2.1 2.2 Calculate the VAT amount that is payable to SARS on the 31 July 2022. During August, the accountant came across a document for furniture bought by Phillip Mosena for his personal home, for R46 000 cash. Phillip said that R6 000 VAT included in this amount must be regarded as input VAT. Further investigation revealed that similar documents were regularly entered in the books over the past year. Advise the Phillip on how to deal with this matter. State TWO points. INFORMATION

2.1 2.2 Calculate the VAT amount that is payable to SARS on the 31 July 2022. During August, the accountant came across a document for furniture bought by Phillip Mosena for his personal home, for R46 000 cash. Phillip said that R6 000 VAT included in this amount must be regarded as input VAT. Further investigation revealed that similar documents were regularly entered in the books over the past year. Advise the Phillip on how to deal with this matter. State TWO points. INFORMATION

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter12: Special Journals

Section: Chapter Questions

Problem 1CE

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41. The following transaction relate to Tool Company’s contingencies. The financial statements are dated December 31, 2023 and were issued on March 31, 2024. Tool’s products carry one –year warranty against manufacturer defects. Based on past experience, warranty costs are expected to be 4% of sales. Sales for 2023 were P2,000,000 and actual warranty cost incurred was P30,000. In December 2023, an NGO filed suit against Tool seeking penalties for violation of clean air laws. Tool’s counsel advised that is probable that the entity will lose the case and that the amount of penalty is P2,000,000. Appropriately, the entity recorded the liability. On January 15, 2024, Tools reached a settlement to pay P1,500,000 in penalty. Tools is the plaintiff in a P4,000,000 suit filed against a supplier. The attorney advised that it is probable that the entity will win the case and that the award is P2,500,000. On March 15, 2024, the court ruled in favor of Tools and received P2,000,000.…
Intermediate Accounting ll ch 16 9. In 2024, DFS Medical Supply collected rent revenue for 2025 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $360,000 at December 31, 2024. DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 25% and 2024 income tax payable of $910,000, prepare the journal entry to record income taxes for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
38) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold. Omit explanation. 39) ABC Accepted a 90 day, 8%, $50,000 Note Receivable from from a customer to replace an Account Receivable. The note matured and ABC received $50,500 at maturity. Record the entry for the collection of the note receivable.
Question 1: Super Decorators Co had the following transactions with a customer during the year ended on 31 December 2019; November 1:Sold decoration material on account OMR 7,500, terms 1.5/10, n/30. November 4:Customer retuned some faulty materials of OMR 1,000 November 8:Customer paid OMR 2,500. December 1:Accepted a 90 days, 12% note from the customer for the balance amount. Required: a. Determine the date of maturity of the note. b. Determine the interest payable on maturity of the note. c. Journalize all the above transactions in the books of Super Decorators when the note is i)honoured on maturity and ii)dishonoured on maturity
46) Royal mart purchased goods on 12th March 2019 for RO 54,000 from Google mart. Calculate the Net amount to be paid, if the credit term followed as 4/10/EOM. a. RO 51,840 b. RO 55,080 c. RO 54,000 d. RO 2,160 Clear my choice
A customer bought goods from John, a registered VAT taxpayer, on the 12 February 2022. The goods were delivered on the 15 February 2022. The goods were invoiced on 15 March 2022. The customer paid for the goods on the 1 April 2022. Based on the time of supply rules, the time of supply would be? a.12 February 2022 b.1 April 2022 c.15 February 2022 d.15 March 2022
16.On October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half of the bill was paid on October 24, and the rest of the bill was paid on October 31. Assume that the seller has agreed to grant discounts on partial payments.Required: Prepare journal entries for October 24 using the: 1. Gross Method2. Net Method
41.Toto Company’s accounts payable balance at December 31, 2020 was P8,000,000 before considering the following data: ∙ Goods shipped to Toto FOB shipping point on December 15, 2020 were lost in transit. The invoice cost of P500,000 was not recorded by Baggao. On January 15, 2021, Toto filed a P500,000 claim against the common carrier. ∙ On December 30, 2020, a vendor authorized Toto to return for full credit goods shipped and billed at P200,000 on December 15, 2020. The returned goods were shipped by Toto on December 31, 2020. A P200,000 credit memo was received and recorded on January 5, 2021. What should Toto report as accounts payable on December 31, 2020?
14. Write the appropriate entries for the following. Assume the accounting year is ending onDecember 31, 2023.a) An insurance policy was purchased on June 1, 2023 for $1,500. At the end of the year, $438 wasdeemed expired. Write the adjusting entry on December 31, 2023.b) Depreciation on Office Equipment is $3,300. Write the adjusting entry on December 31, 2023.c) There was a $1,750 balance in the supplies account at the beginning of the period. During theperiod, the supplies account was increased by $3,500 for supplies purchased. At the end of theperiod before adjustment, $350 of supplies were on hand. Journalize the necessary adjustingentry.d) The balance in the unearned fees account, before adjustment at the end of the year, is $10,250.Journalize the adjusting entry required if the amount of unearned fees at the end of the year is$3,125.
37- Ahmed purchased a product for RO 720 on September 5th. The terms of payment are 5/8, n/30. How much did he pay if the bill is paid on September 15th. a. RO 720 b. RO 698 c. RO 684 d. RO 728
Part B The company completed the following transactions during 2020. Jan 10 sold inventory to Natty Paul, $11,000, on account May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements: Prepare journal entries for each transaction (No narrations required) Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable.
Part B The company completed the following transactions during 2020.• Jan 10 sold inventory to Natty Paul, $11,000, on account • May 15 wrote off as uncollectible the accounts of Terry Carter, $2,500 and Maggie Cube $400 • August 04 received 70% of the amount owed by Natty Paul and wrote off the remainder as uncollectible • October 26 received 30% of the funds owed from Maggie Cube as part payment of her account which had been written off earlier as uncollectible. • December 31, The Aging schedule showed an estimated $116,500 as uncollectible Requirements:1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the information presented and balance off each account. 3. Prepare the balance sheet extract as at Dec 31, 2020, to show the net realizable value for the Accounts Receivable. 4. Assume credit sales for 2019 were $312,000 and that on December 31, 10% of creditsales are…