Undaunted Company failed to recognize accruals and prepayments since the inception of business three years ago. The income before tax, accrual and prepayment at the end of the current year are: Income before tax Prepaid insurance Accrued wages Rent revenue collected in advance Interest receivable 5,000,000 200,000 250,000 300,000 500,000 What is the corrected net income before tax for the current year?

Undaunted Company failed to recognize accruals and prepayments since the inception of business three years ago. The income before tax, accrual and prepayment at the end of the current year are: Income before tax Prepaid insurance Accrued wages Rent revenue collected in advance Interest receivable 5,000,000 200,000 250,000 300,000 500,000 What is the corrected net income before tax for the current year?

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

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Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively', in the following year when paid or collected. The reported pretax income was 20,000 in 2018, 25,000 in 2019, and 23,000 in 2020. Required: 1. Compute the correct pretax income for 2018, 2019, and 2020. 2. Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes. 3. Prepare the journal entries necessary in 2021 if the errors are discovered at the end of that year. Ignore income taxes.
Poe Company failed to recognize accruals and prepayments since the inception of business three years ago. The income before tax, accrual and prepayment at the end of the current year are: Income before tax 5,000,000 Prepaid insurance Accrued wages 200,000 250,000 Rent revenue collected in advance 300,000 Interest receivable 500,000 What is the corrected net income before tax for the current year?
For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000. The taxable income was P7,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and the entity made no estimated tax payment in the current year. What amount should be reported as total income tax expense for the current year? O 2,100,000 O 1,800,000 O 1,000,000 O 1,100,000
A company reports 2021 pretax accounting income of $38 million, but because of a single temporary difference, taxable income is only $21 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $183,000 17% 2019 69,000 17 2020 (206,800) 23 2021 385,100 23 Assuming that the company uses the carryforward provision, what is the amount of income or loss that will be reported for 2020? (Enter the amount only. DO NOT put a plus or minus sign in front of the amount.)
Bestlook Company provided the following information for its first year of operatic December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses P8,000,000 400,000 600,000 Nontaxable revenue Deferred income on installment sales included in financial income but taxable in 2020 900,000 200,000 600,000 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? 700,000 200,000 35% b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense?
4. Magic Company failed to recognize accruals and prepayments during its first year of operations. The pre-tax earnings, accruals and prepayments at the end of the year were: P5,000,000 Pre-tax profit Items not recognized at year-end were as follows: Prepaid insurance Accrued wages Rent revenue collected in advance Interest receivable 200,000 250,000 300,000 100,000 The correct amount of pre-tax profit should be A. P4,750,000. B. P4,950,000. C. P5,000,000. D. P5,250,000.
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