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Mr. Denver Ambrose, a retired public school teacher, started his laundry business in the beginning of June 2018. He used
all of his savings to start a “coin operated” laundry business. He named it Alpha Laundry Services (ALS). The following are
the business transactions for the month of June 2018, the first month of business operation:

1) June 1, 2018 - Mr. Ambrose invested P 200,000.00 cash in his newly opened Alpha Laundry System business.
2) On June 5, 2018 – Alpha Laundry Systems purchased laundry equipment for cash, P150,000.00.
3) On June 6, 2018 – Alpha Laundry Systems paid cash in advance for the 1-year insurance coverage of laundry
equipment amounting to P6,000.00. Monthly insurance expense will be recognized for each month’s end report.
4) On June7, 2018–Alpha Laundry Systems bought supplies for laundry amounting to P10,000.00. The supplies
bought are laundry consumables such as detergent powder, soap bar and fabric softener. Monthly inventory will
be conducted to determine unused supplies and will be recognized for each month end report.
5) On June 15, 2018 – Alpha Laundry Systems paid P4,750 cash for salary of laundry operator.
6) On June 16, 2018 – Alpha Laundry Systems received P25,000.00 cash for laundry services rendered to MZ Hotel.
7) On June 17, 2018 – Alpha Laundry Systems rendered service to Argon Hotel amounting to P45,000.00. Argon
promised to pay on June 20 of the same year.
8) On June 18, 2018, Alpha Laundry Systems purchased office supplies from Ku Enterprises amounting to P2,000.00
on account. ALS will pay it on June 25 of the same year.
9) On June 20, 2018, Alpha Laundry Systems collected payment from Argon Hotel.
10) On June 25, 2018, Alpha Laundry Systems paid in full the amount owed to Ku Enterprises.
11) On June 27, 2018, Alpha Laundry Systems paid electric bill for the month amounting to P1,000.00 in cash. The
payment is charged to Utility expense account.
12) On June 30, 2018, Alpha Laundry Systems paid a month’s transportation expense amounting to P1,300.00.
13) On June 30, 2018, Alpha Laundry Systems paid P5,000 cash for salary of laundry operator.

Journal Entry:
GENERAL JOURNAL PAGE 1

POST.
DATE PARTICULARS
REF DEBIT CREDIT
Cash
Ambrose, Capital
To record the initial Capital
investment of Mr. Ambrose.
Laundry equipment
Cash
To record the acquisition of laundry
equipment.
Prepaid insurance
Cash
To record the prepaid insurance for
the laundry equipment
Laundry supplies
Cash
To record acquisition of laundry
supplies
Salaries and Wages Expense
Cash
To record the payment of laundry
operator’s salary
Cash
Service Income
To record the payment received
from MZ Hotel
Accounts Receivable
Service Income
To record the service rendered to
Argon Hotel
Office Supplies
Accounts Payable
To record the acquisition of office
supplies on account from Ku Enterprises
 Cash
Accounts Receivable
To record the full payment from
Argon Hotel
Accounts Payable
Cash
To record the full payment of
account to Ku Enterprises.
Utilities Expense
Cash
To record the payment of
electricity for the month
Transportation Expense
Cash
To record the payment of
transportation for the month
Salaries and Wages Expense
Cash
To record the payment of
laundry operator’s salary
Rent Expense
Cash
To record payment of rent for the
month

T-Accounts

ASSETS

LIABILITIES OWNER’S EQUITY REVENUE

EXPENSES
 POST.
DATE PARTICULARS DEBIT CREDIT
REF
1) June 1, 2018 – Mr. Ambrose invested P 200,000.00 cash in his newly opened Alpha Laundry System
business.
2) On June 5, 2018 – Alpha Laundry Systems purchased laundry equipment for cash, P150,000.00.
3) On June 6, 2018 – Alpha Laundry Systems paid cash in advance for the 1-year insurance coverage of
laundry equipment amounting to P6,000.00. Monthly insurance expense will be recognized for each
month’s end report.
4) On June7, 2018 – Alpha Laundry Systems bought supplies for laundry amounting to P10,000.00. The
supplies bought are laundry consumables such as detergent powder, soap bar and fabric softener. Monthly
inventory will be conducted to determine unused supplies and will be recognized for each month end
report.
5) On June 15, 2018 – Alpha Laundry Systems paid P4,750 cash for salary of laundry operator.
6) On June 16, 2018 – Alpha Laundry Systems received P25,000.00 cash for laundry services rendered to MZ
Hotel.
7) On June 17, 2018 – Alpha Laundry Systems rendered service to Argon Hotel amounting to P45,000.00.
Argon promised to pay on June 20 of the same year.
8) On June 18, 2018 – Alpha Laundry Systems purchased office supplies from Ku Enterprises amounting to
P2,000.00 on account. ALS will pay it on June 25 of the same year.
9) On June 20, 2018 – Alpha Laundry Systems collected payment from Argon Hotel.
10) On June 25, 2018 – Alpha Laundry Systems paid in full the amount owed to Ku Enterprises.
11) On June 27, 2018 – Alpha Laundry Systems paid electric bill for the month amounting to P1,000.00 in cash.
The payment is charged to Utility expense account.
12) On June 30, 2018 – Alpha Laundry Systems paid a month’s transportation expense amounting to
P1,300.00.
13) On June 30, 2018 – Alpha Laundry Systems paid P5,000 cash for salary of laundry operator.
T-Account
ASSETS
LIABILITIES OWNER’S EQUITY REVENUE

EXPENSES
 MR. ALIH DELIVERY SERVICES
WORKSHEET
FOR THE PERIOD OF JANUARY 31, 2022
Unadjusted Trial
Account Adjustments Adjusted Trial Balance
ACCOUNT TITLES Balance
No.
DR CR DR CR DR CR
Cash
Delivery Truck
Furniture
Office Supplies
Accounts Receivable
Accu. Dep. – Delivery Truck
Accounts Payable
Mr. A. Capital
Service Income
Gas Expense
Truck Repairs Expense
Utility Expense
Salaries and Wages Expense
Depreciation Expense