PLEASE CHECK MY ENTRIES IF IT CORRECTDateExplanationF DebitCredit201501-DecCash 230,000 Merchandise inventory 75,000 HC Capital 305,000 03-DecAccounts payable 2,500 Bank 2,500 04-DecCash 30,240 Sales revenue 27,000 VAT payable 3,240 05-DecAccounts receivable 20,720 Sales revenue 18,500 VAT payable 2,220 06-DecSales returns and allowances 1,850 VAT Payable 222 Accounts receivable 2,072 07-DecMerchandise inventory 25,000 Input VAT 3,000 Accounts payable 28,000 09-DecMerchandise inventory 1,300 Input VAT 156 Cash 1,456 10-DecCash 20,350 Sales discount 370 Accounts receivable 20,720 12-DecAccounts payable 28,000 Merchandise inventory 500 Bank 27,500 13-DecMerchandise inventory 13,800 Input VAT 1,656 Cash 15,456 14-DecOffice equipment 50,000 Cash 10,000 Accounts payable 40,000 15-DecSalaries expense 20,000 Bank 19,000 Withholding tax payable 1,000 17-DecAccounts receivable 11,760 Sales revenue 10,500 VAT payable 1,260 18-DecCash 19,992 Sales revenue 17,850 VAT payable 2,142 19-DecSales returns and allowances 800 Cash 800 20-DecStore Supplies 3900 Input VAT 468 Accounts Payable 4368 21-DecBank 108000 Interest 12000 Worldwide Banking Corporation 120000 23-DecMerchandise Inventory 15000 Input Vat 1800 Accounts Payable 16800 25-DecMerchandise Inventory 18600 Input Vat 2232 Cash 20832 26-DecCash 2000 Purchase Return 2000 28-DecAccounts Receivable 8400 Sales Revenue 7500 Vat Payable 900 29-DecAccounts Receivable 8780.8 Cash 2195.2 Sales Revenue 9800 Vat Payable 1176 29-DecAccounts Payable 40000 Cash 38000 Discount Received 2000 30-DecAccounts Payable 2000 Bank 1900 Discount Received 100 31-DecVat Payable 10716 Input VAT 9312 Cash 1404 Received additional cash investment from Hershey Chan, P230,000 andmerchandise worth P75,000.Issued check no. 1781 in payment for the previous month's light and water bills,P2,500.Sold merchandise for cash with a list price of P30,000 and a trade discount of 10%.Issued invoice no. 8121 to Atty. Edward Rudolf for merchandise sold on account,P18,500. Terms: 2/5, n/30.Granted 10% allowance on the merchandise sold to Atty. Rudolf.Purchased merchandise on account from AZ Commodities, P25,000. Terms: 2/5, n/45,FOB shipping point.Paid bill received from Cargo Shipping Co. for freight of the merchandise dated Dec.7,P1,300.Received payment from Atty. Rudolf.Issued check no. 1782 in payment of the account to AZ Commodities.Issued check no. 1783 in payment of the cash purchases amounting P13,800.Bought office equipment from Hi-Tech Company, P50,000. Terms: 20% downpayment, balance 5/15, n/60.Issued check no. 1784 in payment of the salaries of the employees, P 20,000 less5% withholding taxIssued invoice no. 1822 to Engr. Luisito Ventura for sales on account, P10,500.Terms: n/30.Dec.13456.7101213141517Cash sales, P17,850.Refunded customer for merchandise delivered with defects, P800, (without VAT).Purchased more store supplies on account from Victorino Supplies, P3,900.Terms: 5%/ eom.181920Received loan proceeds from Worldwide Banking Corporation: principal amount,P120,000; interest deducted in advance, P12,000. Hershey Chan issuedpromissory note for this loanPurchased merchandise on account from Optima General Merchandise, P15,000.Terms: 5/10, n/30Issued check no. 1785 for cash purchases of merchandise, P18,600.Received refund from supplier due to deliveries with defects, P2,000, ( without VAT)Issued invoice no. 8123 to Architect Paulita Vizmonte for sales on account,P7,500. Terms: n/30.Issued invoice no. 8124 to Dr. Renato Wilbert for sales on account, P9,800.Terms: 20% downpayment, 2/5, n/30.Issued check no. 1786 in payment of more store supplies from Victorino Supplies,P2,000.Paid amount due Victorino Supplies for transaction dated December 20Issued check no. 1787 in payment of the salaries of the employees, P20,000 less5% Withholding tax, 3% SSS, 1.5 Philhealth and 2% Pag-IBIG.Close input tax against output tax21232526282930313131

The corrected and complete journal entries are in step 2.

PLEASE CHECK MY ENTRIES IF IT CORRECT Date Explanation F Debit Credit 2015 01-Dec Cash 230,000 Merchandise inventory 75,000 HC Capital 305,000 03-Dec Accounts payable 2,500 Bank 2,500 04-Dec Cash 30,240 Sales revenue 27,000 VAT payable 3,240 05-Dec Accounts receivable 20,720 Sales revenue 18,500 VAT payable 2,220 06-Dec Sales returns and allowances 1,850 VAT Payable 222 Accounts receivable 2,072 07-Dec Merchandise inventory 25,000 Input VAT 3,000 Accounts payable 28,000 09-Dec Merchandise inventory 1,300 Input VAT 156 Cash 1,456 10-Dec Cash 20,350 Sales discount 370 Accounts receivable 20,720 12-Dec Accounts payable 28,000 Merchandise inventory 500 Bank 27,500 13-Dec Merchandise inventory 13,800 Input VAT 1,656 Cash 15,456 14-Dec Office equipment 50,000 Cash 10,000 Accounts payable 40,000 15-Dec Salaries expense 20,000 Bank 19,000 Withholding tax payable 1,000 17-Dec Accounts receivable 11,760 Sales revenue 10,500 VAT payable 1,260 18-Dec Cash 19,992 Sales revenue 17,850 VAT payable 2,142 19-Dec Sales returns and allowances 800 Cash 800 20-Dec Store Supplies 3900 Input VAT 468 Accounts Payable 4368 21-Dec Bank 108000 Interest 12000 Worldwide Banking Corporation 120000 23-Dec Merchandise Inventory 15000 Input Vat 1800 Accounts Payable 16800 25-Dec Merchandise Inventory 18600 Input Vat 2232 Cash 20832 26-Dec Cash 2000 Purchase Return 2000 28-Dec Accounts Receivable 8400 Sales Revenue 7500 Vat Payable 900 29-Dec Accounts Receivable 8780.8 Cash 2195.2 Sales Revenue 9800 Vat Payable 1176 29-Dec Accounts Payable 40000 Cash 38000 Discount Received 2000 30-Dec Accounts Payable 2000 Bank 1900 Discount Received 100 31-Dec Vat Payable 10716 Input VAT 9312 Cash 1404

PLEASE CHECK MY ENTRIES IF IT CORRECT Date Explanation F Debit Credit 2015 01-Dec Cash 230,000 Merchandise inventory 75,000 HC Capital 305,000 03-Dec Accounts payable 2,500 Bank 2,500 04-Dec Cash 30,240 Sales revenue 27,000 VAT payable 3,240 05-Dec Accounts receivable 20,720 Sales revenue 18,500 VAT payable 2,220 06-Dec Sales returns and allowances 1,850 VAT Payable 222 Accounts receivable 2,072 07-Dec Merchandise inventory 25,000 Input VAT 3,000 Accounts payable 28,000 09-Dec Merchandise inventory 1,300 Input VAT 156 Cash 1,456 10-Dec Cash 20,350 Sales discount 370 Accounts receivable 20,720 12-Dec Accounts payable 28,000 Merchandise inventory 500 Bank 27,500 13-Dec Merchandise inventory 13,800 Input VAT 1,656 Cash 15,456 14-Dec Office equipment 50,000 Cash 10,000 Accounts payable 40,000 15-Dec Salaries expense 20,000 Bank 19,000 Withholding tax payable 1,000 17-Dec Accounts receivable 11,760 Sales revenue 10,500 VAT payable 1,260 18-Dec Cash 19,992 Sales revenue 17,850 VAT payable 2,142 19-Dec Sales returns and allowances 800 Cash 800 20-Dec Store Supplies 3900 Input VAT 468 Accounts Payable 4368 21-Dec Bank 108000 Interest 12000 Worldwide Banking Corporation 120000 23-Dec Merchandise Inventory 15000 Input Vat 1800 Accounts Payable 16800 25-Dec Merchandise Inventory 18600 Input Vat 2232 Cash 20832 26-Dec Cash 2000 Purchase Return 2000 28-Dec Accounts Receivable 8400 Sales Revenue 7500 Vat Payable 900 29-Dec Accounts Receivable 8780.8 Cash 2195.2 Sales Revenue 9800 Vat Payable 1176 29-Dec Accounts Payable 40000 Cash 38000 Discount Received 2000 30-Dec Accounts Payable 2000 Bank 1900 Discount Received 100 31-Dec Vat Payable 10716 Input VAT 9312 Cash 1404

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter11: Accounting For Purchases And Cash Payments

Section: Chapter Questions

Problem 10SPB: CASH PAYMENTS TRANSACTIONS Kay Zembrowski operates a retail variety store. The books include a...

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Date	Explanation	F	Debit	Credit
2015	01-Dec	Cash	230,000
		Merchandise inventory	75,000
		HC Capital		305,000

	03-Dec	Accounts payable	2,500
		Bank		2,500

	04-Dec	Cash	30,240
		Sales revenue		27,000
		VAT payable		3,240

	05-Dec	Accounts receivable	20,720
		Sales revenue		18,500
		VAT payable		2,220

	06-Dec	Sales returns and allowances	1,850
		VAT Payable	222
		Accounts receivable		2,072

	07-Dec	Merchandise inventory	25,000
		Input VAT	3,000
		Accounts payable		28,000

	09-Dec	Merchandise inventory	1,300
		Input VAT	156
		Cash		1,456

	10-Dec	Cash	20,350
		Sales discount	370
		Accounts receivable		20,720

	12-Dec	Accounts payable	28,000
		Merchandise inventory		500
		Bank		27,500

	13-Dec	Merchandise inventory	13,800
		Input VAT	1,656
		Cash		15,456

	14-Dec	Office equipment	50,000
		Cash		10,000
		Accounts payable		40,000

	15-Dec	Salaries expense	20,000
		Bank		19,000
		Withholding tax payable		1,000

	17-Dec	Accounts receivable	11,760
		Sales revenue		10,500
		VAT payable		1,260

	18-Dec	Cash	19,992
		Sales revenue		17,850
		VAT payable		2,142

	19-Dec	Sales returns and allowances	800
		Cash		800

	20-Dec	Store Supplies	3900
		Input VAT	468
		Accounts Payable		4368

	21-Dec	Bank	108000
		Interest	12000
		Worldwide Banking Corporation		120000

	23-Dec	Merchandise Inventory	15000
		Input Vat	1800
		Accounts Payable		16800

	25-Dec	Merchandise Inventory	18600
		Input Vat	2232
		Cash		20832

	26-Dec	Cash	2000
		Purchase Return		2000

	28-Dec	Accounts Receivable	8400
		Sales Revenue		7500
		Vat Payable		900

	29-Dec	Accounts Receivable	8780.8
		Cash	2195.2
		Sales Revenue		9800
		Vat Payable		1176

	29-Dec	Accounts Payable	40000
		Cash		38000
		Discount Received		2000

	30-Dec	Accounts Payable	2000
		Bank		1900
		Discount Received		100

	31-Dec	Vat Payable	10716
		Input VAT		9312
		Cash		1404