Bonus Rate 10%

Tax Rate 30%

B = 10% of NI

1. B = 10% of NI 1. Purchase
B =10% (1,650,000) Input VAT
B = 165,000 Cash

2. B = 10% (NI - B) 2. Cash

B = 10% (1,650,000 - B) Sales
B = 165,000 - .1B Output VAT
1.1B/1.1 = 1,650,000/1.1
B = 150,000 3. Output VAT
Input VAT
3. B = 10% (.65NI - .65B) VAT payable
B = 10% [.65 (1,650,000) - .65B]
B = 10% (1,072,500 - .65B) 4. VAT Payable
B = 107,250 - .65B Cash
1.065B/1.065 = 107,250/1.065
B = 100,704
Gross Pay
4. B = 10% (.65NNI + .35B) SSS Premium
B = 10% [.65 (1,650,000) + .35B] Philhealth
B = 10% (1,072,500 + .35B) Pag-ibig Contri
B = 107,250 + .35B Withholding Tax
.965B/.965 = 107,250/.965 Net Pay
B = 111,140
Salaries Expense
Salaries payable
SSS liab
Philhealth liab
Pag-ibig liab
Withholding Tax liab

35,000
60,000
150,000
245,000

Sales Taxes
November
December
Total
 Occupancy Tax
Room Nights
1,100
1,200
1,800
4,100

Unearned Revenue, beg.

GC sold
GC redeemed
GC exppected not to be redeemed
Unearned Revenue, ending

Unearned Revenue, beg.

2026 sales
2026 redemptions of prior year sales
2026 redemptions of current year sales
GC not redeemed w/in the expiration d
Unearned Revenue, ending

xx Unearned Revenue, beg.

xx Cash received during the year
(xx) Containers received during the year
(xx) Containers not expected to be returned
(xx) Containers expired during the year
xx Unearned Revenue -CD, ending

Illustrative 7:
Unearned Revenue, beg.
Deposits Received
Deposits returned
Deposits expired
Unearned Revenue - CD, ending

Expired Portion - 2024 (150k - 90k)

Illustrative 8:
Unearned Revenue, beg.
Deposits Received (100k*P5)
Deposits returned (110k*P5)
Unearned Revenue, ending
Illustrative 10:
Product Sales 24,000,000 Illustrative 9: service contract exp is ignored
Points (24m/200 sales*P1) 120,000 Unearned service revenue, beg
Total SASP 24,120,000 Cash receipts from SC sold
 Service contract revenue recognized
Allocate the 24m to product sales and Points: Unearned service revenue, ending
Product Sales (24m*24m/24.12m) 23,880,597
Points (120k*24m/24.12m) 119,403
24,000,000

Requirement 1:
Cash 24,000,000
Sales 23,880,597
Unearned Revenue 119,403

2026
Points 120,000
Multiply by: Expected return 80%
Total Points 96,000

Revenue, beg. 119,403

* Redeemed Points 48,000
5,731,344,000
Divided by: Total Expected Return 96,000
Unearned Revenue 59,702

Requirement 2:
Unearned Revenue 59,702
Revenue from points 59,702

2027
Points 120,000
Multiply by: Expected return 90%
Total Points 108,000

Redeemed:
2026 48,000
2027 49,200
Total Points Redeemed 97,200

Cumulative Revenue, 2027:

Revenue, 2026 119,403
*Total Points Redeemed 97,200
Divided by: Expected return 108,000
Cumulative Revenue 107,463
Cumulative Revenue 107,463
Less: Recognized revenue 59,702
Revenue, 2027 47,761

Requirement 3:
Unearned Revenue 47,761
Revenue from points 47,761

Revenue, beg. 119,403

* Redeemed Points 48,000
5,731,344,000
Divided by: Total Expected Return 96,000
Unearned Revenue 59,702

2028
Total Revenue 119,403
Less: Revenue already recognized
2026 -59,702
2027 -47,761
Revenue, 2028 11,940

Requirement 4:
Unearned Revenue 11,940
Revenue from points 11,940

Illustrative 10:
Total Points (4m/200k) 20,000
SASP of Points (20k*1) 20,000

Product Sales 4,000,000

Points (24m/200 sales*P1) 20,000
Total SASP 4,020,000

Allocate the 4m to product sales and Points:

Product Sales (4m*4m/4.020m) 3,980,100
Points (20k*4m/4.020m) 19,900
4,000,000

Requirement 1:
Cash 4,000,000
Sales 3,980,100
 Revenue from points 19,900

Requirement 2:
Customer Loyalty Expense 8,400
Cash (14k*.60) 8,400

Expense (20k*.60) 12,000

Requirement 3:
Customer Loyalty Expense (12k-8.4k 3,600
Cash 3,600

Illustrative 1
Sales in units 500,000
Expected Redemption 80%
Number of coupons 400,000
Divided by: # of coupons to have 1 p 1
# of premium to be distributed 400,000

Cost 50
Other costs 5
Less: Remittance -40
Premium exp per unit 15

# of premium to be distributed 400,000

Multiply: Premium exp per unit 15
Premium Expense 6,000,000

Requirement 2
Estimated Premium Liab, beg 0
Premium Expense 6,000,000
Premium Distributed -4,500,000
Estimated Premium Liab, end 1,500,000

# of premium actually distributed 300,000

Multiply: Premium exp per unit 15
Premium Distributed 4,500,000

Cost of parts 120

Cost of labor 150
Warranty exp per unit 270

Parts 5,400
Labor 12,600
Total Actual Warranty cost incurr 18,000
Requirement 1:
Units sold 500 computers
Multiply: Warranty exp per unit 270
Warranty exp 135,000

Requirement 12
Estimated warranty liab, beg 0
Warranty exp 135,000
Actual warranty cost -18,000
Estimated warranty liab, end 117,000
 220,000 (246,400/112%)
26,400 (220k*12%)
246,400

369,600 (330k+39.6k)
330,000
39,600 (330k*12%)

39,600
26,400
13,200 (39.6k-13.2k)

13,200
13,200

100,000
-1,600
-200
-200
-30,000
68,000

100,000
68,000
1,600
200
200
30,000

(120k*15/30)
(9m-6m = 3m*5%)
Accrued Liab

Sales Taxes
165,000 (1.5m*15%)
225,000 (1.1m*15%)
390,000
Occupancy Tax

4,100
*200 per room
820,000 Total Occ. Tax

650,000
2,250,000
-1,950,000
-100,000
850,000

750,000
2,500,000
-250,000
-1,450,000
-300,000
1,250,000

xx
xx
(xx)
(xx)
(xx)
xx

580,000
780,000
(626,000)
('60,000)
674,000

60,000

150,000
500,000
(550,000)
100,000

tract exp is ignored

600,000
980,000
(860,000)
720,000