GJ started operating his new salon business (Sir George Salon) during 2017. He provides services for corporate accounts with 60-day payment term. He submits the following data in 2018: Supplies inventory, 1/1/2018 50,000 Supplies inventory, 12/31/2018 80,000 Revenues 3,000,000 Accounts receivable, Jan. 1, 2018 500,000 Accounts receivable, Dec. 31, 2018 700,000 Purchase of supplies from VAT registered entities (net) 100,000 Purchase of supplies from non-VAT registered entities 50,000 Determine the following: What is the applicable business tax for the taxpayer? How much is the correct business tax due? Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year?
GJ started operating his new salon business (Sir George Salon) during 2017. He provides services for corporate accounts with 60-day payment term. He submits the following data in 2018: Supplies inventory, 1/1/2018 50,000 Supplies inventory, 12/31/2018 80,000 Revenues 3,000,000 Accounts receivable, Jan. 1, 2018 500,000 Accounts receivable, Dec. 31, 2018 700,000 Purchase of supplies from VAT registered entities (net) 100,000 Purchase of supplies from non-VAT registered entities 50,000 Determine the following: What is the applicable business tax for the taxpayer? How much is the correct business tax due? Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year?
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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GJ started operating his new salon business (Sir George Salon) during 2017. He provides services for corporate accounts with 60-day payment term. He submits the following data in 2018:
|
Supplies inventory, 1/1/2018 |
50,000 |
|
Supplies inventory, 12/31/2018 |
80,000 |
|
Revenues |
3,000,000 |
|
Accounts receivable, Jan. 1, 2018 |
500,000 |
|
Accounts receivable, Dec. 31, 2018 |
700,000 |
|
Purchase of supplies from VAT registered entities (net) |
100,000 |
|
Purchase of supplies from non-VAT registered entities |
50,000 |
Determine the following:
- What is the applicable business tax for the taxpayer?
- How much is the correct business tax due?
- Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year?
Assume the taxpayer is VAT registered, how much is the VAT payable for the year?
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