Reference no: EM133154349

Question - Answer the following problem. Show solution and box the answer.

1. Shaw joined a rap battle contest and became the grand champion wherein she won P25,000.00. The contest prize is not tax-free, which is why she needs to pay 30% in tax. She also needs to split the remaining cash prize with her coach in a 65:35 ratio. How much will be her total earnings from the contest?

2. Rhodes Island Pharmaceuticals purchased merchandise costing 75,000.00 for the current month. It paid P2,000.00 for freight (transportation) for the shipment of the goods from the seller to its store. It sold 85% of the merchandise for 180,000.00. For the current month, it incurred the following expenses:

Delivery Expense P8,000 General Administrative Expense P14,000

Miscellaneous Expense P23,000

Utilities Expense P10,000

Prepare the income statement of the Rhodes Island Pharmaceuticals for the current month.