning Balances 1,900.00
26 Purchase supplies on account J1 350.00
BALANCES 2,250.00

EQUIPMENT ACCT. NO. 157

Date F Debit Date F Credit
JUL 1 Beginning Balances 9,000.00

BALANCES 9,000.00

ACCOUNTS PAYABLE ACCT. NO. 201

Date F Debit Date F Credit
JUL 27 Paid creditors in payment of accounts J1 250.00 JUL 1 Beginning Balances 800.00
26 Purchase supplies on account J1 350.00
250.00 1,150.00
- 250.00
BALANCES 900.00

NOTES PAYABLE ACCT. NO. 206

Date F Debit Date F Credit
JUL 20 Paid creditors in payment of notes payableJ1 2,000.00 JUL 1 Beginning Balances 5,500.00

BALANCES 3,500.00

IRENE BORA, CAPITAL ACCT. NO. 301

Date F Debit Date F Credit
JUL 31 Closing Entries 4 J2 600.00 JUL 1 Beginning Balances 15,670.00
31 Closing Entries 3 J2 3,700.00
600.00 19,370.00
- 600.00
BALANCES 18,770.00

IRENE BORA, DRAWINGS ACCT. NO. 306

Date F Debit Date F Credit
JUL 29 Withdrew cash for personal use J1 600.00 JUL 31 Closing Entries 4 J2 600.00

BALANCES 600.00 BALANCES 600.00

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 INSTITUTE OF COMPUTING STUDIES
LAUNDRY REVENUE ACCT. NO. 426
Date F Debit Date F Credit
JUL 31 Closing Entries 1 J2 7,400.00 JUL 5 Received cash for services rendered J1 850.00
10 Billed customers for services rendered J1 6,300.00
21 Received cash for services rendered J1 250.00
BALANCES 7,400.00 BALANCES 7,400.00

SALARIES EXPENSE ACCT. NO. 726

Date F Debit Date F Credit
JUL 15 Paid salaries of employees J1 1,400.00 JUL 31 Closing Entries 2 J2 2,800.00
31 Paid salaries of employees J1 1,400.00
BALANCES 2,800.00 BALANCES 2,800.00
.
UTILITIES EXPENSE ACCT. NO. 732
Date F Debit Date F Credit
JUL 30 Paid utilities of the month J1 900.00 JUL 31 Closing Entries 2 J2 900.00

BALANCES 900.00 BALANCES 900.00

REVENUE AND EXPENSE SUMMARY ACCT. NO. 802

Date F Debit Date F Credit
JUL 31 Closing Entries 2 J2 3,700.00 JUL 31 Closing Entries 1 J2 7,400.00
31 Closing Entries 3 J2 3,700.00

BALANCES 7,400.00 BALANCES 7,400.00

IV. TRIAL BALANCE

IRENE'S COIN LAUNDRY

TRIAL BALANCE
JULY 31, 2015

ACCOUNTS DEBIT CREDIT

Cash 3,300.00
Accounts Receivable 8,620.00
Supplies 2,250.00
Equipment 9,000.00
Accounts Payable 900.00
Notes Payable 3,500.00
Irene Bora, Capital 15,670.00
Irene Bora, Drawings 600.00
Laundry Revenue 7,400.00
Salaries Expense 2,800.00
Utilities Expense 900.00
TOTAL 27,470.00 27,470.00

V. INCOME STATEMENT

IRENE'S COIN LAUNDRY

INCOME STATEMENT
FOR THE MONTH ENDING JULY 31, 2015

Laundry Revenue 7,400.00

Less: Operating Expenses
Salaries Expense 2,800.00
Utilities Expense 900.00 3,700.00
Net Profit 3,700.00

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 INSTITUTE OF COMPUTING STUDIES
VI. BALANCE SHEET

IRENE'S COIN LAUNDRY

BALANCE SHEET
AS OF JULY 31, 2015

ASSETS
Current Assets:
Cash 3,300.00
Accounts Receivable 8,620.00
Supplies 2,250.00
Total Current Assets 14,170.00

Non-Current Assets
Equipment 9,000.00
Total Non-Current Assets 9,000.00
Total Assets 23,170.00

LIABILITIES AND OWNER'S EQUITY

Liabilities
Accounts Payable 900.00
Notes Payable 3,500.00
Total Liabilities 4,400.00

Owner's Equity
Irene Bora, Capital 15,670.00
Less: Irene Bora, Drawings 600.00
Net Capital 15,070.00
Add: Net Profit 3,700.00
Total Capital 18,770.00
Total Liiabilities and Owner's Equity 23,170.00

VII. CLOSING ENTRIES

Date Account Titles and Explanation F Debit Credit
2015
JUL 31 Laundry Revenue 426 7,400.00
Revenue and Expense Summary 802 7,400.00
To close the income account to the Revenue and Expense Summary

31 Revenue and Expense Summary 802 3,700.00

Salaries Expense 726 2,800.00
Utilities Expense 732 900.00
To close expense accounts to the Revenue and Expense Summary

31 Revenue and Expense Summary 802 3,700.00

Irene Bora, Capital 301 3,700.00
To close the Revenue and Expense Summary to Capital

31 Irene Bora, Capital 301 750.00

Irene Bora, Drawings 306 750.00
To close personal withdrawal of Irene Bora

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 INSTITUTE OF COMPUTING STUDIES
VIII. POST-CLOSING TRIAL BALANCE
IRENE'S COIN LAUNDRY
POST CLOSING TRIAL BALANCE
JULY 31, 2015

ACCOUNTS DEBIT CREDIT

Cash 3,300.00
Accounts Receivable 8,620.00
Supplies 2,250.00
Equipment 9,000.00
Accounts Payable 900.00
Notes Payable 3,500.00
Irene Bora, Capital 18,770.00
TOTAL 23,170.00 23,170.00

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