lOMoARcPSD|31361671 Midterm-Assignment-4 Accountancy (National University (Philippines)) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 PROBLEMS P8-1. For 2022 taxable year, determine the applicable business tax of the following: Lease of Residential Units. Case Monthly Rental A P14,000 B 16,000 C 16,000 D 18,000 Lease of Commercial Units. Case Monthly Rental E P12,000 F 16,000 G 16,000 H 10,000 Aggregate annual rental 3,200,000 2,800,000 3,000,000 3,200,000 Answer Exempt OPT OPT Vatable Aggregate annual rental 3,200,000 2,800,000 3,000,000 3,500,000 Answer Vatable OPT OPT Vatable P8-2 Determine whether or not the transaction described below is subject to VAT. Write "V" in the space provided if the transaction is subject to vat. Write "X" if the transaction is vat exempt or subject to other types of tax. Case Transaction A. Sale by agricultural cooperatives of their produced to members and non-members. B. Receipts from lending activities by credit multipurpose cooperatives duly registered and in good standing with Cooperative Development Authority. C. Importation by non-agricultural, non-electric, non-credit cooperatives of machineries and equipment to be used by them. D. Publication of magazines devoted principally to the publication of paid advertisements. E. Sale of parking lots in a condominium (SP is not more than P3,000,000). F. Isolated sale of goods or services for a gross selling price of P2,800,000. G. Export sale by a vat registered exporter not exceeding the vat threshold of P3,000,000. H. Transport of passengers and cargo by air or sea vessels I. Sale of drugs and medicines J. Services of banks, non-bank financial intermediaries performing quasi-banking functions, and other non- bank financial intermediaries such as money changers and pawnshops P8-3. For 2022 taxable year, determine whether the following is subject to vat. Write "V" in the space provided if the transaction is subject to vat. Write "E" if the transaction is vat exempt. Case Transaction V A. Sale by a real estate dealer of residential lot with a selling price of P800,000. V B. Sale by a real estate dealer of residential lot with a selling price of P3,500,000. V C. Sale by a real estate dealer of commercial lot with a selling price of P2,800,000. Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 V V V V V D. E. F. G. H. Sale of residential lot classified as capital asset. Sale by a real estate dealer of residential house and lot with a selling price of P3,000,000) Sale by a real estate dealer of condominium unit with selling price of P3,250,000) Sale by a real estate dealer of parking lot in a condominium unit with a selling price of P850,000) Sale of residential house and lot classified as capital asset with a selling price of P8,000,000) P8-4. Assume the following transactions with the corresponding invoice cost, inclusive of vat, if applicable: Apol, non-vat taxpayer, sells to LJ, Vat taxpayer P89,600 LJ, vat taxpayer, sells to Chris, Vat taxpayer 134,400 Chris, vat taxpayer, sells to Abi 201.600 Abi, nonvat taxpayer, exported the goods in Canada 300,000 REQUIRED: DETERMINE THE FOLLOWING: a. Vat payable of Apol - Exempt b. Vat payable of LJ – 14,400 c. Vat payable of Chris – 7,200 d. Vat payable of Abi - Exempt P8-5. Omega Corporation is a vat registered taxpayer. It had the following data for the month of December (vat inclusive) Cash sales, invoice amount P660,800 Sales on account Purchases 246,400 Purchases 291,200 Consignment shipments: Less than 60 days 38,500 More than 60 days 22,400 Goods paid to creditors (dacion en pago) 16,800 Goods given as Christmas gift to employees 19,040 Property dividend to stockholders 8,960 REQUIRED: DETERMINE THE VAT PAYABLE FOR THE MONTH. Cash Sales Sales on account Transactions deemed sale (22,400+16,800+19,040+8,960) Total sales subject to vat Output Vat (974,000/1.12 x 12%)` Less: Input vat (Purchases P291,200/1.12 x 12%) Vat Payable 660,800 246,400 67,200 974,400 104,400 (31,200) P 73,200 P8-6. ABC Corporation (vat reg.) has the following data for the month of March 2022: Gross Sales (vat exclusive) Sales Return Goods shipped on consignment (net) Unit Price P8,000,000 400,000 Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 March 25 40 February 14 30 January 8 20 Goods withdrawn for use by the company Goods taken as payment to creditor Purchases for the month of (net of vat): Goods Supplies Capital goods (U.Life 4 years) Freight and insurance Salaries of employees P10,000 10,000 10,000 P50,000 30,000 P600,000 75,000 1,100,000 8,500 385,000 Additional information: Received cash representing payment for ten (10) units delivered on February 14. The amount received was net of ten percent (10%) commission. A consignee reported and remitted R200,000 (gross of 10% commission) representing 20 units sold from goods consigned in March. REQUIRED: Determine the Vat Payable for the month of March. Sales Sales from consignment Transactions deemed sales Goods withdrawn Goods taken as payment to creditors Total Output VAT: Purchases Capital Goods VAT PAYABLE 912,000 36,000 24,000 6,000 3,600 981,600 82,080 2,750 (84,830) P 896,770 P8-7. (MIXED TRANSACTIONS) Bobs Bookstore, vat registered, is engaged in the business of selling books, school supplies and gift items. The following were provided to you during the month of October (inclusive of vat, if applicable): Sale of school supplies P1,680,000 Sale of books 1,200,000 Sale of gift items 1,008,000 Purchase of school supplies and gift items for sale 1,344,000 Purchase of books 600,000 Purchase of computers used in vatable and non-vatable transactions 448,000 Purchase of office supplies used in vatable and non- vatable transactions from non-vat registered suppliers 200,000 REQUIRED: DETERMINE THE VAT PAYABLE FOR THE MONTH OF OCTOBER. Purchases of goods, vat business, invoice amount Purchases of goods for non vat business, inclusive of input vat Purchase of depreciable asset for common use, vat included Purchases of supplies for common use, vat included Rental of premises for both types of business. The lessor is non-vat registered REQUIRED: DETERMINE THE VAT PAYABLE FOR THE YEAR Downloaded by Eiwuk luu (Eiwuk@goprems.fun) 224,000 33,600 112,000 2,240 22,400 lOMoARcPSD|31361671 Sale of school supplies Sale of gift items Sales subject to output vat Output Vat (divide by 1.12 x 12%) Less: Purchase of school supplies and gift items Purchase of computers Purchase of office supplies used in vatable and non-vatable transactions from non-vat registered suppliers Vat Payable 1,680,000 1,008,000 2,688,000 288,000 144,000 32,000 0 (176,000) P 112,000 P8-8. (MIXED TRANSACTIONS) Omega Corporation is engaged in a business subject to value added tax and another business which is not subject to value added tax. Omega's business data for the current year were provided as follows: Sales, vat business, invoice amount P896,000 Sales, non-vat business 200,000 Purchases of goods, vat business, invoice amount 224,000 Purchases of goods for non vat business, inclusive of input vat 33,600 Purchase of depreciable asset for common use, vat included 112,000 Purchases of supplies for common use, vat included 2,240 Rental of premises for both types of business. The lessor is non-vat registered 22,400 REQUIRED: DETERMINE THE VAT PAYABLE FOR THE YEAR Output Vat (P896,000 / 1.12 x 12%) Less: Input vat. P224,000 / 1.12 x 12% P112,000 / 1.12 x 12% x 80 P2,240 / 1.12 x 12% x 80% Vat Payable 96,000 (24,000) (9,600) (192) P 62,208 P8-9. The following data during the month relates to William Company, a VAT registered person (amounts are vat inclusive, if applicable): Domestic sales 330,000 Other domestic sales (sales to export traders) 274,996 Export sales 200,000 Purchases of goods for domestic sales 374,000 Purchases of supplies on domestic sales 69,848 Purchase of service 154,000 Purchase of goods for export 55,000 REQUIRED: a) Determine the total input tax (P374,000 + 69,848 + 154,000 + 55,000) /1.12 x 12% = P69,948 b) Determine the value added tax payable if excess input taxes on exports are claimed as tax credit Output vat (P330,000 + P274,996) / 1.12 x 12% 64,821 Less: Input vat (P374,000 + 69,848 + 154,000) / 1.12 x 12% (69,984) Vat Payable (P5,163) Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 P8-10. (INPUT TAX ON IMPORTATION) ABC Company imported merchandise for resale. Using the following information, determine the value added tax on the importation before the same can be release from customs custody. CIF (cost, insurance, freight) value P229,195 Charges/expenses incurred in claiming the goods: Wharfage 1,540 Arrastre 2,295 Customs duty 4,090 Brokerage fee and documentary stamps 330 Facilitation expense 3,000 Marine cargo insurance 2,550 Other charges: Freight from customs to warehouse (vat exclusive) 5,000 REQUIRED: Determine the following: a) Vat on importation - 229,195 + 1,540 + 2,295 + 4,090 + 330 + 3,000 + 2,550) x 12% = 28,800 b) The value added tax payable assuming the goods were subsequently sold for P350,000. Output Vat Less: Input VAT on Importation CIF (cost, insurance, freight) value Wharfage Arrastre Customs duty Brokerage fee and documentary stamps Marine cargo insurance Total 350,000 229,195 1,540 2,295 4,090 330 2,550 Output VAT Less: Input VAT VAT Payable 240,000 110,000 x 12% 13,200 (600) 12,600 P8-11. (INPUT TAX ON CAPITAL GOODS) The following data (vat exclusive) are available for the first two (2) quarters of 2021 : 1st Quarter Sales P3,000,000 Purchases other than capital goods 1,200,000 Purchase of machinery on Jan. 1 with useful life of 3 yrs 2,500,000 Unused input vat as of end of 2020 125,000 2nd Quarter Sales 4,800,000 Purchases other than capital goods 3,000,000 The machinery bought on January 1 was sold on June 30. Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 REQUIRED a) Determine the vat payable/excess input tax for the 1st quarter Output Vat (P3M x 12%) Input VAT: Purchases (P1.2M x 12%) Purchase of machinery (P2.5M x 12%) / 36 x 3mos. Unused input vat as of end of 2020 Vat Payable P360,000 (144,000) (25,000) (125,000) P66,000 b) Determine the value added tax payable/excess input tax for the second quarter. Output Vat (4.8M x 12%) P576,000 Input Vat: Purchases (P3M x 12%) (360,000) Unused input vat on capital goods (P2.5M x 12%-25,000) (275,000) Excess Input VAT (59,000) c) Determine the vat payable/excess input tax for the 1st quarter assuming the taxable year is 2022 Output Vat (P3M x 12%) P360,000 Input VAT: Purchases (P1.2M x 12%) (144,000) Purchase of machinery (P2.5M x 12%) / 36 x 12mos. (100,000) Unused input vat as of end of 2022 (125,000) Excess Input VAT (9,000) d) Determine the value-added tax payable/excess input tax for the second quarter assuming the taxable year is 2022 Output Vat (4.8M x 12%) P576,000 Input Vat: Purchases (P3M x 12%) (360,000) Unused input vat on capital goods (P2.5M x 12% - 100,000) (200,000) VAT Payable 16,000 P8-12. (TRANSITIONAL INPUT VAT) An owner of warehouse, which used to be vat exempt, because its annual receipts never exceeded the vat threshold, decided to register under the system on January 2, 2022. The following data were from the 1 quarter vat ending March 31, 2022: Rental from warehousing services, net of vat Purchases of supplies in February, gross of vat Inventory of supplies, January 1, 2022 Vat on inventory of supplies, January 1, 2022 P336,000 112,000 100,000 10,000 REQUIRED DETERMINE THE VAT PAYABLE FOR THE QUARTER ENDING MARCH 31, 2022 Output vat (P336,000 x 12%) Input vat: P40,320 Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 On purchases (P112,000 x 3/28) Transitional input vat: Higher between 2% of beg. Invty vs. P10,000 Vat Payable (12,000) (10,000) P18,320 P8-13. (PRESUMPTIVE INPUT VAT) JJ is a vat registered processor of sardines. The following data were provided for purposes of determining the taxpayer's vat payable: SALES (processed sardines, exclusive of vat) P800,000 PURCHASES/PAYMENTS Sardines purchased from fish dealers (invoice amount) Tomatoes purchased from farmers Purchased of olive oil (invoice amount) Purchased of can containers (excl. of vat) Payments for paper labels (excl. of vat) Purchased of cardboard for boxes (inclusive of vat) Payments for hauling services from non-vat registered forwarders REQUIRED: a) Determine the presumptive input vat = 3,400 b) Determine the value added tax payable/excess input tax of JJ Output vat (P800,000 x 12%) Less: Input Vat Presumptive I.V (P85,000 x 4%) Purchased of olive oil (P67,200 x 3/28) Purchased of can containers (P25,000 x 12%) Payments for paper labels (P12,000 x 12%) Purchased of cardboard for boxes (P8,960 x 3/28) Payments for hauling services Vat Payable 200,000 85,000 67,200 25,000 12,000 8,960 100,000 P96,000 (3,400) (7,200) (3,000) (1,440) (960) nil P80,000 P8-14. (PRESUMPTIVE INPUT VAT) JJ is a vat registered processor of fruits. The following data were provided for purposes of determining the taxpayer's vat payable: SALES (processed fruits, inclusive of vat) P672,000 PURCHASES/PAYMENTS: Purchased of fruits from farmers 200,000 Purchased of raw sugar from millers 60,000 Purchased of bottles (invoice amount 22.400 Purchased of can containers (excl. of vat) 50,000 Payments for paper labels (incl. of vat) 5,600 Purchased of cardboard for boxes (incl. of vat) 3,600 Payments for hauling services from vat registered forwarders (excl. of vat) 60,000 REQUIRED: a) Determine the presumptive input vat Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 - The taxpayer (processor of fruits) is not entitled to presumptive vat b) Determine the value added tax payable/excess input tax of JJ. Output vat (672,000 x 3/28) Less: Input Vat Purchased of bottles (P22,400 x 3/28) Purchased of can containers (P50,000 x 12%) Payments for paper labels (P5,600 x 3/28) Purchased of cardboard for boxes (P3,360 x 3/28) Payments for hauling services (P60,000 x 12%) Vat Payable P72,000 (2,400) (6,000) (600) (360) (7,200) P55,440 P8-15. A vat registered hotel offers different services to its guests. The following data were taken from the books of the taxpayer for the 1 quarter of 2022 (exclusive of tax): Revenues P2,000,000 Hotel rooms Dining Hall: Sale of food and refreshments 2,500,000 Sale of wine, beer and liquor 1,000,000 Disco: Sale of food and refreshments 1,600,000 Sale of wine, beer and liquor 1,200,000 Other revenues (rentals, massage, spa) 800,000 REQUIRED: Determine the correct business tax due for the quarter Collection 1,800,000 2,200,000 950,000 1,600,000 1,200,000 700,000 Subject to Value Added Tax Hotel rooms (P1.8M x 12%) Dining Hall: Sale of food and refreshments (P2.2M x 12%) Sale of wine, beer and liquor (P950,000 x 12%) Other revenues (P700,000 x 12%) P216,000 264,000 114,000 84,000 Subject to Percentage Tax (Amusement Tax) Disco: Sale of food and refreshments (P1.6M x 18%) Sale of wine, beer and liquor (P1.2M x 18%) TOTAL BUSINESS TAXES 288,000 216,000 P1,182,000 P8-16. Omega Construction Company (vat registered) provided the following data for the 1st quarter of 2022 (net of vat): Contract with Bobads Hotel • Contract Price, P25,000,000 • Collections, P15,000,000 • Construction started in 2018 and finished during the 1st quarter of the current year Contract with City Condo Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 • Contract Price, P20,000,000 • Collections, P10,000,000 • Construction was completed in 2021 Contract with Urban Development • Contract Price, P30,000,000 • Collections, P5,000,000 • Construction will begin in the last quarter of the current year Payments to suppliers and subcontractors (net of vat): • Payments for the purchase of construction materials from Alpha Corporation (vat registered supplier), P12,000,000 • Payments for the purchase of construction materials from Bravo, Incorporated (non-vat registered supplier), P500,000 • Payments to Charlie Company (subcontractor) for services rendered, P4,000,000 • Advances to Delta Corporation (subcontractor), P2,000,000 • Operating expenses, P3,000,000 Additional information: • 10% of purchases from Alpha were returned during the quarter • Payments made to Charlie Corporation was overstated by P1,000,000 REQUIRED: DETERMINE THE VAT PAYABLE FOR THE 1ST QUARTER OF THE 2022 OUTPUT VAT based on collections (15M + 10M + 5M) INPUT VAT on purchases from: Alpha (P12M – 1.2M) x 12% Charlie (P4M – 1M) x 12% Delta (P2M x 12%) Vat Payable P3,600,000 (1,296,000) (360,000) (240,000) P1,704,000 P8-17. A dealer in securities has the following for the year 2022: Sale of securities held for sale in the course of business Cos of securities held for sale in the course of business Supplies expense, net of vat Rent expense, net of vat REQUIRED: DETERMINE THE VAT PAYABLE Output vat ((P4M – 2.5M) x 12% Less: input vat (P800,000 x 12%) Vat Payable P4,000,000 2,500,000 300,000 500,000 P180,000 (96,000) P84,000 P8-18. Delta is a real estate dealer, sold three (3) lots on November 2021 with the following terms (net of vat): Lot A Lot B Lot C Selling Price 250,000 200,000 300,000 Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 Cost Terms: Downpayment, Nov 5 Due: Dec. 5, 2021 Jan to Dec 2022 150,000 130,000 175,000 25,000 50,000 40,000 25,000 200,000 20,000 130,000 20,000 240,000 REQUIRED: DETERMINE THE FOLLOWING: Ratio of Initial Payment over Selling Price: Lot A = 50/250 = 20% ; Installment Sale Lot B = 70/200 = 35%; Deferred Sale; Treated as Cash Sale Lot C = 60/300 = 20%; Installment Sale a. Vat payable - November 2021 b. Vat payable December 2021 Lot A: P25,000 x 12%; P25,000 x 12% Lot B: P200,000 x 12% Lot C: P40,000 x 12%; P20,000 x 12% Vat Payable Nov. 2018 P3,000 24,000 4,800 P31,800 Dec. 2018 P3,000 2,400 P5,400 P8-19. A VAT registered real estate dealer sold a residential lot on September 2021. The following information was made available on the terms of the sale: Gross selling price (zonal value, P2,800,000) P3,000,000 Initial payments consisting of down payment and installments in the year of sale. 900,000 Balance to be paid in equal installments of starting January 2022 2,100,000 REQUIRED: DETERMINE THE FOLLOWING: a. Output Vat-September 2021 Output vat September 2018 = P3M x 12% = P360,000 The sale is a Deferred sale. Ratio of initial payments over SP is 30%. b. Output Vat- January 2022 Output vat January 2019 = P0 P8-20. (HOTEL SERVICES) Rest With Me Hotel, a UK based Motel and Restaurant, had the following collections from its customers during the month: Room charges P1,000,000 Laundry services 25,000 Food and beverages 1,500,000 Corkage 15,000 Handling charges for providing telephone, telex, cable or fax services 4,500 Actual cost of long distance and overseas calls collected by the establishment for PLDT 35,000 Cake shop sales 80,000 Downloaded by Eiwuk luu (Eiwuk@goprems.fun) lOMoARcPSD|31361671 Vat passed on to customers Local taxes charged to customers REQUIRED: DETERMINE THE OUPUT VAT of the taxpayer Room charges Laundry services Food and beverages Corkage Handling charges for providing telephone, telex, cable or fax services Cake shop sales Total Vat rate Output Vat for the month Downloaded by Eiwuk luu (Eiwuk@goprems.fun) 125,000 18,000 P1,000,000 25,000 1,500,000 15,000 4,500 80,000 P2,624,500 x 12% P314,940