Agency DEF collected the following income during the month: Income Taxes – Individual, P1,500,000; Income Taxes – Corporation, P1,800,000; Permit Fee, P1,400,000, Processing Fee 108,000, Rent Income 115,000 and Import

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter7: Employee Earnings And Deductions

Section: Chapter Questions

Problem 7E

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Concept explainers

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.

Question

Agency DEF collected the following income during the month: Income Taxes – Individual, P1,500,000; Income Taxes – Corporation, P1,800,000; Permit Fee, P1,400,000, Processing Fee 108,000, Rent Income 115,000 and Import Duties 1,400,000. The salary of the employees collecting these income amounts to P48,000How much is the Total Tax Revenue collected?

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