Four different proprietorships, Jupiter, Mars, Saturn, and Venus, show the same balancesheet data at the beginning and end of a year. These data, exclusive of the amount of owner'sequity, are summarized as follows:Total AssetsTotal LiabilitiesBeginning of the yearEnd of the year$550,000$215,000844,000320,000On the basis of the preceding data and the following additional information for the year,determine the net income (or loss) of each company for the year. (Hint: First, determinethe amount of increase or decrease in owner's equity during the year.)Jupiter: The owner had made no additional investments in the business and had madeno withdrawals from the businessThe owner had made no additional investments in the business but hadMars:withdrawn $36,000.Saturn: The owner had made an additional investment of $60,000 but had made nowithdrawals.The owner had made an additional investment of $60,000 and had withdrawn $36,000.Venus:

Calculate net icnome of Jupiter:

Answered: Four different proprietorships,…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter24: Multistate Corporate Taxation

Section: Chapter Questions

Problem 31P

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On 1 September 20X2, Ad-Deen Enterprise had a van which was purchased on 1 January 20X2 at a cost of RM34,000. During the year ended 31 August 20X3, two more vans were purchased in cash. The details are as follows: Date of Purchase 1 April 20X3 1 July 20X3 RM RM Purchase price 40,000 / 52,000 400 / 520 Delivery charges Plate number 50 50 Road tax 1,300 1,600 Petrol 20 30 Painting of company's van (inclusive of company's name, address and logo) 500 600 Insurance R 2,000 2,500 Ad-Deen Enterprise depreciated the vans using the straight line method over four years and assumed that the vans would have zero scrap value. Depreciation. was provided for a full year in the year of purchase. Ad-Deen Enterprise's accounting year ends 31 August every year.
Ayayai Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,956,000 on March 1, $1,236,000 on June 1, and $3,077,810 on December 31. Compute Ayayai's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures 24
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Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,896,000 on March 1, $1,296,000 on June 1, and $3,041,880 on December 31. Compute Bonita's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-average accumulated expenditures $
Marin Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,010,680 on December 31. Compute Marin's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures $4 eTextbook and Media
The current assets and current liabilities for RCE and John K Company are as follows: RCE John K, Inc For Year Ending For Year Ending Dec. 31 Dec. 31 ____________________________________________________________________ Current Assets Cash and Cash Equivalents $8,352 $8,546 Short-term Investments 6,034 752 Accounts Receivable 3,029 5,152 Inventories 446 660 Other Current Assets * 2,195 2,829 Toral Current Assets $20,056 $17,939 Current Liabilities Accounts Payable $4,970 $10,430 Accrued and Other Current Liabilities 3,329 6,361 Total Current Liabilities $8,299 $16,791 These represent prepaid expenses and other non-quick current assets. Required: Determine the quick ratio for RCE and John K, Inc. What’s the liquidity difference between the two companies? And what does that mean?
The net income reported on the income statement for the current year was $278,260. Depreciation recorded on fixed assets and amortization of patents for the year were $34,649, and $11,472, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: Cash Accounts receivable Inventories End a. $370,545 b. $208,919 c. $347,601 Od. $278,217 $47,146 124,126 102,601 4,506 45,924 Beginning $57,260 104,236 93,932 7,914 66,937 Prepaid expenses Accounts payable (merchandise creditors) What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?
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The net income reported on the income statement for the current year was $256,674. Depreciation recorded on fixed assets and amortization of patents for the year were $30,601 and $9,816, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $47,547 $67,419 Accounts Receivable 120,692 102,958 Inventories 101,043 92,516 Prepaid Expenses 3,347 6,561 Accounts Payable (merchandise creditors) 49,242 66,779 What is the amount of the net cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? a. $327,049 b. $270,830 c. $256,507 d. $251,558
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Sandhill Co., organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025 and 2026. 7/1/25 10/1/25 12/31/25 1/2/26 3/1/26 4/1/26 6/1/26 9/1/26 Intangible Assets 8-year franchise; expiration date 6/30/33 Advance payment on laboratory space (2-year lease) Net loss for 2025 including state incorporation fee, $1,000, and related legal fees of organizing, $5,000 (all fees incurred in 2025) Patent purchased (10-year life) Cost of developing a secret formula (indefinite life) Goodwill purchased (indefinite life) Legal fee for successful defense of patent purchased above Research and development costs $60,000 26,400 12,400 84,400 85,000 277,000 12,995 180,000 Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2026, recording any necessary amortization. (Ignore income tax…
The net income reported on the income statement for the current year was $313,659. Depreciation recorded on fixed assets and amortization of patents for the year were $38,968, and $9,722, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $42,392 $55,782 Accounts receivable 126,305 101,016 Inventories 100,582 80,433 Prepaid expenses 4,060 7,575 Accounts payable (merchandise creditors) 50,302 78,390 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Oa. $214,402 Ob. $432,360 Oc. $412,916 Od. $292,338

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