HONEST MERCHANDISING, registered her business with the government registry offices as a value- added taxpayer and registered her books of accounts and receipts/invoices with the Bureau of Internal Revenue as a value-added taxpayer. The following were the transactions for January 20A: January 2 January 3 Invested P5,000,000 in the business; Purchased office equipment with a cost of P1,800,000 plus VAT of P216,000 for use in the office; Purchased merchandise for P200,000 plus VAT P24,000; Sold merchandise for P600,000 plus VAT of P72,000. Paid expenses to a VAT suppler of services at P100,000 plus VAT of P12,000 Sold merchandise for P600,000 plus VAT of P72,000. January 7 January 11 January 15 January 25 WHAT TO DO. 1. Record each transaction in the General Journal and General Ledger after verifying the documentation of the transaction and the computation in each (date, and computation of the VAT particularly). Use the account Deferred Input Tax when the fixed asset is acquired. 2. Prepare the Trial Balance on January 31, 20A. 3. Prepare the Worksheet of January 31, 20A with adjusting entries for Input Tax from Deferred Input Tax on office equipment, depreciation for the month and recognition of VAT payable. The Worksheet shall be an eight- column Worksheet.
HONEST MERCHANDISING, registered her business with the government registry offices as a value- added taxpayer and registered her books of accounts and receipts/invoices with the Bureau of Internal Revenue as a value-added taxpayer. The following were the transactions for January 20A: January 2 January 3 Invested P5,000,000 in the business; Purchased office equipment with a cost of P1,800,000 plus VAT of P216,000 for use in the office; Purchased merchandise for P200,000 plus VAT P24,000; Sold merchandise for P600,000 plus VAT of P72,000. Paid expenses to a VAT suppler of services at P100,000 plus VAT of P12,000 Sold merchandise for P600,000 plus VAT of P72,000. January 7 January 11 January 15 January 25 WHAT TO DO. 1. Record each transaction in the General Journal and General Ledger after verifying the documentation of the transaction and the computation in each (date, and computation of the VAT particularly). Use the account Deferred Input Tax when the fixed asset is acquired. 2. Prepare the Trial Balance on January 31, 20A. 3. Prepare the Worksheet of January 31, 20A with adjusting entries for Input Tax from Deferred Input Tax on office equipment, depreciation for the month and recognition of VAT payable. The Worksheet shall be an eight- column Worksheet.
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 19P
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Transcribed Image Text:Chapter 15
PRACTICE SET ON VALUE-ADDED TAX
Dolores Domingo invested P5,000,000 in her business on January 2, 20A
in the name of:
HONEST MERCHANDISING,
registered her business with the government registry offices as a value-
added taxpayer and registered her books of accounts and receipts/invoices
with the Bureau of Internal Revenue as a value-added taxpayer.
The following were the transactions for January 20A:
January 2
January 3
Invested P5,000,000 in the business;
Purchased office equipment with a cost of P1,800,000 plus
VAT of P216,000 for use in the office;
Purchased merchandise for P200,000 plus VAT P24,000;
Soid merchandise for P600,000 plus VAT of P72,000.
Paid expenses to a VAT suppler of services at P100,000 plus
VAT of P12,000
Sold merchandise for P600,000 plus VAT of P72,000.
January 7
January 11
January 15
January 25
WHAT TO DO.
1. Record each transaction in the General Journal and General Ledger after
verifying the documentation of the transaction and the computation in
each (date, and computation of the VAT particularly). Use the account
Deferred Input Tax when the fixed asset is acquired.
2. Prepare the Trial Balance on January 31, 20A.
3. Prepare the Worksheet of January 31, 20A with adjusting entries for Input
Tax from Deferred Input Tax on office equipment, depreciation for the
month and recognition of VAT payable. The Worksheet shall be an eight-
column Worksheet.
4. Journalize the adjusting entries.
5, Journalize the closing entries.
6. Prepare the Income Statement'
. Prepare the Statement of Financial Position3;
8. Prepare the Post-closing Trial Balance.
ASudy on Philippine Business Taxes and Transfer Taxes, A New Approach
15-1
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