All rights reserved to Dr.

Villegas

Name of business

GENERAL JOURNAL

Date Account Titles & Explanation P.R. Debit

10
 page 1

Credit
All rights reserved to Dr. Villegas

XYS LAUNDRY SERVICES

CHART OF ACCOUNTS

Code Financial Position Accounts Code Financial Position Accounts

Assets Owner's Equity

100 Cash on hand 400 Almazan, Capital

110 Cash in bank 410 Almazan, Drawing

120 Petty Cash Fund

130 Marketable Securities

140 Notes Receivable Code Financial Performance Accounts

150 Accounts Receivable Income

160 Allowance for Uncollectible Accounts 500 Service Income

170 Laundry Supplies 510 Interest Income

180 Prepaid Rent 520 Other Income

190 Prepaid Insurance Expenses

200 Land 600 Salaries & Wages

210 Building 610-609 Fringe benefits

215 Accumulated Deprenciation - Building 620 Transportation Expense

220 Service Vehicle 630 Gas & Oil Expense

225 Accumulated Deprenciation - Vehicle 640 Laundry Supplies Expense

230 Laundry Equipment 650 Light & Power Expense

235 Accumulated Dep'n - Laundry Equipment 660 Water Expense

240 Furniture & Fixtures 670 Telephone Expense

245 Accumulated Depreciation - Furn/Fixtures 680 Advertising Expense

Liabilities 690 Rent Expense

300 Notes Payable 700 Representation Expense

310 Accounts Payable 710 Insurance Expense

320 Unearned Income 720 Repairs & Maintenance

330 DCWD Payable 730 Taxes & Licenses

340 Davao Light Payable 740 Uncollectible accounts

350 PLDT Payable 750-759 Depreciation Expense

360 Interest Payable 760 Interest Expense

770 Miscellaneous Expenses

Accounts
 The following are some transactions of XYS Laundry Services during June 2
operated by Nardo Almazan with an initial investment of P 300,000, Laund
150,000, Laundry and Supplies of P56,000.
JUNE
1 Analysis

Rules

Entry

TYPE

Cash received from laundry services, P 42,700.

Analysis

Rules

Entry

TYPE
2 Paid Shell for Gas and Oil, P20,000

Analysis

Rules

Entry

TYPE

3 Received cash from owner as additional investment, P600,000.

Analysis

Rules

Entry

TYPE

Purchased service vehicle for P500,000 from Toyota. Terms: 30% downp
balance on account.

Analysis

Rules

Entry
 Entry

TYPE

4 Paid advertising expense, P5,000.

Analysis

Rules

Entry

TYPE

Billed Customer A for laundry services on account, P25,200. (Billed means

5 Statement to …)

Analysis

Rules

Entry
 TYPE

6 Purchased laundry supplies on credit, P6,000.

Analysis

Rules

Entry

TYPE

7 Paid rent for July, P20,000.

Analysis

Rules

Entry

TYPE

8 Collected cash from Customer A, P 15,200.

 Analysis

Rules

Entry

TYPE

9 Received a promissory note from Customer A to cancel the balance of her a

Analysis

Rules

Entry

TYPE

10 Owner withdrew cash for personal use, P20,000.

Analysis

Rules

Entry
 TYPE

11 Received cash from various clients, P 38,600

Analysis

Rules

Entry

TYPE

12
Received the utility bills for the month: Water =P 1,800, Electricity = P15,
1,299. (expense recognition thru the Accrual Concept)

Analysis

Rules

Entry

TYPE
 TYPE

15 Salaries of workers P30,000.

Analysis

Rules

Entry

TYPE

20 Paid the utilities: water, light and telephone (ref. June 12)

Analysis

Rules

Entry

TYPE

Billed Shy & Beauty for the services rendered, P46,500

25 Billed Shy & Beauty for the services rendered, P46,500

Analysis

Rules

Entry

TYPE

26 Paid Shell for Gas and Oil, P8,500

Analysis

Rules

Entry

TYPE

30 Salaries of workers P32,000.

Analysis

Rules
Entry

TYPE
e following are some transactions of XYS Laundry Services during June 2020. It is owned an
erated by Nardo Almazan with an initial investment of P 300,000, Laundry Equipment of P
0,000, Laundry and Supplies of P56,000.

Increased in Assets, Increased in Owner's Equity

Increases in Assets (Cash, Laundry Equipment, Laundry Supplies) are recorded as DEBIT.
Increases in Owner's Equity (Almazan, Capital) is recorded as CREDIT.
Increases in Assets are DEBITED to the Account Titles:
Cash
Laundry Equipment
Laundry Supplies
Increase in OE is CREDITED to the proper Account Title:
Almazan, Capital
Business Transactions
SOURCE OF ASSET

sh received from laundry services, P 42,700.

Increased in Asset, Increased in INCOME which affect the Owner's Equity
Increases in ASSET (Cash) is recorded as DEBIT.
Increases in Income (Service Income) is recorded as CREDIT.
Increases in Asset is DEBITED to the Account Title:
Cash. P42,700
Increases in OE is CREDITED to the proper Account Title:
Service Income P42,700

Business Transactions
SOURCE OF ASSET
d Shell for Gas and Oil, P20,000

Increased in Expense or Decrease in Owner's Equity, Decreased in Asset

Increases in EXPENSE (Gas & Oil) is recorded as DEBIT.
Decreases in ASSET (Cash) is recorded as CREDIT.
Increases in Expense is DEBITED to the Account Title:
Gas and Oil
Decreases in Asset is CREDITED to the proper Account Title:
Cash
Business Transactions
USE OF ASSET

ceived cash from owner as additional investment, P600,000.

Increased in Asset, Increased in Owner's Equity
Increases in ASSET (CASH) is recorded as DEBIT.
Increases in OWNER'S EQUITY (ALMAZAN, CAPITAL) is recorded as CREDIT.
Increases in ASSET is DEBITED to the Account Title:
CASH
Increases in OWNER'S EQUITY is CREDITED to the proper Account Title:
ALMAZAN, CAPITAL

Business Transactions
SOURCE OF ASSET

rchased service vehicle for P500,000 from Toyota. Terms: 30% downpayment and the
ance on account.

Increased in Asset, Decreased in Asset, Increased in Liability

Increases in ASSET (SERVICE VEHICLE) is recorded as DEBIT.
Decreases in ASSET (CASH) and increases in LIABILITY (ACCOUNTS PAYABLE) are recorded as CR
Increases in ASSET is DEBITED to the Account Title:
 SERVICE VEHICLE
Decreases in ASSET and Increases in LIABILITY are CREDITED to the proper Account Title:
CASH
ACCOUNTS PAYABLE

Business Transactions
SOURCE OF ASSET (Inc in Asset = Service Vehicle & Increase in Liability = Accounts
EXCHANGE OF ASSET (Inc in Asset = Service Vehicle & Decrease in another Asset =

d advertising expense, P5,000.

Increased in Expense or Decrease in Owner's Equity, Decreased in Asset

Increases in EXPENSE (ADVERTISING EXPENSE) is recorded as DEBIT.
Decreases in ASSET (CASH) is recorded as CREDIT.
Increases in Expense is DEBITED to the Account Title:
ADVERTISING EXPENSE
Decreases in Asset is CREDITED to the proper Account Title:
CASH
Business Transactions
USE OF ASSET

led Customer A for laundry services on account, P25,200. (Billed means sent a Billing
tement to …)

Increased in Asset, Increased in INCOME which affect the Owner's Equity

Increases in ASSET (ACCOUNTS RECEIVABLE) is recorded as DEBIT.
Increases in Income (SERVICE INCOME) is recorded as CREDIT.
Increases in Asset is DEBITED to the Account Title:
ACCOUNTS RECEIVABLE
Increases in OE is CREDITED to the proper Account Title:
SERVICE INCOME
 Business Transactions
SOURCE OF ASSET

rchased laundry supplies on credit, P6,000.

Increased in Asset, Increased in LIABILITY

Increases in ASSET (LAUNDRY SUPPLIES) is recorded as DEBIT.
Increases in LIABILITY (ACCOUNTS PAYABLE) is recorded as CREDIT.
Increases in Asset is DEBITED to the Account Title:
LAUNDRY SUPPLIES
Increases in OE is CREDITED to the proper Account Title:
ACCOUNTS PAYABLE

Business Transactions
SOURCE OF ASSET

d rent for July, P20,000.

Increased in Expense, Decreased in Asset

Increases in EXPENSE (RENT EXPENSE) is recorded as DEBIT.
Decreases in ASSET (CASH) is recorded as CREDIT.
Increases in Expense is DEBITED to the Account Title:
RENT EXPENSE
Decreases in Asset is CREDITED to the proper Account Title:
CASH
Business Transactions
USE OF ASSET

lected cash from Customer A, P 15,200.

 Increased in Asset, Decreased in Asset
Increases in ASSET (CASH) is recorded as DEBIT.
Decreases in ASSET (ACCOUNTS RECEIVABLE) is recorded as CREDIT.
Increases in ASSET is DEBITED to the Account Title:
CASH
Decreases in ASSET is CREDITED to the proper Account Title:
ACCOUNTS RECEIVABLE

Business Transactions
EXCHANGE OF ASSET (Inc in Asset = Cash & Decrease in another Asset = Accounts

ceived a promissory note from Customer A to cancel the balance of her account.

Increased in Asset, Decreased in Asset

Increases in ASSET (NOTES RECEIVABLE) is recorded as DEBIT.
Decreases in ASSET (ACCOUNTS RECEIVABLE) is recorded as CREDIT.
Increases in ASSET is DEBITED to the Account Title:
NOTES RECEIVABLE
Decreases in ASSET is CREDITED to the proper Account Title:
ACCOUNTS RECEIVABLE
Business Transactions
EXCHANGE OF ASSET (Inc in Asset = Notes Rec'ble & Decrease in another Asset = A

wner withdrew cash for personal use, P20,000.

Decreased in Owner's Equity, Decreased in Asset
Decreases in OWNER'S EQUITY (ALMAZAN, DRAWING) is recorded as DEBIT.
Decreases in ASSET (CASH) is recorded as CREDIT.
Increases in Expense is DEBITED to the Account Title:
ALMAZAN, DRAWING
Decreases in Asset is CREDITED to the proper Account Title:
CASH
 Business Transactions
USE OF ASSET

ceived cash from various clients, P 38,600

Increased in Asset, Increased in INCOME which affect the Owner's Equity

Increases in ASSET (CASH) is recorded as DEBIT.
Increases in Income (SERVICE INCOME) is recorded as CREDIT.
Increases in Asset is DEBITED to the Account Title:
CASH
Increases in OE is CREDITED to the proper Account Title:
SERVICE INCOME
Business Transactions
SOURCE OF ASSET

ceived the utility bills for the month: Water =P 1,800, Electricity = P15,200, Telephone = P
99. (expense recognition thru the Accrual Concept)

Increased in Expenses, Increased in LIABILITY

Increases in EXPENSES (WATER, LIGHT & POWER & TELEPHONE EXPENSES) are recorded as DEBIT
Increases in LIABILITY (DCWD, DLPC & PLDT PAYABLES) are recorded as CREDIT.
Increases in Expenses are DEBITED to the Account Title:
WATER EXPENSE
LIGHT & POWER EXPENSE
TELEPHONE EXPENSE
Increases in LIABILITIES are CREDITED to the proper Account Title:
DCWD PAYABLE
DLPC PAYABLE
PLDT PAYABLE
Business Transactions
 EXCHANGE OF CLAIMS (Note: increases in expenses, decreases Owner's Equity)

aries of workers P30,000.

Increased in Expense, Decreased in Asset

Increases in EXPENSE (SALARIES & WAGES) is recorded as DEBIT.

Decreases in ASSET (CASH) is recorded as CREDIT.

Increases in Expense is DEBITED to the Account Title:

SALARIES & WAGES

Decreases in Asset is CREDITED to the proper Account Title:

CASH
Business Transactions
USE OF ASSET

d the utilities: water, light and telephone (ref. June 12)

Decreased in LIABILITY, Decreased in ASSET

Decreases in LIABILITIES (WATER, LIGHT & POWER & TELEPHONE EXPENSES) are recorded as DEB
Decreases om ASSET (CASH) is recorded as CREDIT.
Decreases in Liabities are DEBITED to the Account Title:
DCWD PAYABLE
DLPC PAYABLE
PLDT PAYABLE
Decrease in Asset is CREDITED to the proper Account Title:
CASH
Business Transactions
USE OF ASSET

led Shy & Beauty for the services rendered, P46,500

led Shy & Beauty for the services rendered, P46,500

Increased in Asset, Increased in INCOME which affect the Owner's Equity

Increases in ASSET (ACCOUNTS RECEIVABLE) is recorded as DEBIT.
Increases in Income (SERVICE INCOME) is recorded as CREDIT.
Increases in Asset is DEBITED to the Account Title:
ACCOUNTS RECEIVABLE
Increases in OE is CREDITED to the proper Account Title:
SERVICE INCOME

Business Transactions
SOURCE OF ASSET

d Shell for Gas and Oil, P8,500

Increased in Expense, Decreased in Asset

Increases in EXPENSE (Gas & Oil) is recorded as DEBIT.
Decreases in ASSET (Cash) is recorded as CREDIT.
Increases in Expense is DEBITED to the Account Title:
Gas and Oil
Decreases in Asset is CREDITED to the proper Account Title:
Cash
Business Transactions
USE OF ASSET

aries of workers P32,000.

Increased in Expense, Decreased in Asset

Increases in EXPENSE (SALARIES & WAGES) is recorded as DEBIT.

Decreases in ASSET (CASH) is recorded as CREDIT.

Increases in Expense is DEBITED to the Account Title:

SALARIES & WAGES

Decreases in Asset is CREDITED to the proper Account Title:

CASH
Business Transactions
USE OF ASSET
Note the order is always Debit & then Credit
d as CREDIT.
ounts Payable)
sset = Cash)
ounts Receivable)

set = Accts Receivable)

as DEBIT (CANCELLABTION).
FIN
 XYS LAUNDRY SERVICES
FINANCIAL TRANSACTION ANALYSIS
 All rights reserved to Dr. Villegas

XYS Laundry Services

GENERAL JOURNAL

Date Account Titles & Explanation P.R.

1 2022

2 June 1 Cash on hand 100

3 Laundry supplies 170

4 Laundry Equipment 230

5 Almazan, Capital 400

6 Initial investment.
7

8 Cash 100

9 Service Income 500

10 Revenue earned.

11

12 2 Gas & Oil Expense 630

13 Cash 100

14 Paid supplier.

15

16 3 Cash 100

17 Almazan, Capital 400

18 Additional investment.

19

Service Vehicle 220

Cash 100
Accounts Payable-Toyota 310
Terms: 30% down & 70% on account.

20 4 Advertising expense 680

21 Cash 100

22 Paid ads.

Assume that this is the next page. We write again the headings and titles. Change the pagination to page 2.

XYS Laundry Services

GENERAL JOURNAL

Date Account Titles & Explanation P.R.

1 2022
 2 June 5 Accounts Receivable - Customer A 150

3 Service income 500

4 Billed customer for services rendered.

6 6 Laundry supplies 170

7 Accounts Payable 310

8 Purchased supplies on account.

10 7 Rent expense 690

11 Cash 100

12 Paid July rental.

13

14 8 Cash on hand 100

15 Accounts Receivable - Customer A 150

16 Partial collection.

17

18 9 Notes Receivable - Customer A 140

19 Accounts Receivable - Customer A 150

20 Cancelled credit for promissory note.

21

22

Assume that this is the next page. We write again the headings and titles. Change the pagination to page 3.

XYS Laundry Services

GENERAL JOURNAL

Date Account Titles & Explanation P.R.

1 2022

2 June 10 Almazan, Drawing 410

3 Cash 100

4 Personal withdrawal.

6 11 Cash 100

7 Service Income 500

8 Revenue earned.

10 12 Water Expense 660

11 Light & Power Expense 650

12 Telephone Expense 670

 13 DCWD Payable 330

14 DLPC Payable 340

15 PLDT Payable 350

16 Recorded utility bills for May-June.

17

18 15 Salaries & wages 600

19 Cash 100

20 Paid salaries.

21

22 20 DCWD Payable 330

23 DLPC Payable 340

24 PLDT Payable 350

Cash 100
Paid utilties.

25

Assume that this is the next page. We write again the headings and titles. Change the pagination to page 3.

XYS Laundry Services

GENERAL JOURNAL

Date Account Titles & Explanation P.R.

1 2022

2 June 25 Accounts Receivable - Shy & Beauty 150

3 Service Income 500

4 Personal withdrawal.

6 26 Gas & Oil Expense 630

7 Cash 100
8 Paid Shell.

10

11 30 Salaries & wages 600

12 Cash 100

13 Paid salaries.

14

15

16
17

18
 page 1

Debit Credit

300,000 Analysis
56,000
Rules
150,000
506,000

Entry
42,700
42,700

Type of
20,000
Business
20,000 Transactions

600,000
600,000

500,000
150,000
350,000

5,000
5,000

the pagination to page 2.

page 2

Debit Credit
 25,200
25,200

6,000
6,000

20,000
20,000

15,200
15,200

10,000
10,000

the pagination to page 3.

page 3

Debit Credit

20,000
20,000

38,600
38,600

1,800
15,200
1,299
 1,800
15,200
1,299

30,000
30,000

1,800
15,200
1,299
18,299

the pagination to page 3.

page 4

Debit Credit

46,500
46,500

8,500
8,500

32,000
32,000
Increased in Assets, Increased in Owner's Equity
Increases in Assets are recorded as DEBIT.
Increases in Owner's Equity are recorded as CREDIT.
Increases in Assets are DEBITED to the Account Titles:
Cash
Laundry Equipment
Laundry Supplies
Increase in OE is CREDITED to the proper Account Title:
Almazan, Capital
SOURCE OF ASSETs
Increase in Assets: Cash, Supplies & Equipment
Increase in Owner's Equity: Almazan, Capital
 All rights reserved to Dr. Villegas

Name of business

GENERAL LEDGER

Account: Cash Account No. 100

Date Explanation J.R Debit Credit

1

10

11

12

13

14

15

16

17

18

19

20

21

22
ount No. 100

Balance
 All rights reserved to Dr. Villegas

XYS Laundry Services

GENERAL LEDGER

Account: Cash Account No. 100

Date Explanation J.R Debit Credit

1 June 1 Investment J-1 300,000

2 Revenue J-1 42,700

3 2 Shell J-1 20,000

4 3 Additonal investment J-1 600,000

Downpayment-Toyota J-1 150,000

5 4 Paid ads J-1 5,000

6 7 Paid rent J-2 20,000

7 8 Customer A-partial J-2 15,200

8 10 Withdrawals J-3 20,000

9 11 Revenue J-3 38,600

10 15 15th Salaries J-3 30,000

11 20 Paid utilities J-3 18,299

12 26 Shell J-4 8,500

13 30 Salaries J-4 32,000

In actual posting, each account will be provided by a page or pages.

For purposes of illustration, just provide or leave 3-4 blank spaces before starting another account.

GENERAL LEDGER
Account: Laundry Supplies Account No. 170
Date Explanation J.R Debit Credit
1 June 1 Initial investment J-1 56,000

2 6 Purchases J-2 6,000

GENERAL LEDGER
Account: Laundry Equipment Account No. 230
Date Explanation J.R Debit Credit
1 June 1 Initial investment J-1 150,000

GENERAL LEDGER
Account: Almazan, Capital Account No. 400
Date Explanation J.R Debit Credit
1 June 1 Initial investment J-1 506,000

2 3 Additional investment J-1 600,000

GENERAL LEDGER
Account: Service Vehicle Account No. 220
Date Explanation J.R Debit Credit
1 June 3 Toyota J-1 500,000

3
 GENERAL LEDGER
Account: Service Income Account No. 500
Date Explanation J.R Debit Credit
1 June 1 Revenue J-1 42,700

2 5 Revenue J-2 25,200

2 11 Revenue J-3 38,600

3 25 Shy & Beauty J-4 46,500

GENERAL LEDGER
Account: Gas and Oil Account No. 630
Date Explanation J.R Debit Credit
1 June 2 Shell J-1 20,000

1 26 Shell J-4 8,500

GENERAL LEDGER
Account: Accounts Payable Account No. 310
Date Explanation J.R Debit Credit
1 June 3 Toyota J-1 350,000

2 6 Laundry supplies J-2 6,000

4
 GENERAL LEDGER
Account: Rent Expense Account No. 690
Date Explanation J.R Debit Credit
1 June 7 July rental J-2 20,000

GENERAL LEDGER
Account: Advertising Expense Account No. 680
Date Explanation J.R Debit Credit
1 June 4 Ads J-1 5,000

GENERAL LEDGER
Account: Accounts Receivable Account No. 150
Date Explanation J.R Debit Credit
1 June 5 Customer A J-2 25,200

2 8 Customer A-Collection J-2 15,200

3 9 Customer A-Full collection J-2 10,000

4 25 Shy & Beauty J-4 46,500

Note: Receivables and Payables maintain a separate Subsidiary Ledger for each Client or Supplier
 GENERAL LEDGER
Account: Notes Receivable Account No. 140
Date Explanation J.R Debit Credit
1 June 9 Customer A J-2 10,000

GENERAL LEDGER
Account: Almazan, Drawing Account No. 410
Date Explanation J.R Debit Credit
1 June 10 Withdrawal J-3 20,000

GENERAL LEDGER
Account: Salaries and Wages Account No. 600
Date Explanation J.R Debit Credit
1 June 15 1/2 month J-3 30,000

2 30 30th salary J-4 32,000

GENERAL LEDGER
Account: Water Expense Account No. 660
 Date Explanation J.R Debit Credit
1 June 12 DCWD J-3 1,800

GENERAL LEDGER
Account: Light & Power Expense Account No. 650
Date Explanation J.R Debit Credit
1 June 12 Davao Light J-3 15,200

GENERAL LEDGER
Account: Telephone Expense Account No. 670
Date Explanation J.R Debit Credit
1 June 12 PLDT J-3 1,299

GENERAL LEDGER
Account: DCWD Payable Account No. 330
Date Explanation J.R Debit Credit
1 June 12 May-June bill J-3 1,800

2 20 Paid bill J-3 1,800

3
 GENERAL LEDGER
Account: DLPC Payable Account No. 340
Date Explanation J.R Debit Credit
1 June 12 May-June bill J-3 15,200

2 20 Paid bill J-3 15,200

GENERAL LEDGER
Account: PLDT Payable Account No. 350
Date Explanation J.R Debit Credit
1 June 12 May-June bill J-3 1,299

2 20 Paid bill J-3 1,299

3
ccount No. 100

Balance
300,000 J-1 Means Journal Entry page 1

342,700 Balance refers to the running balance

322,700 Balance + Debit-Credit

922,700

772,700

767,700

747,700

762,900

742,900

781,500

751,500

733,201

724,701

692,701 Ending balance

her account.

ccount No. 170

Balance
 56,000

62,000

ccount No. 230

Balance
150,000

ccount No. 400

Balance
506,000

1,106,000

ccount No. 220

Balance
500,000
ccount No. 500
Balance
42,700

67,900

106,500

153,000

ccount No. 630

Balance
20,000

28,500

ccount No. 310

Balance
350,000

356,000
ccount No. 690
Balance
20,000

ccount No. 680

Balance
5,000

ccount No. 150

Balance
25,200

10,000

46,500
ccount No. 140
Balance
10,000

ccount No. 410

Balance
20,000

ccount No. 600

Balance
30,000

62,000

ccount No. 660

 Balance
1,800

ccount No. 650

Balance
15,200

ccount No. 670

Balance
1,299

ccount No. 330

Balance
1,800

-
ccount No. 340
Balance
15,200

ccount No. 350

Balance
1,299

-
All rights reserved to Dr. Villegas

XYS Laundry Services

Trial Balance
June 30, 2022

Cash 692,701
Notes Receivable 10,000
Accounts Receivable 46,500
Laundry Supplies 62,000
Laundry Equipment 150,000
Service Vehicle 500,000
Accounts Payable 356,000

Almazan, Capital 1,106,000

Almazan, Drawing 20,000
Service Income 153,000
Salaries & Wages 62,000
Gas & Oil Expense 28,500
Light & Power Expense 15,200
Water Expense 1,800
Telephone Expense 1,299
Advertising Expense 5,000
Rent Expense 20,000
Total 1,615,000 1,615,000 double-ruling
nothing follows
All rights reserved to Dr. Villegas

XYS Laundry Services

WORKSHEET
June 30, 2022

Trial Balance
Debit Credit
Cash 692,701
Notes Receivable 10,000
Accounts Receivable 46,500
Laundry Supplies 62,000
Laundry Equipment 150,000
Service Vehicle 500,000
Accounts Payable 356,000
Almazan, Capital 1,106,000
Almazan, Drawing 20,000
Service Income 153,000
Salaries & Wages 62,000
Gas & Oil Expense 28,500
Light & Power Expense 15,200
Water Expense 1,800
Telephone Expense 1,299
Advertising Expense 5,000
Rent Expense 20,000
Total 1,615,000 1,615,000
Net Income or Profit
How will I know that my worksheet Income statement presents the r
is correct? Will having the same business operations through the
balancing figure a gurantee? INCOME/REVENUE less (-) EXPEN

Answer: The difference:

The 'balancing figure, ex. P19,291' If INCOME > Expenses = NET PRO
gives an initial assurance that If INCOME < Expenses = NET LOS
your work is OK. HOWEVER, the If INCOME = Expenses = BREAK E
best proof that your 'balance' is (no gain, no
the true or correct amount is
only when you are certain that
your JOURNAL ENTRIES (debits &
credits accounts) are CORRECT
debits and credits after analyzing
it carefully.
 ndry Services
RKSHEET
e 30, 2022

Statement of Financial
Income Statement Position
Debit Credit Debit Credit
692,701
10,000
46,500
62,000
150,000
500,000
356,000
1,106,000
20,000
153,000 -
62,000
28,500
15,200
1,800
1,299
5,000
20,000
133,799 153,000 1,481,201 1,462,000

19,201 19,201
153,000 153,000 1,481,201 1,481,201
 statement presents the result of Statement of Financial Position presents the financial
s operations through the condition (health) of the business through the ASSETS,
E/REVENUE less (-) EXPENSES accounts. LIABILITIES & OWNER'S EQUITY

erence: It proves the Accounting Equation:

ME > Expenses = NET PROFIT/INCOME Assets = Liabilities + Owner's Equity
ME < Expenses = NET LOSS In the Worksheet, the difference between the
ME = Expenses = BREAK EVEN Total Debits - Total Credits = NET INCOME/LOSS
(no gain, no loss)
If the Total DEBITS > Total CREDITS = NET PROFIT/INCO
If the Total DEBITS < Total CREDITS = NET LOSS

NOTE:
TOTAL DEBITS & TOTAL CREDITS must always be BALA
The account titles are
arranged according to the
chart of accounts from
Assets down to Expenses.

Note of the double ruling

al Position presents the financial
the business through the ASSETS,
R'S EQUITY

ing Equation:
+ Owner's Equity
e difference between the
redits = NET INCOME/LOSS

Total CREDITS = NET PROFIT/INCOME.

Total CREDITS = NET LOSS

AL CREDITS must always be BALANCE.

All rights reserved to Dr. Villegas

XYS Laundry Services

Income Statement
For the month ending, June 30, 2022

Service Income 153,000

Less: Salaries & Wages 62,000
Gas & Oil Expense 28,500
Light & Power Expense 15,200
Water Expense 1,800
Telephone Expense 1,299
Advertising Expense 5,000
Rent Expense 20,000
Total Expenses 133,799
NET INCOME/NET PROFIT 19,201 Double rule = means doubl
or nothing follows.
e rule = means double lines
r nothing follows.
All rights reserved to Dr. Villegas

XYS Laundry Services

Statement of Financial Position
As at June 30, 2022

Assets
Current Assets

Cash 692,701
Notes Receivable 10,000
Accounts Receivable 46,500
Laundry Supplies 62,000
Total Current Assets 811,201
Non-Current Assets or Property, Plant and Equipment
Laundry Equipment 150,000
Service Vehicle 500,000
Total Non-Current Assets 650,000
TOTAL ASSETS 1,461,201

Liabilities and Owner's Equity

Liabilities
Accounts Payable 356,000
Total Liabilities 356,000
Owner's Equity

Almazan, Capital 6/30/2020 1,105,201

TOTAL LIABILITIES & OWNER'S EQUITY 1,461,201

Note: Total Assets must be equal to Total Liabilities & Owner's Equity

XYS Laundry Services

 Statement of Changes in Owner's Equity
As at June 30, 2022

Initial investment 506,000

Add: Additional Investment 600,000
Net Income 19,201 619,201
Total 1,125,201
Less: Withdrawals 20,000
Almazan, Capital June 30, 2020 1,105,201

XYS Laundry Services

Statement of Cash Flows
For the month ended, June 30, 2022

Cash Flows from Operating Activities

Cash received from clients 96,500
Payments to suppliers (Accounts Payable)
Payments to employees (62,000)
Payments for rent (20,000)
Payments for advertising (5,000)
Payments for gas & oil (28,500)
Payment for utilities (18,299)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Cash Flows from Investing Activities
Payments for acquisition of service vehicle
NET CASH USED IN INVESTING ACTIVITIES
Cash Flows from Financing Activities
Cash received as investments by owner 900,000
Payments for withdrawals (20,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES
CASH BALANCE, June 30, 2020
Note: Cash Balance end and the final amount in the Cash Flow Statement must be equal.

CASH ACCOUNTED FOR:

Cash on Hand 385,500
Cash in Bank 307,201
692,701
Note: Underline has same significance as "nothing follows'

Note: Underline has same significance as "nothing follows'

Double ruled

Note: Underline has same significance as "nothing follows'

Double ruled
Double rule (nothing follows)

Note: () means deduction

(37,299)

(150,000)

880,000
 692,701 Double rule
ent must be equal.