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 10,000.00As 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 premum 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 for October 2021: October 2021 1. Received cash record accounts receivables from the following customers for the services rendered (inclusive of output vat of 12%): 1/10/2021 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 3/10/2021 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 3/10/2021 GHI Inc... ...Cash of Php 70,000.00 for this month 5/10/2021 JKL Philippines Inc.... Cash of Php 50,000.00 for this month 5/10/2021 2. Office supplies used for the month of October amounting to Php 2,000.00 7/10/2021 3. Purchased of Office supplies, stock in the storage, amounting to Php 12,000.00 (inclusive of 12% input vat) for cash 7/10/2021 4. Payment of accounts payable amounting to Php5,000.00 10/10/2021 5. Payment of SSS, Pag-ibig & PHIC for the month of September 2021 10/10/2021 6. Payment of VAT payable for the month of September (Hint: Output less Input) 10/10/2021 7. Payment of withholding taxes for the month/quarter ended September 2021 12/10/2021 8. Incurred Service costs for logistics services equal to 30% of revenue, subject to 2% expanded withholding tax 10/15/2021 9. Payment of rent expense amounting to Php 5,000.00, subject to 5% expanded withholding tax 10/25/2021 10. Payment of salary for the month of October 2021, subject to withholding tax on compensation and SSS, Pag-ibig, & PHIC contributions. 10/31/2021 11. Recognize expired insurance for the month of October 2021 10/31/2021 12. Monthly record of depreciation expense