VAT EXERCISE

Black$221$ Company's information for the month of August $2024$ is given below.

Aug $8$ Purchased merchandise on account for $${67\mathrm{.}200}_{?}$ including Value Added Tax $($VAT $\%12).$

Aug $17$ Sold merchandise for $$70\mathrm{.}000$ on account. The cost of the merchandise sold was TL $40,000.$ The sale price does not include Value Added Tax $($VAT$).$ Assume VAT rate $\%8.$

Aug $24$ Purchased $$50\mathrm{.}000$ merchandise inventory with cash. The amount does not include Value Added Tax $($VAT$).$ Assume VAT rate $\%18.$

Required:

A$)$ Record journal entries.

B$)$ Journalize the closing entry for VAT accounts on August $30.$

C$)$ Journalize the payment of VAT to the Tax Office on September $26.$

D$)$ During the month of September, the company has VAT from sales of $$19\mathrm{.}000$ and VAT from purchases of $$3\mathrm{.}000.$ Journalize the closing entry for VAT accounts on September $30.$

E$)$ Journalize the payment of VAT to the Tax Office on October $26.$