![INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260180657/9781260180657_smallCoverImage.gif)
1.
Deferred tax account shows the amount of reconciliation, which occurs due to the difference between the income tax expense account and the income tax payable account.
When the Income Tax Expense account i.e. the estimated income tax amount is more than the outstanding amount of income tax i.e. the Income Tax Payable account, the difference is to be debited to Deferred Tax Asset account.
When the Income Tax Expense account i.e. the estimated income tax amount is less than the outstanding amount of income tax i.e. the Income Tax Payable account, the difference is to be credited to Deferred Tax Liability account.
To prepare: The summary
2.
The current and noncurrent net deferred tax asset or liability of K co. in 2015 and 2016.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 16 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
- 17:20 ✓ Document (2) 4.5Gr Let's assume a company named XYZ Corp. engages in the sale of electronic gadgets. Create an example that consiste of the following Affichage Titres mobile ► . Purchasing transactions (purchasing units, paying freight costs, discounts, returns, etc.) b. Selling transactions (Selling units, returns, allowances, etc.) Calculation profit of the company and preparing its I/S Remark: Excell might be more effective to show your calculations. Remark: write the answer on an excel sheet Modifier Partager A Lecture à voix hautearrow_forwardChapter 10 Discussion Sales tax: Remember that the customer is charged the sales tax and the company is responsible for sending the sales tax dollars to the appropriate government entity. The company has sales of $3,500 in cash and $4,400 on account. The sales tax rate is 6%. Make the journal entry to record the sales and sales tax Installment notes: Remember that the monthly payment stays the same, but the amount of that payment that is interest continues to go down and the payment of the principal continues to go up. Assume that on January 1, the company borrows $50,000 from Chase Bank for 4 years at 5% interest. The installment payment is $1,200 every month. Calculate the interest amount and principal amount for the first and second monthsarrow_forwardQuestion 3 A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax. B. Bread and Basket Enterprise sells a mixture of supplies at standard rate, exempt and zero rate. The business made the following transactions during the month of June 2021: TRANSACTIONS Purchased computer supplies inclusive of GCT Sales inclusive of GCT Sales included some exempt items Sales included some zero-rated items Bought staff protective gears inclusive of GCT Sales returns exclusive of GCT totalled The business bought a small delivery truck excluding GCT Purchases of standard-rated products for resale (inclusive of GCT) Bad debts written off exclusive of GCT AMOUNTS $ 50,000 14,750,000 130,100 300,000 100,000 30,000 2,900,000 9,858,000 40,500 Required: i. Using the current rates, prepare the account showing the liability or refund for the month of June 2021. ii. Provide the notes for calculations of GCT.arrow_forward
- 4G 4G 10:14 O O 3 及 .00 01:56:22 Remaining Multiple Choice An offshore banking unit reimbursed the following personal expenses of its non-resident managerial employee during the quarter: Home owner association dues P8,000 Golf club membership dues-50% in the name of the employer P16,500 Groceries-50% in the name of the employer P34,000 Compute the fringe benefit tax. P17,904 P19,500 P27,192 P31,500 49 of 60 -> IIarrow_forwardExercise 7 - 8 (Algo) Sales returns [LO7 - 4] Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $390,000. During 2024, Halifax sold merchandise on account for $ 13,300,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $386,000 in sales for credit, with $213,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its…arrow_forwardd ing Enabled: Chapter 7 Required Homewor... i Albany International Corporation, originally the Albany Felt Company, is an industrial-goods company based in Rochester, New Hampshire. On June 30, Year 1, Albany International sold merchandise to its good customer ABC Inc. and accepted a noninterest- bearing note in exchange. The note requires payment of $35,000 on March 31, Year 2. The fair value of the merchandise exchanged is $33,950. Albany International views the financing component of this contract as significant. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required: 1. Please prepare journal entries for Albany International to record the sale of merchandise (please omit any entry that might be required for the cost of the goods sold), any December 31, Year 1 interest accrual, and the March 31, Year 2 collection. 2. What is the effective interest rate on the note? Prepare journal entries to record the sale of merchandise (omit any entry…arrow_forward
- Item5 10points Return to question Item 5 Lisa's Fashion Boutique operates in a state with 8 percent sales tax on all sales. DATE TRANSACTIONS 20X1 Feb. 2 Sold merchandise totaling $3,700 to customers using bank credit cards. Record the 11 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $3,200 to customers using American Express. 20 Received amount due from American Express, less their 12 percent discount, for sales made by customers using American Express on February 15. Required:Record the above transactions of Lisa’s Fashion Boutique in a general journal. (Round your intermediate calculations and final answers to 2 decimal places.) Prev Question 5 of 10 Total5 of 10 Visit question mapNextarrow_forward4G 10:21 A O N Z8 KB/s : 94 1. During 2019, Yamashita 10 points Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following the sale. The entity reported sales of P5,000,000 for 2019 and P6,000,000 for 2020. The actual expenditures incurred amounted to P150,000 for 2019 and P550,000 for 2020. QUESTION: What amount should be reported as warranty expense for 2019? * 500,000 200,000 250,000 300,000 2. Durina 2019. Yamashita 10 pointsarrow_forward31 - _____________________ / _____________________153 COMMERCIAL GOODS XX191 DEDUCTIBLE VAT XX320 SELLERS XX_____________________ / _____________________Which of the following belongs to the above journal entry?A) Returns B) Buy Discounts C) Purchase of Goods on Credit D) Sales Returns E) Sales of Goods on Creditarrow_forward
- SHOW 4-10A • LO 3 See Example 4-11 on page 4-22 MENOW Mattola Company is giving each of its employees a holiday bonus of $100 on December 13, 20-- (a nonpayday). The company wants each employee's check to be $100. The supplemental tax percent is used. a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? b. What would the net amount of each bonus check be if the company did not gross-up the bonus? 2$ 2$arrow_forwardQuestion 2 Calculate the Value-Added Tax (VAT) payable to / refundable by the South African Revenue Service (SARS) using the following information: Sales Cost of sales Machine purchased Salaries and wages R10,000 R4,000 R30,000 R2,500 Round off to the Nearest Rand and assume a VAT rate of 15%, where applicable. For every transaction, clearly indicate whether VAT is applicable or not. Question 3 Hewitt Enterprises is a business that buys and sells printers at a profit and has the following information available for the month of June 2020: • There were 100 printers in the warehouse on 1 June 2020. • On 10 June, 50 printers were bought from Printing Traders at R50 per printer. • Another purchase of 50 printers were made from the same company for the same price on 20 June. • 80 printers were sold during the month. The selling price for one printer is R90. Required Calculate the gross profit of Hewitt Enterprises for the month of June 2020. Ignore VAT.arrow_forward108B Chapter 6 Case 3 The net income of Cruz', a department store, decreased sharply during 20X5. Mark Cruz, owner of the store anticipates the need for a bank loan in 20X6. Late in 20X5 he instructed the accountant to record a P26,000 of furniture to the Cruz family, even though the goods will not be shipped from the manufacturer until January 20X6. Cruz also told the accountant not to make the following December 31, 20X5, adjusting entries: Salaries owed to employees Prepaid insurance that has expired P18,000 5,300 Required: 1. Compute the overall effect of these transactions on the store's reported income for 20X5. 2. Why did Cruz take this action? Is this action ethical? Give your reason, identifying the parties helped and the parties harmed by Cruz' action. 3. As a personal friend, what advice would you give the accountant?arrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
![Text book image](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)