Practice Exercise: fournalize the following transactions of Shore Company, a VAT registered company. uly 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30. 4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this. 6 Purchase office supplies for P5,800 cash. 7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30. 8 Purchase merchandise for P448,000 cash. 10 Cash sales for the first 15 days, P336,000. 12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30. 14 Returned defective merchandise worth P56,000 purchased on July 12. 16 Received payment from David Company for sale on July 2. 18 Received payment from Simon Trading. 20 Sold an old equipment for P30,000. 22. Paid the commission to salesmen, P50,000. For July 12 560,000/112%= 500,000 sales 500,000 x 12%-60,000 VAT If paid with discount, the discount will be computed based on the sales only, do not include the VAT Total payable Less discount (1% x 500,000) Total cash to be received 560,000 5.000 $55.000
Practice Exercise: fournalize the following transactions of Shore Company, a VAT registered company. uly 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30. 4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this. 6 Purchase office supplies for P5,800 cash. 7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30. 8 Purchase merchandise for P448,000 cash. 10 Cash sales for the first 15 days, P336,000. 12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30. 14 Returned defective merchandise worth P56,000 purchased on July 12. 16 Received payment from David Company for sale on July 2. 18 Received payment from Simon Trading. 20 Sold an old equipment for P30,000. 22. Paid the commission to salesmen, P50,000. For July 12 560,000/112%= 500,000 sales 500,000 x 12%-60,000 VAT If paid with discount, the discount will be computed based on the sales only, do not include the VAT Total payable Less discount (1% x 500,000) Total cash to be received 560,000 5.000 $55.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On the left side, record the transactions of a VAT registered business assuming the amounts are VAT inclusive and on the right side, assuming VAT exclusive.
![Practice Exercise:
Journalize the following transactions of Shore Company, a VAT registered company.
July 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30.
4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this.
6 Purchase office supplies for P5,800 cash.
7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30.
8 Purchase merchandise for P448,000 cash.
10 Cash sales for the first 15 days, P336,000.
12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30.
14 Returned defective merchandise worth P56,000 purchased on July 12.
16 Received payment from David Company for sale on July 2.
18 Received payment from Simon Trading.
20
Sold an old equipment for P30,000.
22. Paid the commission to salesmen, P50,000.
For July 12
560,000/112%= 500,000 sales
500,000 x 12%-60,000 VAT
If paid with discount, the discount will be
computed based on the sales only, do not include
the VAT
Total payable
560,000
Less discount (1% x 500,000) 5.000
Total cash to be received
$55.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F814d91f8-58df-45b6-b023-4e168dede4bd%2F16dfdb69-8ecd-4245-9a6f-9734fdac6962%2F22j8gz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Practice Exercise:
Journalize the following transactions of Shore Company, a VAT registered company.
July 2 Sold and shipped merchandise worth P560,000 to David Company, terms 1/5, n/30.
4 David Company reported P11,200 of merchandise damaged in shipment, and a credit memo was issued for this.
6 Purchase office supplies for P5,800 cash.
7 Sold P224,000 of merchandise to Simon Trading, terms 2/10, n/30.
8 Purchase merchandise for P448,000 cash.
10 Cash sales for the first 15 days, P336,000.
12 Purchased merchandise worth P560,000, 20% down payment, balance 2/10, n/30.
14 Returned defective merchandise worth P56,000 purchased on July 12.
16 Received payment from David Company for sale on July 2.
18 Received payment from Simon Trading.
20
Sold an old equipment for P30,000.
22. Paid the commission to salesmen, P50,000.
For July 12
560,000/112%= 500,000 sales
500,000 x 12%-60,000 VAT
If paid with discount, the discount will be
computed based on the sales only, do not include
the VAT
Total payable
560,000
Less discount (1% x 500,000) 5.000
Total cash to be received
$55.000
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