R&R Construction Limited supplies for April 2024 was: • Construction Services $500,000 (exempt VAT activity) • Electrical Services $2,000,000 • Surveying Services $300,000 • Export Services $700,000 • The VAT Rate is 15% Input Tax were as follows: Material for Construction Work - $15,000 Materials for electrical services - $52,500 Material for surveying services -$22,500 Purchase of staff uniform - $4,950. The Net VAT Payable O a 325,050 O b. 430,050 O c. 250,050 O d. 270,000

R&R Construction Limited supplies for April 2024 was: • Construction Services $500,000 (exempt VAT activity) • Electrical Services $2,000,000 • Surveying Services $300,000 • Export Services $700,000 • The VAT Rate is 15% Input Tax were as follows: Material for Construction Work - $15,000 Materials for electrical services - $52,500 Material for surveying services -$22,500 Purchase of staff uniform - $4,950. The Net VAT Payable O a 325,050 O b. 430,050 O c. 250,050 O d. 270,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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DPWH had the following transactions related to a construction project of school building worth P28,000,000 during the year 2021:January 25. Payment of mobilization fee equivalent to 15% of the contract price.March 10. Received 1st progress billing from the contractor equivalent to 40% completion of contract price.March 25. Paid the amount due to the contractor for the 1st progress billing. Deductions are: Recoupment of advances based on % of completion (deducted upon payment) Retention, 5% of the billings Withholding taxes (EWT & Final VAT) The entry to recognize the payment of mobilization fee includes a: a. Debit to Advances to Contractors, P4,200,000 b. Debit to Advances to Officers and Employees, P4,200,000 c. Debit to Accounts Receivable, P4,200,000 d. Debit to Advances to SDO, P4,200,000
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