In November and December 2021, Print Company, a newly organized magazine publisher, received P72,000 for 1,000, three-year subscriptions at P24 per year, starting with the December 2021 issue. Print elected to include the entire P72,000 in its 2021 income tax return. 1. What amount should Print report in its 2021 income statement for subscriptions revenue?

In November and December 2021, Print Company, a newly organized magazine publisher, received P72,000 for 1,000, three-year subscriptions at P24 per year, starting with the December 2021 issue. Print elected to include the entire P72,000 in its 2021 income tax return. 1. What amount should Print report in its 2021 income statement for subscriptions revenue?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
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