When net profit as per cost accounts and financial accounts is given The net profițs of a manufacturing company appeared at ? 74,000 as per financial records for the year ended 31st March, 2020. The cost books, however, showed a net profit of 88,460 for the same period. A careful scrutiny of the figure from both the sets of accounts reveled the following facts: (i) Income tax provided in financial books 3 10,000 3 250 You are required to prepare (a) the reconcilitation statement (b) a Memorandum Reconcilation account (ii) Bank interest credited in financial books (iii) Works overhead under -recovered in cost books { 1,550 (iv) Depriciation charged in financial books { 5,600 (v) Depriciation recoverd in costing books 6,000 (vi) Administrative overheads over recovered 7850 (vii) Loss due to obsolescene charged in financial accounts 2,800 (viii) Intereast on Investments not includeded in cost accounts { 2,000 (ix) Stores adjustments (Credited in financial books) 3240 (x) Loss due to depreciation in stock values charged in financial books 3,350

When net profit as per cost accounts and financial accounts is given The net profițs of a manufacturing company appeared at ? 74,000 as per financial records for the year ended 31st March, 2020. The cost books, however, showed a net profit of 88,460 for the same period. A careful scrutiny of the figure from both the sets of accounts reveled the following facts: (i) Income tax provided in financial books 3 10,000 3 250 You are required to prepare (a) the reconcilitation statement (b) a Memorandum Reconcilation account (ii) Bank interest credited in financial books (iii) Works overhead under -recovered in cost books { 1,550 (iv) Depriciation charged in financial books { 5,600 (v) Depriciation recoverd in costing books 6,000 (vi) Administrative overheads over recovered 7850 (vii) Loss due to obsolescene charged in financial accounts 2,800 (viii) Intereast on Investments not includeded in cost accounts { 2,000 (ix) Stores adjustments (Credited in financial books) 3240 (x) Loss due to depreciation in stock values charged in financial books 3,350

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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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.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000
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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. $_____________
Brooks 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)
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000
Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the beginning of the current year, Bloom changed its inventory method from LIFO to FIFO, and the cumulative effect (net of taxes) of this change was 28,000. In addition, Bloom earned net income of 150,000 and paid dividends of 30,000 in the current year. Prepare Blooms retained earnings statement for the current year.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?