A business that purchases items to place into their inventory to resell may purchase the items without tax due to having a resale exemption.
Q: Mike is an independent contractor in 2021. Mike attends a professional trade association in Los…
A: a. The total expenditure allowed as deduction for business purpose would be of only business…
Q: Unit IV question 9
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: X-Tel budgets sales of $44,000 for April, $84,000 for May, and $60,000 for June. Sales are 50%…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: 1. What amount should be reported as lease liability on January 1, 20217 2. What amount should be…
A: On January 1, 2021 Twice company entered into a lease agreement. The annual rental is 2,00,000…
Q: Required: 1. Compute the unit product cost under: a. Absorption costing. b. Variable costing. 2.…
A: Solution:- 1)a. Calculation of unit product cost under absorption costing as follows under:- Product…
Q: Exercise 9-15 (Algo) Retail inventory method; LIFO [LO9-3] Crosby Company owns a chain of hardware…
A: calculation of above requirement are as follows
Q: ne had an original co lease was 15%. Th nts of P1,750,000 are achine reverts to Le
A: 1. Net lease receivable by lessor = Present value with interest 15% = P 60,00,000 Workings…
Q: 1.What are the three primary inventory cost flow assumptions? 2. How is cost of goods sold…
A: Since you have posted multiple questions, we will do the first one for you. To get the other…
Q: REQUIRED: PREPARE A STATEMENT OF COMPREHENSIVE INCOME IN A PRESCRIBED FORMAT FOR THE YEAR USING THE…
A: An income statement is one of the financial statements that shows the financial position of the…
Q: On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of
A: Richard acquired 60% of Frank. So now Frank is subsidiary of Richard…
Q: ou purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two…
A: Purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two years…
Q: 52. How much is the total expense for the month of February 2022 P103,001 P105,235 P107,253 P103,253…
A: Here asked about the details of total sales details which comprises of both cash sales and sales on…
Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: 6. Firdaus is a divorcee who is pursuing his PhD on part time basis. He buys a laptop computer at…
A: Computation of total tax payable of Firdaus Particulars Amount Amount Income from salary…
Q: The following information pertains to the month of July for Stanley Company: Beginning work in…
A: Units started and completed = Units completed - Beginning WIP = 60,000 - 10,000 = 50,000 units…
Q: Frappe Company is acquiring Frappuccino Corporation on January 1, 2020. The cumulative earnings of…
A: Calculation of goodwill: Thus, goodwill is P2,800,000.
Q: What is the payback period? Round up to the next month Use the following table:
A: Year Cash outflows Cash inflows Net cash flow Cumulative Cashflows Payback period 0 -240000…
Q: Unit VI question 4
A: Lets understand the basics. Contribution margin is a sales less variable cost of the company.…
Q: On October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is…
A: An accounting equation is a mathematical equation which express that the assets of an entity are…
Q: Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns…
A: Note: Under FOB destination, freight is the seller's expense and under the FOB shipping point,…
Q: A company produces two (2) products, “ore” and “tin”. The following sales forecast for both products…
A: A company produces two (2) products, “ore” and “tin”. The following sales forecast for both products…
Q: ic order quantity, assuming the no of units of materials required annually 120,000 cost of placing…
A: Annual requirement (A) = 120,000 Units Ordering cost per order (O) = P39.00 Carrying cost per order…
Q: At the beginning of the year, long-term debt of a firm is $280 and total debt is $325. At the end of…
A: The amount of profit paid to debt holders during an accounting period is referred to as cash flow to…
Q: Each of the following scenarios requires the use of accounting information to carry out one ormore…
A: Generally the audit will be conducted at the end of the year so that the operations of the company…
Q: On January 1, Marin Corporation purchased 35% of the outstanding shares of Sellg Company…
A: Solution: As Marin company acquired 35% stake in Selig company, therefore it exercise significant…
Q: CONSTANTINE CAVAMANLIS INC. BALANCE SHEETS Assets Dec. 31, 2007 Jan. 1, 2007 $ 13,000 Inc./Dec. Cash…
A: CONSTANTINE CAVAMANLIS INC. Cash Flow Statement (Indirect Method) For the year ended December…
Q: A frim has net working capital of $509, net fixed assets of $2,336, sales of $7,000 and current…
A: The sales to total assets can be calculated by dividing total sales by total assets. The total asset…
Q: Course Name: Advanced Accounting Problem-1 ) Ram and Shyam undertook jointly to build a house for a…
A: A joint venture is a partnership for short period. In a joint venture, 2 or more persons join…
Q: acifico Company, a U.S.-based importer of beer and wine, purchased 1,900 cases of Oktoberfest-style…
A: In this question, We Prepare journal entries to account for the import purchase and foreign currency…
Q: How much is the purchase discounts? How much is input tax on purchases? How much is input tax to be…
A: Input tax is the amount of tax which a business pays it to the vendors on the purchasing of the…
Q: You purchase a 6%, 20-year annual coupon bond for its face value. You will hold this bond for two…
A: Return on the bond at the end of the first year = 6% + 6% of 6 6 +…
Q: The manager of a division that produces add-on products for the automobile industry has just been…
A: Answer - First three subparts are solved here. Part 1 - Computation of the ROI for each…
Q: Illustration 2. Business Combination Achieved in Stages and without transfer of consideration On…
A: Firstly we will make a Statement of Net Assets to figure out the value of one Share.…
Q: Unit VII question 14
A: A budget that analyzes actual and budgeted levels of controllable expenses for a division and its…
Q: On January 1, 2021, South Company acquired a building for P5,000,000. The entity paid P500,000 down…
A: The question is related to Journal entries to record purchase of Building by signed non interest…
Q: ty of Toronto has an ou ents of $436,150 to its s
A: Bonds are the debt securities which are issued by the corporations or the government to arrange the…
Q: teddy’s Pillow’s had beginning net fixed assets of $461 and ending net fixed assets of $530. Assets…
A: The net amount spent by a corporation to acquire fixed assets over a period of time is referred to…
Q: rigold Company has the following iventory information July 1 Beginning Iinventory 30 units at $80…
A: Solution: Under perpetual inventory system, inventory is updated with each and every movement based…
Q: Serenity Company (“Serenity”) is a shop selling electrical goods and adopts perpetual inventory…
A: The journal entries are prepared by a company to record the transactions in the books of accounts.
Q: What amount should Dona Company report as dividend income in its 2022 income statement?
A: On 01.01.2021 Dona Company purchased 10% of another entity o/s ordinary shares for 6000000…
Q: Which machine would you recommend given the following information and interest rate is 10%? New Used…
A: The question is based on the concept of Cost Accounting.
Q: Tommy's Trucks Co. traded in a used truck for a new one. The original cost of the old truck was…
A: Calculation of cost of acquire a new truck and cost of disposal are as follows.
Q: I need to find the Quality of Income, Times interest earned ratio and Cash coverage ratio for Blue…
A: The question is related to the Ratio Analysis. The details are given regarding the same.
Q: When the cost of capital is jı = 10%, the two machines have the same capitalized cost. What is the…
A: Machine A Machine B Overall Cost $C $C Scrap Value $0 $5000 Lifetime 10 years 8 years…
Q: Q.2 Relana corporation owned 75% of Shan company and in 25/6/2005 Shan, sold land at $ 60,000 with…
A: Intercompany Transaction for 2005 Particulars Amount ($) Value of consideration of land…
Q: Adjusting entry: On 1 February 2021, Design Thinking Pty Ltd obtained a three year bank loan of…
A: Bank loan is a long term liability for Design Thinking Pty Ltd The tenure is for 3 years The…
Q: Required: 1. What is the annual payment (round to the nearest $)? $ 2. What are the total…
A: This pertains to an amortized loan. In an amortized loan principal amount due keeps on declining…
Q: A flexible budget graph for the Assembly Department shows the following: 1. At zero direct labor…
A: The question is related to segregation of semi variable cost into variable and fixed. The variable…
Q: Singer Company adjusts its account annually. Below is extracted from the trial balance of the…
A: Allowance Method - Under allowance, the method company makes provision of uncollectible accounts at…
Q: 3. What is the investment in Two Company common stock at year-end? 4. What is the recovery of…
A: On December 31, 2020, Dreamer Company reported as Available-for-sale securities: Particulars Qty…
A business that purchases items to place into their inventory to resell may purchase the items without tax due to having a resale exemption.
True or False
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers from customers to be paid to tax authorities later. O b. Sales tax is recorded and paid by customers to tax authorities. O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller. O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.Explain why the merchandiser is not paying sales tax. Use the invoice that is below.Gross selling price includes all of the following, except Total amount which the purchaser is obligated to pay to the seller. Excise tax Sales discount granted and indicated in the invoice at the time of sale and the grant of which does not depend upon the happening of a future event None of the above
- Before paying a tax invoice for the purchase of goods, list steps you would take to check that the invoice is valid and accurate.Who is the person statutorily liable to pay the consumption tax on importation of goods? *SellerBuyerBoth seller and buyerAnswer not givenThe use tax is designed to complement the sales tax. A use tax typically covers purchases made out of state and brought into the jurisdiction. True False
- What happens when a qualified exempt importer subsequently sells what was imported to a taxable person? The sale is still exempt The taxable person shall pay for the VAT to the Bureau of Internal Revenue The taxable person shall pay for the VAT to the Bureau of Customs The importer should pay for the VATBusinesses that use OSD are permitted to deduct the cost of goods sold or the cost of care. False or True.Excise taxes are a form of sales tax. True False
- What is the treatment of any input tax paid by a non-VAT (but subject to percentage tax) seller on his purchases related to his sale? Treated as input tax credit against his sales Treated as part of the cost of goods sold Treated as expense deductible from gross income Disregarded as he is non-VATThe constructive receipt doctrine requires that income be recognized when it is made available to the cash basis taxpayer even though there are restrictions on actually receiving it. The constructive receipt doctrine does not apply to accrual basis taxpayers. True FalseWhich of the following statements is true of tax rules for applying the lower-of-cost-or- net realizable value method to inventory? Tax rules do not address the choice of methods in applying the lower-of-cost-or- net realizable value method to inventory. Tax rules require the use of the total inventory basis. Tax rules require the use of an individual-item basis if it practicable. O Tax rules require the use of the method which minimizes the recorded loss.