Required:• Vertical analysis• Descriptive Analysi AccountCashEquipmentAccumulated DepreciationTotal AssetsLiabilitiesIncome Tax PayablePercentage Tax PayableAssetsTotal LiabilitiesEquityCapital EndingTotal Equityotal Liabilities and EquityThe Adoption of NWORLD Products as DistributorsStatement of Financial PositionFor the Year Ended December 31, 2022- 20262022202320242025202675,830.42119,149.42161,821.39204,750.40248,334.8835,00035,00035,00035,00035,000-7,000-14,000-21,000-28,000-35,000103,830.42140,149.42175,821.39211,750.40248,334.882,967.643,021.472,934.842,987.683,042.11251.1258.63799.18823.15847,853,218.743,280.103,734.023,810.833,889.96100,611.68136,869.31 172,087.36207,939.55 244,444.91100,611.68136,869.31172,087.36207,939.55 244,444.91103,830,42 140,149.41175,821.38 211,750.38 248,334.87Vertical AnalysisAverage Percentage (%)161,977.3035,000.00-21,000.00175,977.30100%2,990.75595.983,586.73172,390.56172,390.56175,977.29100% LDR Department StoreCondensed Balance SheetsDecember 312016AmountPercentAmountPercentASSETSCurrent AssetsP 1,020,00055.59%P 945,00059.25%Fixed Assets (net)800,00043.60%632,50039.66%Intangible Assets15,0000.82%17,5001.10%Total AssetsP 1,835,000100.00%P1,595,000100.00%LIABILITIESCurrent LiabilitiesP 344,50018.77%P 303,00019.00%Long-term Liabilities487,50026.57%497,00031.16%Total LiabilitiesP 832,00045.34%P 800,00050.16%STOCKHOLDERS' EQUITYCommon stock, P1 parP 275,40015.01%16.93%P 270,000525,000Retained E32.92%121,000holders' equityP 1,003,000P 79549.8454.66%100.00%Total Liabilities and EquityP 1,835,000P 1,595,000Vertical analysis shows the relative size of each category in the balance sheet.It also can show the percentage change in the individual asset, liability, andstockholders' equity items. For example, the current assets decreased from59.25% of total assets in 2015 to 55.59% in 2016 (even though the absolutepeso amount increased P75,000 in that time). Fixed assets (net) haveincreased from 39.66% to 43.60% of total assets. Retained earnings haveincreased from 32.92% to 39.65% of total liabilities and stockholders' equity.These results reinforce the earlier observations that LDR Department Store ischoosing to finance its growth through retention of earnings rather thathrough issuing additional debt.Descriptive Analysis2015

Vertical analysis of the financial statement reflects the comparison of balance sheet elements with…

Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity Total Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022-2026 2023 2024 2025 2026 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 -14,000 -21,000 -28,000 -35,000 140,149.42 175,821.39 211,750.40 248,334.88 3,021.47 2,934.84 2,987.68 3,042.11 258.63 799.18 823.15 847.85 3,280.10 3,734.02 3,810.83 3,889.96 136,869.31 172,087.36 207,939.55 244,444.91 136,869.31 172,087.36 207,939.55 244,444.91 140,149.41 175,821.38 211,750.38 248,334.87 2022 75,830,42 35,000 -7,000 103,830.42 2,967.64 251.1 3,218.74 100,611.68 100,611.68 103,830,42 Vertical Analysis Average 161,977.30 35,000.00 -21,000.00 175,977.30 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 Percentage (%) 100% 100%

Account Cash Equipment Accumulated Depreciation Total Assets Liabilities Income Tax Payable Percentage Tax Payable Assets Total Liabilities Equity Capital Ending Total Equity Total Liabilities and Equity The Adoption of NWORLD Products as Distributors Statement of Financial Position For the Year Ended December 31, 2022-2026 2023 2024 2025 2026 119,149.42 161,821.39 204,750.40 248,334.88 35,000 35,000 35,000 35,000 -14,000 -21,000 -28,000 -35,000 140,149.42 175,821.39 211,750.40 248,334.88 3,021.47 2,934.84 2,987.68 3,042.11 258.63 799.18 823.15 847.85 3,280.10 3,734.02 3,810.83 3,889.96 136,869.31 172,087.36 207,939.55 244,444.91 136,869.31 172,087.36 207,939.55 244,444.91 140,149.41 175,821.38 211,750.38 248,334.87 2022 75,830,42 35,000 -7,000 103,830.42 2,967.64 251.1 3,218.74 100,611.68 100,611.68 103,830,42 Vertical Analysis Average 161,977.30 35,000.00 -21,000.00 175,977.30 2,990.75 595.98 3,586.73 172,390.56 172,390.56 175,977.29 Percentage (%) 100% 100%

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

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 17E: Intraperiod Tax Allocation Wright Company reports the following information for the year ended...

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Intraperiod Tax Allocation Wright Company reports the following information for the year ended December 31, 2019: Required: 1. Prepare the year-end journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. 2. Prepare Wrights 2019 income statement and statement of retained earnings.
Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes
PROBLEM 1 Xavier Company provided the following information for its first year of operations ended December 31, 2021 in connection with the preparation of its income tax return:Taxable income P 4,000,000Non-deductible expenses 200,000Non-taxable revenue 300,000Deferred income on installment saleincluded in financial income but taxable in 2022 450,000Doubtful accounts recorded 100,000Financial depreciation 300,000Tax depreciation 350,000Estimated warranty cost accrued in2021 but not deductible for tax purposes until paid…
x Company reports the following pretax income (loss) for both book and tax purposes. Year. Pretax income tax rate 2018 120,000 20% 2019 93,000 20% 2020. (82,000) 25% 2021 110,000 25% The tax rates listed were enacted by the beginning of 2018 Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable and the tax effects of the loss carryforward assuming that based on the weight of available evidence it is more likely than not that one half of the benefits of the loss carryforward will not be realized.
Microsoft’s 2020 10-K includes the following information relevant to its available-for-sale investments in Note 17—Accumulated Other Comprehensive Income (Loss): Year Ended June 30, 2020 2019 2018 Balance, beginning of period $1,488 $(850) $1,825 Unrealized gains (losses), net of tax of $1,057, $616, and $(427) 3,987 2,331 (1,146) Reclassification adjustments for (gains) losses included in other income (expense), net 4 93 (2,309) Tax expense (benefit) included in provision for income taxes (1) (19) 738 Cumulative effect of accounting changes 0 (67) 42 Balance, end of period $5,478 $1,488 $(850) Answer the following questions by referring to the disclosure note above: Prepare a journal entry to record unrealized gains for 2020. (Hint: $3,987 is net of tax effects, so you will need to add back tax effects to show the amount of pretax unrealized gain.) Prepare a journal entry to record Microsoft’s reclassification…
x Company reports the following pretax income (loss) for both book and tax purposes. Year. Pretax income tax rate 2018 120,000 20% 2019 93,000 20% 2020. (82,000) 25% 2021 110,000 25% The tax rates listed were enacted by the beginning of 2018 Prepare the income tax section of the 2020 income statment beginning with the line "operating loss before income taxes" Prepare the income tax section of the 2021 income statment beginning with the line "operating loss before income taxes" I have the journal entries I need the income statment -prepare journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable and the tax effects of the loss carryforward assuming that based on the weight of available evidence it is more likely than not that one half of the benefits of the loss carryforward will not be realized.
the pretax financial income (or loss) figures for metlock company are as follows 2022- 77000; 2023-(49000); 2024-(44000); 2025-125000; 2026-95000. pretax financial income (or loss) and taxable (loss) were the same for all years involved. Assumed a 20% tax rate for all years. Prepare the journal entries for the years 2022 and 2026 to record income tax expense and the effects of the net operating loss carry forwards. all income and losses related to normal operations (in recording the benefits of a loss carry forward assume that no valuation account is deemed necessary Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Subject: Advance finance accounting Required:a) From the table A Calculate the taxable profit and accounting profit for the year ending 30 June 2019 b)Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.
Wangerin Company reported the following pretax financial income (loss) for the years 2018–2022. 2018 $240,000) 2019 350,000) 2020 120,000) 2021 (570,000) 2022 180,000) Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019, and 20% for 2020–2022. Assume the carryback provision is used first for net operating losses. Instructions a. Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming no valuation allowance is needed. b. Prepare the income tax section of the 2021 income statement beginning with the line “Income (loss) before income taxes.”
Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 174,000 Permanent differences (15,200 ) 158,800 Temporary difference-depreciation (12,900 ) Taxable income $ 145,900 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 12,700 As of December 31, 2021 $ 25,600 The enacted tax rate was 30% for 2020 and thereafter. What would Kent's income tax expense be in the year 2021?
The following is from the 2024 annual report of Kaufman Chemicals, Incorporated: Statements of Comprehensive Income Years Ended December 31 2024 2023 2022 Net income $ 900 $ 730 $ 585 Other comprehensive income: Change in net unrealized gains on AFS investments, net of tax of $23, ($20), and $20 in 2024, 2023, and 2022, respectively 35 (28) 28 Other (1) (2) 1 Total comprehensive income $ 934 $ 700 $ 614 Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows: ($ in millions) 2024 2023 Shareholders’ equity: Common stock $ 350 $ 350 Additional paid-in capital 8,575 8,575 Retained earnings 7,655 7,099 Accumulated other comprehensive income 114 80 Total shareholders’ equity $ 16,694 $ 16,104 Required: 3. From the information provided, determine how Kaufman calculated the $114 million accumulated other comprehensive income in 2024.
Do parts a to d Accounting for Income Taxes Yoda Company is in the process of accounting for its income taxes for the year ended December 31, 2020. The following information came from Yoda's accounting and taxation records: Accounting income before income taxes for 2020 $ 98,967 Depreciation expense for property, plant, and equipment for 2020 $ 222,227 Capital cost allowance to be claimed on Yoda's 2020 income tax return $ 244,450 Book value of property, plant, and equipment at December 31, 2019 $ 1,399,268 Undepreciated capital cost of property, plant, and equipment at December 31, 2019 $ 1,203,370 Assume that there were no additions or disposals of property, plant, and equipment during 2020. In 2020, Yoda began offering a 1-year warranty on all merchandise sold. Following are details pertaining to this warranty: Warranty expense for 2020 for accounting purposes $ 38,860…