Total Allowable Deductions if Mr. Queen registered his business venture as a One Person Corporation a. Salaries ExpenseContributions ExpenseSalaries worked and paidAccrued salariesTotal Salaries ExpenseDonations to TESDA priority projectDonations to Government- Non-priority projectTotal Contribution expenseP400,000P100,00050,000P450,000100,000P200,000b. Bad debts expenseAccounts written off determined to be worthlessEstimated uncollectible amountRelated party bad debtsWorthless accounts not yet written offP50,000200,00020,00050.000Total bad debts expenseP320,000c. The retirement expense deducted was PI50,000. Only P60,000 of which was from thecontribution of the employer.d. Representation Expense, P50,000.e. Rent Expense:Rent ExpenseP600,000f. Taxes expenseMunicipal and licensesQuarterly Income taxТotal TaxesP50,000150,000P200,000g. Life insurance expensePremium on employees group insurancePremium on officer's insurance (Beneficiary is the Company)| Total life insurance expenseP150,00080,000P230,000h. Interest ExpenseInterest Expense (bank borrowings)Interest InceNet Interest Expense, deductedP60,000(10,000)[from notes receivable)P50,000

Allowable deductions can be defined as those amount of expenses or incomes which are allowed to be…

Answered: Total Allowable Deductions if Mr. Queen…

Business

Accounting

Total Allowable Deductions if Mr. Queen registered his business venture as a One Person Corporation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Total Allowable Deductions if Mr. Queen registered his business venture as a One Person Corporation

a. Salaries Expense
Contributions Expense
Salaries worked and paid
Accrued salaries
Total Salaries Expense
Donations to TESDA priority project
Donations to Government- Non-priority project
Total Contribution expense
P400,000
P100,000
50,000
P450,000
100,000
P200,000
b. Bad debts expense
Accounts written off determined to be worthless
Estimated uncollectible amount
Related party bad debts
Worthless accounts not yet written off
P50,000
200,000
20,000
50.000
Total bad debts expense
P320,000
c. The retirement expense deducted was PI50,000. Only P60,000 of which was from the
contribution of the employer.
d. Representation Expense, P50,000.
e. Rent Expense:
Rent Expense
P600,000
f. Taxes expense
Municipal and licenses
Quarterly Income tax
Тotal Taxes
P50,000
150,000
P200,000
g. Life insurance expense
Premium on employees group insurance
Premium on officer's insurance (Beneficiary is the Company)
| Total life insurance expense
P150,000
80,000
P230,000
h. Interest Expense
Interest Expense (bank borrowings)
Interest Ince
Net Interest Expense, deducted
P60,000
(10,000)
[from notes receivable)
P50,000

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