Problem #8
Recording Transactions in T-Accounts and Preparing a Trial Balance
On Oct. 1, 2021, Jackielyn Magpantay established City Laundry. The accountant listed the following accounts in the chart of accounts: Cash; Supplies; Prepaid Insurance; Laundry Equipment; Furniture and Fixtures; Accounts Payable; Magpantay, Capital;Magpantay, Withdrawals; Laundry Revenues; Salaries Expense; Rent Expense; Utilities
Expense and Miscellaneous Expense.
During October, the following transactions were completed:
a. Magpantay deposited P192,000 in a bank account in the name of the business.
b. Bought tables and chairs for cash, P12,960.
c. Paid rent for the month, P6,950.
d. Bought washers and dryers for P 163,000, giving P32,000 as down payment, with the
remainder due in thirty days.
e. Bought washing supplies on account from Juanita Rabena Distributors, P5,190.
f. Received P17,960 from cash customers for the first half of the month.
g. Paid P2,140 for a one-year liability insurance policy.
h. Received and paid electric bill, P1,940.
i. Paid P1,230 on account for the washing supplies acquired in transaction (e).
j. Received P27,920 from cash customers for the second half of the month.
k. Paid salaries to employees, P10,350.
l . Magpantay withdrew cash for personal use, P9,500.
Required:
1. Record the transactions directly into the T-accounts using the alphabets to identify
each transaction.
2. Prepare a trial balance.