X is a percentage tax business. X issued a VAT-invoice for goods sold inthe amount of P12,400 inclusive of VAT. The goods were bought forP8,000 exclusive of VAT. How much is the VAT payable? *О РОO P1,329O P1,488О Р369

VAT Payable = VAT Collected from Sale of Goods - VAT Paid on Goods Purchased

Answered: X is a percentage tax business. X…

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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1. Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is its gross profit? A. 50,000 B. 32,000 C. 20,500 D. 38,500 2. How about its income before tax? A. 50,000 B. 32,000 C. 20,500 D. 38,500 3. Suppose the government imposes a 5% income tax on all businesses earning an income worth Php 50,000 and below. Solve for the income after tax of Lukah’s Coffee Shop. A. 30,400 B. 32,000 C. 20,000 D. 19,475 4. Now, suppose the rent expense increased from Php 3,500 to Php 4,000. What is now the income before tax of Lukah’s Coffee Shop? A. 30,400 B. 32,000 C. 20,000 D. 19,475 5. Given the change in the gross profit due to an increase in the cost of rental space, how much, then, is the income after tax of Lukah’s Coffee Shop? A. 30,400 B. 32,000 C. 20,000 D. 19,000
(To help answer this question, create an Income Taxes Payable T-account and insert the beginning andending balances.) If the company debited Income Tax Expense and credited Income Taxes Payable $700during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?What does the amount of these debits represent?
A store had receipts of $6045.50. If the sales tax rate is 7%, how much merchandise did the store sell? The value of the merchandise sold (not including sales tax) is $ (blank)
Which is false? Business with annual gross receipts of more than P3,000,000 * O Are subject to graduated income tax Are subject to Creditable withholding tax O Are subject to VAT O None of the above
On January 15, 2021, X Company bought merchandise from Y Company amounting to P30,000 (VAT exclusive). Terms 2/10, n/30, FOB shipping point, freight collect Amount of freight cost is P1,000 Assuming X Company issued a debit memorandurn for P5,600 (VAT inclusive), and paid the amount due within the discount period, the amount if Input tax on the cash discount will be
A customer purchases $28.14 in prodcts only $12.83 is taxable. How much sales tax is owed if the tax rate is 10%?
21. A non-VAT business reported the following: Sales P 2,500,000 Cost of Sales 1,000,000 Purchases, inclusive of VAT 560,000 How much is the amount of business tax payable? (NO Solutions)
Darmstadt Company sold merchandise for which it received total cash payments of $2,632,200. A 7% sales tax was included in the total cash payments. The proper amount to record as sales would be: A) $2,460,000 B) $2,568,168 C) $2,447,946 D) $2,736,000
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $486,000 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $286,740. If an amount box does not require an entry, leave it blank. b. Paid $42,780 to the state sales tax department for taxes collected. If an amount box does not require an entry, leave it blank. Check My Work ▾ Previous Next

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X is a percentage tax business. X issued a VAT-invoice for goods sold in the amount of P12,400 inclusive of VAT. The goods were bought for P8,000 exclusive of VAT. How much is the VAT payable? *