City’s Tax Service had earned—but not yet recorded—the following client service revenue at the end of the current accounting period: Client Number Billable Hour Hourly Rate Client#1852 16 120 Client#3940 14 135 Client#4067 10 150 Prepare the necessary adjusting entry to record Marvin’s unbilled client service revenue.

City’s Tax Service had earned—but not yet recorded—the following client service revenue at the end of the current accounting period: Client Number Billable Hour Hourly Rate Client#1852 16 120 Client#3940 14 135 Client#4067 10 150 Prepare the necessary adjusting entry to record Marvin’s unbilled client service revenue.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 13P

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The following data pertain to a taxpayer’s request for refund:Date tax erroneously paid, January 2, 2020Petition for request for refund filed, January 10, 2020Documents supporting the request for refund submitted, January 22, 2020.The Commissioner of Internal Revenue has not acted on the request. When is the last day to appeal to the Court of Tax Appeals?
Which of the following statements about extensions of time to file certain business income tax returns is true? a)It is required of mostentities to us e electronic funds transfer to make all federal tax deposits. b) The IRS will send taxpayers a notification if their request for an extension is approved. c) Property filing the form wil not automatically give taxpayers the maximum extension of time to file allowed. d) The maximum extension of the to file allowed from the due date of the taxpayer's business return is generally three months.
In December 2022, J-Matt, Inc. collected rent in advance from tenants who will begin occupying the rental space in January 2023. For financial reporting purposes, J-Matt recorded the rent as deferred revenue when received in 2022 and will record the rent as revenue in January 2023 when the tenants occupy the rental space. For tax reporting, the rent is taxable in 2022 when collected. The deferred portion of the rent collected in 2022 was $122 million. Taxable income is $540 million in 2022. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record J-Matt's provision for income taxes in 2022.
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $74 million. Taxable income is $300 million in 2021. 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 in 2021.
In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent isrecorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but forincome tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the taxrate is 40%. Prepare the appropriate journal entry to record income taxes.
Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith Capital account was $32,000. Following is a summary of activities during this accounting period: Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith Capital account at the end of the period. Following are the account balances at the end of this accounting period (except Betty Smith Capital): Solve, a. Prepare an income statement for the year ending April 30, 2019. b. Prepare a balance sheet as of April 30, 2019.
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