SOLUTION PROBLEM 3

1 Cash 1,320,000.00
Service Income 1,178,571.43
VAT Output Tax 141,428.57

Cash 165,000.00
Sales 147,321.43
VAT Output Tax 17,678.57

Cash 220,000.00
Service Income 196,428.57
VAT Output Tax 23,571.43

Outside Services 171,428.57

VAT Input Tax 20,571.43
Cash 192,000.00

Purchases 88,392.86
VAT Input Tax 10,607.14
Cash 99,000.00

2 Amount Received for labor repairs, repainting and overhaul 1,320,000.00

Amount Received for parts and paint used 165,000.00
Amount received as advances on unfinished jobs 220,000.00
Total Gross Receipts 1,705,000.00

VAT Output Tax (1,705,000/9.333) 182,679.22

Less: VAT Inout Taxes on:
Outside services paid (192,500/9.333) 20,571.43
Amount paid for parts and paints used (99,000/9.333) 10,607.14 31,178.57
VAT Payable for the month of July 151,500.66