![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Use the steps to calculate the federal income tax. I’m not sure if your able to zoom in but I hope you are.
![8,500.00
8,500.00
8,500.00
40
17,000.00
17,000.00
17,000.00
41
105,000.00
105,000.00
105,000.00
42
2,900.00
2,900.00
2,900.00
43
3,000.00
3,000.00
3,000.00
44
1,000.00
1,000.00
1,000.00
45
3,500.00
3,500.00
3,500.00
46
6,000.00
6,000.00
6,000,00
47
592,835.00
592,835.00
36,950.00
36,950.00
604,885.00
604,885.00
359,135.00
430,080.00
245,750.00
174,805.00
48
70,945.00
70,945.00
49
430,080.00
430,080.00
245,750.00
245,750.00
50
51
Tax Rate schedule from: https://www.irs.gov/pub/irs-pdf/i1120.pdf
Tax Rate Table
STEPS to Calculate the Federal Income Tax and Federal Income Tax Adjustment: Notice, there are no tax adjustments on this worksheet.
If taxable income is:
1. Calculate the actual Net Income before Federal Income Tax Expense:
But not over
Of the amount over
Income Statement CREDIT column total:
Over
Таx is
$0
$50,000
15%
$0
Less Income Statement DEBIT column total:
50,000
75,000 $7,500 + 25%
50,000
Plus Federal Income Tax Expense already paid:
Total Net Income Before Federal Income Tax:
Hint: it's not 70,945
75,000
100,000 13,750 + 34%
75,000
100,000
335,000 22,250 + 39%
100,000
335,000
2. Determine the tax bracket from the Tax Rate Table using Net Income Before Federal Tax amount for1 above:
335,000
10,000,000 113,900 + 34%
But not over:
10,000,000 15,000,000 400,000 + 35%
15,000,000 18,333,333 150,000 + 38%
10,000,000
Over:
15,000,000
35%
3. Based on the tax bracket identified the correct tax is:
18,333,333
4. Calculate the total Federal Income Tax expected using the Tax Rate Table information identified in step 3
5. Calculate the Federal Income Tax Adjustment to ensure the company pays the required taxes.
The total Federal Income Tax calculated in 4 above:
Minus estimated Federal Income Tax Expense already paid:
The adjustment for Federal Income Tax Expense:
To complete the Federal Income Tax adjustment on the worksheet, GO to the second sheet called: WorksheetWFederal TaxAdj.](https://content.bartleby.com/qna-images/question/b43362ba-8c4a-4a07-8e54-0e323ca38cd2/a44d4871-2341-475d-8519-f8e03219601a/j78woz_thumbnail.jpeg)
Transcribed Image Text:8,500.00
8,500.00
8,500.00
40
17,000.00
17,000.00
17,000.00
41
105,000.00
105,000.00
105,000.00
42
2,900.00
2,900.00
2,900.00
43
3,000.00
3,000.00
3,000.00
44
1,000.00
1,000.00
1,000.00
45
3,500.00
3,500.00
3,500.00
46
6,000.00
6,000.00
6,000,00
47
592,835.00
592,835.00
36,950.00
36,950.00
604,885.00
604,885.00
359,135.00
430,080.00
245,750.00
174,805.00
48
70,945.00
70,945.00
49
430,080.00
430,080.00
245,750.00
245,750.00
50
51
Tax Rate schedule from: https://www.irs.gov/pub/irs-pdf/i1120.pdf
Tax Rate Table
STEPS to Calculate the Federal Income Tax and Federal Income Tax Adjustment: Notice, there are no tax adjustments on this worksheet.
If taxable income is:
1. Calculate the actual Net Income before Federal Income Tax Expense:
But not over
Of the amount over
Income Statement CREDIT column total:
Over
Таx is
$0
$50,000
15%
$0
Less Income Statement DEBIT column total:
50,000
75,000 $7,500 + 25%
50,000
Plus Federal Income Tax Expense already paid:
Total Net Income Before Federal Income Tax:
Hint: it's not 70,945
75,000
100,000 13,750 + 34%
75,000
100,000
335,000 22,250 + 39%
100,000
335,000
2. Determine the tax bracket from the Tax Rate Table using Net Income Before Federal Tax amount for1 above:
335,000
10,000,000 113,900 + 34%
But not over:
10,000,000 15,000,000 400,000 + 35%
15,000,000 18,333,333 150,000 + 38%
10,000,000
Over:
15,000,000
35%
3. Based on the tax bracket identified the correct tax is:
18,333,333
4. Calculate the total Federal Income Tax expected using the Tax Rate Table information identified in step 3
5. Calculate the Federal Income Tax Adjustment to ensure the company pays the required taxes.
The total Federal Income Tax calculated in 4 above:
Minus estimated Federal Income Tax Expense already paid:
The adjustment for Federal Income Tax Expense:
To complete the Federal Income Tax adjustment on the worksheet, GO to the second sheet called: WorksheetWFederal TaxAdj.
![K
ADJUSTED TRIAL BALANCE
CREDIT
INCOME STATEMENT
DEBIT
BALANCE SHEET
DEBIT
ADJUSTMENTS
TRIAL BALANCE
CREDIT
ACCOUNT TITLE
DEBIT
DEBIT
CREDIT
DEBIT
CREDIT
CREDIT
7.
1Cash
28.000 00
28,000.00
28,000.00
350.00
350.00
350.00
Petty Cash
Accounts Receivable
2
1.500 00
1,500.00
1.500 00
10
150.00
1,000.00
1,150.00
1,150.00 4
11
4 Allowance for Uncollectible Accounts
12
5 Merchandise Inventory
140.000.00
14.500.00
125,500.00
125.500.00
600.00
16
3.500 00
3,800. 00
2.900.00
600.00
6 Supplics-Office
7 Supplies-Store
8 Prepaid Insurance
9Office Equipment
10 Accumulated Depreciation-Office Equipment
13
n Stors
3,000.00
800.00
800.00
7.
14
15
5.500.00
4.500.00
1.000.00
1.000.00
8.
30.000.00
30.000.00
30.000.00
9.
16
5,900.00
I1,700.00
11,700.00 10
17
5,800.00
38.000.00
38.000.00
38.000.00
11
18.
11 Store Equinment
t
12 Accumulated Depreciation-Store Equipment
5,000.00
5,150.00
10,150.00
10,150.00 12
19
12,000.00
12.000.00 13
20
13 Accounts Payable
12,000.00
21
14 Emplovee Income Tax Pavble
700.00
700.00
700.00
14
22
15
15 Federal Income Tax Payable
23
1.350.00
1350.00
1.350.00 16
16 Social Security Tax Payable
24
17 Medicare Tax Pavable
350.00
350.00
350.00
17
25
2.250 00
2.250.00 18
2.250.00
18 Sales Tax Payable
30.00
30.00 19
26
19 Unemplovment Tax Pavable-Federal
30.00
27
20 Unemployment Tax Payable-State
225.00
225.00 20
225.00
28
21 Health Insurance Premiums Payable
1,200.00
1,200.00
1.200.00 21
29
22 Dividends Payable
5,200.00
5.200 00
5,200.00 22
118,000.00
118.000.00 23
30
23 Capital Stock
118.000.00
31
24 Retained Eamines
10.500.00
10,500.00
10,500.00 24
32
25 Dividends
20.000.00
20.000.00
20.000.00
25
33
26 Income Summary
14.500 00
14.500.00
14.500.00
26
34
27 Sales
425,000.00
425.000.00
425,000.00
27
35
350.00
350.00
28
28 Sales Discount
29 Sales Returns and Allowances
350.00
36
2.800 00
2,800.00
2,800.00
29
37
168.285.00
168.285.00
30
31
30 Purchases
168.285.00
38
31 Purchases Discount
1.480.00
1,480.00
1.480.00
39
3.600.00
3.600.00
32 Purchases Returns and Allowances
33 Advertising Expenses
32
33
3.600.00
40
3,250.00
3,250.00
3,250.00
41
34 Cash Short and Over
1.500.00
1.500.00
1.500.00
34
35
36
37
38
42
35 Credit Card Fee Expense
3,400.00
3,400.00
3,400.00
43
36 Depreciation Expense-Office Equipment
37 Depreciation Expense-Store Equipment
5.900.00
5.900.00
5.900.00
44
5,150.00
5,150.00
5,150.00
45
38 Insurance Expense
4,500.00
4.500.00
4,500.00
46
39 Miscellancous Expense
2.600.00
2,600.00
2,600.00
39
47
40 Payroll Taxcs Expense
8.500.00
8,500.00
8,500.00
40
48
41
42
41 Rent Expensc
17.000.00
17.000.00
17.000.00
49
42 Salary Expense
105.000.00
105,000.00
105,000.00
50
43 Supplics ExRense-Office
51
44 Supplies Expense--Store
2.900.00
2.900.00
2.900.00
43
3,000.00
3,000.00
3,000.00
44
52
45 Uncollectible Accounts Expense
46 Uilities Expense
1000 00
1O00.00
1.000.00
45
53
3.500.00
3.500.00
3.500.00
46
46
54
47 Federal Income Tax Expense
6,000.00
6,000.00
6,000.00
47
7
55
48 Totals
592.835.00
592.835.00
36.950.00
36.950.00
604,885.00
604,885.00
359.135 00
430.080.00
245.750 00
174.805.00 48
56
70,945.00 49
245,750.00 50
49 Net Income BEFORE Federal Income Tax
70,945.00
57
50
430,080.00
430,080.00
245,750.00
台灣](https://content.bartleby.com/qna-images/question/b43362ba-8c4a-4a07-8e54-0e323ca38cd2/a44d4871-2341-475d-8519-f8e03219601a/tevjhxm_thumbnail.jpeg)
Transcribed Image Text:K
ADJUSTED TRIAL BALANCE
CREDIT
INCOME STATEMENT
DEBIT
BALANCE SHEET
DEBIT
ADJUSTMENTS
TRIAL BALANCE
CREDIT
ACCOUNT TITLE
DEBIT
DEBIT
CREDIT
DEBIT
CREDIT
CREDIT
7.
1Cash
28.000 00
28,000.00
28,000.00
350.00
350.00
350.00
Petty Cash
Accounts Receivable
2
1.500 00
1,500.00
1.500 00
10
150.00
1,000.00
1,150.00
1,150.00 4
11
4 Allowance for Uncollectible Accounts
12
5 Merchandise Inventory
140.000.00
14.500.00
125,500.00
125.500.00
600.00
16
3.500 00
3,800. 00
2.900.00
600.00
6 Supplics-Office
7 Supplies-Store
8 Prepaid Insurance
9Office Equipment
10 Accumulated Depreciation-Office Equipment
13
n Stors
3,000.00
800.00
800.00
7.
14
15
5.500.00
4.500.00
1.000.00
1.000.00
8.
30.000.00
30.000.00
30.000.00
9.
16
5,900.00
I1,700.00
11,700.00 10
17
5,800.00
38.000.00
38.000.00
38.000.00
11
18.
11 Store Equinment
t
12 Accumulated Depreciation-Store Equipment
5,000.00
5,150.00
10,150.00
10,150.00 12
19
12,000.00
12.000.00 13
20
13 Accounts Payable
12,000.00
21
14 Emplovee Income Tax Pavble
700.00
700.00
700.00
14
22
15
15 Federal Income Tax Payable
23
1.350.00
1350.00
1.350.00 16
16 Social Security Tax Payable
24
17 Medicare Tax Pavable
350.00
350.00
350.00
17
25
2.250 00
2.250.00 18
2.250.00
18 Sales Tax Payable
30.00
30.00 19
26
19 Unemplovment Tax Pavable-Federal
30.00
27
20 Unemployment Tax Payable-State
225.00
225.00 20
225.00
28
21 Health Insurance Premiums Payable
1,200.00
1,200.00
1.200.00 21
29
22 Dividends Payable
5,200.00
5.200 00
5,200.00 22
118,000.00
118.000.00 23
30
23 Capital Stock
118.000.00
31
24 Retained Eamines
10.500.00
10,500.00
10,500.00 24
32
25 Dividends
20.000.00
20.000.00
20.000.00
25
33
26 Income Summary
14.500 00
14.500.00
14.500.00
26
34
27 Sales
425,000.00
425.000.00
425,000.00
27
35
350.00
350.00
28
28 Sales Discount
29 Sales Returns and Allowances
350.00
36
2.800 00
2,800.00
2,800.00
29
37
168.285.00
168.285.00
30
31
30 Purchases
168.285.00
38
31 Purchases Discount
1.480.00
1,480.00
1.480.00
39
3.600.00
3.600.00
32 Purchases Returns and Allowances
33 Advertising Expenses
32
33
3.600.00
40
3,250.00
3,250.00
3,250.00
41
34 Cash Short and Over
1.500.00
1.500.00
1.500.00
34
35
36
37
38
42
35 Credit Card Fee Expense
3,400.00
3,400.00
3,400.00
43
36 Depreciation Expense-Office Equipment
37 Depreciation Expense-Store Equipment
5.900.00
5.900.00
5.900.00
44
5,150.00
5,150.00
5,150.00
45
38 Insurance Expense
4,500.00
4.500.00
4,500.00
46
39 Miscellancous Expense
2.600.00
2,600.00
2,600.00
39
47
40 Payroll Taxcs Expense
8.500.00
8,500.00
8,500.00
40
48
41
42
41 Rent Expensc
17.000.00
17.000.00
17.000.00
49
42 Salary Expense
105.000.00
105,000.00
105,000.00
50
43 Supplics ExRense-Office
51
44 Supplies Expense--Store
2.900.00
2.900.00
2.900.00
43
3,000.00
3,000.00
3,000.00
44
52
45 Uncollectible Accounts Expense
46 Uilities Expense
1000 00
1O00.00
1.000.00
45
53
3.500.00
3.500.00
3.500.00
46
46
54
47 Federal Income Tax Expense
6,000.00
6,000.00
6,000.00
47
7
55
48 Totals
592.835.00
592.835.00
36.950.00
36.950.00
604,885.00
604,885.00
359.135 00
430.080.00
245.750 00
174.805.00 48
56
70,945.00 49
245,750.00 50
49 Net Income BEFORE Federal Income Tax
70,945.00
57
50
430,080.00
430,080.00
245,750.00
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