BBB Co. is a 7% Value Added Tax (VAT) registered company and use periodic inventory system....
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BBB Co. is a 7% Value Added Tax (VAT) registered company and use periodic inventory system. The company distributes computers to retail stores. During the month of August, the following merchandising transactions occurred. Aug. 1 Purchased 100 units of computer at THB 22,500 per unit on account from Lady Go Go Co. Which is VAT registered entity, FOB shipping point with credit terms 1/10, n/30. Freight cost THB 1,000 cash. The unit price is excluded 7% vat. 3 5 Paid monthly rent THB 5,000 to Aloha Co. with 5% WHT. Aloha Co. is not VAT registered. Returned 2 units of computer purchased on Aug. 1", 7 9 12 22 Sold 15 units of computer on account to Friend Co. for THB 30,000 per unit with credit terms 1/20, n/30. The company entitled to a 5% trade discount. Unit price is included 7% vat. Paid the balance due to Lady Go Go Co. in full amount. Purchased office supplies THB 1,380 for cash from Khun Somboon's shop which is not VAT registered entity. 15 Received $20,000 cash dividend from investment in TOP Co., 10% WHT. 122 20 Received the balance due from Friend Co. 22 Paid THB 24,000 for 6 month insurance, 7% vat included and 1% WHT. Insurance covers since September 1, 2020. 22 22 25 27 29 29 29 30 2355 Paid THB 24,000 for 6 month insurance, 7% vat included and 1% WHT. Insurance covers since September 1, 2020. Sold 40 units of computer on account to Hill Co. for THB 28,500 per unit. BBB offered credit terms 2/10, n/30 with FOB destination. Freight cost THB 1,400. Unit price is excluded 7% vat. Paid advertising expense to Emma Agency which is VAT registered entity. The invoice price is THB 45,000 included VAT and the WHT is 2%. Paid salaries and wages THB 30,000, 3% withholding tax and 5% social security (maximum THB 750) were deducted. Paid miscellaneous expense THB 2,400. (no VAT for this transaction) Received and paid a THB 1,200 utility bill (included VAT). Purchased THB 20,000 equipment using VISA credit card. Price is included 7% vat. 31 31 Summarised sale taxes and purchase taxes for the month. Instruction: 1. Record journal entries for Aug using periodic system. 2. Record journal entries for Aug using perpetual system. Suppose that the cost of goods sold is 50% of selling price (included VAT). BBB Co. is a 7% Value Added Tax (VAT) registered company and use periodic inventory system. The company distributes computers to retail stores. During the month of August, the following merchandising transactions occurred. Aug. 1 Purchased 100 units of computer at THB 22,500 per unit on account from Lady Go Go Co. Which is VAT registered entity, FOB shipping point with credit terms 1/10, n/30. Freight cost THB 1,000 cash. The unit price is excluded 7% vat. 3 5 Paid monthly rent THB 5,000 to Aloha Co. with 5% WHT. Aloha Co. is not VAT registered. Returned 2 units of computer purchased on Aug. 1", 7 9 12 22 Sold 15 units of computer on account to Friend Co. for THB 30,000 per unit with credit terms 1/20, n/30. The company entitled to a 5% trade discount. Unit price is included 7% vat. Paid the balance due to Lady Go Go Co. in full amount. Purchased office supplies THB 1,380 for cash from Khun Somboon's shop which is not VAT registered entity. 15 Received $20,000 cash dividend from investment in TOP Co., 10% WHT. 122 20 Received the balance due from Friend Co. 22 Paid THB 24,000 for 6 month insurance, 7% vat included and 1% WHT. Insurance covers since September 1, 2020. 22 22 25 27 29 29 29 30 2355 Paid THB 24,000 for 6 month insurance, 7% vat included and 1% WHT. Insurance covers since September 1, 2020. Sold 40 units of computer on account to Hill Co. for THB 28,500 per unit. BBB offered credit terms 2/10, n/30 with FOB destination. Freight cost THB 1,400. Unit price is excluded 7% vat. Paid advertising expense to Emma Agency which is VAT registered entity. The invoice price is THB 45,000 included VAT and the WHT is 2%. Paid salaries and wages THB 30,000, 3% withholding tax and 5% social security (maximum THB 750) were deducted. Paid miscellaneous expense THB 2,400. (no VAT for this transaction) Received and paid a THB 1,200 utility bill (included VAT). Purchased THB 20,000 equipment using VISA credit card. Price is included 7% vat. 31 31 Summarised sale taxes and purchase taxes for the month. Instruction: 1. Record journal entries for Aug using periodic system. 2. Record journal entries for Aug using perpetual system. Suppose that the cost of goods sold is 50% of selling price (included VAT).
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
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