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Journal Entries for Clinic and Laundry Services

The transactions of Dr. Pim Paul Derma Clinic for February are summarized as follows: 1) Dr. Paul invested 420,000 to start the clinic. He also provided services on account and collected cash from customers. 2) Dr. Paul borrowed 200,000 and purchased equipment on credit. He also made a personal withdrawal and paid expenses. 3) Dr. Paul invested a computer worth 24,000.

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989 views1 page

Journal Entries for Clinic and Laundry Services

The transactions of Dr. Pim Paul Derma Clinic for February are summarized as follows: 1) Dr. Paul invested 420,000 to start the clinic. He also provided services on account and collected cash from customers. 2) Dr. Paul borrowed 200,000 and purchased equipment on credit. He also made a personal withdrawal and paid expenses. 3) Dr. Paul invested a computer worth 24,000.

Uploaded by

PhilpNil8000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem 1

Journalize the following transactions of Dr. Pim Paul Derma Clinic for the month of February using the following
accounts, Cash; Accounts Receivable; Medical Equipment; Accounts Payable; Notes Payable; Paul Capital; Paul
Drawings; Medical Income; Utilities Expense; Taxes and Licenses Expense.

2022
Feb. 1 Dr. Pauld invested P 420,000 to start his Derma Clinic.
2 Facial services rendered to Ms. Kapal Muks on account, P 18,000.
5 Paid taxes and licenses, P 2,500.
6 Medical services for cash from walk-in customers, P 8,000.
9 Borrowed P 200,000 from Mr. Ga Lee Sin, signing a promissory note.
11 Bought medical equipment on credit from A Store, P 22,000.
14 Dr. Paul made a personal withdrawal of P 5,000.
18 Paid utilities, P 3,200.
24 Collected account from Ms. Kapal Muks in full.
28 Dr. Paul invested a computer worth P 24,000.

Problem 2

Julie Lachica recently established a business that will operate as Beauty Laundry Service. On June 1, 2017 she
opened Beauty Laundry Service by investing laundry equipment valued at P 20,500, laundry supplies valued at P
4,000 and P94,500 cash in the business. The following accounts are available in the records. 110 Cash; 120
Accounts Receivable;130 Laundry Supplies; 140 Prepaid Insurance; 150 Laundry Equipment; 160 Service Vehicle;
200 Notes Payable, 210 Accounts Payable; 310 Lachica, Capital; 320 Lachica, Withdrawals, 330 Income Summary,
410 Laundry Revenues; 510 Salaries Expense; 520 Rent Expense; 530 Advertising Expense and 540 Miscellaneous
Expense. During the month, the following transactions happened.
June 3 Acquired additional Laundry supplies on account, P 11, 500.
5 Acquired laundry equipment on account, P 15,600.
6 Acquired a second hand service vehicle costing P 47,000 for the business paying P 10,000 cash,
and financing the balance by issuing a note.
7 Paid rent for the month, P 7,000.
9 Received P 31,800 cash for laundry services rendered.
12 Paid for the insurance in advance, P 4,800.
14 Paid miscellaneous expense, P 2,200.
15 Paid for a newspaper advertisement, P 1,500.
15 Paid P 10,000 for the account last June 5.
16 Billed customers P 18,600 for laundry services rendered.
16 Paid salaries, P 8,400.
22 Received P 9,800 from customers billed on June 16.
25 Paid amount due on the note payable, P 2,500.
28 Billed customers for laundry services rendered, P 22,000.
30 Withdrew P 10,000 for personal use.

Required:
1. Prepare the journal entries to record the transactions using a general journal.

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