Question
James Worth owns a store. All sales, purchases and freight are subject to VAT. During June 1999, the following transactions were completed. June1- James Worth
James Worth owns a store. All sales, purchases and freight are subject to VAT. During June 1999, the following transactions were completed.
June1- James Worth invested the following assets to start the business:
CashP 200,000
Merchandise100,000
Store Equipment20,000
1- Purchased merchandise from Jack Store, P10,000. Terms: 10 and 5 , 2/10,n/30. FOB shipping point. Add 12% VAT.
1- Paid freight for the above goods, P 500 VAT excluded.
3- Defective goods were returned to Jack Store, P896, VAT included.
5-Cash purchases, P 5,000,VAT excluded.
8- Sold merchandise on account to Rustans, P25,000 plus 12% VAT. Terms:2/10, n/30. FOB shipping point.
9- Paid freight for the above goods, P560, VAT included.
11- Paid in full the account to Jack Store.
14- Bought a computer for office use from Alejandra, P 25,000, VAT excluded.Terms: 2/10, n/30. FOB shipping point.
14- Paid freight for the above computer,P336, VAT included.
15- Recorded cash sales for the first half of May, P22,400 including VAT.
17- Received defective goods from Rustan, P1,000, VAT excluded.
18- Received a check of P5,000 and a 10-day, 12% note from Rustan for theamount owed on the June 8 sale.
24- Paid in full the account to Alejandra.
30- Paid salaries of P50,000, less 5% withholding tax, 3% SSS, 2% Philhealth and1% Pag-ibig.
Required: Entries for the above transactions.
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