question; prepare the journal entries. JARED Enterprises, is a VAT registered business, owned by Jared. It started
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JARED Enterprises, is a VAT registered business, owned by Jared. It started its operations on May 1, 2020 and invested the following: Cash P500,000; Store Equipment- P130,000 and Delivery Van P180,000. During the month, the following transactions are as follows: May 2 Purchased merchandise on account from Will Merchandising, terms 2/10, n/30, FOB Shipping Point, freight collect. Paid five months rent for the store space. 3 5 Issued debit memo to Will Merchandising for damaged goods. 6 Received and paid freight cost for purchases of May 2. 7 Sold merchandise to Kang Trading, FOB Destination, freight prepaid of P1,000, terms 2/10, n/30 8 Settled accounts payable with Will Merchandising in full. 9 Issued credit memo to Kang Trading for defective goods. 10 Purchased office supplies from Van Marketing (Non-VAT supplier). 11 Paid utilities for the month 15 Paid salaries of store personnel 17 Received full payment from Kang Trading. 19 Acquired goods from Junho Wholesalers, FOB Shipping, freight prepaid of 800, terms 20%; 2/7,n/30. CONTINUED... 21 Sold merchandise to Park Retailers and received Cash. 22 Partially paid account with Junho Wholesalers, discount to be honored 23 Issued credit memo to Park Retailers for defective goods. 24 Purchased office supplies from Alcong Shop on account (NON-VAT) 25 Owner withdrew from the cashier for his personal use 26 Fully settled account with Junho Wholesalers. 30 Paid salaries of store personnel. 31 Set up Vat liability and issued payment to BIR. REQUIRED: 1. Prepare proper journal entries. P80,000 15,000/month 2,000 1,500 120,000 3,000 8,000 10,000 15,000 105,000 175,000 50,000 2,500 30,000 50,000 15,000 JARED Enterprises, is a VAT registered business, owned by Jared. It started its operations on May 1, 2020 and invested the following: Cash P500,000; Store Equipment- P130,000 and Delivery Van P180,000. During the month, the following transactions are as follows: May 2 Purchased merchandise on account from Will Merchandising, terms 2/10, n/30, FOB Shipping Point, freight collect. Paid five months rent for the store space. 3 5 Issued debit memo to Will Merchandising for damaged goods. 6 Received and paid freight cost for purchases of May 2. 7 Sold merchandise to Kang Trading, FOB Destination, freight prepaid of P1,000, terms 2/10, n/30 8 Settled accounts payable with Will Merchandising in full. 9 Issued credit memo to Kang Trading for defective goods. 10 Purchased office supplies from Van Marketing (Non-VAT supplier). 11 Paid utilities for the month 15 Paid salaries of store personnel 17 Received full payment from Kang Trading. 19 Acquired goods from Junho Wholesalers, FOB Shipping, freight prepaid of 800, terms 20%; 2/7,n/30. CONTINUED... 21 Sold merchandise to Park Retailers and received Cash. 22 Partially paid account with Junho Wholesalers, discount to be honored 23 Issued credit memo to Park Retailers for defective goods. 24 Purchased office supplies from Alcong Shop on account (NON-VAT) 25 Owner withdrew from the cashier for his personal use 26 Fully settled account with Junho Wholesalers. 30 Paid salaries of store personnel. 31 Set up Vat liability and issued payment to BIR. REQUIRED: 1. Prepare proper journal entries. P80,000 15,000/month 2,000 1,500 120,000 3,000 8,000 10,000 15,000 105,000 175,000 50,000 2,500 30,000 50,000 15,000 JARED Enterprises, is a VAT registered business, owned by Jared. It started its operations on May 1, 2020 and invested the following: Cash P500,000; Store Equipment- P130,000 and Delivery Van P180,000. During the month, the following transactions are as follows: May 2 Purchased merchandise on account from Will Merchandising, terms 2/10, n/30, FOB Shipping Point, freight collect. Paid five months rent for the store space. 3 5 Issued debit memo to Will Merchandising for damaged goods. 6 Received and paid freight cost for purchases of May 2. 7 Sold merchandise to Kang Trading, FOB Destination, freight prepaid of P1,000, terms 2/10, n/30 8 Settled accounts payable with Will Merchandising in full. 9 Issued credit memo to Kang Trading for defective goods. 10 Purchased office supplies from Van Marketing (Non-VAT supplier). 11 Paid utilities for the month 15 Paid salaries of store personnel 17 Received full payment from Kang Trading. 19 Acquired goods from Junho Wholesalers, FOB Shipping, freight prepaid of 800, terms 20%; 2/7,n/30. CONTINUED... 21 Sold merchandise to Park Retailers and received Cash. 22 Partially paid account with Junho Wholesalers, discount to be honored 23 Issued credit memo to Park Retailers for defective goods. 24 Purchased office supplies from Alcong Shop on account (NON-VAT) 25 Owner withdrew from the cashier for his personal use 26 Fully settled account with Junho Wholesalers. 30 Paid salaries of store personnel. 31 Set up Vat liability and issued payment to BIR. REQUIRED: 1. Prepare proper journal entries. P80,000 15,000/month 2,000 1,500 120,000 3,000 8,000 10,000 15,000 105,000 175,000 50,000 2,500 30,000 50,000 15,000
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Journal Entries for JARED Enterprises for May 2020 May 2 Purchased merchandise on account from Will Merchandising Inventory Dr Amount Accounts Payable ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
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