DONABELLE C.

MARIMON ACC111(412) FORUM4

For the following  transactions, identify the type of transaction, the effect, and prepare
the correct journal entry.

Aug. 5- Remitted to the BIR the withholding tax of July amounting to P300.

Aug. 10- ABC enterprise release a cash advance to employee A amounting to P20,000.

Aug. 15- Paid salary to employee amounting to P30,000 with the following deductions.

         Cash advance . . . . . P5,000

         w/holding tax    . . .       400

DATE TRANSACTION TYPE OF EFFECT JOURNAL ENTRY

TRANSACTION
Aug 05 Remitted to the BIR the UA Dec. in OE W/holding Tax Pay P300
withholding tax of July (Withholdin
amounting to P300. g Tax Cash P300
Expense)
Payment of BIR w/holding
Dec. in Asset tax
(Cash)
10 ABC enterprise release EA Inc. in Asset Advances to Employees P20,000
a cash advance to (Advances to
employee A amounting Employees) Cash P20,000
to P20,000.
Dec. in Asset Cash advance of employees
(Cash)
15 Paid salary to employee UA Dec. in Asset Salaries Expense P30,000
amounting to P30,000 (Cash)
with the following Cash Advance P5,000
deductions. Dec. in Asset
(Advances of W/holding Tax P400
         Cash Employees)
advance . . . . . P5,000 Cash P24,600
Dec. in OE
         w/holding tax    . . (Salaries Payment of salaries w/
.       400 Expense) deductions

Inc. in
Liability
(Withholdin
g Tax
Payable)