Reference no: EM132650529
On September 1, 2020, Mr. Bob Bartolome opened a laundry shop with a company name Quick Flash Laundry Shop. During the first month of operations the following transactions occurred.
Sept. 1 - Bob invested P20,000 cash in the business.
2 - the company paid P1,000 cash for store rent for September.
3 - Purchased washers and dryers for P25,000, paying P10,000 in cash and signing P15,000, 6 month, 12% note payable.
4 - Paid P1,200 for a one-year accident insurance policy.
10 - Received a bill from the Daily News for advertising the opening of the Laundry Shop, P200.
20 - Mr. Bartolome withdrew P700 cash for personal use.
30 - The company determined that cash receipts for laundry services for the month were P6,200.
The chart of accounts for the company is the same as that for Pioneer Advertising Agency plus the following:
No. 154-Laundry Equipment,
No. 610-Advertising Expense,
No. 301-B. Bartolome, Capital; and
No. 306-B. Bartolome, Drawing.
Required:
Question (a) Journalize the September transactions,
Question (b) Open ledger accounts and post the September transactions.