What amount should be reported as net income for the quarter ended September 30, 2021?
Q: ee are partners, sharing earnings in the ratio of 3:4:6: accounts on December 31, 2019 are as…
A: Given as, Bench- P 1,000 Mark- P 25,000 Spencer- P 25,000 Lee- P 9,000
Q: Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Prepare a Classified Balance Sheet
A: The balance sheet is a statement of the financial position of enterprises at a given date that…
Q: Which of the following accounts will appear on the post-closing trial balance? Question 37 Owner's…
A:
Q: Natural Desserts has 2,500 gallons of paint in WIP inventory, with all materials already added. The…
A: Introduction:- Equivalent units are the units in production multiplied by the percentage of units…
Q: When closing income statement accounts having debit balances, which of the following accounts will…
A: Income statement accounts are temporary in nature and these are to be closed at the end of the year.…
Q: Identify the better performer between Best Buy and Dollar General. Calculate how much inventory the…
A: We are given some calculations regarding two companies - Best Buy and dollar General. Based on the…
Q: Prepare a Classified Balance Sheet
A: Balance sheet is one of the financial statement which shows all assets, liabilties and equity of the…
Q: When examining the current ratio and looking at the company's liquidity, which of the following…
A: Current ratio measure how much is the company's liqiudity as compared to others.It takes into…
Q: Explain the purpose of the statement of cash flows and why it is necessary.
A: A statement of cash flow is a simple financial report that shows a company's cash inflows (cash…
Q: If a parent company has a subsidiary operating in a foreign country that is characterized by…
A: The method of currency translation of foreign under which most of the items of the financial…
Q: Dr. Barrett wants to purchase a new piece of equipment for his practice. The equipment can be…
A: Pay back period refers to method of valuation a capital budget where it is calculated that under in…
Q: FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high…
A: Sales budget is one of the form of budget being prepared in business. It shows estimated sales units…
Q: Calculate the net profits (after taxes) for the following cash flows. The cash flows have not been…
A: Introduction:- Net income is the amount of profit a obtained by companies after paying all expenses…
Q: Q/3 The Municipality Directorate has purchased vehicles in ti amount of (120) million Iraqi dinars…
A: As per constant ratio method for calculating depreciation, depreciation is charged on the basis of…
Q: 12. Leyland Realty Company received a check for $18,000 on July 1, which represents a 6-month…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…
Q: Markus Company’s common stock sold for $4.50 per share at the end of this year. The company paid a…
A: The operating cycle can be defined as the time taken by the company to buy inventories, sell the…
Q: Prepare the journal entry to record the sale of 1,800 units that cost $9 per unit and sold for $15…
A: Journal entries recording is the first step of accounting cycle process, under which one account is…
Q: 2.)Willie Company's retained earnings increased S33,000 during 2014. What was Willie's 2014 net…
A: Introduction: Retained Earnings : Retained Earnings are Shareholder funds. Part of profit is…
Q: Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021.…
A: Dividend revenue to be recognized = Number of shares held × Dividend per share.
Q: Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases…
A: A. Amount added = Balance of allowance for doubtful account as per aging method - credit balance in…
Q: Equipment with an estimated market value of $29,889 is offered for sale at $48,377. The equipment is…
A: As per IAS 16, Property plant and Equipment Cost of equipment will be its purchase price which can…
Q: Firm X sold 1,000 units of their product last month at a price of $600. If it costs them $300 to…
A: Gross margin=sales- direct expense Direct expense include cost of production
Q: The includes all other budgets to present a complete and comprehensive view of the company's…
A: Budgets are the statements prepared to estimate the future revenues and expenses.
Q: Carol, age 40, has an IRA with Blue Mutual Fund. Her balance in the fund is $150,000. She has heard…
A: Retirement plans are the one which are prepared by the employee himself or the employer of the…
Q: The Real Estate Products Division of Blossom Co. is operated as a profit center. Sales for the…
A: Introduction Responsibility accounting performance report collect all the responsibility accounting…
Q: An S corporation shareholder's basis may be affected by some or all business liabilities
A: GIVEN An S corporation shareholder’s basis may be affected by some or all business liabilities is
Q: Below is the Income Statement of Babana Inc. for the current year: Sales 18,000,000 Less: Cost…
A: Net Income is the income after reducing all the expenses including income tax. The calculation is…
Q: An S corporation shareholder's basis may be affected by some or all business liabilities a. Never b.…
A: S corporation shareholders are those who own interest in a business entity designated as a…
Q: Journalize the following transactions, using the direct write-off method of accounting for…
A: Under Direct method, an account is written off by directly debiting the bad debts expense account.…
Q: 2016 Purchased equipment costing $40,000 by issuing a five-year, 9% note payable. The note requires…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Zoey Bella Company has a payroll of $5,080 for a five-day workweek. Its employees are paid each…
A: Adjusting entries are those entries which are passed at the end of the period in order to accurately…
Q: services is shown below. Jasmine Enterprise Trial Balance as at 30 September 2014 Debit (RM) Account…
A: The financial statements of the business includes the income statement and balance sheet. These…
Q: Whispering Winds Corp. has these accounts at December 31: Common Stock, $8 par, 4.600 shares issued,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Balance of Cleaning Supplies Expense The trial balance for Ariel Certified Cleaners appears as…
A: Trial balance is the summary of all general ledger account balances in the business. Total debits…
Q: Explain whether this situation presents any threats to independence and if so, explain the threats…
A: Auditing is done by the auditor which examines the financial statements of the company for which the…
Q: 14. At October 1, Arcade Fire Enterprises reported owner's equity of $35,000. During October, no…
A: Ans. Drawings is referred to as the capital withdrawn from the business from total equity in the…
Q: Materials are added at the beginning of a production process, and ending work in process inventory…
A: Production cost report is the summary showing the units which are required to be produced and how…
Q: Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter…
A: GIVEN Rapido Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe…
Q: Which of the following terms describes expenditures made to repurpose an asset?
A: The asset is the future benefit of the company that would have to be sacrificed to pay off the…
Q: untancy firm, EY refused to sign off Wirecard’s 2019 books after discovering1.9billion euros (US$2.1…
A: The given question is related to the subject Audit & Assurance. An auditor has the professional…
Q: Instruction: Prepare a statement of Liquidation and the required journal entries for each of the…
A: Tik, Tak & Toe share profits in the ratio of 4:4:2 and have decided to liquidate the…
Q: -the SEC requires listed firms to use GAAP on 1938 1970 1930 d 1934
A: SEC stands for Securities and Exchange commission oversees the securities exchanges, disclosure of…
Q: Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts…
A: Estimated Uncollectible Accounts Amount = Balance x Estimated Uncollectible Accounts Percent
Q: Municipal bond interest Ordinary dividends Qualified dividends Taxable interest $20,000 $3,000…
A: The deduction of interest on investment that is paid to broker depends on the income from the…
Q: Please refer to the following information to answer question 12 and 13: Misra Company compiled the…
A: Lets understand the basics. There are three heads are there in the balance sheet which are explained…
Q: ario had AGI of $90,000 and will iter e hurricane was a federally declare • The plane had a value of…
A: Casualty Loss is deductible in the year in which it occured losses i.e generally in the year loss…
Q: Jaez Corporation is in the process of going through a reorganization. As of December 31, 2020, the…
A:
Q: Choose the correct answer. How to build customer loyalty? Select one: a. Give at least 30% discount…
A: Customer loyalty means the ongoing emotional relationship among the company and the customer which…
Q: ect material $ 4.10 2.40 ect labor ufacturing overhead 1.80 al cost $ 8.30
A: The total cost of production of a good comprises the total fixed cost of production and the total…
Crown Inc. reported P1,900,000 net income for the quarter ended September 30, 2021 which included the following after tax items:
A P1,200,000 expropriation gain, realized on April 30, 2021, was allocated equally to the 2nd, 3rd and 4th quarters of 2021.
A P300,000 cumulative-effect loss resulting from a change in
On February 1, 2021, Peras Inc. paid P960,000 for 2021 calendar-year property taxes. One-fourth of the property taxes paid was allocated to the 3rd quarter of 2021.
What amount should be reported as net income for the quarter ended September 30, 2021?
A. 900,000
B. 1,250,000
C. 1,800,000
D. 1,600,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the amount of financial depreciation, resulting in a book value of the depreciable assets of 24,500 for financial reporting purposes and of 20,000 for tax purposes at the end of 2019. In addition, Shadrach recognized a 3,500 estimated liability for legal expenses in the financial statements during 2019; it expects to pay this liability (and deduct it for tax purposes) in 2023. The current tax rate is 30%, no change in the tax rate has been enacted, and the company expects to be profitable in future years. What is the amount of the net deferred tax liability at the end of 2019? a. 300 b. 450 c. 1,050 d. 1,350Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
- Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.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.