Corporation has provided the following trial balances as of June 30, 2019: -€orporation June 30, 2019 Trial Balances Unadjusted Trial Balance Debit $13,000 1,500 600 60,000 Adjusted Trial Balance Debit $13,000 1,800 200 60,000 Account Credit Credit Cash Accounts receivable Prepaid rent Equipment Accumulated depreciation Salaries & wages $16,500 $22,000 100 25,000 11,600 38,300 payable Common stock Retained earnings Service revenue Salaries & wages expense Depreciation expense Rent expense Total 25,000 11,600 38,000 16,100 5,500 400 $97,000 16,000 $91,100 $91,100 $97,000 Required: Reconstruct the adjusting entries that were made at June 30.

Corporation has provided the following trial balances as of June 30, 2019: -€orporation June 30, 2019 Trial Balances Unadjusted Trial Balance Debit $13,000 1,500 600 60,000 Adjusted Trial Balance Debit $13,000 1,800 200 60,000 Account Credit Credit Cash Accounts receivable Prepaid rent Equipment Accumulated depreciation Salaries & wages $16,500 $22,000 100 25,000 11,600 38,300 payable Common stock Retained earnings Service revenue Salaries & wages expense Depreciation expense Rent expense Total 25,000 11,600 38,000 16,100 5,500 400 $97,000 16,000 $91,100 $91,100 $97,000 Required: Reconstruct the adjusting entries that were made at June 30.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 41P

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Interperiod Tax Allocation Peterson Company has computed its pretax financial income to be 66,000 in 2019 after including the effects of the appropriate items from the following information: Petersons accountant has prepared the following schedule showing the future taxable and deductible amounts at the end of 2019 for its three temporary differences: At the beginning of 2019, Peterson had a deferred tax liability of 12,540 related to the depreciation difference and 4,710 related to the accrual-basis sales difference. In addition, it had a deferred tax asset of 14,850 related to the warranty difference. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. Required: 1. Compute Petersons taxable income for 2019. 2. Prepare Petersons income tax journal entry for 2019 (assume no valuation allowance is necessary). 3. Next Level Identify the permanent differences in Items 1 through and explain why you did or did not account for them as deferred tax items in Requirement 2.
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below:Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235 ---Prepare in good form a statement of retained earnings of Palm Realtors Ltd. for the year endedDecember 31, 2019. --Compute the current ratio for Palm Realtors Ltd for 2019. Did the company appear to be able to meetits short-term obligations as they come due? Why?
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below: Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235 Prepare in good form a classified statement of financial position for Palm Realtors Ltd as at December 31, 2019,
The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below:Palm Realtors Ltd.Adjusted Trial BalanceDecember 31, 2019Cash $ 8,950Accounts receivable 53,530Prepaid rent 2,200Equipment 45,690Accumulated amortization $ 18,930Accounts payable 15,900Interest payable 900Salary payable 3,500Income tax payable 4,700Note payable (due 2025) 19,500Common shares 8,000Retained earnings 29,325Dividends 30,000Commissions 227,480Depreciation expense 6,260Salary expense 140,500Rent expense 26,400Interest expense 1,500Income tax expense 13,205Total $328,235 $328,235Required:1. Prepare in good form a single step statement of earnings (income statement) of Palm Realtors Ltd.for the year ended December 31, 2019.
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An entity was organized on January I, 2019. The entity had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2080. The enacted tax rates are 30% for 2019 and 25% for 2020 and thereafter. What amount should be reported as total income tax expense in the income statement for 2019?
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In 2019, Frump Wholesale, Inc. has the following apportionment data: State Sales % Property% Payroll % Apportionment Method Apportionment Pink 10% 100% 50% Property Factor Only 100% Green 15% 0% 50% Payroll Factor Only 50% Red 30% 0% 0% Sales Factor Only 30% Lavender 15% 0% 0% Average all three factors 5% White 20% 0% 0% Highest of all three 20% Black 10% 0% 0% Lowest of all three 0% Total 100% 205% 22. True or False: State Pink’s apportionment…
On January 1 2020, Entity A purchased property insurance from a certain insurance company. The cost of insurance is P 120,000 and it covers the whole taxable year of 2020. If the reporting period the entity is Sep. 30, 2020, which of the following statement is correct under the circumstances? a.Entity A shall deduct from its gross income the amount of 90,000. b.Under Lifeblood Doctrine, prepaid expenses shall be deducted in whole at the end of the accounting period. c.Under Lifeblood Doctrine, prepaid expenses shall be deducted in whole upon payment thereof. d.Entity A shall deduct from its gross income the amount of P 120,000.
An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations.The following are the differences that cause financial income to differ from taxable incomeexcess tax depreciation over accounting depreciation, P 500,000, revenue collected fortax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in theincome statement, P 200,000. The income tax rate is 30%1. What total tax expense should be reported for 2019?a. 1,890,000b. 2,400,000c. 1,950,000d. 2,010,0002. What is the net deferred tax expense or benefit for 2019?a. 450,000 expenseb. 450,000 benefitc. 510,000 expensed. 510,000 benefit
Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000. Additional information regarding rental income are presented as follows: Unearned rental income, January 1, 2019 –₱50,000; Unearned rental income, December 31, 2019 –₱75,000; Accrued rental income, January 1, 2019 –₱30,000; Accrued rental income, December 31, 2019 –₱40,000. Under the cash basis, how much rental income should be reported? ₱ 625,000 ₱ 655,000 ₱ 585,000 ₱ 615,000