Juvy Stephanie A.

Martinez 2BSA-1

NAME OF THE COMPANY: JUVY LAUNDRY SHOP

BUSINESS ORGANIZATION: SOLE PROPRIETORSHIP
TYPE OF BUSINESS: SERVICE BUSINESS

Juvy Laundry Shop

Post-Closing Trial Balance
December 31, 2020
Account Title Debit Credit
Cash P 950,870
Accounts Receivable 80,640
Allowance for Doubtful Accounts P 1,050
Notes Receivable 50,800
Interest Receivable 3,725
Service Vehicle 350,500
Accumulated Depreciation – S.V. 5,850
Accounts Payable 55,080
Notes Payable 25,000
Deferred Income 10,000
Interest Payable 1,200
Juvy, Capital 1,338,355
TOTAL P 1,436,535 P 1,436,535

CHART OF ACCOUNTS
ASSETS OWNER’S EQUITY
101 Cash 301 Juvy, Capital
105 Accounts Receivable 302 Juvy, Withdrawal
105a Allowance for Doubtful Accounts
107 Notes Receivable INCOME AND EXPENSES
109 Interest Receivable 401 Service Income
110 Laundry Supplies 405 Interest Income
120 Prepaid Rent 501 Salaries Expense
150 Laundry Equipment – Washing Machine 502 Rent Expense
150a Accumulated Depreciation – W.M. 503 Laundry Supplies Expense
155 Service Vehicle 504 Taxes and Licenses Expense
155a Accumulated Depreciation – S.V. 505 Depreciation Expense – W.M
506 Depreciation Expense – S.V.
LIABILITIES 507 Bad Debt Expense
201 Accounts Payable 508 Interest Expense
205 Notes Payable
210 Deferred Income
215 Interest Payable 900 Income Summary
10 MAJOR TRANSACTIONS:
September 2 Bought washing machine worth P80,000. Paying P30,000 in cash and the balance
is on account.
September 4 Paid rent in advance for 3 months’ worth P9,000.
September 5 Paid cash to DTI for the registration fees, P3,500.
September 6 Purchase laundry supplies worth P10,350.
September 11 Received cash for P5,000 for services not yet rendered.
September 12 Purchase dryer machine worth P25,000; paid P10,000 and issued promissory note
for the balance.
September 14 Billed Fred with promissory note for laundry services rendered, P5,850.
September 25 Received initial payment from Fred worth P2,000.
September 30 Paid salaries to shop helpers for the month of September, P8,000.
September 31 Juvy withdraw cash from his capital in the amount of P3,500.

5 ADJUSTING TRANSACTIONS:
1. The acquired washing machine has a useful life of 6 years, salvage value of P10,000. It
uses sum of the years digit method. Do the adjusting for the month of September.
2. The acquired dryer machine has a useful life of 8 years, and it uses double declining
method. Do the adjusting for the month of September.
3. The promissory note on September 14 bears an interest of 3% per month. Do the adjusting
for the month of September.
4. Adjust the prepaid rent used for the month of September.
5. Allowance for doubtful accounts is 6% of the total receivable.