COMPLETE THE JOURNALIZING
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
COMPLETE THE JOURNALIZING
Transcribed Image Text:Add 12% VAT to all sales, purchases and freight invoices. JOURNALIZE
2015
Received additional cash investment from Hershey Chan, P230,000 and
merchandise worth P75,000.
Issued check no. 1781 in payment for the previous month's light and water bills,
P2,500.
Sold merchandise for cash with a list price of P30,000 and a trade discount of 10%.
Issued invoice no. 8121 to Atty. Edward Rudolf for merchandise sold on account,
P18,500. Terms: 2/5, n/30.
Granted 10% allowance on the merchandise sold to Atty. Rudolf.
Purchased merchandise on account from AZ Commodities, P25,000. Terms: 2/5, n/45,
FOB shipping point.
Paid bill received from Cargo Shipping Co. for freight of the merchandise dated Dec.7,
Dec. 1
3
4
5
7
9
P1,300.
Received payment from Atty. Rudolf.
Issued check no. 1782 in payment of the account to AZ Commodities.
Issued check no. 1783 in payment of the cash purchases amounting P13,800.
Bought office equipment from Hi-Tech Company, P50,000. Terms: 20% down
payment, balance 5/15, n/60.
Issued check no. 1784 in payment of the salaries of the employees, P 20,000 less
5% withholding tax
Issued invoice no. 1822 to Engr. Luisito Ventura for sales on account, P10,500.
Terms: n/30.
10
12
13
14
15
17
Cash sales, P17,850.
Refunded customer for merchandise delivered with defects, P800, (without VAT).
Purchased more store supplies on account from Vietorino Supplies, P3,900.
Terms: 5%/ eom.
Received loan proceeds from Worldwide Banking Corporation: principal amount,
P120,000; interest deducted in advance, P12,000. Hershey Chan issued
promissory note for this loan
Purchased merchandise on account from Optima General Merchandise, P15,000.
Terms: 5/10, n/30
Issued check no. 1785 for cash purchases of merchandise, P18,600.
Received refund from supplier due to deliveries with defects, P2,000, ( without VAT)
Issued invoice no. 8123 to Architect Paulita Vizmonte for sales on account,
P7,500. Terms: n/30.
Issued invoice no. 8124 to Dr. Renato Wilbert for sales on account, P9,800.
Terms: 20% downpayment. 2/5, n/30.
Paid amount due Hi-Tech Company for Dec. 14 transaction.
Issued check no. 1786 in payment of more store supplies from Victorino Supplies,
P2,000.
Paid amount due Victorino Supplies for transaction dated December 20
Issued check no. 1787 in payment of the salaries of the employees, P20,000 less
5% Withholding tax, 3% SSS, 1.5 Philhealth and 2% Pag-IBIG.
Close input tax against output tax
18
19
20
21
23
25
26
28
29
29
30
31
31
31
![Date
Accounts title and explanation
Debit
Credit
01-Dec Cash
230,000
Merchandise inventory
75,000
НС Саpital
305,000
[To record the cash and inventory brought in as capital]
03-Dec Accounts payable
2,500
Bank
2,500
[To record the light and water bills due paid]
04-Dec Cash [$30,000 × 90%] + [$27,000 ×
30,240
Sales revenue
27,000
VAT payable
3,240
[To record the sales made on cash]
05-Dec Accounts receivable
20,720
Sales revenue
18,500
VAT payable
2,220
[To record the sales made to AER on credit]
06-Dec Sales returns and allowances [$18
1,850
VAT Payable [$2,220 × 10%]
222
Accounts receivable
2,072
[To record the allowance granted to AET]
07-Dec Merchandise inventory
25,000
3,000
Input VAT [$25,000 x 12%]
Accounts payable
28,000
[To record the merchandise purchased on credit from AZ Commodities]
09-Dec Merchandise inventory
1,300
Input VAT [$1,300 × 12%]
156
Cash
1,456
[To record the freight paid]
10-Dec Cash
20,350
Sales discount [$18,500 × 2%]
370
Accounts receivable
20,720
[To record the amount due received from AER]
12-Dec Accounts payable
28,000
Merchandise inventory [$25,000 × 2%]
500
Bank
27,500
[To record the payment due to AZ commodities paid]
13-Dec Merchandise inventory
13,800
Input VAT [$13,800 x 12%]
1,656
Cash
15,456
[To record the purchase of merchandise inventory for cash]
14-Dec Office equipment
50,000
Cash [$50,000 × 20%]
10,000
Accounts payable
40,000
[To record the purchase of office equpment]
15-Dec Salaries expense
20,000
Bank
19,000
Withholding tax payable [$20,000 × 5%]
1,000
[To record the salaries paid after deducting withholding tax]
17-Dec Accounts receivable
11,760
Sales revenue
10,500
VAT payable
1,260
[To record the sales made to ELV on credit]
18-Dec Cash $17,850 + [$17,850 × 12%]
19,992
Sales revenue
17,850
VAT payable
2,142
[To record the sales made on cash]
19-Dec Sales returns and allowances
800
Cash
800
[To record the refund made to customer for defects]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea57b914-3bde-434d-a13e-33c1bd04f63d%2Ff6375f2c-b5bd-4bdc-98ac-a62754fc6af6%2Fr2ztcjr_processed.png&w=3840&q=75)
Transcribed Image Text:Date
Accounts title and explanation
Debit
Credit
01-Dec Cash
230,000
Merchandise inventory
75,000
НС Саpital
305,000
[To record the cash and inventory brought in as capital]
03-Dec Accounts payable
2,500
Bank
2,500
[To record the light and water bills due paid]
04-Dec Cash [$30,000 × 90%] + [$27,000 ×
30,240
Sales revenue
27,000
VAT payable
3,240
[To record the sales made on cash]
05-Dec Accounts receivable
20,720
Sales revenue
18,500
VAT payable
2,220
[To record the sales made to AER on credit]
06-Dec Sales returns and allowances [$18
1,850
VAT Payable [$2,220 × 10%]
222
Accounts receivable
2,072
[To record the allowance granted to AET]
07-Dec Merchandise inventory
25,000
3,000
Input VAT [$25,000 x 12%]
Accounts payable
28,000
[To record the merchandise purchased on credit from AZ Commodities]
09-Dec Merchandise inventory
1,300
Input VAT [$1,300 × 12%]
156
Cash
1,456
[To record the freight paid]
10-Dec Cash
20,350
Sales discount [$18,500 × 2%]
370
Accounts receivable
20,720
[To record the amount due received from AER]
12-Dec Accounts payable
28,000
Merchandise inventory [$25,000 × 2%]
500
Bank
27,500
[To record the payment due to AZ commodities paid]
13-Dec Merchandise inventory
13,800
Input VAT [$13,800 x 12%]
1,656
Cash
15,456
[To record the purchase of merchandise inventory for cash]
14-Dec Office equipment
50,000
Cash [$50,000 × 20%]
10,000
Accounts payable
40,000
[To record the purchase of office equpment]
15-Dec Salaries expense
20,000
Bank
19,000
Withholding tax payable [$20,000 × 5%]
1,000
[To record the salaries paid after deducting withholding tax]
17-Dec Accounts receivable
11,760
Sales revenue
10,500
VAT payable
1,260
[To record the sales made to ELV on credit]
18-Dec Cash $17,850 + [$17,850 × 12%]
19,992
Sales revenue
17,850
VAT payable
2,142
[To record the sales made on cash]
19-Dec Sales returns and allowances
800
Cash
800
[To record the refund made to customer for defects]
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