J Contractors entered into a contract on October 2017 to build a warehouse for Francis Corporation. The total contract price amounting to P10,000,000 was received by Il upon completion on June 30, 2018. Materials purchased during construction valued at P4,000,000 were paid on June 1, 2018 while a construction equipment worth P3,000,000 (net of VAT) was purchased on January 1, 2018 with the following terms; down payment - 500,000, balance payable every January 1 until fully paid starting 2019. The equipment was estimated to last for 6 years. How much is the VAT payable of JJ for June 30, 2018? P360,000 P690,000 P684,000 P0
J Contractors entered into a contract on October 2017 to build a warehouse for Francis Corporation. The total contract price amounting to P10,000,000 was received by Il upon completion on June 30, 2018. Materials purchased during construction valued at P4,000,000 were paid on June 1, 2018 while a construction equipment worth P3,000,000 (net of VAT) was purchased on January 1, 2018 with the following terms; down payment - 500,000, balance payable every January 1 until fully paid starting 2019. The equipment was estimated to last for 6 years. How much is the VAT payable of JJ for June 30, 2018? P360,000 P690,000 P684,000 P0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6P
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J Contractors entered into a contract on October 2017 to build a warehouse for Francis Corporation.
The total contract price amounting to P10,000,000 was received by Il upon completion on June 30,
2018. Materials purchased during construction valued at P4,000,000 were paid on June 1, 2018 while a
construction equipment worth P3,000,000 (net of VAT) was purchased on January 1, 2018 with the
following terms; down payment - 500,000, balance payable every January 1 until fully paid starting
2019. The equipment was estimated to last for 6 years.
How much is the VAT payable of JJ for June 30, 2018?
P360,000
P690,000
P684,000
P0
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