These items are taken from the financial statements of Whispering Winds Corp. at December 31, 2022.Buildings$107,800Accounts receivable12,200Prepaid insurance4,680Cash11,840Equipment83,000Land62.000Office expense580Income tax expernse200Depreciation expense5.2002 100Interest expense62.000Common sharesDepreciation expense5,200Interest expense2,100Common shares62,000Retained earnings (January 1,2022)40,000Accumulated depreciation-buildings45,800Accounts payable8,200Income taxes payable1,200Bank loan payable (due July 1.2024)94,000Accumulated depreciation-equipment18,720Interest payable3.60016.080SalesSales16,080(a)X Your answer is incorrect.Calculate the net income for the year.Net income%248580

Here in this question, we are require to calculate the net income. Net income is a income after…

Answered: These items are taken from the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 5MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at...

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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
Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
Oriole Inc. is a private company reporting under ASPE. The following selected account balances were reported in Oriole Inc.’s financial statements at year end: 2021 2020 Cash $ 18,300 $ 8,200 Buildings 831,000 729,000 Equipment 391,000 340,200 Land 89,000 48,000 Accumulated depreciation—buildings 302,000 285,500 Accumulated depreciation—equipment 119,000 89,000 Dividends payable 5,950 2,400 Mortgage payable 542,600 582,600 Notes payable 337,000 306,000 Common shares: 5,340 shares in 2021; 3,940 in 2020 536,000 407,000 Retained earnings 195,000 96,000 Cash dividends declared 22,000 7,600 Depreciation expense—buildings 23,000 39,700 Depreciation expense—equipment 47,205 25,350 Gain on sale of equipment 840 0 Loss on sale of building 8,300 0 Interest expense 47,650 43,550 Additional information: 1. Purchased $72,000 of equipment for $8,800 cash and a note payable for…
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 Corp., a domestic corporation, has the following data in 2022:Gross receipts from services, P800,000Cost of services, P200,000Long term capital gain, P15,000Short term capital loss, P5,000Dividend from a domestic corporation, P15,000Interest income from bank deposits, P10,000Operating expenses, P120,000Compute the optional standard deduction. a. P366,000 b. P364,500 c. P280,000 d. P244,000
On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were asfollows.No Debit No Credit101 Cash £4,880 158 Accumulated DepreciationEquipment£2,100112 AccountsReceivable3,520 201 Accounts Payable 3,400126 Supplies 2,000 209 Unearned Service Revenue 1,400157 Equipment 18,000 212 Salaries and Wages Payable 500311 Share Capital-Ordinary 10,000320 Retained Earnings 11,000£28,400 £28,400During September, the following summary transactions were completed.Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.10 Received £1,200 cash from customers on account.12 Received £3,400 cash for services performed in September.15 Purchased store equipment on account £3,000.17 Purchased supplies on account £1,200.20 Paid creditors £4,500 on account.22 Paid September rent £500.25 Paid salaries £1,050.27 Performed services on account and billed customers for services provided£1,600.29 Received £750 from customers for future service.Adjustment data consist of:1.…
The following balances are extracted from the books of XYZ Ltd at the end of May 2008 and2009.2 0 0 9 2008Details Kshs KshsDebtors 1 0 5 , 0 0 0 85,000Stock 3 5 , 0 0 0 45,000Creditors 6 3 , 0 0 0 40,000Provision for taxation 2 5 , 0 0 0 20,000Proposed dividend 3 0 , 0 0 0 30,000Bank overdraft 1 7 , 0 0 0 25,000Sales 1 , 2 0 0 , 0 0 0 1,200,000Purchases 1 , 0 0 0 , 0 0 0 1,000,000Required(a) Calculate liquidity ratios and interpret your answer(b) Calculate Average Collection Period for the 2 years’(c) Calculate Average Payment Period for the 2 years(d) Interpret your answers.

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