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COMPLETE THE JOURNALIZING

COMPLETE THE JOURNALIZING

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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COMPLETE THE JOURNALIZING

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
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]
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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