Part I.

Solve the following problems:

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 Narvasa, 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 P750.
26 Paid the Meralco Bill.
29 Paid P6,000 for salaries, and the first monthly installment to Automatic Centre.
30 Washing supplies used up amounted to P2,000.

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

b.) Post to the Ledger
c.) Prepare a Trial Balance