Compute the Income Tax of the ABC Company.


Transaction list: (October - December) of ABC COMPANY

Oct 1. Invested P500,000 in cash to start the business.
Oct 2 Paid registration and licensing fees for the business, P 20,000.
Oct 3. Acquired supplies on account P70,000.
Oct 3. Rented office space and paid three months' rent in advance, P21,000.
Oct 4. Bought office equipment for cash, P80,000.
Oct 6. Purchased electronic repair equipments for cash, P85,000.
Oct 7. Acquired a service vehicle in the amount of P195,000 on account.
Oct 9. Billed a client on completion of a repair project, P70,000.
Oct 15. Paid salaries of P80,000 for the month.
Oct 16. Received a partial payment from the client billed on October 9, P50,000.
Oct 18. Received and paid the utility bill, P2,500.
Oct 20. Received payment from a client for repair services done, P70,000.
Oct 21. Received and paid bill for the use of landline, P2,100.
Oct 23. Withdrew P10,000 from the business.
Oct 24. Received a bill from the Ryan Morales Ad Agency for P10,500 for advertising expense incurred during the month.
Oct 26. Performed repair services for P30,000 on account.
Oct 28. Collected cash from the client billed on  October 9, P20,000 as a completion of the credit.
Oct 30. Paid Daraga Corp. a portion of the amount owed for the acquisition of the supplies recorded on October 2, P30,000.
Oct 31. Received cash for repair services, P40,000.

Nov 1. Billed 7 customers for repair services done, P5,000 each.
Nov 2. Paid for supplies purchased on account last month, 20,000.
Nov 4. Received cash from a customer for repair services performed, P20,000.
Nov 6. Received an advance payment from a customer, P55,000 for a repair service to be performed on the following year.
Nov 7. Pays P24,000 for a one-year insurance contract that protects the business from November 1 until October 31 of the following year.
Nov 9. Withdraws P5,000 for personal use.
Nov 10. Billed a customer for repair services, P36,000.
Nov 11. Collected P30,000 from a customer billed on October 26, and received P50,000 for another repair service.
Nov 12. Paid 20% of the service vehicle acquired on account last month, P39,000.
Nov 14. Received cash payment from 2 of the customers billed on November 1 for repair services done, P10,000.
Nov 15. Paid salaries of P80,000 for the month.
Nov 16. Acquired additional supplies for cash, P10,000.
Nov 18. Received and paid the utility bill, P2,500.
Nov 20. Performed repair services for cash, P40,000.
Nov 21. Received and paid bill for the use of landline, P2,100.
Nov 23. Collected cash from 3 of the customers billed on November 1 for services done, P15,000.
Nov 26. Received a bill from the Ryan Morales Ad Agency for P10,500 for advertising expense incurred during the month.
Nov 27. Paid advertising expenses for the month of october and november, total of P21,000.
Nov 29. Performed repair services for P70,000.   Collected P50,000 in cash and the remaining balance will be paid next month.
Nov 30. Received full payment for repair services rendered, P40,000.

December 1. Purchased electronic repair equipments for cash, P30,000.
December 2. Collected cash from the remaining customers billed on November 1, P10,000.
December 4. Paid the remaining balance of the supplies acquired on October 2, P20,000.
December 6. Received P75,000 for repair services performed.
December 7. Paid 100,000 for the service vehicle acquired on account last October 7.
December 9. Billed a customer for repair services, P33,500.
December 10. Collected cash from a customer billed last month, P36,000.
December 12. Received P10,000 for a repair service to be done on January.
December 14. Performed repair services on account, P15,000.
December 15. Paid salaries of P80,000 for the month.
December 17. Received P50,000 for repair services done.
December 18. Received and paid the utility bill, P2,500.
December 19. Withdrew P9,000 for personal use.
December 20. Collected cash for repair services performed, P35,000.
December 21. Received and paid bill for the use of landline, P2,100.
December 23. Performed repair services on account, P7,500.
December 26. Received and paid the bill from the Ryan Morales Ad Agency for P10,500 for advertising expense incurred during the month.
December 28. Collected cash for repair services done, P20,000.
December 29. Performed repair services for P43,000. Received half of the amount in cash.
December 30. Collected P20,000 remaining balance for the repair services performed last month.

Answer rating: 100% (QA)

CALCULATIONS Repair Services Revenue October P70000P50000P70000P40000P30000P70000P40000 P370000 Nove... View the full answer