Range Rover Inc. had taxable income of $152,000 for the year. The GAAP basis of accounts receivable (net) $9,600 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record theincome tax journal entry on December 31. Assume zero beginning balances in deferred tax accountsNote: faline in a journal entry ant required for the transaction select N/A as the account names and leave the Dr. and Cr. answers blank (zero)Dr.Account NameDateDec 31income Tax ExposeIncome Tax PayateDeferred Tax AssetTocesant income

Deffered tax assets or liabilities arises when there is any temporary difference between accounting…

Answered: Range Rover inc. had tavable income of…

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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During the month of June, Concord Boutique recorded cash sales of $334,910 and credit sales of $117,058, both of which include the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation June 30 Debit Credit
Sunland Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $16,500. All sales are subject to a 10% sales tax. Compute sales taxes payable. Sales taxes payable $ Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 16
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $21,500. By the end of the year, actual bad debts total $23,500. Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.)
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During the month of June, FlounderBoutique recorded cash sales of $219,420 and credit sales of $153,382, both of which include the 6% sales tax that must be remitted to the state by July 15.Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30 enter an account title for the adjusting entry on June 30 enter a debit amount enter a credit amount enter an account title for the adjusting entry on June 30 enter a debit amount enter a credit amount
On January 1, 2022, Amoeba Company changed its method of accounting for bad debts from the direct write-off method to the allowance method. The company's controller determined that an allowance of P 30,000 should be established on that date. Ignoring income taxes, what is the adjustment required to record the change? a. Debit - Retained Earnings, P 30,000; Credit - Allowance for Doubtful Accounts, P 30,000. b. Debit - Doubtful Accounts Expense, P 30,000; Credit - Allowance for Doubtful Accounts, P 30,000. c. Debit - Doubtful Accounts Expense, P 30,000; Credit - Retained Earnings, P 30,000. d. Debit - Retained Earnings, P 30,000; Credit - Doubtful Accounts Expense, P 30,000.
The payroll register of Heritage Co. indicates $1,500 of social security withheld and $375 of Medicare tax withheld on total salaries of $25,000 for the period. Federal withholding for the period totaled $4,250. Retirement savings withheld from employee paychecks were $2,500 for the period. Journalize the entry to record the period’s payroll. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank
Oriole Company has the following data for the weekly payroll ending January 31. Employee L. Helton R.Kenseth D. Tavaras M T 8 8 9 8 8 11 Hours W 10 8 T 8 8 F S 10 00 8 3 3 8 8 9 0 Hourly Rate Federal Income Tax Withholding $34 $14 16 17 37 58 Health Insurance $10 25 25 Employees are paid 1½ times the regular hourly rate for all hours worked in excess of 40 hours per week. FICA taxes are 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $128,400 and the Medicare tax rate of 1.45% on all salaries and wages). Oriole Company is subject to 5.4% state unemployment taxes and 0.6% federal unemployment taxes on the first $7,000 of gross earnings. Prepare the journal entry to record Oriole's payroll tax expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 15.25.) SUPPORT 11:22 AM 11/30/2023
Accounting Gregory Ltd uses the ageing of accounts receivable method for estimating doubtful debts. The balance of the Allowance for Doubtful Debts account on 1 July 2020 had a credit balance of $9,300. The company is registered for goods and services tax (GST). GST rate is 10%. All transactions below relate to Gregory Ltd's uncollectable accounts for the financial year ended 30 June 2021. July 18 Wrote off the $495 account of B. Betty as uncollectable. Oct. 19 Re-established the account of C. Casy and recorded the collection of $2,530 in full payment of his account, which had been written off previously. Jan. 31 Received 20% of the $2,200 balance owed by D. Delois and wrote off the remainder as uncollectable. June 30 The estimate of uncollectable accounts is based on an ageing of accounts receivable and $18,260 of the accounts receivable as at 30 June was estimated to be uncollectable. Gregory Ltd has a receivable balance of $650,000 on the 30 June 2021. All Accounts Receivable…
At the end of its first year of operations, a company establishes an allowance for future uncollectible accounts for $5,600. At what amount would bad debt expense be reported in the current year's income statement? Multiple Choice O $6,400. $5,600. $4,800. $800.
At the beginning of current year, ABC company reported that the allowance for doubtful account has a acredit balance of $170,000. The company uses the aging of accounts receivable as a way to estimate the allowance The following schedule was prepared: Not yet due $1,700,000 NL uncollectible1-30 days pasat due $1,200,000 5% uncollectible31-60 days past due $100,000 25% uncollectible61-90 days past due $150,000 50% uncollectibleover 90 days past due. $120,000 100% uncollectible Questions:1) What is the required allowance for doubtful accounts at year-end?2) How much would be the doubtful accounts expense for the current year?3) What is the adjusting entry for the doubtful accounts expense for the current year?4) What is the net realizable value of accounts receivable at year-end?5) What is the effect on current assets should the adjustment was not made?
Wildhorse Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $37,800. All sales are subject to a 5% sales tax.(a1) Compute sales taxes payable. Sales taxes payable (a2) Give the journal entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit March 16

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