I need help with the homework problem in E23.5 in accounting. (PreParation pf apernting Activit, section-Direct anethad)Krauss company's income statenment for the year endedPeG 31,2020, Contained the following Condensed into.Service RevenyeOPerating expenses (to exclude deprec) $624,000DPPrec expense०१८26,000 7 JononIncome betore In come Ta xesIncome Tax EXpense$1g,000Krusss balance sheet contained the following Comparativedata of Dec.31.2020019Accounts Receiv.Accounts PaY.0000Income Taxes PaY.200CACCounts PaY. Pertains in Oper. expenses) Instuctions:Prepare the oper, activita secttion of the statementOf (ash flows using the dirpct method.

Direct method of cash flows statement indicates the cash inflows and cash outflows related…

(Pre faration of Opein ting Activit, section-Dipect imethod) Krauss company's income statement for the year ended PeG 31,2020, Contained the following Condensed intor Service Revenye OPerating expenses (to exclude deprec.) $624,000 DPPrec, expense Loss on Sale of equie. Income before In come Taxes Income Tax Expense Krusss balance sheet contained the following ComParative data of Dec.31. 2011. Accounts Receiv. AcCounts PaY. Income Taxes Pa Y. CAccounts Pay. Pertains in Operri expenses )

(Pre faration of Opein ting Activit, section-Dipect imethod) Krauss company's income statement for the year ended PeG 31,2020, Contained the following Condensed intor Service Revenye OPerating expenses (to exclude deprec.) $624,000 DPPrec, expense Loss on Sale of equie. Income before In come Taxes Income Tax Expense Krusss balance sheet contained the following ComParative data of Dec.31. 2011. Accounts Receiv. AcCounts PaY. Income Taxes Pa Y. CAccounts Pay. Pertains in Operri expenses )

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 7E: Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December...

See similar textbooks

Similar questions

Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance: Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2019 multiple-step income statement. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 statement of comprehensive income.
The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000
A company makes the following journal entry for 2021: Dr. Income Tax Expense xxxx Dr. Deferred Tax Asset 62,000 Cr. Deferred Tax Liability 11,000 Cr. Income Tax Payable 536,000 On the income statement, the current portion of income tax expense for 2021 appears as: _______________.
Parker Ltd had the following opening balances for the current year beginning 1 July 2020: Deferred tax asset (DTA) $24 000 Deferred tax liability (DTL) $15 000 If the company tax rate decreased from 30% to 25%, the adjusting journal entry would include: a. Dr DTL 3 000; Cr DTA 4 800 b. Cr DTL 4 000; Dr DTA 2 500 c. Cr DTA 4 000; Dr DTL 2 500 d. Cr DTL 4 800; Dr DTA 3 000 e. Cr DTA 1 200; Dr DTL 750
Louie Makulet Corporation provided the following balances on December 31, 2020 which has been adjusted except for income tax expense: Cash 600,000Accounts Receivables 3,500,000Prepaid taxes 450,000Property, plant and equipment, net 1,510,000Note payable due in December 21, 2022 1,620,000Share Capital 750,000Share premium 2,030,000Retained Earnings, unappropriated 900,000Retained Earnings, restricted for notes payable 160,000Revenue 6,680,000Cost and Expenses 5,180,000 During 2020, estimated tax payments of P450,000 were charged to prepaid taxes. The entity has not recorded income taxexpense. There were no temporary or permanent differences. The tax rate is 30%.On December 31, 2020, what amount should be reported as:1. Total current assets?2. Total non-current assets?3. Total Retained earnings? Please show solution. Thank you.
These are some information for the balance sheet as of December 31, 2019 of MUST Corp.Accounts payable, consisting of purchase of goods, P278,000 and cost of goods received on consignment of P22,000,total P300,000Income tax due for 2019, (due and paid in the three (3) quarters of 2019, P87,500) 122,500Stock dividends payable 60,000Accrued expenses 7,800Reserve for contingencies 20,000Overdraft in Security Bank checking account 6,200Based on the above information, how much is the total liabilities to be reported in the balance sheet as of December 31,2019 of MUST Corp.?
On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. What is the amount of deferred tax asset?
n December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? * b. What is the amount of total deductible temporary difference? * c. Compute for the current tax expense. * d. Compute for the deferred tax expense. * e. What is the amount of deferred tax asset? * f. Compute for the net income after tax. * Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit…
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…
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.”