ABC Company started its business operations on November 2, 2021. The following were the transactions during the month:          Nov. 2, 2021 The owner made a cash investment to the business amounting to ₱2,000,000.         Nov. 5, 2021 Obtained a ₱500,000 loan and issues a promissory note to Citibank.         Nov. 8, 2021 Acquired land costing ₱1,000,000 on cash basis.         Nov.16, 2021 Rendered services worth ₱1,200,000 on account.         Nov.30, 2021 Paid salaries of the workers amounting to  ₱280,000

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A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…

Q: The initial investment of the owner in his business is ₱75,000. At the end of each year, the total…

A: Owners' equity refers to the amount that is left from the asset after the settlement of liabilities.…

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A: Michelson & Sons acquired a land outside a city limit for agreed amount of $2.4 million.$400000…

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A: Borrowing cost capitalization is the borrowing cost that is added to the cost of qualifying assets…

Q: The owner of FN Trading received the amount loaned personally from a bank amounting to P4,500,000…

A: The question is based on the concept of Financial Accounting.

Q: 1. On january 1, 2021, ABC Company sold merchandise for Php400,000 in exchange for cash of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Since you have posted multiple questions , we will to the first one for you . If you want any…

Q: On January 31, 2019, YZ Company engaged in the following transactions: * Obtained a P500,000,…

A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000

Q: 1. The total amount remitted to the BIR through the Tax Remittance Advice? 2. How much is the…

A: The Tax Remittance Advice (TRA) is an official document used by organizations to report and send…

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A:

Q: Wildhorse Ltd. is constructing a building. Construction began on February 1 and was completed on…

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A: Owners capital means net assets of the company. To calculate owners capital at the end of the year…

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A: Note payable is a kind of loan that is repaid after a certain period of time with a specific rate of…

Q: Blue Inc. reports under IFRS and has adopted the policy of classifying interest received as an…

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Q: Madrigal Company constructed a building for its own use. Construction started on January 3, 2021 and…

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Q: Clay Company started construction of a new office building on January 1, 20x3, and moved into the…

A:

Q: Gadubhai

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A: The question relates to foreign currency translation, as on different dates exchange values are…

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A: Cash and Cash equivalents refers to the cash or items that can be converted into cash immediately.…

Q: Jan. 5 12 14 20 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. Performed…

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Q: The following are relevant information pertair to the results of the business operations for…

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A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

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A: A long-term contract refers to a contract of work that takes longer than one year. The revenue under…

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A: The question is related to Borrowing Cost. Borrowing Cost are costs that are directly attributable…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.