Current Attempt in ProgressThese financial statement items are for Blossom Tax Services at year-end, July 31, 2020.Salaries and wages payableSalaries and wages expenseUtilities expenseEquipmentAccounts payableService revenueRent revenueShare capital-ordinary£2,33654,544:v25,31238.5284,59270,5609.52022.400Notes payable (long-term)CashAccounts receivableAccumulated depreciation-equipmentDividends£Depreciation expenseRetained earnings (beginning of the year)BLOSSOM TAX SERVICESIncome StatementPrepare a retained earnings statement for the year.£BLOSSOM TAX SERVICESRetained Earnings StatementPrepare an income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 orparentheses e.g. (45).)Prepare a classified statement of financial position at July 31. (List Current Assets in the reverse order of liquidity)BLOSSOM TAX SERVICESStatement of Financial PositionAssetsEquity and Liabilitiesv£££££2,016£15.90410,9606,7203,3604,48034,944

Lets understand the basics. Income statement is prepared by management to know the net income…

These financial statement items are for Blossom Tax Services at year-end, July 31, 2020. Salaries and wages payable Salaries and wages expense Utilities expense Equipment Accounts payable Service revenue Rent revenue Share capital-ordinary £2,336 Notes payable (long-term) 54,544 Cash 25,312 Accounts receivable 38,528 4,592 70,560 9,520 22,400 Accumulated depreciation-equipment Dividends Depreciation expense Retained earnings (beginning of the year) £2,016 15,904 10,960 6,720 3,360 4,480 34,944

These financial statement items are for Blossom Tax Services at year-end, July 31, 2020. Salaries and wages payable Salaries and wages expense Utilities expense Equipment Accounts payable Service revenue Rent revenue Share capital-ordinary £2,336 Notes payable (long-term) 54,544 Cash 25,312 Accounts receivable 38,528 4,592 70,560 9,520 22,400 Accumulated depreciation-equipment Dividends Depreciation expense Retained earnings (beginning of the year) £2,016 15,904 10,960 6,720 3,360 4,480 34,944

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 12E: Temporary and Permanent Differences Lin has just completed its first year of operations and has a...

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Intel-period Tax Allocation Chris Green, CPA, is auditing Rayne Co.s 2019 financial statements. For the year ended December 31, 2019, Rayne is applying GAAP for income taxes. Raynes controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2019, will be increased for 2020. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes. Dunn has requested an overview of GAAP from Green. Required: Prepare a brief memo to Dunn from Green that identifies the objectives of accounting for income taxes, defines temporary differences, explains how to measure deferred tax assets and liabilities, and explains how to measure deferred income tax expense or benefit.
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Payroll Accounting McLaughlin Manufacturing has the following data available for its March 31, 2019, payroll: *All Subject to Social Security and Medicare matching and withholding at 6.2% and 1.45%, re9eetivety. Federal unemployment taxes of 0.50% and state unemployment taxes of 0.80% are payable on the first $1,000,000. Required: 1. Compute the taxes payable and wages that will be paid to employees. Then prepare the journal entries to record the wages earned and the payroll taxes. ( Note: Round to the nearest penny) 2. CONCEPTUAL CONNECTION McLaughlin Manufacturing would like to hire a new employee at a salary of $80,000. Assuming payroll taxes are as described above (with unemployment taxes paid on the first $7,000) and fringe benefits (e.g., health insurance, retirement, etc.) are 28% of gross pay, what will be the total cost of this employee for McLaughlin?
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