C. The following selected account balances were taken from the records of Alex Ajoc, the owner of Surigao Hardware & Construction Supply for the month of December 20A. (VAT of 12 % is billed separately.) Purchases Purchase Returns & Allowances P710,000 5,000 20,000 1,020,000 8,000 25,000 Purchase Discounts Sales Sales Returns &Allowances Sales Discounts Required: 1. Compute the input tax 2. Compute the output tax 3. Compute the VAT Payable 4. Entry to close the Input and Output Tax 5. Entry to remit VAT Payable to Bureau of Internal Revenue
C. The following selected account balances were taken from the records of Alex Ajoc, the owner of Surigao Hardware & Construction Supply for the month of December 20A. (VAT of 12 % is billed separately.) Purchases Purchase Returns & Allowances P710,000 5,000 20,000 1,020,000 8,000 25,000 Purchase Discounts Sales Sales Returns &Allowances Sales Discounts Required: 1. Compute the input tax 2. Compute the output tax 3. Compute the VAT Payable 4. Entry to close the Input and Output Tax 5. Entry to remit VAT Payable to Bureau of Internal Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer of Merchandising Business
![Gill 4G1lll 0.4K/s
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7. Paid freight on purchases of
Merchandise, P 5,000.
8. Paid freight on sale of
Merchandise, P 5,000.
9. Bought merchandise for cash and
Received a 5% trade discount,
P 20,000.
10. Sold Merchandise for cash and
Gave a 2% trade discount,
P 50,000.
C. The following selected account balances were taken from the records of Alex
Ajoc, the owner of Surigao Hardware & Construction Supply for the month of
December 20A. (VAT of 12 % is billed separately.)
Purchases
P710,000
5,000
20,000
1,020,000
8,000
25,000
Purchase Returns & Allowances
Purchase Discounts
Sales
Sales Returns &Allowances
Sales Discounts
Required:
1. Compute the input tax_
2. Compute the output tax
3. Compute the VAT Payable
4. Entry to close the Input and Output Tax
5. Entry to remit VAT Payable to Bureau of Internal Revenue
D. The following selected account balances were taken from the records of J.
Gucela Company, for the month of January 20B. (VAT of 12% is billed
separately).
Purchases
Purchase Returns & Allowances
P100,000
10,000
Purchase Discounts
5,000
80,000
6,000
7,000
Sales
Sales Returns and Allowances
Sales Discounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F423b7f94-c09f-4804-bacd-09612a329d63%2F2ea3ad4c-d44e-403e-91cf-4923d5a13e25%2Fskfltlp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gill 4G1lll 0.4K/s
10:22 AM
7 63%
[Template] AS. o
7. Paid freight on purchases of
Merchandise, P 5,000.
8. Paid freight on sale of
Merchandise, P 5,000.
9. Bought merchandise for cash and
Received a 5% trade discount,
P 20,000.
10. Sold Merchandise for cash and
Gave a 2% trade discount,
P 50,000.
C. The following selected account balances were taken from the records of Alex
Ajoc, the owner of Surigao Hardware & Construction Supply for the month of
December 20A. (VAT of 12 % is billed separately.)
Purchases
P710,000
5,000
20,000
1,020,000
8,000
25,000
Purchase Returns & Allowances
Purchase Discounts
Sales
Sales Returns &Allowances
Sales Discounts
Required:
1. Compute the input tax_
2. Compute the output tax
3. Compute the VAT Payable
4. Entry to close the Input and Output Tax
5. Entry to remit VAT Payable to Bureau of Internal Revenue
D. The following selected account balances were taken from the records of J.
Gucela Company, for the month of January 20B. (VAT of 12% is billed
separately).
Purchases
Purchase Returns & Allowances
P100,000
10,000
Purchase Discounts
5,000
80,000
6,000
7,000
Sales
Sales Returns and Allowances
Sales Discounts
![Gill 4Gilll| 0.1K/s
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Required:
1. Compute the Input Tax
2. Compute the Output Tax
3. Compute the Prepaid Tax
4. Entry to close the Output Tax to Input Tax
5. Where do we show the Prepaid Tax in the Financial Statements?
E. On June 1, 2020, Eleno Buray Forest Products sold merchandise with a
Cash
Received
P120,000 list price.
Sales
Credit Terms
2/10, n/30
1/10, n/30
2/10, n/30
1/15, n/30
n/30
Date Paid
June 8
June 15
June 11
June 14
June 28
Trade Discount
30%
Amount
a.
b.
40%
с.
d.
20%
40%
Required: For each of the sales terms, determine the following:
1. The amount recorded as a sale.
2. The amount of cash received.
F. Renz Aguhob Fireworks engaged in the following purchase transactions during
the month. The entity observes the policy that all returns are made one day after
the goods are received, and that all purchases are paid within the discount period.
Purchase
Freight Returns & Credit Trade
Cash
List Price FOB Terms Charges Allowances Terms Discount Payment
P224,000 Shipping pt. P4,000 P 21,000 2/10,n/30
126,000 Destination
90,000 Shipping pt.
41,000 Shipping pt.
357,000 Destination
Required:
Using the table above, calculate the amount needed to settle each purchase.
30%
9,000
2,000
1,000
14,000
1/10,n/30 20%
7,000 2/10,n/30
9,000
24,000 3/10,n/30 20%
n/30
25%
G. The following information pertains to the Leopoldo Valdez School Chairs:
P 172,000
1,200,000
1,900,000
4,300,000
129,000
Transportation In
Merchandise Inventory, 1/1/2020
Merchandise Inventory, 12/31/2020
Purchases
Purchase Returns and Allowances
Purchase Discounts
215,000
Required: Prepare the cost of goods sold section of the income statement for the
year ended Dec. 31, 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F423b7f94-c09f-4804-bacd-09612a329d63%2F2ea3ad4c-d44e-403e-91cf-4923d5a13e25%2F2zfp5q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gill 4Gilll| 0.1K/s
10:23 AM
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Required:
1. Compute the Input Tax
2. Compute the Output Tax
3. Compute the Prepaid Tax
4. Entry to close the Output Tax to Input Tax
5. Where do we show the Prepaid Tax in the Financial Statements?
E. On June 1, 2020, Eleno Buray Forest Products sold merchandise with a
Cash
Received
P120,000 list price.
Sales
Credit Terms
2/10, n/30
1/10, n/30
2/10, n/30
1/15, n/30
n/30
Date Paid
June 8
June 15
June 11
June 14
June 28
Trade Discount
30%
Amount
a.
b.
40%
с.
d.
20%
40%
Required: For each of the sales terms, determine the following:
1. The amount recorded as a sale.
2. The amount of cash received.
F. Renz Aguhob Fireworks engaged in the following purchase transactions during
the month. The entity observes the policy that all returns are made one day after
the goods are received, and that all purchases are paid within the discount period.
Purchase
Freight Returns & Credit Trade
Cash
List Price FOB Terms Charges Allowances Terms Discount Payment
P224,000 Shipping pt. P4,000 P 21,000 2/10,n/30
126,000 Destination
90,000 Shipping pt.
41,000 Shipping pt.
357,000 Destination
Required:
Using the table above, calculate the amount needed to settle each purchase.
30%
9,000
2,000
1,000
14,000
1/10,n/30 20%
7,000 2/10,n/30
9,000
24,000 3/10,n/30 20%
n/30
25%
G. The following information pertains to the Leopoldo Valdez School Chairs:
P 172,000
1,200,000
1,900,000
4,300,000
129,000
Transportation In
Merchandise Inventory, 1/1/2020
Merchandise Inventory, 12/31/2020
Purchases
Purchase Returns and Allowances
Purchase Discounts
215,000
Required: Prepare the cost of goods sold section of the income statement for the
year ended Dec. 31, 2020.
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