. In 2020, Ghostbusters Corp. spent $420,000 for “goodwill” visits by sales personnel to key customers. The purpose of these visits was to build a solid, friendly relationship for the future and to gain insight into the problems and needs of the companies served. How should this expenditure be reported?

Sandhill Industries collected $105,000 from customers in 2022. Of the amount collected, $25,700 was for services performed in 2021. In addition, Sandhill performed services worth $38,900 in 2022, which will not be collected until 2023. Sandhill Industries also paid $71,300 for expenses in 2022. Of the amount paid, $29,300 was for expenses incurred on account in 2021. In addition, Sandhill incurred $40.900 of expenses in 2022, which will not be paid until 2023. (a) Compute 2022 cash-basis net income. Cash-basis net income $ (b) Compute 2022 accrual-basis net income. Accrual-basis net income $ 33.700

An inexperienced accounting intern at Krazy Karim prepared the following income statement for the fiscal period 2020. Krazy Karim Income Statement As of December 31, 2020 Revenues: Unearned Revenue                                                                50,000 Services provided to customers                                             73,000 Accounts Receivable                                                              3,500 Common Stock                                                                       21,000 Loan from Bank                                                                      17,500 Total Revenues                                                                                  165,000   Expenses Payments to Principal Portion of Long-term Debt                  40,000 Operating Expenses                                                               26,000 Dividends                                                                                5,000 Equipment…

Deloitte, a public accounting firm, helps tounderwrite the musical production “Mama Mia”currently playing at the Theater Center. Whywould the accounting firm do this? What isDeloitte creating?a. Point-of-purchase activityb. Sales promotionc. Public-relations activityd. Community-service activitye. Cooperative advertising

[The following information applies to the questions displayed below.]   CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:         Sales $ 2,760,000 Net operating income $ 110,400 Average operating assets $ 920,000     The following questions are to be considered independently.   Brewer 8e Rechecks 2019-01-10   3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,850,000 increase in sales, requiring a $232,500 increase in average operating assets, with a resulting $292,975 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2023-2026 are as follows: 2023 2024 2025 2026 Service Revenue $ 740,000 830,000 790,000 796,000 Collections $ 700,000 858,000 782,000 800,000 Pretax Accounting Income $ 266,000 340,000 308,000 280,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) Required: 1. to 3. Prepare the appropriate Journal entries to record Alsup's 2024 income taxes, 2025 income taxes,…

In 2021 Terry Brady, the legendary athlete from Indiana, decided to leave his job as head football coach at Mattoon High School to open Brady Advantage, his own sporting goods store, in Terre Haute. By locating Brady Advantage halfway between St. Louis and Indianapolis, Brady hoped to attract customers from both large metropolitan markets. A partial income statement for Brady Advantage follows:   2021 Revenues       Revenue from sales of goods and services........ $210,000 Operating costs and expenses:       Cost of products and services sold.................... $82,000    Selling expenses.............................................. $6,000     Administrative expenses................................... $12,000       Total operating costs and expenses................ $100,000 Income from operations........................................ $110,000 Interest expense (bank loan)................................ $14,000…

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2023-2026 are as follows: 2023 2024 2025 2026 No 1 Service Revenue $ 680,000 770,000 730,000 736,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2023- 2026.) 2 Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2024 income taxes, 2025 income taxes, and 2026 income taxes. Note: If no entry is required for a transaction/event, select "No journal…