Current Attempt in Progress For the year ended December 31, 2023, Blue Ltd. reported income before income taxes of $206,700. Prior to 2023 taxable income and accounting income was the same each year. In 2023, Blue Ltd. paid $120,600 for advertising; of this amount, $40,200 was expensed in 2023. The remaining $80,400 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $120,600 was deductible for tax purposes in 2023. The company paid $32,600 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Blue Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $25,200, of which $20,300 was actual repairs for 2023 and the remaining $4,900 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $40,200 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $100,300. Capital Cost Allowance (CCA) claimed for the year was $131,500. Depreciation and CCA relate to an asset that was purchased on January 1, 2023 for $501,500. Blue was subject to a 25% income tax rate for 2023. Blue follows IFRS. Record current income taxes for 2023. (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. List debit entry before credit entry.)
Current Attempt in Progress For the year ended December 31, 2023, Blue Ltd. reported income before income taxes of $206,700. Prior to 2023 taxable income and accounting income was the same each year. In 2023, Blue Ltd. paid $120,600 for advertising; of this amount, $40,200 was expensed in 2023. The remaining $80,400 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $120,600 was deductible for tax purposes in 2023. The company paid $32,600 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Blue Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $25,200, of which $20,300 was actual repairs for 2023 and the remaining $4,900 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $40,200 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $100,300. Capital Cost Allowance (CCA) claimed for the year was $131,500. Depreciation and CCA relate to an asset that was purchased on January 1, 2023 for $501,500. Blue was subject to a 25% income tax rate for 2023. Blue follows IFRS. Record current income taxes for 2023. (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. List debit entry before credit entry.)
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...
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