A Corporation is engaged in the trading business. The reported income and expenses for taxable year 2019 show: Sales P10,000,000 cost of sales 6,000,000 general business expenses 1,000,000 Interest on time deposit (gross) 100,000 Interest expense on loans payable 180,000 The net taxable income is A. 2,820,000 B. 2,853,000 C. 2,862,000 D. 2,858,000
Q: f a 1000 taka face value bond paying 9% coupon semi-annually when the interest rate is 16% but selli...
A: YTM - Yield to Maturity- It refers to rate of return the investor will earn if it the bond is held t...
Q: The inventory records of Spiro Company indicate that $62,500 of merchandise should be on hand at the...
A: Journal entry is the practice of recording economic transactions for the first time in the books of ...
Q: v the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% an...
A: Please see the attached solution.
Q: In a production budget, total required production units are the budgeted sales units plus Select one...
A: Solution:- Production Budget:- The production budget, also called the manufacturing budget, is a bud...
Q: PROBLEM: Tagaytay Company's summary of cash records show the following for the year 2022, its first ...
A: Cash basis accounting is the method of accounting in which net income is obtained by subtracting cas...
Q: Sydney Ltd repaired a customers' washing machine and charged the customer $500 which the customer pa...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: George 49 and Jean 36 a married couple with no dependents have AGI of 2348000. They have 213000 of m...
A: Taxable Income: It is the part of gross income that is subject to IRS taxes. · Alternative minimum...
Q: a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, ...
A: Downward revaluation means decrease in value of the fixed asset. Downward revaluation is credited to...
Q: lohnson Company adds materials, 50% at the start of the process and 50% at the end of the process in...
A: Solution: At first, equivalent units will be computed. Then they will be used to compute cost per EU...
Q: Question 6 Indicate with the appropriate letter the nature of each situation described below: Type o...
A: appropriate letter indicate with the nature are as follows.
Q: Ortiz purchased a 30% interest for $60,000. If an amount box does not require an entry, leave it bla...
A: Journal entry refers to the process of recording or classyfing of business transactions into books o...
Q: For each of the following inventory errors occurring in 2018, determine the effect of the error on 2...
A: Retained earnings means the amount of profit left to company which has not been paid as dividend and...
Q: Take me to the text Marry Inc. provided the following information from its accounting records for th...
A: Introduction:- Shares are equity ownership units in a firm. Shares exist as a financial asset for ce...
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475126 (including broker’s commiss...
A: IFRS 9 -Financial Instruments This standards provides guidelines for an organization on how to measu...
Q: A proprietorship registered as BMBE reported gross income from sales of P400,000. It also reported d...
A: BMBE means as per Republic Act 9178 "Barangay Micro Business Enterpr...
Q: he following capital balances as of October 31, 2016 for the Partnership of Shell, Joke and No were ...
A: Upward revaluation means increase in value of asset and Downward revaluation means decrease in value...
Q: Required: Compute the sales manager's bonus and the income tax expense for the Walbrook Company. Rou...
A: Solution:- Given, Income before bonus an tax = $400,000 Tax rate = 40% Bonus rate = 10%
Q: Equipment acquired on January 8, 20Y1, at a cost of $675,000, has an estimated useful life of 17 yea...
A: Depreciation expenses are charged over the the period. the different method for charging depreciatio...
Q: The following data pertaining to the cash transactions and bank account of ABC Company for May 2022 ...
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...
Q: Reynolds Construction (RC) needs a piece of equipment that costs $150,000. The equipment has an econ...
A: The question is based on the concept of Financial Accounting.
Q: Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their part...
A: In partnerships, realization is the process by which all existing assets except cash are sold and li...
Q: Problem 43. The following assets are acquired on January 1, 2015, when the general price index is 20...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: The journal entry to record the purchase of Agnes Co. would include a Group of answer choices credi...
A: Goodwill is an intangible asset of the company which have no physical existence but will increase th...
Q: Suppose you are an investment advisor and are looking at two companies to recommend to your clients,...
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the f...
Q: Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed ...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Compute the amount to be presented as cash and cash equivalents on December 31, 2022
A: given data about cash flow activities then we find out cash and cash equivalents in step 2
Q: Inventory, Inventory Count, del 1st 2nd Зrd December 31 January 1 4 at $ 39 4 at $ 42 4 at $ 45 8 at...
A: periodic inventory system is method of inventory valuation which is common nowadays . This inventory...
Q: CASH Transactions Debit Credit Cash receipts 1,280,000 Cash Disbursements 825,000 December 31 ba...
A: Net income under the cash basis of accounting is equal to cash balance as on December 31, 2022 i.e. ...
Q: Lazada Inc. adds materials at the beginning of the process in department USB. Conversion costs were...
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to c...
Q: ABC company had the following data for the current year Work in Process, beginning $110,000 Direct m...
A: Direct Labor- Direct labor is manufacture or services labor that is assigned to particular manufactu...
Q: The business type of this company is food services industry. Give me an analyzation or interpretati...
A: Operating cycle: The operating cycle indicates the length of the period required for a business to m...
Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable...
A:
Q: uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total...
A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but pa...
Q: The accounting firm of Deloitte & Touche is the largest international accounting firm in the world a...
A: Revenue is defined as the amount of income made from normal business operations and therefore is cal...
Q: Journalize the entries for these
A: Journal entries refers to the official book of a company which is used to record the day to day tran...
Q: 3) A. Umar and Osman manufacture and sell energy drinks. The drinks are sold for RM9.10 a bottle to ...
A: Total Cost = Total Fixed Cost + Average Variable Cost Per Unit * Quantity of Units Produced
Q: What do we understand, when we say that Social and Economic Accounting is a “ comprehensive, consist...
A: GIVEN when we say that Social and Economic Accounting is a "comprehensive, consistent and integrat...
Q: Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Balance...
A: Introduction: Investors and financial experts rely on financial data to examine a company's performa...
Q: A company is considering the opportunity to invest into a new 12- year project: manufacturing and se...
A: A financial break even is a point of units sold where profit after tax is equal to $0.
Q: Change in accounting estimate, as used in the recording and reporting of financial data, does not in...
A: Accounting estimate means the technique used to measure or evaluate the items in the financial state...
Q: The following information was provided for Macy company. The purpose of presenting these account ba...
A: Income Statement for the year ended December 31, 2018. Sales ...
Q: Dove Company uses FIFO method of process costing. The company’s cost accountant has provided you wi...
A: Solution 1: Dove Company Finishing Department Computation of Equivalent unit (FIFO) Particu...
Q: Exercise 6-13 (Algo) Depreciation calculation methods LO 3 Millco Inc., acquired a machine that cost...
A: Straight line depreciation Cost of the asset - residual value / useful life of asse Accumulated dep...
Q: The stockholders' equity accounts of Concord Corporation on January 1, 2022, were as follows. Prefer...
A:
Q: Pacifica Industrial Products Corporation makes two products, Product H and Produet year and Product ...
A: calculation overhead cost per unit and all requirement are as follows
Q: The standard costs and actual costs for direct materials for the manufacture of 2,600 actual units o...
A: Direct materials price variance = ( Standard rate of material - Actual rate of material ) x Actual q...
Q: Prepare the post-closing trial balance.
A: Post closing trial balance means a trial balance where all item of revenue and expenses has been fin...
Q: The following data were taken from the records of Winner Company for the month of October: Work in ...
A: Under average costing it is assumed that whole of opening inventory is completed during the period, ...
Q: The following data was taken from ledger account balances and supplementary data for ABM Company. Me...
A: Closing entries are those entry of a company that are recorded at the end of each accounting period ...
Q: Discuss capital gains tax using the names and amounts given.
A: Capital gains which are subject to capital gains tax is the tax amount which the company or the tax ...
A Corporation is engaged in the trading business. The reported income and expenses for taxable year 2019 show:
Sales P10,000,000
cost of sales 6,000,000
general business expenses 1,000,000
Interest on time deposit (gross) 100,000
Interest expense on loans payable 180,000
The net taxable income is
A. 2,820,000
B. 2,853,000
C. 2,862,000
D. 2,858,000
Step by step
Solved in 2 steps
- Consider the following accounts and determine if the account is a current liability, a noncurrent liability, or neither. A. cash B. federal income tax payable this year C. long-term note payable D. current portion of a long-term note payable E. note payable due in four years F. interest expense G. state income taxComprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.Quince Corporation has taxable income of $485,000 for its calendar tax year. Calculate the corporation's income tax liability for 2019 before tax credits. $________________
- The following are the carrying amounts and tax bases for assets and liabilities of MNQ Company as December 31,2021. Carrying Amount Tax Base Cash 500,000 500,000 Trade and other receivables (net) 1,500,000 1,780,000 Property, plant and equipment (net) 4,500,000 2,800,000 Trade and other payables 2,000,000 2,000,000 Accrued warranty obligations 800,000 0 Any difference in carrying amount and tax basis is a temporary difference. Taxable income for 2021 is P1,800,000. The December 31, 2020 statement of financial position showed deferred tax asset of P300,000 ad deferred tax liability of P240,000. Income tax payments during the year 2021 amounted to P400,000, including P150,000 payment relating to 2020 taxable income. Any resulting deferred tax asset is fully realizable. Income tax rate is 30%. How much is the total income expense recorded for the year ended December 31, 2021?Umasa Corporation reported the following information for the current year: Pretax financial income Income from exempt municipal bonds Rent received in advance P 9,000,000.00 2,000,000.00 1,500,000.00 Depreciation deduction for income tax purposes in excess of depreciation reported for financial reporting purposes Estimated tax payment for current year Income tax rate 1,000,000.00 500,000.00 30% 21. What amount of current tax liability should be reported at the year-end? B. P2,250,000 A. P1,750,000 C. P2,750,000 D. P2,850,000 22. What is the total tax expense? A. P2,700,000 B. P2,100,000 C. P2,250,000 D. P1,600,000An entity provided the following information on December 31, 2019: Accounts payable 2,000,000 Accrued expenses 800,000 Bonds payable due December 31, 2020 2,500,000 Premium on bonds payable 300,000 Deferred tax liability 500,000 Income tax payable 1 ,100,000 Cash dividend payable 600,000 Share dividend payable 400,000 Note…
- Company Z has a deposit with ABC Bank. It obtained a loan from ASAP Financing Corp. in connection with the operation of its business. For the year 2021, assume the following:Company Z’s Net Income before Interest Expense (subject to 25%), P2,500,000Interest Income (from ABC Bank, gross of FWT), P480,000FWT on Interest Income, P96,000Interest Expense, P200,000How much is the taxable income of Company Z for 2021 after deducting interest expense?The accounting income (loss) figures for Flounder Corporation are as follows: 2018 $162,000 2019 246,000 2020 84,000 2021 (162,000) 2022 (385,000) 2023 140,000 2024 156,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2018 and 2019, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Flounder uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit…1. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its key employees-$6000 excess capital losses $2000 excess tax depreciation $9000 life insurance proceeds on life of its key employees $55000 rent income received in 2021 $40000 ( $30000 is prepaid and related to 2021) tax exempt interest income $8000 federal income tax liability for 2021 $15450 prepaid rent received and properly taxed in 2020 ( but not earned for financial accounting purpose until 2021) $15000 interest expense on tax exempt interest income item $2000 The taxable income for Forrway corporation for the tax year of 2021 is ( as computed in its schedule M-1 reconciliation) $90000 $100000 $80000 $70000 23. for 2021, Forrway corporation, an accrual basis calendar year corporation, had net income per books of $ 111,550 and the following transactions: premiums on life insurance policy on its…
- Transactions Affecting E&P. For each of the following transactions, indicate whether a special adjustment must be made in computing R Corporation's current E&P. Answer assuming that E&P has already been adjusted for current taxable income. a. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. b. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. c. The corporation received a $10,000 dividend from General Motors Corporation. d. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. e. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000.B. An entity was organized on January 1, 2021. The entity had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 20% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021?Delta has interest receivable which has a carrying amount of $75,000 in its statement of financial position at 31 December 2020. The related interest revenue will be taxed on a cash basis in 2021. Delta has trade receivables that have a carrying amount of $105,000 in its statement of financial position at 31 December 2020. The related revenue has been included in its statement of profit or loss for the year to 31 December 2020. Required: According to HKAS 12 ‘Income Taxes’, what is the total tax base of interest receivable and trade receivables for Delta at 31 December 2020? A. $105,000 B. $75,000 C. Nil D. $180,000