Surfin Corporation sold product "S" to Red Corporation for P1,000,000 plus 12% VAT. Subsequently, Red Corporation sold the product to Lights Corporation for P1,344,000 (VAT-inclusive). How much is the VAT payable of Red Corporation?
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Surfin Corporation sold product "S" to Red Corporation for P1,000,000 plus 12% VAT. Subsequently, Red Corporation sold the product to Lights Corporation for P1,344,000 (VAT-inclusive). How much is the VAT payable of Red Corporation?
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- Entity A sells a machine that is classified as PPE for ₱1,700,000. Entity A pays the broker a 10% commission. Information on the machine is as follows: Carrying amount ₱1,900,000 Revaluation surplus 400,000 How much is the gain (loss) from the sale? (200,000) c. (30,000) (370,000) d. 30,000Entity A sells a machine that is classified as PPE for ₱1,700,000. Entity A pays the broker a 10%commission. Information on the machine is as follows: Carrying amount ₱1,900,000; Revaluation surplus 400,000. How much is the gain (loss) from the sale? a. (200,000) b. (370,000) c. (30,000) d. 30,000Terrific Corporation, an equipment distributor, sells a piece of machinery with a list price of P800,000 to Archer Company. Per agreement, Archer will pay P850,000 in one year evidenced by a note. Terrific normally sells at cash price equivalent to 90% of list price. The note has a market rate of 12%. How much should be recorded as Sales? (The PV of 1 at 12% for 1 year is 0.89) P756,500 P850,000 P720,000 P800,000
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- Çorner Company puchased a van with a list price of P3,000,000. The dealer granted a 15% reduction in list price and an additional 10% cash discount on the net price if payment is made in 30 days. Irrecoverable taxes amounted to P40,000 and the entity paid an extra P30,000 to have a spęcial horn installed. What amount should be recorded as initial cost of the van? а. 2,550,000 b. 2,335,500, C., 2,365,000 d. 2,325,000 CS Scanned with CamScannerTouch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2020, Touch Tronix, Inc. sold €1,700,000 of goods to Advanced Communications, Inc. on account for €2,200,000. Terms of the sale were 2/10, net 30. On December 18, 2020, Advanced Communications, Inc. paid the account in full. Which of the following is true regarding the impact on the statement of financial position for Touch Tronix, Inc. when the payment is made on December 18, 2020? a. Assets decreased by €2,200,000. b. Assets decreased by €44,000. c. Assets increased by €2, 156, 000. d Assets decreased by €32, 500.On February 1, 2020, the telecommunications company sold cellular phones and unlimited calls service to Customer A on a 24 month contract. Customer A pays CU30 per month for network and telephone servicesmobile 'free'. The Company sells Customer B the same cellular telephone for CU 150 and the same network services for CU 25 per month. The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions:a. How does the company recognize its revenue to Customer A and Customer B?b. Make a journal on February 1, 2020 and March 1, 2020 (if any)?
- Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was made and 4 monthly installments of P250,000 are to be made at the end of each month. The cash equivalent price of the machine was P950,000. The entity incurred and paid installation costs amounting to P30,000. What is the amount to be capitalized as cost of the machine?7. Maipao Corporation sells computer software to Mr. Bong. Mr. Bong shall pay P750,000 upfront fee in exchange for the following performance obligations: (1) equipment (2) initial training and (3) five years right over the computer software. The stand-alone selling price of the equipment is P380,000. The stand-alone selling price of the initial training is P280,000. The entity estimates the stand-alone selling price of the five year right over the computer software using the residual approach. On February 1, 20x1, Maipao receive the P150,000 cash and the balance payable in three annual payments beginning January 30, 20x2. Mr. Bong signs a 10% interest bearing for the balance. On August 1, Maipao has already transferred the equipment and conducted the initial training and the software license will commence on the same date. The entity determines that the performance obligations in the contract are distinct. The following shall be accounted as part of the consigned inventory of the…