Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports...

  

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Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports on a monthly basis. The following are the transactions that transpired during the month of September. Sep 2 Sep Sep Sep Sep Sep Sep Sep Sep Sep The initial investments of Mr. Jordan were: 120,000 35,000 _22,500 4,200 5,000 Cash Laundry Equipment Furniture & Fixtures Office Supplies Laundry Supplies 8 Bought dryers and spinners from Mirzi Outlet for 40,000. Jordan paid 30% downpayment and the balance on account. 10 Laundry services rendered totaled 195,000, of which 40% on account. 12 Received proceeds of 220,000 from a bank loan for business use. Jordan would use this to purchase a van for pick-up and delivery of laundry from and to clients. 14 Purchased a delivery van from Renzo Motors for 250,000. Jordan used the entire proceeds from the bank loan to pay for the delivery van and the balance on account. 15 Paid various operating expenses during the month: water and electricity, 28,000; telephone expense, 6,000; and repairs expense, 3,500. 18 Laundry services rendered totaled 180,000, of which 30% was settled with a note and the balance on account. 20 Received laundry advances from Madeleine Hotel for services to be rendered next month, 90,000. 22 Collected 90% of the outstanding receivable from September 10 transaction. 26 Purchased detergents and fabric conditioners from Ivana Cleaning Scents, 12,000. Paid 8,000 cash and the balance on account. Sep Sep 29 Sep 30 28 Returned 2,000 worth of damaged detergents and fabric conditioners bought last September 26. Mr. Jordan withdrew 3,000 for personal use. Paid wages of two staff, 10,000 each. The following pieces of information were obtained regarding accounts that require adjusting entries: Notes Receivable - it bears an interest of 10% and has a term of 45 days. Loan Payable - it bears an interest of 12% and has a term of 180 days. Laundry Supplies - 80% of the laundry supplies, net of returns, were used up in September. Office Supplies - 40% of the office supplies remained unused at the end of September. Furniture and Fixtures - it is the policy of the company to depreciate furniture and fixtures using the following terms: no salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Laundry Equipment - it is the policy of the company to depreciate laundry equipment using the following terms: 10% salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Delivery Vehicle - it is the policy of the company to depreciate delivery vehicles using the following terms: 10% salvage value, useful life of 10 years, and full month depreciation on the month of purchase. Accounts Receivable - Doubtful Accounts are estimated at 2% of the outstanding accounts receivable. CHART OF ACCOUNTS Cash Doubtful Accounts Expense Utilities Payable Laundry Equipment Prepaid Rent Furniture & Fixture Allowance for Doubtful Accounts Laundry Supplies Accounts Payable Loan Payable Notes Payable Repairs Expense Interest Receivable Depreciation Expense Interest Payable Delivery Vehicle Laundry Services Revenue Office Supplies Acc. Depreciation - Laundry Equipment Jordan, Capital Acc. Depreciation - Furniture & Fixtures Laundry Supplies Expense Wages Expense Advances from Clients Notes Receivable Interest Income Acc. Depreciation - Delivery Vehicle Office Supplies Expense Accounts Receivable Utilities Expense Jordan, Drawing Interest Expense REQUIREMENTS: 1. JOURNALIZE ALL TRANSACTIONS IN THE JOURNAL PAPER. 2. POST TO THE LEDGER IN A LEDGER PAPER. 3. MAKE AN UNADJUSTED TRIAL BALANCE IN THE WORKSHEET. 4. JOURNALIZE ADJUSTING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 5. MAKE ADJUSTED TRIAL BALANCE IN THE WORKSHEET 6. EXTEND TO THE INCOME STATEMENT AND BALANCE SHEET COLUMNS IN THE WORKSHEET. 7. JOURNALIZE CLOSING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 8. MAKE A POST-CLOSING TRIAL BALANCE IN THE WORKSHEET. 9. JOURNALIZE REVERSING ENTRIES. Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports on a monthly basis. The following are the transactions that transpired during the month of September. Sep 2 Sep Sep Sep Sep Sep Sep Sep Sep Sep The initial investments of Mr. Jordan were: 120,000 35,000 _22,500 4,200 5,000 Cash Laundry Equipment Furniture & Fixtures Office Supplies Laundry Supplies 8 Bought dryers and spinners from Mirzi Outlet for 40,000. Jordan paid 30% downpayment and the balance on account. 10 Laundry services rendered totaled 195,000, of which 40% on account. 12 Received proceeds of 220,000 from a bank loan for business use. Jordan would use this to purchase a van for pick-up and delivery of laundry from and to clients. 14 Purchased a delivery van from Renzo Motors for 250,000. Jordan used the entire proceeds from the bank loan to pay for the delivery van and the balance on account. 15 Paid various operating expenses during the month: water and electricity, 28,000; telephone expense, 6,000; and repairs expense, 3,500. 18 Laundry services rendered totaled 180,000, of which 30% was settled with a note and the balance on account. 20 Received laundry advances from Madeleine Hotel for services to be rendered next month, 90,000. 22 Collected 90% of the outstanding receivable from September 10 transaction. 26 Purchased detergents and fabric conditioners from Ivana Cleaning Scents, 12,000. Paid 8,000 cash and the balance on account. Sep Sep 29 Sep 30 28 Returned 2,000 worth of damaged detergents and fabric conditioners bought last September 26. Mr. Jordan withdrew 3,000 for personal use. Paid wages of two staff, 10,000 each. The following pieces of information were obtained regarding accounts that require adjusting entries: Notes Receivable - it bears an interest of 10% and has a term of 45 days. Loan Payable - it bears an interest of 12% and has a term of 180 days. Laundry Supplies - 80% of the laundry supplies, net of returns, were used up in September. Office Supplies - 40% of the office supplies remained unused at the end of September. Furniture and Fixtures - it is the policy of the company to depreciate furniture and fixtures using the following terms: no salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Laundry Equipment - it is the policy of the company to depreciate laundry equipment using the following terms: 10% salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Delivery Vehicle - it is the policy of the company to depreciate delivery vehicles using the following terms: 10% salvage value, useful life of 10 years, and full month depreciation on the month of purchase. Accounts Receivable - Doubtful Accounts are estimated at 2% of the outstanding accounts receivable. CHART OF ACCOUNTS Cash Doubtful Accounts Expense Utilities Payable Laundry Equipment Prepaid Rent Furniture & Fixture Allowance for Doubtful Accounts Laundry Supplies Accounts Payable Loan Payable Notes Payable Repairs Expense Interest Receivable Depreciation Expense Interest Payable Delivery Vehicle Laundry Services Revenue Office Supplies Acc. Depreciation - Laundry Equipment Jordan, Capital Acc. Depreciation - Furniture & Fixtures Laundry Supplies Expense Wages Expense Advances from Clients Notes Receivable Interest Income Acc. Depreciation - Delivery Vehicle Office Supplies Expense Accounts Receivable Utilities Expense Jordan, Drawing Interest Expense REQUIREMENTS: 1. JOURNALIZE ALL TRANSACTIONS IN THE JOURNAL PAPER. 2. POST TO THE LEDGER IN A LEDGER PAPER. 3. MAKE AN UNADJUSTED TRIAL BALANCE IN THE WORKSHEET. 4. JOURNALIZE ADJUSTING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 5. MAKE ADJUSTED TRIAL BALANCE IN THE WORKSHEET 6. EXTEND TO THE INCOME STATEMENT AND BALANCE SHEET COLUMNS IN THE WORKSHEET. 7. JOURNALIZE CLOSING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 8. MAKE A POST-CLOSING TRIAL BALANCE IN THE WORKSHEET. 9. JOURNALIZE REVERSING ENTRIES.

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1 Journal Entries 2 Unadjusted Trial Balance 3 Adjusting Entries 4 Adjusted Trial Bala... View the full answer