Bundle: College Accounting, Chapters 1-9, Loose-leaf Version, 23rd + Cengagenowv2, 1 Term Printed Access Card, Chs. 1-9 + Study Guide With Working Papers, Chs. 1-9
23rd Edition
ISBN: 9780357069257
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Chapter 21, Problem 1SEB
1.
To determine
Journalize the payment of income tax expense on April 15.
2.
To determine
Journalize the recognition of additional income tax payment.
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Matrix Corporation estimated at the beginning of 20-- that its income tax for the year would be $140,000.
1. Calculate the estimated income tax payment per quarter and show one of the quarterly entries to pay the taxes. If an amount box
does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Apr. 15
1
2. As of December 31, 20--, Matrix Corporation had an actual tax liability of $143,200. Calculate the income tax due and make the
necessary adjusting entry. If an amount box does not require an entry, leave.it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Dec. 31
2
2.
Fanta Ltd has paid the following PAYG tax installments for the year ended 30 June:
September quarter
$11,000
December quarter
$11,000
March quarter
$11,000
June quarter
$11,000
Total
$44,000
Taxable income for the year ended 30 June, was $168,000. Company tax rate is 30%.
Required: Prepare general journal entries to record the company’s income tax instalments and final payment.
Ultimate Accounting Services has the following payroll information for the week ending in December 7. State Income Tax is computed as 20 percent of Federal Income Tax.
Name
BeginningCumulativeEarnings
TotalEarnings
Deductions
FederalIncome Tax
StateIncome Tax
Trouble, M.
7,000.00
580.00
50
10
Dainty, D.
6,540.00
470.00
36
7.2
Joyner, T.
25,600.00
680.00
75
15
Madison, W.
45,000.00
900.00
92
18.4
Frank, G.
90,200.00
1,100.00
245
49
Thomas, R.
35,000.00
890.00
46
9.2
Assumed tax rates are as follows:
FICA: Social Security, (employer) 6.2 percent (0.062) and (employee) 6.2 percent (0.062) on the first $118,500 for each employee, and Medicare, 1.45 percent (0.0145) on all earnings for each employee.
State unemployment tax, 5.4 percent (0.054) on the first $7,000 for each employee.
Federal unemployment tax, 0.6 percent (0.006) on the first…
Chapter 21 Solutions
Bundle: College Accounting, Chapters 1-9, Loose-leaf Version, 23rd + Cengagenowv2, 1 Term Printed Access Card, Chs. 1-9 + Study Guide With Working Papers, Chs. 1-9
Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TFCh. 21 - Prob. 3TFCh. 21 - Prob. 4TFCh. 21 - Prob. 5TFCh. 21 - Prob. 1MCCh. 21 - Prob. 2MCCh. 21 - Prob. 3MCCh. 21 - Prob. 4MCCh. 21 - Prob. 5MC
Ch. 21 - Prob. 1CECh. 21 - Prob. 2CECh. 21 - Teway Company declared and paid dividends in the...Ch. 21 - Prob. 4CECh. 21 - Prob. 5CECh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - CORPORATE INCOME TAX Stanton Company estimates...Ch. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - Prob. 3SEACh. 21 - STOCK DIVIDENDS Kaufman Company currently has...Ch. 21 - STOCK SPLIT Goldstein Company has 100,000 shares...Ch. 21 - Prob. 6SEACh. 21 - STATEMENT OF RETAINED EARNINGS McGregor Company...Ch. 21 - Prob. 8SPACh. 21 - Prob. 9SPACh. 21 - Prob. 10SPACh. 21 - Prob. 11SPACh. 21 - Prob. 1SEBCh. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - COMMON AND PREFERRED CASH DIVIDENDS Ramirez...Ch. 21 - STOCK DIVIDENDS Martinez Company currently has...Ch. 21 - Prob. 5SEBCh. 21 - Prob. 6SEBCh. 21 - Prob. 7SEBCh. 21 - Prob. 8SPBCh. 21 - CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT...Ch. 21 - Prob. 10SPBCh. 21 - Prob. 11SPBCh. 21 - Prob. 1MYWCh. 21 - Prob. 1ECCh. 21 - MASTRY PROBLEM On January 1, 20--, Dover Companys...Ch. 21 - CHALLENGE PROBLEM This problem challenges you to...
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