Need Help with this Question Concordia Industries Ltd. collected Pounds 112,000 from customers in 2017. Of the amountcollected, Pounds 30,000 was from revenue accrued from services performed in 2016. Inaddition, Concordia recorded Pounds 44,000 in revenue in 2017, which will not be collecteduntil 2018.Concordia Industries also paid Pounds 72,000 for expenses in 2017. Of the amount paid,Pounds 27,000 was for expenses incurred on account in 2016. In addition, Concordiaincurred Pounds 37,000 in expenses in 2017, which will not be paid until 2018.(a) Compute 2017 cash-basis net income.(b) Compute 2017 accrual-basis net income.

a.Collection from customers 2017 112,000.00 Payment for expenses (72,000.00)Cash basis net income…

Answered: Concordia Industries Ltd. collected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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AJ Company computed a pretax accounting income of P5,000,000 for its first year of operations ended December 31, 2016. In preparing the income tax return for 2016, the following differences are noted between accounting income and taxable income. Nondeductible expenses 200,000 Nontaxable revenue 500,000 Gross income on installment sales included in Accounting income but not in taxable income (Expected to reverse in 2017) 1,000,000 Bad debts expense (bad debts for tax purposes was P0) 100,000 Income tax rate 3% The current tax expense is?
In 2016, DFS Medical Supply collected rent revenue for 2017 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy the rental property. The deferred portion of the rent collected in 2016 amounted to $300,000 at December 31, 2016. DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 40% and 2016 income tax payable of $950,000, prepare the journal entry to record income taxes for 2016.
In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included in the $60,000 was an expense for accrued, unpaid warranty costs of $8,000, which are not deductible until paid for income tax purposes. Wilber's income tax rate was 20%. The entry to record the income tax expense would include a credit to Income Tax Expense for $12,000. debit to Deferred Tax Asset for $1,600. credit to Income Taxes Payable for $12,000. credit to Deferred Tax Liability for $1,600.
Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had acredit balance of $17,280 at the beginning of 2018 and a $22,410 credit balance at the end of 2018 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expenseequals actual write-offs), the income statement for 2018 would have included bad debt expense of $17,100 andrevenue of $2,200 from the collection of previously written off bad debts.Required:Determine bad debt expense for 2018 according to the allowance method.
In the third quarter of 2017, a taxpayer engaged in the sale of services whose annual grossreceipts do not exceed P1,919,500 has the following data:Accounts receivable, beginning of the quarter 50,000Sales during the quarter, on account 100,000Accounts receivable, end of quarter 75,000Purchase of supplies, total invoice amount 11,200The percentage tax due for the quarter is_______________Assuming the taxpayer is VAT-registered, the VAT payable is __________________
Geisel, Inc. reported net sales revenue of $522,000 in 2018 and $628,000 in 2019. The company’s ending net receivables were $112,000 during 2017 and $131,000 during 2018. At December 31, 2019, the company had Accounts Receivable of $144,000 and an unadjusted debit balance in its Allowance for Doubtful Accounts account of $1,800. The company reported Bad Debt Expense of $9,990 during 2019. Required: Determine the net receivables at December 31, 2019. Calculate the receivables turnover ratio for 2018 and 2019. Calculate the days to collect for 2018 and 2019.
Johnny Bravo Company began operations in 2017 and has provided the following information.1. Pretax financial income for 2017 is $100,000.2. The tax rate enacted for 2017 and future years is 40%.3. Differences between the 2017 income statement and tax return are listed below.(a) Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $2,000.(b) Gross profit on construction contracts using the percentage-of-completion method for books amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $62,000.(c) Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return.(d) A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income.(e) Interest revenue earned on an investment in tax-exempt municipal bonds amounts to $1,400.4. Taxable income is expected…
Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,280 at the beginning of 2021 and a $22,410 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $17,100 and revenue of $2,200 from the collection of previously written off bad debts.Required:Determine bad debt expense for 2021 according to the allowance method.
During the 2nd quarter of 2016 (June 2016 – August 2016) Ping-Pong Industries (located at 535 Main Street, Brentwood, NY 11717; Sales Tax ID# 44455566677) had total sales of $126,000. Of this amount, $21,000 were non-taxable. All of the sales were made in Suffolk County, and the company does not report gross credit card and debit card sales. This is not the final sales tax return for the company, and the company pays the sales tax amount that is due when filing the form. The company does not use a third-party designee, and prepares the sales tax forms on its own. The forms are signed by Alton Thompson, the CEO of the company (phone number: 631-555-8476, no e-mail address), and are filed on the due date for the form. Based on the instructions that have been provided for Form ST-100, complete Form ST-100 of Ping-Pong Industries for the 2nd quarter of the year. Please do all the pages in the form, if needed. https://www.tax.ny.gov/pdf/current_forms/st/st100.pdf
Rosel company, which began operations on January 1, 2017, has elected to use cash basis accounting for tax purposes and accrual basis accounting for its financial statements. Rosel reported sales of P3,500,000 and P1,600,000 in its tax returns for the years ended December 31, 2018 and 2017, respectively. Rosel reported accounts receivable of P600,000 and P1,000,000 in its statement of financial position on December 31, 2018 and 2017, respectively. What amount should be reported as sales in the income statement for the year ended December 31, 2018?
At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. During 2017, the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. What should the company report on its balance sheet at December 31, 2017, as accounts receivable before the allowance for doubtful accounts?
please do the general entries and adjusting entries thanks. vii. During the year, Majestic paid the taxes it owed at the end of 2016. It also paid $11,000 in instalments on its 2017 income taxes. It’s estimated that Majestic owes an additional $12,000 in income taxes for 2017. viii. The deposits reported on the 2016 balance sheet pertained to customers who were perceived to be high risk to whom Majestic wasn’t prepared to offer credit. These customers were required to give deposits against shipping to be done during 2017. These customers used shipping services during 2017 in excess of the amount of the deposits. Majestic decided in 2017 to offer credit to these customers. The deposits are not included in the other revenue recognized in the year. ix. Members of the Mozart family sometimes used Majestic employees for personal work at their homes and cottages. Usually, the work was done on weekends and the employees were paid at overtime rates. Majestic pays the employees’ wages for…

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