Course: AE 21a Descriptive Title: IT Application Tools for Business (Lab) Periodic Examination: Midterm

Term: 1st Academic Year: 2023-2024 Professor: Ace Gerome M. Niño Date: October 28, 2021

Group Name: _____________________________ Date: ________________________

Group Members: __________________________ Section/Year/Course: _______________________

INSTRUCTIONS:
Check information below and comply with the requirements with the application of your learnings in accounting process and excel operation.

Marcos lab Leni Logistics is a sole proprietorship established dated January 1, 2021. The company is expert in a logistics services catering not only
customers here in Iloilo City (Head office) but also in different part of western visayas. Below are the information pertaining to its registrations in the
various government agencies:

I. Certificate of Registration under BIR (BIR form 2303)

TIN: 419-335-925-000 VAT REGISTERED
NAME: MARCOS LAB LENI
REGISTRATION DATE: JANUARY 05, 2021
REGISTERED ADDRESS: ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
TRADE NAME: MARCOS LAB LENI LOGISTICS
LINE OF BUSINESS: LOGISTICS
TAX TYPE:
REGISTRATION FEE
VALUE ADDED TAX
WITHHOLDING TAX - EXPANDED/OTH
WITHHOLDING TAX - COMPENSATION
INCOME TAX
Taxes are file and paid on time based on the periodic regulated deadline.

II. SSS, PAG-IBIG, PHIC

The company employed and registered the following employees:
1. Grace Po (Sales and Marketing Specialist) with salary of Php 40,000.00/month
2. Kiko Pang (Operations Specialist) with salary of Php 30,000.00/month
3. Richard Gord-on (Admin, HR, & Accounting Officer) with salary of Php 45,000.00/month
4. Marcos Lab Leni (Owner/General Manager) with salary of Php 100,000.00/month
The company is following the prevaling withholding table as the basis of computing the SSS, Pag-Ibig, & PHIC.

III. Local Government Unit

With annual payment of Business Permit and other local taxes of 1% of total gross sales + Php 10,000.00

As of September 30, 2021, the company reported a trial balance as a result of the three (3) quarters of operations:

MARCOS LAB LENI LOGISTICS

Trail Balance
September 30, 2021

Accounts Debit Credit Note:

Cash in Bank 200,000.00 The company maintain only one bank
Accounts Receivables 50,000.00 *see list of customers below
Prepaid Supplies 5,000.00 This is use for unused office supplies purchased
Prepaid Insurance 30,000.00 1-year insurance premuim subscriptions
Input VAT 20,000.00 Pass on VAT paid to supplier
Office Equipment 51,000.00 5-years useful life, no salvage value (see below list)
Accum-Dep-Office Equipment 9,000.00 5-years useful life, no salvage value (see below list)
Office furniture 51,000.00 5-years useful life, no salvage value (see below list)
Accum-Dep-Office Furniture 9,000.00 5-years useful life, no salvage value (see below list)
Accounts Payable 15,000.00 **see list of suppliers/service providers below
SSS Payable 13,120.00 Accrual of regulatory contributions
Pag-ibig Payable 800.00 Accrual of regulatory contributions
PHIC Payable 7,525.00 Accrual of regulatory contributions
Output VAT 30,000.00 Pass on VAT paid by customers
Withholding tax payable - expanded 30,000.00 Accrual of withholding taxes
Withholding tax payable - compensation 8,000.00 Accrual of withholding taxes
Income tax payable 6,764.40 8% income tax for the 3rd quarter
Owner's Equity 200,000.00 Cash investments
Service Revenue 600,000.00 Recognition of revenue from payment of customer
Service Costs 227,402.50 Recognition of cost paid to supplier
Insurance expense 90,000.00 expired insurance premuim
Office supplies expense 15,000.00 used portion of office supplies
Rent expense 45,000.00 payment to rent on a monthly basis
Depreciation expense 18,000.00 depreciation of asstes on a monthly basis
SSS/Pag-Ibig/PHIC expense 115,042.50 Employer share on a monthly basis
Taxes and Licenses 5,000.00 various taxes paid to local/national government
Income tax expense 6,764.40 8% income tax for the 3rd quarter
929,209.40 929,209.40
-

*List of Customers **List of Suppliers/Service providers List of Office Equipments List of Office Furniture
ABC Company MNO Supplies Inc. 4pcs Computer Php 40,000 4pcs table/desk Php 30,000
DEF Corporation PQR Property Inc. 1pc Printer Php 10,000 4pcs office chare Php 20,000
GHI Inc. STU Company 1pc Aircon Php 10,000 2pcs meeting table Php 10,000
JKL Philippines Inc.

Listed below are the accounting transactions from October to December 2021:

October 2021
1. Received cash/record accounts receivables from the following customers for the services rendered (inclusive of output vat of 12%):
ABC Company………Cash of Php 25,000.00 from previous month, and Php 50,000.00, on account Php 25,000.00 for this month
DEF Corporation…….Cash of Php 25,000.00 from previous month, and Php 70,000.00, on account Php 25,000.00 for this month
GHI Inc……………….Cash of Php 70,000.00 for this month
JKL Philippines Inc….Cash of Php 50,000.00 for this month
2. Office supplies used for the month of October amounting to Php 2,000.00
3. Recognize expired insurance for the month of October 2021
4. Purchased of Office supplies, stock in the storage, amounting to Php12,000.00 (inclusive of 12% input vat) for cash
5. Monthly record of depreciation expense
6. Payment of accounts payable amounting to Php5,000.00
7. Payment of SSS, Pag-ibig, & PHIC for the month of September 2021
8. Payment of VAT payable for the month of September (Hint: Output less Input)
9. Payment of withholding taxes for the month/quarter ended September 2021
10. Incurred Service costs for logistics services equal to 30% of revenue, subject to 2% expanded withholding tax
11. Payment of rent expense amounting to Php 5,000.00, subject to 5% expanded withholding tax
12. Payment of salary for the month of October 2021, subject to withholding tax on compensation and SSS, Pag-ibig, & PHIC contributions.

As the General Account, you are tasks to do the following closing activities for the month of October, 2021:

No. Tab/Sheet Name Instructions/Output/Tasks/Activities

1 Kindly do the following tasks with output in separate tab/sheet with proper name label indicated in this instructions
2 COA Create Chart of Accounts
3 TB Prepare for Trial Balance as of October 2021
4 GenJour Post Journal entries in General Journal book
5 SpecJour Post Journal entries in Special Journals book
6 WorkSheet Prepare for Working Paper/Worksheet
7 FinStatement Prepare for Basic Financial Statements ended October 2021 (Income Statement, Balance Sheet, Cash Flows)
8 PayReg Prepare for Payroll Register (indicating the computation of SSS/PHIC/Pag-ibig & Withholding tax on compensation)
9 SourceDocs Create Source documents - Billing Statement and Official Receipt per Customer
10 LapsingSched Prepare for Lapsing Schedules as of October 2021
11 AcctgPolicy Create/Formulate ACCOUNTING POLICIES for internal control purposes
12 After finalizing the report, convert it in PDF format and attached it along with excel file in the NeoLMS

GOOD LUCK!!!
 MARCOS LAB LENI LOGISTICS
CHART OF ACCOUNTS
BALANCE SHEET
ASSET
Account Name Account Code
Cash in Bank 10001
Accounts Recievable 10002
Prepaid Supplies 10003
Prepaid Insurance 10004
Input VAT 10005
Office Equipment 10006
Accum. depreciation- Office Equipment 10007
Office Supplies 10008
Accum. depreciation- Office Supplies 10009

LIABILITIES
Account Name Account Code
Accounts Payable 20001
SSS Payable 20002
Pag-ibig Payable 20003
PHIC Payable 20004
Output VAT 20005
VAT Payable 20006
Salaries Payable 20007
Withholding Tax Payable - compensation 20008
Withholding Tax Payable - expanded 20009
Income Tax Payable 20010
EQUITY
Account Name Account Code
Owner's Equity 30001
OS LAB LENI LOGISTICS
HART OF ACCOUNTS
INCOME STATEMENT
REVENUE
Account Name Account Code
Service Revenue 40001

EXPENSE
Account Name Account Code
Service Cost 50001
Rent Expense 50002
Depreciation Expense 50003
Office Supplies Expense 50004
Insurance Expense 50005
Salaries Expense 50006
SSS/Pag-Ibig/PHIC expense 50007
Taxes and Licenses 50008
Income Tax Expense 50009

OTHERS
Account Name Account Code
Income Summary 60001
 MARCOS LAB LENI LOGISTICS
TRIAL BALANCE
October 31,2021
ACCOUNT TITLE Debit Credit
Cash in bank ₱ 217,903.15
Accounts Receivable ₱ 84,800.00
Prepaid Supplies ₱ 13,714.29
Prepaid Insurance ₱ 20,000.00
Input VAT ₱ 1,285.71
Office Equipment ₱ 51,000.00
Accum. depreciation- Office Equipment ₱- ₱ 10,000.00
Office Furniture ₱ 51,000.00
Accum. depreciation- Office Furniture ₱ 10,000.00
Accounts Payable ₱ 97,000.00
Salaries Payable
SSS payable ₱ 16,920.00
Pag-Ibig Payable ₱ 800.00
PHIC Payable ₱ 9,675.00
Output VAT ₱ 34,800.00
Withholding Tax Payable - compensation ₱ 23,460.65
Withholding Tax Payable - expanded ₱ 250.00
Income Tax Payable ₱ 6,764.40
Owner's Equity ₱ 200,000.00
Service Revenue ₱ 890,000.00
Service Cost ₱ 314,402.50
Rent Expense ₱ 50,000.00
Depreciation Expense ₱ 20,000.00
Office Supplies Expense ₱ 17,000.00
Insurance Expense ₱ 100,000.00
Salaries Expense ₱ 215,000.00
SSS/Pag-Ibig/PHIC expense ₱ 131,800.00
Taxes and Licenses ₱ 5,000.00
Income Tax Expense ₱ 6,764.40
Total ₱ 1,299,670.05 ₱ 1,299,670.05
 MARCOS LAB LEN
GENERAL JOU
October 31,
Date Account Code

October 1 10001
10002

10001
10002
20005
40001

October 5 10001
10002

10001
10002
20005
40001

October 10 10001
10002
20005
40001

10001
10002
20005
40001

October 11 10003
10005
10001
October 13 20001
10001

October 15 20002
20003
20004
10001

October 17 20005
10005
10001

October 19 20009
20008
10001

October 21 50001
20001

October 25 50002
20009
10001

October 27 50006
20002
20003
20004
20008
20007
 50007
20002
20003
20004

20007
10001

October 31 50004
10003

50005
10004

50003
10008
10009
 MARCOS LAB LENI LOGISTICS
GENERAL JOURNAL
October 31, 2021
Account Title and Explanation

Cash in Bank
Accounts Receivable
To record cash received from ABC company for the service rendered in the previous month

Cash in Bank
Accounts Receivable
Output Vat
Service Revenue
To record the service rendered for ABC company in cash and account basis

Cash in Bank
Accounts Receivable
To record cash received from DEF corporation for the service rendered in the previous month

Cash in Bank
Accounts Receivable
Output VAT
Service Revenue
To record the service rendered for DEF corporation in cash and account basis

Cash in Bank
Accounts Receivable
Output Vat
Service Revenue
To record the service rendered for GHI Inc. in cash and account basis

Cash in Bank
Accounts Receivable
Output Vat
Service Revenue
To record the service rendered for JKL Philippines Inc. company in cash and account basis

Prepaid Supplies
Input VAT
Cash in Bank
To record the acquisition of prepaid supplies

Accounts Payable
Cash in Bank
To record payment of accounts payable

SSS Payable
Pag-ibig Payable
PHIC Payable
Cash in Bank
To record payment for SSS, PAG-IBIG and PHIC for the month of September

Output VAT
Input VAT
Cash in Bank
To record payment of VAT payable for the month of September

Withholding Tax Payable (Expanded)

Witholding Tax Payable (Compensation)
Cash in Bank
To record payment of withholding taxes for the month of September

Service Cost
Accounts Payable
To record incurred service costs subject to 2% expanded withholding tax

Rent Expense
Withholding Tax Payable Payable(Expanded)
Cash in Bank
To record rent expense subject to 5% expanded withholding tax

Salaries Expense
SSS Payable
Pag-ibig Payable
PhilHealth Payable
Withholding Tax Payable - compensation
Salaries Payable
SSS/Pag-Ibig/PHIC Expense
SSS Payable
Pag-Ibig Payable
PHIC Payable

Salaries Payable
Cash In Bank
To record salary expense subject to withholding tax on compensation and SSS, Pag-ibig, & PHIC contributions for the month

Office Supplies Expense

Prepaid Supplies
To record the office supplies expense used for the month

Insurance expense
Prepaid Insurance
To record insurance expense

Depreciation Expense
Accumulated Depreciation - Office Equipment
Accumulated Depreciation - Office Supplies
To record depreciation for office equipment and office supplies for the month of October
Ref Debit Credit

540 ₱25,000.00
456 ₱25,000.00

901 ₱50,000.00
679 ₱34,000.00
143 ₱9,000.00
790 ₱75,000.00

809 ₱25,000.00
356 ₱25,000.00

801 ₱70,000.00
478 ₱36,400.00
841 ₱11,400.00
591 ₱95,000.00

508 ₱70,000.00
256 ₱8,400.00
892 ₱8,400.00
670 ₱70,000.00

479 ₱50,000.00
390 ₱6,000.00
150 ₱6,000.00
693 ₱50,000.00

260 ₱10,714.29
795 ₱1,285.71
953 ₱12,000.00
158 ₱5,000.00
689 ₱5,000.00

478 ₱13,120.00
173 ₱800.00
592 ₱7,525.00
169 ₱21,445.00

389 ₱30,000.00
184 ₱20,000.00
247 ₱10,000.00

853 ₱30,000.00
368 ₱8,000.00
855 ₱38,000.00

104 ₱87,000.00
361 ₱87,000.00

496 ₱5,000.00
523 ₱250.00
689 ₱4,750.00

268 ₱215,000.00
590 ₱5,400.00
742 ₱400.00
808 ₱4,837.50
666 ₱23,460.65
421 ₱180,901.85
061 ₱16,757.50
521 ₱11,520.00
765 ₱400.00
987 ₱4,837.50

378 ₱180,901.85
987 ₱180,901.85

199 ₱2,000.00
466 ₱2,000.00

267 ₱10,000.00
444 ₱10,000.00

654 ₱2,000.00
245 ₱1,000.00
680 ₱1,000.00
 SALES JOURNAL
Date Ref

October 1 AR1
October 5 AR2

CASH DISBURSEMENT JOUR

Date Account Title
October 11 Prepaid Supplies
Ocotber 13 Accounts Payable
October 15 SSS Payable
Pag-ibig Payable
PHIC Payable
Ocotber 17 Output VAT / Input VAT
October 19 Withholding Tax Payable - expanded
Withholding Tax Payable - compensation
October 25 Rent Expense
Ocotber 27 Salaries Payable
Ocotber 31 Office Supplies Expense
Insurance expense

CASH RECEIPTS JOURNA

Date Invoice No.
October 1 992346

October 5 867321

October 10 356786
753922
SALES JOURNAL
Dr. Accounts Receivable
Customer Name Invoice No.
Cr. Sales
ABC Company 992346 ₱34,000.00
DEF Corporation 867321 ₱36,400.00
Total ₱70,400.00

CASH DISBURSEMENT JOURNAL

Ref. Accounts Payable Dr. Others Dr.
260 ₱12,000.00
158 ₱5,000.00
478 ₱13,120.00
173 ₱800.00
592 ₱7,525.00
389 ₱30,000.00
853 ₱30,000.00
368 ₱8,000.00
496 ₱5,000.00
378 ₱180,901.85
199 ₱2,000.00
267 ₱10,000.00
Total ₱275,346.85 ₱29,000.00

CASH RECEIPTS JOURNAL

Customer Name Ref. Cash Dr.
ABC Company AR1 ₱25,000.00
901 ₱50,000.00
DEF Corporation AR2 ₱25,000.00
801 ₱70,000.00
GHI Inc 508 ₱70,000.00
JKL Philippines Inc. 479 ₱50,000.00
Total ₱290,000.00
Cash Cr. Others Cr.
₱12,000.00
₱5,000.00
₱13,120.00
₱800.00
₱7,525.00
₱10,000.00 ₱20,000.00
₱30,000.00
₱8,000.00
₱4,750.00 ₱250.00
₱180,901.85
₱2,000.00
₱10,000.00
₱272,096.85 ₱32,250.00

A/R Cr. Service Revenue Cr.

₱25,000.00
₱50,000.00
₱25,000.00
₱70,000.00
₱70,000.00
₱50,000.00
₱50,000.00 ₱240,000.00
# Chart of Accounts SEPTEMBER Trial Balance
Debit
1 10001 - Cash in Bank ₱200,000.00
2 10002 - Accounts Receivable ₱50,000.00
3 10003 - Prepaid Supplies ₱5,000.00
4 10004 - Prepaid Insurance ₱30,000.00
5 10005 - Input VAT ₱20,000.00
6 10006 - Office Equipment ₱51,000.00
7 10007 - Office Furniture ₱51,000.00
8 10008 - Accumulated Depreciation - Office Equipment
9 10009 - Accumulated Depreciation - Office Furniture
10 20001 - Accounts Payable
11 20002 - SSS Payable
12 20003 - Pag-ibig Payable
13 20004 - PHIC Payable
14 20005 - Output VAT
15 20006 - VAT Payable
16 20007 - Salaries Payable
17 20008 - Withholding Tax Payable - Compensation
18 20009 - Withholding Tax Payable - Expanded
19 20010 - Income Tax Payable
20 30001 - Owner's Equity
21 40001 - Service Revenue
22 50001 - Service Cost ₱227,402.50
23 50002 - Rent Expense ₱45,000.00
24 50003 - Depreciation Expense ₱18,000.00
25 50004 - Office Supplies Expense ₱15,000.00
26 50005 - Insurance Expense ₱90,000.00
27 50006 - Salaries Expense
28 50007 - SSS/Pag-ibig/PHIC Expense ₱115,042.50
29 50008 - Taxes and Licences ₱5,000.00
30 50009 - Income Tax ₱6,764.40
₱929,209.40
60001 - Income Summary
TOTALS ₱929,209.40
 MARCOS LAB LENI LOGISTICS
PTEMBER Trial Balance OCTOBER Trial Balance BALANCE
Credit Debit Credit Debit Credit
₱290,000.00 ₱272,096.85 ₱217,903.15
₱84,800.00 ₱50,000.00 ₱84,800.00
₱10,714.29 ₱2,000.00 ₱13,714.29
₱0.00 ₱10,000.00 ₱20,000.00
₱1,285.71 ₱20,000.00 ₱1,285.71
- ₱51,000.00
- ₱51,000.00
₱9,000.00 ₱1,000.00 ₱10,000.00
₱9,000.00 ₱1,000.00 ₱10,000.00
₱15,000.00 ₱5,000.00 ₱87,000.00 ₱97,000.00
₱13,120.00 ₱13,120.00 ₱16,920.00 ₱16,920.00
₱800.00 ₱800.00 ₱800.00 ₱800.00
₱7,525.00 ₱7,525.00 ₱9,675.00 ₱9,675.00
₱30,000.00 ₱30,000.00 ₱34,800.00 ₱34,800.00

₱180,901.85 ₱180,901.85 -
₱8,000.00 ₱8,000.00 ₱23,460.65 ₱23,460.65
₱30,000.00 ₱30,000.00 ₱250.00 ₱250.00
₱6,764.40 - ₱6,764.40
₱200,000.00 - ₱200,000.00
₱600,000.00 ₱290,000.00 ₱890,000.00
₱87,000.00 ₱314,402.50
₱5,000.00 ₱50,000.00
₱2,000.00 ₱20,000.00
₱2,000.00 ₱17,000.00
₱10,000.00 ₱100,000.00
₱215,000.00 ₱215,000.00
₱16,757.50 ₱131,800.00
₱0.00 ₱5,000.00
₱0.00 ₱6,764.40
₱929,209.40 ₱999,904.35 ₱999,904.35 ₱1,299,670.05 ₱1,299,670.05

₱929,209.40 ₱999,904.35 ₱999,904.35 ₱1,299,670.05 ₱1,299,670.05

OGISTICS
Income Statement Balance Sheet
Debit Credit Debit Credit
₱217,903.15
₱84,800.00
₱13,714.29
₱20,000.00
₱1,285.71
₱51,000.00
₱51,000.00
₱10,000.00
₱10,000.00
₱97,000.00
₱16,920.00
₱800.00
₱9,675.00
₱34,800.00

-
₱23,460.65
₱250.00
₱6,764.40
₱200,000.00
₱890,000.00
₱314,402.50
₱50,000.00
₱20,000.00
₱17,000.00
₱100,000.00
₱215,000.00
₱131,800.00
₱5,000.00
₱6,764.40
₱859,966.90 ₱890,000.00 ₱439,703.15 ₱409,670.05
₱30,033.10 ₱30,033.10
₱890,000.00 ₱890,000.00 ₱439,703.15 ₱439,703.15
 MARCOS LAB LENI LOGISTICS
Income Statement (amount in Peso)
For the month ended October 2021 ASSET
Revenue Current assets
Service Revenue ₱890,000.00 100.00%
Total Revenue ₱890,000.00 100.00%
Less: Cost of Service
₱314,402.50 35.33%
Gross Profit ₱575,597.50 64.67%
Less: Operating Expenses
Rent Expense ₱50,000.00 5.62%
Depreciation Expense ₱20,000.00 2.25%
Office Supplies Expense ₱17,000.00 1.91% Non-current assets
Insurance Expense ₱100,000.00 11.24%
Salaries Expense ₱215,000.00 24.16%
SSS/Pag-Ibig/PHIC Expense ₱131,800.00 14.81%
Taxes and Licenses ₱5,000.00 0.56%
Income Tax ₱6,764.40 0.76%
Total Operating expenses ₱545,564.40 61.30%
Operating Income ₱30,033.10 3.37%
Less: Interest Expense ₱0.00 0.00%
Net Income before Income Tax ₱30,033.10 3.37% Total Assets
Less: Income Tax ₱0.00 0.00%
Net Income after tax ₱30,033.10

MARCOS LAB LENI LOGISTICS

Statement of Cash Flows (amount in Peso)
For the month ended October 2021
Cash flows from operating activities
Net Income ₱0.00
Add: Depreciation ₱20,000.00
₱50,033.10

Changes in current assets and Liabilities:

Increase in Accounts Receivable -₱34,800.00
Increase in Prepaid Supplies -₱8,714.29
Increase in Prepaid Insurance -₱10,000.00
Decrease in Input VAT ₱18,714.29
Increase in Accounts Payable ₱82,000.00
Increase in SSS Payable ₱3,800.00
Increase in PHIC Payable ₱2,150.00
Increase in Output VAT ₱4,800.00
 Decrease in Withholding Tax Payable/ - compensation ₱15,460.65
Increase in Withholding Tax Payable - expanded -₱29,750.00
Net Cash provided by the operating activities ₱93,693.75

Cash flows from investing activities

Net Cash provided by the investing activities -

Cash flows from financing activities

-
-
Net Cash provided by the investing activities -

Net increase in cash during the month ₱93,693.75

Cash at the beginning of the month ₱200,000.00
Cash at the end of the month ₱293,693.75
 MARCOS LAB LENI LOGISTICS
Balance Sheet (amount in Peso)
LIABILITY AND OWNER'S EQUITY
Current assets Current liability
Cash in Bank ₱217,903.15 Accounts Payable
Accounts Receivable ₱84,800.00 SSS Payable
Prepaid Supplies ₱13,714.29 Pag-ibig Payable
Prepaid Insurance ₱20,000.00 PHIC Payable
Input VAT ₱1,285.71 Output VAT
VAT Payable
Total current assets ₱337,703.15 Salaries Payable
Withholding Tax Payable - compensation
Non-current assets Withholding Tax Payable/ - expanded
Office Equipment ₱51,000.00 Income Tax Payable
Office Furniture ₱51,000.00 Total Liability
Accum. Depreciation - Office Equipment -₱10,000.00
Accum. Depreciation - Office Furniture -₱10,000.00 Owner's Equity
Total non-current assets ₱82,000.00 Owner's Equity
Income Summary

Total Owner's Equity

Total Assets ₱419,703.15 Total liabilities and Owner's Equity
ICS
eso)
D OWNER'S EQUITY

nts Payable ₱97,000.00

₱16,920.00
₱800.00
₱9,675.00
₱34,800.00
₱0.00
₱0.00
olding Tax Payable - compensation ₱23,460.65
olding Tax Payable/ - expanded ₱250.00
e Tax Payable ₱6,764.40
₱189,670.05

₱200,000.00
e Summary ₱30,033.10

Owner's Equity ₱230,033.10

s and Owner's Equity ₱419,703.15
Grace Po (Sales and Marketing Specialist) with salary of Php 40,000.00/month
Kiko Pang (Operations Specialist) with salary of Php 30,000.00/month
Richard Gord-on (Admin, HR, & Accounting Officer) with salary of Php 45,000.00/month
Marcos Lab Leni (Owner/General Manager) with salary of Php 100,000.00/month

Employee Salary SSS Pag-IBIG

Grace Po ₱ 40,000.00 ₱ 1,350.00 ₱ 100.00
Kiko Pang ₱ 30,000.00 ₱ 1,350.00 ₱ 100.00
Richard Gord-on ₱ 45,000.00 ₱ 1,350.00 ₱ 100.00
Marcos Lab Leni ₱ 100,000.00 ₱ 1,350.00 ₱ 100.00
Total ₱ 215,000.00 ₱ 5,400.00 ₱ 400.00

SSS Contribution Breakdown

Employer Employee
Grace Po ₱ 2,880.00 ₱ 1,350.00
Kiko Pang ₱ 2,880.00 ₱ 1,350.00
Richard Gord-on ₱ 2,880.00 ₱ 1,350.00
Marcos Lab Leni ₱ 2,880.00 ₱ 1,350.00
Total ₱ 11,520.00 ₱ 5,400.00

Pag-IBIG Contribution Breakdown

Employer Employee
Grace Po ₱ 100.00 ₱ 100.00
Kiko Pang ₱ 100.00 ₱ 100.00
Richard Gord-on ₱ 100.00 ₱ 100.00
Marcos Lab Leni ₱ 100.00 ₱ 100.00
Total ₱ 400.00 ₱ 400.00
https://filipiknow.net/sss-contribution/#How_to_Compute_Your_Monthly_SSS_Contribution_The_Basics
nth

PhilHealth Taxable Income Withholding Tax Total Deductions

₱ 900.00 ₱ 37,650.00 ₱ 2,738.40 ₱ 5,088.40
₱ 675.00 ₱ 27,875.00 ₱ 1,056.30 ₱ 3,181.30
₱ 1,012.50 ₱ 42,537.50 ₱ 3,715.90 ₱ 6,178.40
₱ 2,250.00 ₱ 96,300.00 ₱ 15,950.05 ₱ 19,650.05
₱ 4,837.50 ₱204,362.50 ₱ 23,460.65 ₱ 34,098.15

PhilHealth Contribution Breakdown

Employer Employee
Grace Po ₱ 900.00 ₱ 900.00
Kiko Pang ₱ 675.00 ₱ 675.00
Richard Gord-on ₱ 1,012.50 ₱ 1,012.50
Marcos Lab Leni ₱ 2,250.00 ₱ 2,250.00
Total ₱ 4,837.50 ₱ 4,837.50

Withholding Tax Contribution Breakdown

Employer Employee
Grace Po - ₱ 2,738.40
Kiko Pang - ₱ 1,056.30
Richard Gord-on - ₱ 3,715.90
Marcos Lab Leni - ₱ 15,950.05
Total ₱ 23,460.65
 https://filipiknow.net/philhealth-contribution/

_The_Basics
Net Pay
₱ 34,911.60
₱ 26,818.70
₱ 38,821.60
₱ 80,349.95
₱180,901.85

https://lvsbooks.com/withholding-tax-computatio
thholding-tax-computation-train-law/
 MARCOS LAB LENI LOGISTICS
ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
VAT Reg. TIN: 419-335-925-000

BILLING INVOICE NO. 992346 Date: October 1

TIN
Billed to ABC Company
Bus. Name/Style Terms
Address

PARTICULARS AMOUNT
LOGISTICS SERVICES ₱75,0

Vatable Sales ₱75,0

Add: Exlusive of Output VAT ₱9,0
TOTAL ₱84,0

Prepared by:
Approved by:

“THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES”

MARCOS LAB LENI LOGISTIC

PAYMENT OF THE FOLLOWING: ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
Particulars Amount VAT Reg. TIN: 419-335-925-000
Previous month balance

VATable Sales ₱21,000.00 OFFICIAL RECEIPT No. 0001

Add: VAT ₱3,000.00 Date:
Total ₱25,000.00
Received from ABC Company
and address at
Current month payment style of
Total Sales (VAT Exclusive) ₱44,000.00 SEVENTY FIVE THOUSAND
Add: VAT ₱6,000.00 (₱ 75,000.00
Total ₱50,000.00 SERVICES RENDERED

Form of Payment
Cash ● Check

MARCOS LAB LENI LOGISTICS

ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
VAT Reg. TIN: 419-335-925-000

BILLING INVOICE No. 867321 Date: October 5

TIN
Billed to DEF Corporation
Bus. Name/Style Terms
Address

PARTICULARS AMOUNT
LOGISTICS SERVICES ₱95,0

Vatable Sales ₱95,0

Add: Exclusive of Output VAT ₱11,4
TOTAL ₱106,4
 Prepared by:
Approved by:

“THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES”

MARCOS LAB LENI LOGISTIC

PAYMENT OF THE FOLLOWING: ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
Particulars Amount VAT Reg. TIN: 419-335-925-000
Previous month balance

Total Sales (VAT Exclusive) ₱22,000.00 OFFICIAL RECEIPT No. 0002

Less: VAT ₱3,000.00 Date:
Total ₱25,000.00
Received from DEF Corporation
and address at
Current month Payment style of
Total Sales (VAT Inclusive) ₱61,600.00 NINETY FIVE THOUSAND
Less: VAT ₱8,400.00 (₱ 95,000.00
Total ₱70,000.00 SERVICES RENDERED

Form of Payment
Cash ● Check
 MARCOS
ZONE 4, SAN JUA
VAT R

2021 BILLING INVOICE

Billed to GHI Inc.

Bus. Name/Style
Address

MOUNT PARTICULARS
₱75,000.00 LOGISTICS SERVICES

₱75,000.00
₱9,000.00 Add: Exclu
₱84,000.00

“THIS DOCUMENT IS

B LENI LOGISTICS
OLO, ILOILO CITY, ILOILO, 5000 PAYMENT OF THE FOLLOWING:
N: 419-335-925-000 Particulars Amount
Current month payment

VATable Sales ₱61,600.00

 October 1, 2021 Add: VAT ₱8,400.00
Total ₱70,000.00
with TIN
engaged in the business
the sum of
pesos
). In partial/full payment for

Form of Payment
Cash ● Check

MARCOS
ZONE 4, SAN JUA
VAT R

2021 BILLING INVOICE

Billed to JKL Philippines Inc.

Bus. Name/Style
Address

MOUNT PARTICULARS
₱95,000.00 LOGISTICS SERVICES

₱95,000.00
₱11,400.00 Add: Exclu
₱106,400.00
 “THIS DOCUMENT IS

B LENI LOGISTICS
OLO, ILOILO CITY, ILOILO, 5000 PAYMENT OF THE FOLLOWING:
N: 419-335-925-000 Particulars Amount
Current month Payment

Total Sales (VAT Exclusive) ₱44,000.00

October 5, 2021 Add: VAT ₱6,000.00
Total ₱50,000.00
with TIN
engaged in the business
the sum of
pesos
). In partial/full payment for

Form of Payment
Cash ● Check
 MARCOS LAB LENI LOGISTICS
ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
VAT Reg. TIN: 419-335-925-000

E No. 356786 Date: October 10 2021

TIN
nc.
Terms

PARTICULARS AMOUNT
₱70,000.00

Vatable Sales ₱70,000.00

Add: Exclusive of Output VAT ₱8,400.00
TOTAL ₱78,400.00

Prepared by:
Approved by:

“THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES”

MARCOS LAB LENI LOGISTICS

F THE FOLLOWING: ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
Amount VAT Reg. TIN: 419-335-925-000

OFFICIAL RECEIPT No. 0003

 Date: October 10, 2021

Received from GHI Inc. with TIN

and address at engaged in the business
style of the sum of
SEVENTY THOUSAND pesos
(₱ 70,000.00 ). In partial/full payment for
SERVICES RENDERED

of Payment
● Check

MARCOS LAB LENI LOGISTICS

ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
VAT Reg. TIN: 419-335-925-000

E No. 753922 Date: October 10 2021

TIN
Philippines Inc.
Terms

PARTICULARS AMOUNT
₱50,000.00

Vatable Sales ₱50,000.00

Add: Exclusive of Output VAT ₱6,000.00
TOTAL ₱56,000.00
 Prepared by:
Approved by:

“THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAXES”

MARCOS LAB LENI LOGISTICS

F THE FOLLOWING: ZONE 4, SAN JUAN, MOLO, ILOILO CITY, ILOILO, 5000
Amount VAT Reg. TIN: 419-335-925-000

OFFICIAL RECEIPT No. 0004

Date: October 10, 2021

Received from JKL Philippines Inc. with TIN

and address at engaged in the business
style of the sum of
FIFTY THOUSAND pesos
(₱ 50,000.00 ). In partial/full payment for
SERVICES RENDERED

of Payment
● Check
ed in the business
ed in the business
No. Date Purchased Description Quantity Cost per unit
1 01/01/21 Computer 4 pcs ₱ 10,000
2 01/01/21 Printer 1 pc ₱ 10,000
3 01/01/21 Aircon 1 pc ₱ 10,000
TOTAL

No. Date Purchased Description Quantity Cost per unit

1 01/01/21 Table/Desk 4 pcs ₱ 7,500
2 01/01/21 Office Chair 4 pcs ₱ 5,000
3 01/01/21 Meeting Table 2 pcs ₱ 5,000
TOTAL
 MARCOS LAB LENI L
Fixed Assets - Lapsing
As of October 31

OFFICE EQUIPM
Total Useful Life (year) Useful Life (month) Depreciation Method
₱ 40,000 5 60 Straight-line
₱ 10,000 5 60 Straight-line
₱ 10,000 5 60 Straight-line
₱50,000.00

OFFICE FURNIT
Total Useful Life (year) Useful Life (month) Depreciation Method
₱ 30,000 5 60 Straight-line
₱ 20,000 5 60 Straight-line
₱ 10,000 5 60 Straight-line
₱50,000.00
 MARCOS LAB LENI LOGISTICS
Fixed Assets - Lapsing Schedule
As of October 31, 2021

OFFICE EQUIPMENT
Salvage Value Monthly Depreciation
- ₱666.67
- ₱166.67
- ₱166.67
₱1,000.00

OFFICE FURNITURE
Salvage Value Monthly Depreciation
- ₱500.00
- ₱333.33
- ₱166.67
₱1,000.00
Current Year Depreciation Accumulated Depreciation
₱6,666.67 ₱6,666.67
₱1,666.67 ₱1,666.67
₱1,666.67 ₱1,666.67
₱10,000.00 ₱10,000.00

Current Year Depreciation Accumulated Depreciation

₱5,000.00 ₱5,000.00
₱3,333.33 ₱3,333.33
₱1,666.67 ₱1,666.67
₱10,000.00 ₱10,000.00
Net Book Value
₱ 33,333.33
₱ 8,333.33
₱ 8,333.33
₱50,000.00

Net Book Value

₱ 25,000.00
₱ 16,666.66
₱ 8,333.33
₱50,000.00
 ACCOUNTING POLICY

DAILY ACCOUNTING PROCEDURES

The parts of the accounting system that are used on a regular daily basis are:

Chart of Accounts (See Sheet 2)

Source Documents (See Sheet 9)
General Journal (See Sheet 4)
Special Journal (See Sheet 5)

It is important to keep accounting records as up to date as possible instead of leaving everything to a month-en
Time should be set aside each day or each week to update Source Journals, file Source Documents,
and generally review the records for reasonableness and possible necessary adjustments

CHART OF ACCOUNTS

General Ledger Accounts describe the type of asset, liability, revenue, or expense.
General Ledger Codes are five digits long and are broken down into the following ranges:

10000 Assets
20000 Liabilities
30000 Equity
40000 Revenue
50000 Expenses

ACCOUNT DESCRIPTIONS

Descriptions of the type of transactions included in each account code are provided b
10000 - ASSET

10001 - Cash in Bank

The business will maintain only one bank account for the smooth operation of the business. All cash related tra
be processed in this account. All transactions will be recorded on a daily basis to effectively manage the financ

10002 - Accounts Receivable

For receivables, the owner will designate the staff responsible for preparation of invoices, payment requests, o
necessary to secure payment to Marcos Lab Leni Logistics. Accounts Receivable will be reserved for the paym
all purchases on account.

10003 - Prepaid Supplies

This account is used to record advance payments for supplies that will be consumed over a period of time. The
be consumed, used, or exhausted through standard business operations within one year. Prepaid supplies
are listed on the balance sheet as a current asset.

10004 - Prepaid Insurance

This account is used to record advance payments for supplies that will be consumed over a period of time. The
be consumed, used, or exhausted through standard business operations within one year. Prepaid supplies are
the balance sheet as a current asset.

10004 - Prepaid Insurance

This account is used to record advance payments for insurance that will be consumed over a period of time. Pr
insurance is considered a current asset on the balance sheet.

10005 - Input VAT

Input Value-added tax (VAT) refers to the tax that the company pays on its inputs or purchases. This account i
a current asset on the balance sheet and will be deducted against output VAT in the VAT return.

10006 - Office Equipment

This account is used to record office equipment assets including computer, printer, and aircon only.

10007 - Office Furniture

This account is used to record office furniture assets including table/desk, office chairs, and meeting table only

10008 - Accumulated Depreciation - Office Equipment

This account is used to record the total amount of depreciation expense allocated for the office equipment. The
depreciated using the straight-line method. It has a five-year useful life without salvage value.

10009 - Accumulated Depreciation - Office Furniture

This account is used to record the total amount of depreciation expense allocated for the office furniture.
The furnitures are depreciated using the straight-line method. It has a five-year useful life without salvage value

20000 - LIABILITIES

20001 - Accounts Payable

On Monday and Friday of every week, accounts payable invoices are selected for payment according to their te
Accounts payable should normally be paid within seven days of their due date unless otherwise determined by
If payment terms are not specified on the invoice, payment will be issued within 30 days of the invoice date.

20002 - SSS Payable

The amount that the company is obliged to pay to the Social Security System (SSS) monthly as mandated by l
This account is under current liabilities.

20003 - Pag-ibig Payable

The amount that the company is obliged to pay to the Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya
(Pag-IBIG) monthly as mandated by law. This account is under current liabilities.
20004 - PHIC Payable
The amount that the company is obliged to pay to the Philippine Health Insurance Corporation (PHIC) monthly
by law. This account is under current liabilities.

20005 - Output VAT

Output Value-added Tax (VAT) refers to the amount that the business must pay to the government. The amoun
collected from customers is reduced by the input VAT paid on purchases.

20006 - VAT Payable

Value-Added Tax (VAT) is a form of sales tax. Setting up a VAT payable is closing the input VAT and output VA
VAT payable account. The resulting difference would represent the VAT payable.

20007 - Salaries Payable

This account is under current liability. This contains the amounts of any salaries owed to employees, which hav
been paid to them.

20008 - Withholding Tax Payable - Compensation

Withholding Tax Payable - Compensation is the tax deducted by an employer from an employee's income. The
deducted from the employee's income will be based on the amount that an employee earns over a certain perio

20009 - Withholding Tax Payable - Expanded

Withholding Tax Payable is paid by the withholding agent, and should contain the accumulation of all the month
taken from the Cash income.

20010 - Income Tax Payable

The amount that the company is obliged to pay to the Bureau of Internal Revenue (BIR) monthly as mandated
This account is under current liabilities.

30000 - EQUITY

30001 - Owner’s Equity

This account is used to record the portion of a company's assets that the owner, Marcos Lab Leni, can claim. I
subtracting a company's liabilities from its assets.

40000 - REVENUE

40001 - Service Revenue

This account is used to record the total amount of money received from providing services.

50000 - EXPENSE

50001 - Service Cost

This account is used to record all costs associated with building, supporting, and delivering service.
50002 - Rent Expense
This account is used to record costs incurred by the entity to utilize a property for an office, factory, or storage

50003 - Depreciation Expense

This account is used to record the amount that depreciates from the entity's assets such as equipment and furn

50004 - Office Supplies Expense

This account is used to record the incurred costs from the use of office supplies.

50005 - Insurance Expense

This account is used to record the cost incurred by a business for obtaining insurance coverage.

50006 - Salaries Expense

This account is used to combine the total amount of salaries paid to employees during a specified period.

50007 - SSS/Pag-Ibig/PHIC expense

This account is used to record the expenses paid in mandatory government deductions.

50008 - Taxes and Licenses

This account is used to combine the amounts paid for taxes and licenses related to the business. It includes co
business licenses, domain name fees, and property taxes

50009 - Income Tax Expense

This account is used to record the cost incurred in paying taxes owed by the business to a taxing authority.

60000 - OTHERS

60001 - Income Summary

A temporary account in which all the revenue and expenses accounts' closing entries are netted at the end of
period. The resulting balance is considered a profit or loss.
 ICY

CEDURES

of leaving everything to a month-end rush.

, file Source Documents,
y adjustments

NTS

wing ranges:

IONS

ach account code are provided below:

of the business. All cash related transactions will

is to effectively manage the finances.

n of invoices, payment requests, or reports

vable will be reserved for the payment of
nsumed over a period of time. They are expected to
hin one year. Prepaid supplies

nsumed over a period of time. They are expected to

hin one year. Prepaid supplies are listed on

onsumed over a period of time. Prepaid

nputs or purchases. This account is considered

T in the VAT return.

printer, and aircon only.

ice chairs, and meeting table only.

cated for the office equipment. The equipments are

ut salvage value.

cated for the office furniture.

ear useful life without salvage value.

ES

ed for payment according to their terms for payment.

e unless otherwise determined by the owner.
hin 30 days of the invoice date.

m (SSS) monthly as mandated by law.

abukasan: Ikaw, Bangko, Industriya at Gobyerno

ance Corporation (PHIC) monthly as mandated

pay to the government. The amount of output VAT

losing the input VAT and output VAT accounts to

ies owed to employees, which have not yet

r from an employee's income. The amount

mployee earns over a certain period.

n the accumulation of all the monthly funds

venue (BIR) monthly as mandated by law.

ner, Marcos Lab Leni, can claim. It's what's left after

iding services.

and delivering service.

y for an office, factory, or storage space.

assets such as equipment and furniture.

nsurance coverage.

ees during a specified period.

deductions.

ated to the business. It includes copyrights,

business to a taxing authority.

g entries are netted at the end of accounting