1. Hi!Couple more VAT questions: 1. Which of the following lessors of residential units is/are subject to VAT?

A - 20 units; 9,000 monthly rent/unit B - 15 units; 10,000 monthly rent/unit C - 10 units; 12,000 monthly rent/unit D - 10 units; 14,000 monthly rent/unit. answer is D only. my answer is C and D. Thanks in advance.
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2.

Jan 8, 2010 01:23 PM#585 dward08

dward08

Join Date Apr 2005 Location Antipolo A,trader, made the ff sales of goods during June '08 exclusive of vat cash sales: 200,000 open account sales: 100,000 installment sales: 100,000 note: receipt from installment sales 40,000 consignment made (net of VAT) june 15 2008 100,000 may 15, 2008 100,000 april 15,2008 100,000 ouput tax is? answer is 72,000 My answer is 60,000.
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3.

Jan 8, 2010 02:05 PM#586 dward08

dward08

Join Date Apr 2005 Location Antipolo OPT questions: 1. A horseracing enthusiast has the ff winnings during a racing day: total winnings (winner take all) 10,000 cost of winning ticket 500 If the total winnings came from double bet, the percentage tax on winnings is? Suggested answer: 400 my answer: 380 shouldn't be the tax base net of the ticket cost?
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4.

Jan 8, 2010 04:06 PM#587 Kuya_mo

Member

Join Date Dec 2009 Originally Posted by dward08

OPT questions:

1. A horseracing enthusiast has the ff winnings during a racing day: total winnings (winner take all) 10,000 cost of winning ticket 500 If the total winnings came from double bet, the percentage tax on winnings is? Suggested answer: 400 my answer: 380 shouldn't be the tax base net of the ticket cost?
380 is also my answer. My suggested solution is: Total winnings paid: 10,000 Less: Cost of the ticket 500 Excess 9,500 Tax %: 4% Answer: 380 It is said that the tax on winnings should be based on the actual amount paid to him for every winning ticket, after deducting the cost of the ticket), and the owner of winning race horses, based on the prize.
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Tax is a nightmare for me

5.

Jan 8, 2010 04:19 PM#588 Kuya_mo

Member

Join Date Dec 2009 Please help me for the second time on this problem: On Dec. 31, 2003, Pilot purchases 90% of Sand Corporation's outstanding voting common stock directly from Sand Corporation's stockholders for 5,000 cash plus 100 shares of Pilot Corporation for 1 par common stock with a market value of 5,000. Additional costs of combination are 200. Pilot pays these additional cost in cash. Pilot and Sand must continue to operate as parent company and subsidiary because 10% of Sand's shares are outstanding and held by minority stockholders. We include these 200 as additional investment. ( In our standards, acquisition related cost are not capitalized though this problem came from a foreign book.) Entries made by the author: Debit Investment in Sand 10,000

Credit Common Stock 1,000 Credit Additional Paid-In Capital 4,000 Credit Cash 5,000 Another entry made: Debit Investment in Sand 200 Debit Additional Paid-In Capital 100 Credit Cash 300 My question is that how the preceeding entry, specifically the additional paid-in capital exists and how the latter was computed?This is my suggested answer for the second entry: Debit Investment in Sand 200 Credit Cash 200 Note: Thank you Sir Larry for answering my last question.
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6.

Jan 8, 2010 04:24 PM#589 Kuya_mo

Member

Join Date Dec 2009 Originally Posted by dward08

OPT questions:

1. A horseracing enthusiast has the ff winnings during a racing day: total winnings (winner take all) 10,000 cost of winning ticket 500 If the total winnings came from double bet, the percentage tax on winnings is? Suggested answer: 400 my answer: 380 shouldn't be the tax base net of the ticket cost?
To make you clearer, I pasted one of the provisions of the BIR Code: SEC. 126. Tax on Winnings. - Every person who wins in horse races shall pay a tax equivalent to ten percent (10%) of his winnings or 'dividends', the tax to be based on the actual amount paid to him for every winning ticket after deducting the cost of the ticket: Provided, That in the case of winnings from double, forecast/quinella and trifecta bets, the tax shall be four percent (4%). In the case of owners of winning race horses, the tax shall be ten percent (10%) of the prizes. The tax herein prescribed shall be deducted from the 'dividends' corresponding to each winning ticket or the 'prize' of each winning race horse owner and withheld by the operator, manager or person in charge of the horse races before paying the dividends or prizes to the persons entitled thereto. The operator, manager or person in charge of horse races shall, within twenty (20) days from the date the tax was deducted and withheld in accordance with the second paragraph hereof, file a true and correct return with the Commissioner in the manner or form to be prescribed by the Secretary of Finance, and pay within the same period the total amount of tax so deducted and withheld.

Hope this might helps!

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7.

Jan 8, 2010 04:33 PM#590 3triangles

Member

Join Date Jun 2008 Location manila Originally Posted by Kuya_mo

Please help me:

According to the book of Floyd Beams: Ordinarily, one company gains control of another directly by acquiring a majority (more than 50%) of its voting stock. According to PAS 27 Paragraph 13, Control is presumed to exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity unless, in exceptional circumstances, it can be clearly demonstrated that such ownership does not constitute control. According to latest edition of the book of Mr. Pedro Guerrero, et al., generally, a controlling interest is achieved by ownership of 50% or more of the subsidiaries voting stock. If Mr. Beams and the Philippine Accounting Standards stated that more than 50%, that means 51% or more. On the other hand, Mr. Guerrero stated that control exists when ownership of 50% or more. In determing control, which of which will prevail? a. More than 50% by Mr. Beams and the PAS, or; b. 50% or more by Mr. Guerrero
answer ko dyan A.
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8.

Jan 8, 2010 04:39 PM#591 Kuya_mo

Member

Join Date Dec 2009 Originally Posted by Kuya_mo

Please help me for the second time on this problem: On Dec. 31, 2003, Pilot purchases 90% of Sand Corporation's outstanding voting common stock directly from Sand Corporation's stockholders for 5,000 cash plus 100 shares of Pilot Corporation for 1 par common stock with a market value of 5,000. Additional costs of combination are 200. Pilot pays these additional cost in cash. Pilot and Sand must

continue to operate as parent company and subsidiary because 10% of Sand's shares are outstanding and held by minority stockholders. We include these 200 as additional investment. ( In our standards, acquisition related cost are not capitalized though this problem came from a foreign book.) Entries made by the author: Debit Investment in Sand 10,000 Credit Common Stock 1,000 Credit Additional Paid-In Capital 4,000 Credit Cash 5,000 Another entry made: Debit Investment in Sand 200 Debit Additional Paid-In Capital 100 Credit Cash 300 My question is that how the preceeding entry, specifically the additional paid-in capital exists and how the latter was computed?This is my suggested answer for the second entry: Debit Investment in Sand 200 Credit Cash 200 Note: Thank you Sir Larry for answering my last question.
Correction: My suggested entry should be: Debit Retained Earnings(Acquisition Expense) 200 Credit Cash 200 9.
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Jan 8, 2010 05:54 PM#592 dward08

dward08

Join Date Apr 2005 Location Antipolo Originally Posted by Kuya_mo

380 is also my answer.

So I should stick with my answer then haha. Thanks! Sorry medyo tax overload yung mga questions ko. I'm studying tax this week haha.
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11. Jan 8, 2010 06:30 PM#593 Kuya_mo

10.

Member

Join Date Dec 2009 Originally Posted by Kuya_mo

Correction: My suggested entry should be: Debit Retained Earnings(Acquisition Expense) 200 Credit Cash 200
the first entry is to record the acquisition of parents company while the second entry made by the author is to record additional costs of combining with Sand. Debit Investment in Sand 200 Debit Additional Paid In Capital 100 Credit Cash 300 to record additional costs of combining with Sand Question: Why the entry was made? According to Guerrero's book, this should be the pro-forma entry: Debit Retained Earnings xx Credit Cash/Common Stock xx Why should Additional Paid in Capital should be included in the entry for recording acquisition related cost? The problem doesn't state any acquisition related cost for stock issuance in order that APIC would be debited.
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12. Jan 8, 2010 08:01 PM#594 cpa_soon2011

CPA NA!

Join Date Oct 2008

Variable Absorption
Undergrad palang po ako: Ano po bang variances ang nakaka-apekto sa NI under Absorption at Variable Costing? Pano nakakaapekto at ano yung treatment sa variances?
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13. Jan 9, 2010 12:22 AM#595 futurecpa29

My goal is to be on toP!

Join Date Dec 2009

Naku, may reading materials about writing a good case study, merong characteristics yun, meron ding do's and dont's at hindi ganun kadali gawin kung real-life business case ang ibig mong sabihin. Sa Harvard a team of 5 writes one business case. Sa AIM a research assistant writes it under the supervision of a professor.
ah ganun po ba? group of 3 kasi kami and im the leader. half of our grades kasi eh manggagaling sa performance ng case study namin. hindi naman po siya real life situation pero parang ganun na rin po

any tips lang po for newbies *** pang newbies **** haha i tried listing the impt datas and currently doing the swot analysis medyo halo halo na nasa utak ko haha di ko alam kung pano ikokonekta at wala pa akong matinong problem... panu po kaya ang distribution ng workload namin? ang case po namin from the book "business policy in an asian context by nerth and soriano"
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15. Jan 9, 2010 03:50 PM#596 cpa_soon2011

CPA NA!

14.

Join Date Oct 2008 Originally Posted by cpa_soon2011

Undergrad palang po ako:

Ano po bang variances ang nakaka-apekto sa NI under Absorption at Variable Costing? Pano nakaka-apekto at ano yung treatment sa variances?
FOLLOW-UP parehas lang po ba tong formula na to: NI, ABSORPTION - NI VARIABLE = Inc+/Dec- in Inv x POHR sa NI ABSORPTION - FMOH Deferred in Inventory = NI VARIABLE tska solution naman po para dito Absorption Costing & Variable Costing 44. Southseas Corp. uses a standard cost system. The standard cost per unit of one of its products are as follows: Direct Materials P4.00 Direct labor 6.00 Factory overhead Variable 3.00 Fixed (based on a normal capacity of 10,000 units) 2.00 Total 15.00 Beginning inventory 2,000 units Production 8,000 units Units sold (selling price P50) 7,000 units Actual costs: Direct materials P 35,000 Direct labor 50,000 Variable overhead 23,000 Fixed 18,000 Variable selling and adm. 60,000 Fixed selling and adm. 35,000

Variances are closed to cost of sales monthly How much are the net income under absorption costing and variable costing methods? A. B. C. D. Absorption P144,000 P143,000 144,000 142,000 Variable 143,000 144,000 142,000 144,000 Nakuha ko na yung sa Absorption kaso di ko alam pano magreconcile para sa Variable

Thanks po sa mga sasagot

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16. Jan 11, 2010 11:15 AM#597 ansonkeh

Member

Join Date Oct 2007 Originally Posted by cpa_soon2011

FOLLOW-UP parehas lang po ba tong formula na to: NI, ABSORPTION - NI VARIABLE = Inc+/Dec- in Inv x POHR sa NI ABSORPTION - FMOH Deferred in Inventory = NI VARIABLE tska solution naman po para dito

Absorption Costing & Variable Costing 44. Southseas Corp. uses a standard cost system. The standard cost per unit of one of its products are as follows: Direct Materials P4.00 Direct labor 6.00 Factory overhead Variable 3.00 Fixed (based on a normal capacity of 10,000 units) 2.00 Total 15.00 Beginning inventory 2,000 units Production 8,000 units Units sold (selling price P50) 7,000 units Actual costs: Direct materials P 35,000 Direct labor 50,000 Variable overhead 23,000 Fixed 18,000 Variable selling and adm. 60,000 Fixed selling and adm. 35,000

Variances are closed to cost of sales monthly How much are the net income under absorption costing and variable costing methods? A. B. C. D. Absorption P144,000 P143,000 144,000 142,000 Variable 143,000 144,000 142,000 144,000 Nakuha ko na yung sa Absorption kaso di ko alam pano magreconcile para sa Variable

Thanks po sa mga sasagot

Formula: Net Income Absorption Costing AB ---> add Beginning Inventory units x Fixed Overhead per unit LE ---> less Ending Inventory units x Fixed Overhead per unit Net Income Variable Costing NI Absorprtion Costing --> P144,000 AB (2,000 units x P2) 4,000 LE (3,000 units xP2) (2,000) NI Variable Costing --> P142,000 Hope this solution helps.
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17. Jan 11, 2010 05:59 PM#598 ralphvillanueva

fishy

Join Date Apr 2009 Help naman for this problem pexers medyo nalilito ako rito from my answer and my professor's solution: Magnolia Company produced three outputs (A,B,C) from one input. Output C can be sold at split-off for P12,000. After processing further, 75,000 units of output A are sold P250,000, and 65,000 units of output B are sold at P175,000. Additional processing costs are P25,000 for output, and P20,000 for output B. Magnolia uses the net realizable sales value method to allocate the joint cost. If output C is treated as a byprodct, it would be credited to joint manufacturing costs. Joint processing costs are P200,000. Required: Determine the allocation, if C is treated as a byproduct. Eto po ang solution ng professor ko: Unit cost= P200,000/437,500= 46%(rounded off) Product Sales Value % Allocated Joint Cost A P250,000 46% 115,000

B 175,000 46% 80,500 C 12,200 46% 5,612 Eto naman po ang solution ko: Product Sales Value Add'l cost incurred Allocated Joint Cost A P250,000-P25,000= P225,000 P 111,197 B 175,000- 20,000= 155,000 76,603 Supporting Computation in new joint cost: Joint Cost P 200,000 Less: Byproduct 12,200 New JC 187,800 Hindi po kasi malinaw iyong solution ng prof ko po sa akin. Kasi sabi byproduct is credited to joint manufacturing cost. If possible, show also journal entries para mas malinawan po ako kung ako po ay mali lalo na sa pag credit ng byproduct cost sa joint cost. Marami pong salamat sa mga sasagot.
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18. Jan 11, 2010 06:02 PM#599 ralphvillanueva

fishy

Join Date Apr 2009 Originally Posted by ralphvillanueva

Help naman for this problem pexers medyo nalilito ako rito from my answer and my professor's solution: Magnolia Company produced three outputs (A,B,C) from one input. Output C can be sold at split-off for P12,000. After processing further, 75,000 units of output A are sold P250,000, and 65,000 units of output B are sold at P175,000. Additional processing costs are P25,000 for output, and P20,000 for output B. Magnolia uses the net realizable sales value method to allocate the joint cost. If output C is treated as a byprodct, it would be credited to joint manufacturing costs. Joint processing costs are P200,000. Required: Determine the allocation, if C is treated as a byproduct. Eto po ang solution ng professor ko: Unit cost= P200,000/437,500= 46%(rounded off) Product Sales Value % Allocated Joint Cost A P250,000 46% 115,000 B 175,000 46% 80,500 C 12,200 46% 5,612 Eto naman po ang solution ko: Product Sales Value Add'l cost incurred Allocated Joint Cost A P250,000-P25,000= P225,000 P 111,197

B 175,000- 20,000= 155,000 76,603 Supporting Computation in new joint cost: Joint Cost P 200,000 Less: Byproduct 12,200 New JC 187,800 Hindi po kasi malinaw iyong solution ng prof ko po sa akin. Kasi sabi byproduct is credited to joint manufacturing cost. If possible, show also journal entries para mas malinawan po ako kung ako po ay mali lalo na sa pag credit ng byproduct cost sa joint cost. Marami pong salamat sa mga sasagot.
Paki explain po if ako po ang mali. Ano po ba mas tama sa dalawa? Maraming salamat po ulit sa mga sasagot.
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19. Jan 14, 2010 06:07 PM#600 yatch17

Member

Join Date Jun 2008 yuyu..ask ko lang po..are there any instances na nagkakaroon ng receivable at payable ang isang tao sa isang transaction?parang ganto yung entry: Dr. Accounts Receivable Cr. Accounts Payable nalito ako sa explanation bout ForEx kanina..kasi yung entry ganto: Dr. Forward Contracts Receivable Cr. Forward Contracts Payable ..parang nagkaron ka ng payable at receivable in one transaction..and i'm not convinced sa explanation ng prof namin..haha..nalilito din ata siya ehh..naku naku.. ..di ko pa nababasa yung bout dito..pero sa unang tingin nakakalito haha..pahelp naman po..