Is this treatment appropriate?
Q: On January 2, 2020, Cobra Kai sets up a firm and brings in office equipment of P50,000 and…
A: Firm capital on January 31, 2020 = Office equipment by Owner + Merchandise inventory by Owner + Cash…
Q: Faith D. Nakpil started her accounting practice on November 3, 2021 by investing P138,000 cash and…
A: The initial capital if Faith will be fair value of assets & cash invested by her.
Q: Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January,…
A: The accounting equation is written as : Assets = Liabilities + Owner's Equity
Q: Mr. Igiria started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs.…
A: "Since you have asked multiple sub part question we will solve the first three sub part question for…
Q: During the year 2020, Mr. Ahmed purchased goods for $ 500, 000 and sold 3/5th of the goods for $…
A: Net profit calculated by Mr. Ahmed is as per Matching concept. Matching concept: As per matching…
Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…
A: A. What is Rob and Marie's taxable income before the QBI deduction? Particulars Amount ($)…
Q: Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a…
A:
Q: ASLEY is in the business of purchasing accounts receivable from businesses at a discount and then…
A: Accounts receivable represents the revenue earned by the company but money for the same has not been…
Q: On July 1, 2016, Rex purchases a new automobile for $43,000. He uses the car 84% for business and…
A: Solution: Since Part A seems to be incomplete because the rate per mile is not given and should be…
Q: After researching the different forms of business organization, Larry decides to operate "LLM" as a…
A: Journal entry: A systematic recording of transactions occurred in business in a book called General…
Q: Laila Ramos decided to open abicycle and car rental business on October 1, 2021 to augment the…
A: Laila Ramos Trial Balance As on October 31, 2021 Account Debit Credit Cash 2,23,000…
Q: Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January,…
A: Accounting equation is; Assets = Liabilities + Capital
Q: KATY, a sole proprietor wanted to expand her profitable business but she does not have enough…
A: Partnership is an example of one of the legal form of business arrangement under which at least two…
Q: On January 1, 2020, Norma Smith and Grant Wood formed a computer sales and service company in…
A:
Q: Unfortunately, Betty’s business was not profitable. She decided to sell the business and seek work…
A: Given, Advertisement expense = $22,000
Q: Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services…
A: Solution Given initial capital 50000 revenue During the first year of operations…
Q: Owner Pedro invested an initial capital of amounting P50,000 in order to put up his janitorial…
A: Capital means the amount invested by the owner in its business. Net income increases capital…
Q: In July of this year, Stephen started a proprietorship called ECR. ECR uses the cash method of…
A:
Q: Faith D. Nakpil started her accounting practice on November 3, 2021 by investing P145,000 cash and…
A: Initial Capital = Cash Contribution + Fair Value of Non monetary asset
Q: Brad operates a hardware store. He maintains the books using the cash method. At the end of the…
A: Calculation of accrual basis gross receipts:It is given that, Brad had cash receipts of $2,200,000,…
Q: How much is the total assets of the partnership after the formation?
A: Given information is: KATY had the following assets and liability accounts: Cash - ₱420,000;…
Q: hs. 50,000, furniture of Kshs. 10,000, goods of Kshs.2, 000 and machinery worth Kshs.20, 000. During…
A: A financial statement is one prepared by the companies to depict the financial performance and the…
Q: On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and…
A: a). Calculation of basis adjustment for depreciation of each year. Year Miles Rate per miles…
Q: In June 2020, Shalimar organized a corporation to provide aerial photography services. The company,…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: Cameron works as an accountant for PWC Pty Ltd. Hoping to increase his earnings, he re-enrolled to…
A: There are income earned during the year and some of them is reduced because of taxable deductions…
Q: During the 2019-2020 financial year, Tim James received a cash payment of $500,000 and goods worth…
A: Any amount of income earned by an assessee will be taxable under any one of the 5 heads of income…
Q: Debra King is the sole owner of Cullumber Vista Park, a public camping ground near the Crater Lake…
A: Net Income - It is an entity's net income minus all the relevant cost with regards to same i.e. cost…
Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…
A: Dear student, as per Bartleby answering guidelines we can not answer more than three sub-parts if a…
Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…
A: Given Information: Marie wage income: $250,000 Gross business income: $421,000 Business expenses:…
Q: Cynthia is an electrician, age 29, and single. • Cynthia has investment income and has a…
A: SOLUTION SHORT TERM CAPITAL GAIN IS A PROFIT REALIZED FROM SALE ,TRANSFER OR OTHER DISPOSITION OF…
Q: Seong Gi-hun started his cleaning services business on November 1, 2020, with a P240,000 investment…
A: solution Given On November 1 2020 Owners equity =P 240,000 Bank loan (liability ) =P…
Q: Keith Williams and Brian Adams were students when they formed a partnership several years ago for a…
A: The partnership comes into existence when two or more persons agree to do the business and share the…
Q: On January 1 of the current year, Stuart borrows $150,000, pledging the assets of his business as…
A: Interest expense has been classified into different categories for tax purpose: Active Trade…
Q: In June 2021, A.B. Malinaw established a photography business. Transactions that transpired during…
A: Transaction No. Assets = Liabilities + Equity Cash Accounts Receivable Photo…
Q: The owner of ABC Company invested cash to the business amounting P500,000 and office furniture and…
A: The owners' capital is calculated as difference between assets and liabilities of the business.
Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000,…
A: The cash receipt and payment is the account in which all the transactions related to the cash and…
Q: Pat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up…
A: The revaluation account is prepared to record changes in assets and liabilities before admission of…
Q: Can you recheck the transaction on Feb. 12? It was said that the owner received P50,000 from…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: AGI
A: AGI or adjusted gross income is a income which is calculated from the gross income. On calculation…
Q: In February Ola Gott invested an additional 12,000 in her business, Gott's pharmacy, which is…
A: solution: In February Ola Gott invested an additional 12,000 in her business, Gott's pharmacy, which…
Q: Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000,…
A: A financial statement is one prepared by the companies to depict the financial performance and the…
Q: Dr. Nick Marasigan, upon completing a residency program at Harvard Medical Center, established a…
A:
Q: Mr.Karue started business on January 01, 2018, with cash of Kshs. 50,000, furniture of Kshs. 10,000,…
A:
Q: Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January,…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Isla runs a bicycle shop in Wellington. During the tax year ending 30 June 2021, her records…
A: The taxable income of an individual is the total receipts less all the expenses incurred to earn…
Q: In the early part of 2020, the partners of Manuel, Benjamin, and Solomn went to local accountant…
A: A partnership is a formal arrangement between two or more individuals who agrees to be a partner in…
In February 2020, Ola Gott invested an additional $12000 in her business, Gott's Pharmacy, which is organized as a proprietorship. Gott's accountant, Sal Costa, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jim Young, M.D., keeps his accounting records on the cash basis. During 2021, Dr. Young collected P460,000 from his patients. At December 31, 2020, Dr. Young had accounts receivable of P50,000. At December 31, 2021, Dr. Young had accounts receivable of P70,000 and unearned revenue of P10,000. On the accrual basis, how much was Dr. Young's patient service revenue for 2021? a. P 410,000. b. P 470,000. c. P 480,000. d. P 490,000.Jim Pharoah, M.D., keeps his accounting records on the cash basis. During 2021, Dr. Pharoah collected $380000 from his patients. At December 31, 2020, Dr. Pharoah had accounts receivable of $39500. At December 31, 2021, Dr. Pharoah had accounts receivable of $69000 and unearned revenue of $9000. On the accrual basis, how much was Dr. Pharoah's patient service revenue for 2021? $400500. $409500. $340500. $418500.Nita and Bona's entrepreneurs agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019
- During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco Prieto. The bank’s remittance clerk made a mistake and credited Junnie with $250,000 which he promptly withdrew. The bank demanded the return of the mistakenly credited excess, but Junnie refused to do so. The BIR entered the picture and investigated Junnie. Would the BIR be correct if it determines that he earned a taxable income under the facts? No, it was not her fault that the funds in excess of $2,500 were credited to him. Yes, income is a taxable income regardless of the source No, he had no income because he had no right to the mistakenly credited funds. No, the funds in excess of $2,500 were in effect donated to her.By using the information below, please help me with questions 1 through 6. PLEASE EXPLAIN THOROUGHLY FOR A BETTER UNDERSTANDING THANK YOU!! PLEASE ASSIST ME WITH THE FOLLOWING 6 QUESTIONS USING THE PROVIDED INFORMATION BELOW. THANK YOU! Lillian and Jackson Clark are a married couple in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes. In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds and dividends of $400 on common stocks. At the end of 2018, the Clarks sold two stocks, A and B. Stock A was sold for $700 and had been purchased four months earlier for $800. Stock B was sold for $1,500 and had been purchased 3 years earlier for $1,100. Although his company's pension plan covers Jackson, he plans to contribute $5,500 to a traditional deductible IRA for 2018. Their only child, Carter, age 2, received…Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2022 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2023, she had $250,000 in accounts receivable from customers, all from 2023 sales. Question Content Area a. Compute Selma's accrual basis gross revenues for 2023.$fill in the blank fd1ff2f0c02e01e_1 Question Content Area b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2023. The cost of goods sold for 2023 under the accrual method…
- Last year Nate opened a savings account with a deposit of $17,250. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the account, but this year he withdrew $5,750. Required: a-1. Has Nate made a complete gift? a-2. What is the amount of the complete gift, if any, and when was the gift made? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the complete gift, if any, and when was the gift made? Amount of complete gift At the time of withdrawalRobin's financial records from 2020 show the following information from the forms she received: Interest income from bank CD's: $1,600 Taxable annuity payment total: $3,200 City ad valorem property on investments: $240 Investment interest expense: $5,600 Calculate Robin's net investment income and her current investment deduction. How is a deduction for any potential excess investment interest treated? Why is it treated this way?• Cynthia is an electrician, age 29, and single. • Cynthia has investment income and has a consolidated broker’s statement.• Cynthia began a cleaning service business in 2020. She was paid on Form 1099-NEC for 2021. She also received additional cash receipts of $400 not reported on the Form 1099-NEC. • Cynthia uses the cash method of accounting. She uses business code 561720.• Cynthia has receipts for the following expenses:- $350 for cleaning supplies- $225 for business cards - $450 for a mop, broom, and vacuum cleaner - $150 for work gloves - $125 for lunches - $175 for work clothes suitable for everyday use • Cynthia has a detailed mileage log reporting for 2021:- Mileage from her home to her first client’s home and mileage from her last client’s home to her home – 750 miles- In addition, on the days Cynthia worked for multiple clients, she kept track of the mileage from the first client’s home to the second client’s home in case that mileage was also deductible. She logged 450…
- Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.