Kathy Concepcion operates KC, a perfume and soap store. The company uses special journals. KC provides a special column for 12% VAT in its sales and purchases journal. VAT is included in the purchases, freight and sales amounts. All collections are immediately deposited. All payments amounting to $5,000 and above are made by checks. During May, the following transactions were completed:
May 1 – Invested cash of $250,000 and merchandise of $50,000 to open the business. Deposited $200,000 of the cash investment with Citibank
May 2 – Signed a contract of lease with Robinson’s Landholdings and made an advance payment for two month’s rent, $18,000. Check no. 201. Voucher 101.
Paid for taxes and licenses to the BIR, $1,200
May 3 – Purchased merchandise on account from Subic, $ 13,440
Terms: 2/10, n/30. Purchase Invoice 422
May 5 – Purchased store supplies on account from Goodwill Bookstore, $1,792.
Terms: 1/10, n/30. Purchase Invoice 422
May 8 – Sold merchandise on account to Rustan, $11,760
Terms: 1/10, n/30; Invoice no.150
May 12 – Paid Subic the amount owed on the May 3 purchase.
May 14 – Purchased merchandise on account from Evergreen, $28,000
Terms: 1/10, n/30. Invoice no. 801
May 15 – Paid Goodwill the amount owed on the May 5 purchase.
Recorded cash sales for the first half of May, $35,840
May 16 – Sold merchandise on account to Robinson’s $8,960. Terms: n/30
May 18 – received a check from Rustan for the amount owed on the May 8 sale.
Official Receipt No. 001.
May 20 – Issued a check to Freight Forwarders on various purchases made, $6,496
May 25 – Borrowed $100,000 from Citibank, signing a 10%, 90-day note.
May 28 – Paid Evergreen the amount owed on the May 14 purchase
May 29 – Cash sales for the second half of May, $28,000
May 30 – Kathy drew a check payable to herself for personal use, $5,000.
Paid salaries $12,000 less 5% withholding tax, for one salesclerk and one office clerk. Additional deductions were made for 3% SS, 1.5% Phil health and 2% HDMF
May 31 – Remitted to BIR the amount due for the VAT Payable. Close first Input Tax against Output Tax in the general journal.
Required
Record the transactions in the General Journal.
