Exercise 7-10 (Static) Other accrued liabilities-real estate taxes LO 7-5 [The following information applies to the questions displayed below.] Glennelle's Boutique Incorporated operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2022 are issued in May 2023 and are payable in July 2023. xercise 7-10 (Static) Part c-Journal entry 2. Assume that the actual tax bill, received in May 2023, was for $47,600. Record the journal entry to show the effects of the propriate adjustment to the amount previously accrued.

Exercise 7-10 (Static) Other accrued liabilities-real estate taxes LO 7-5 [The following information applies to the questions displayed below.] Glennelle's Boutique Incorporated operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2022 are issued in May 2023 and are payable in July 2023. xercise 7-10 (Static) Part c-Journal entry 2. Assume that the actual tax bill, received in May 2023, was for $47,600. Record the journal entry to show the effects of the propriate adjustment to the amount previously accrued.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?
nment Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below.] Problem 6-4A (Algo) F2 Federal income tax withholding Social Security tax Medicare tax State income tax withholding Gerald Utsey earned $48,700 in 2021 for a company in Kentucky. He is single with one dependent under 17 and is paid weekly. The FUTA rate in Kentucky for 2021 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is 5.4 percent with a wage base of $11,100. Use the percentage method in Appendix Cand the state information in Appendix D. Manual payroll system is used and Box 2 is not checked. 3 Required: Compute the following employee share of the taxes. (Do not round intermediate calculation. Round your final answers to 2 decimal places.) JUL 15 80 F3 $ 4 E R Q F4 % 5 DII F8 ( 9 A F9 U I O Help ) 0 Save & Exit F10 P Check my wom 4 F11 Sub { + [ F
Problem 16-13 (IFRS) tax rate is 30%. P450,000 and no deferred tax liability. provision of P500,000 The deferred tax asset was due to a time it was tax deductible. P1,000,000 collected in 2019 but earned only in 2020. recognized each Life insurance premiums of P200,000 were year on key officers for 2020 and 2021. The entity paid for a two-year casualty insurance for P6,000,000 on January 1, 2020. The entire premium is tar deductible when paid. The entity collected rent from leasing some of its equipment. The rent is recognized as revenue when earned but taxable when collected. 2020 2021 3,300,000 2,500,000 3,500,000 3,300,000 Rent collected Rent earned The entity had trading investments. All gains and losses are recognized for tax purposes when the investments are sold. During 2020, the entity recognized P1,700,000 unrealized losses on trading investments which were sold in 2021. Required: 1. Compute taxable income for 2020 and 2021. 2. Compute current tax expense and total tax expense…
Exercise 16-6 (Algo) Temporary difference; income tax payable given [LO16-3] In 2024, DFS Medical Supply collected rent revenue for 2025 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 revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $390,000 at December 31, 2024. DFS had no temporary differences at the beginning of the year. Required: Assuming an income tax rate of 25% and 2024 income tax payable of $940,000, prepare the journal entry to record income taxes for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
Other accrued liabilities—real estate taxes Glennelle’s Boutique Inc. operates in a city in which real estate tax bills for one year are issued in May of the subsequent year. Thus, tax bills for 2019 are issued in May 2020 and are payable in July 2020. Required: Explain how the amount of tax expense for calendar 2019 and the amount of taxes payable (if any) at December 31, 2019, can be determined. Use the horizontal model (or write the journal entry) to show the effect of accruing 2019 taxes of $44,800 at December 31, 2019. Assume that the actual tax bill, received in May 2020, was for $47,600. Use the horizontal model (or write the journal entry) to show the effects of the appropriate adjustment to the amount previously accrued. page 263 Determine the income statement and balance sheet effects of not accruing 2019 taxes at December 31, 2019 (assuming that taxes in b are not accrued).
Problem 1. The following selected account balances for the City of Hampton on January 1, 2015 are listed below: Delinquent Taxes Receivable Allowance for Uncollectible Delinquent Taxes Tax Liens Receivable Allowance for Uncollectible Tax Liens $34,000 Dr. 11,000 Cr. 12,000 5,000 Dr. Cr. Instructions Record the following transactions that occurred during 2015: a. Current property taxes are levied at $750,000 with a 4% allowance for uncollectible property taxes. b. Property to which tax liens apply is sold for $6,000 and the account is closed. c. Current property taxes are collected in the amount of $702,000. d. Previous delinquent property taxes are converted to tax liens and the current uncollected property taxes are considered delinquent.
LO 2 P5-46. (Accounting for property taxes) At the start of calendar year 2022, Central City's records showed the following accounts relative to prior year property taxes: Property taxes receivable-delinquent. Allowance for refunds and uncollectible taxes-delinquent.. Deferred inflow of resources-unavailable property taxes.. $52,000 8,000 15,000 Prepare journal entries to record the following transactions: 1. To balance its 2022 budget, which requires $1,500,000 in property taxes, Central City levies property taxes in the amount of $1,515,000, providing an allowance of $15,000 for uncollectible accounts. 2. During the year 2022, it collects property taxes as follows: $ 44,000 From prior year delinquent taxes From 2022 tax levy.... 1,490,000 3. Central City recognizes $15,000 of the deferred inflow of resources-unavailable property taxes as revenues in 2022. 4. It initiates foreclosure proceedings against the delinquent taxpayer who owed the city $8,000. When it does this, it charges…
Required Information [The following information applies to the questions displayed below] Arndt, Inc. reported the following for 2021 and 2022 ($ In millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2021 $968 792 $ 176 $ 148 2022 $1,012 816 $196 $ 224 a. Expenses each year Include $54 million from a two-year casualty Insurance policy purchased in 2021 for $108 million. The cost is tax deductible in 2021. b. Expenses include $2 million Insurance premiums each year for life Insurance on key executives. c. Arndt sells one-year subscriptions to a weekly Journal. Subscription sales collected and taxable in 2021 and 2022 were $49 million and $51 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $41 million ($26 million collected in 2020 but not recognized as revenue until 2021) and $49 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one…
Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $936 792 $144 $ 108 2025 $ 1,028 848 $ 180 $ 214 a. Expenses each year include $54 million from a two-year casualty insurance policy purchased in 2024 for $108 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $55 million and $71 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $49 million ($32 million collected in 2023 but not recognized as revenue until 2024) and $55 million, respectively. Hint. View this as two temporary differences-one reversing in…
Required information [The following information applies to the questions displayed below.] Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% 2024 $918 774 $144 $126 2025 $ 1,010 830 $ 180 $ 214 a. Expenses each year include $36 million from a two-year casualty insurance policy purchased in 2024 for $72 million. The cost is tax deductible in 2024. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2024 and 2025 were $37 million and $53 million, respectively. Subscriptions included in 2024 and 2025 financial reporting revenues were $31 million ($14 million collected in 2023 but not recognized as revenue until 2024) and $37 million, respectively. Hint. View this as two temporary differences-one reversing in…
Required Information The following Information applies to the questions displayed below.) Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 $1,024 844 Revenues Еxpenses Pretax accounting income (income statement) Taxable income (tax return) Tax rate: 25% $ 932 788 $ 144 $ 112 S 180 24 214 a. Expenses each year include $50 million from a two-year casualty insurance policy purchased in 2021 for $100 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. C. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $51 million and $67 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $45 million ($30 million collected in 2020 but not recognized as revenue until 2021) and $51 million, respectively. Hint View this as two temporary differences-one reversing in 2021; one…
Problem 6-55 (LO. 3) For 2022, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $27,000,000 over the prior three taxable years. a. What is MSU's interest expense deduction for 2022? b. How much interest expense can be deducted for 2022 if MSU's adjusted taxable income is $300,000?