INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Question
Chapter 4, Problem 4.10BE
To determine
Comprehensive income:
It’s a measure of company’s total income that includes unrealized gain that has not been received like gain on available for sale securities.
To prepare: A separate statement of comprehensive income for 2018.
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Sales revenue, $
Interest revenue, $
Expenses, $
Depreciation, S
Company 1
1,500,000
31,000
-754,000
48,000
Company 2
820.000
25,000
-591,000
18,000
a.
Calculate the federal income tax for the year for each company
b. Determine what percentage of each company's sales revenue was paid in taxes.
C. Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage
error made relative to the exact taxes in part (a).
Net Income
Interest
(Loss)
$ 185, 000
179, 600
157, 250
188, 100
Expense
$ 59,200
80, 820
Income Taxes
a.
$ 46, 250
b.
64, 656
66,045
90, 288
C.
44, 030
11, 286
d.
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
Complete this question by entering your answers In the tabs below.
Times Interest
Interest
Earned Ratio
Coverage
Compute times interest earned.
Times Interest Earned Ratio
Company
Choose Numerator:
Choose Denominator:
Ratio
%3D
%3D
times
times
times
!!
times
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Interest Coverage >
4...
4
Sunland Company has the following two temporary differences between its income tax expense and income taxes payable.
2020
2021
2022
Pretax financial income
$842,000
$956,000
$914,000
Excess depreciation expense on tax return
(28,800
)
(39,300
)
(9,900
)
Excess warranty expense in financial income
20,400
9,500
7,600
Taxable income
$833,600
$926,200
$911,700
The income tax rate for all years is 20%.
(a)
Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
2020…
Chapter 4 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q
Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Multiple -step income statement LO41, LO43 Refer...Ch. 4 - Prob. 4.3BECh. 4 - Multiple -step income statement LO41, LO43 The...Ch. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Discontinued operations LO44 Refer to the...Ch. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Profitability ratios LO410 The 2018 income...Ch. 4 - Prob. 4.17BECh. 4 - Inventory turnover ratio LO410 During 2018, Rogue...Ch. 4 - Operating versus Nonoperating Income LO41 Pandora...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Income statement format; single step and multiple...Ch. 4 - Multiple-step continuous statement of...Ch. 4 - Income statement presentation LO41, LO45 The...Ch. 4 - Prob. 4.6ECh. 4 - Income statement presentation; discontinued...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Discontinued operations; disposal in subsequent...Ch. 4 - Earnings per share LO45 The Esposito Import...Ch. 4 - Comprehensive income LO46 The Massoud Consulting...Ch. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - IFRS; statement of cash flows LO48, LO49 Refer to...Ch. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Statement of cash flows; direct method LO48 Refer...Ch. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Evaluating efficiency of asset management LO410...Ch. 4 - Profitability ratios LO410 The following...Ch. 4 - Prob. 4.28ECh. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Comparative income statements; multiple-step...Ch. 4 - Discontinued operations LO44 The following...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Restructuring costs; Discontinued operations;...Ch. 4 - Income statement presentation; Restructuring...Ch. 4 - Income statement presentation; Discontinued...Ch. 4 - Income statement presentation; statement of...Ch. 4 - Multiple-step statement of income and...Ch. 4 - Statement of cash flows LO48 The Diversified...Ch. 4 - Integration of financial statements; Chapters 3...Ch. 4 - Statement of cash flows; indirect method LO48...Ch. 4 - Calculating activity and profitability ratios ...Ch. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Creating a balance sheet from ratios; Chapters 3...Ch. 4 - Prob. 4.15PCh. 4 - Interim financial reporting Appendix 4 Branson...Ch. 4 - Prob. 4.1BYPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3BYPCh. 4 - Prob. 4.4BYPCh. 4 - Prob. 4.5BYPCh. 4 - Prob. 4.6BYPCh. 4 - Prob. 4.7BYPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10BYPCh. 4 - Integrating Case 412 Balance sheet and income...Ch. 4 - Prob. 4.13BYPCh. 4 - Prob. 4.17BYPCh. 4 - Prob. 4.18BYPCh. 4 - Continuing Cases Target Case LO43, LO44, LO46,...
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- Net Income Interest (Loss) $ 185, 000 179, 600 157, 250 188, 100 Expense $ 59, 200 Income Taxes $ 46, 250 64,656 66, 045 90, 288 a. b. 80, 820 44,030 11, 286 c. d. Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Complete this question by entering your answers In the tabs below. Times Interest Interest Earned Ratio Coverage Which company indicates the strongest ability to pay interest expense as it comes due? Which company indicates the strongest ability to pay interest expense as it comes due? < Times Interest Earned Ratioarrow_forwardPROBLEM 2 Complex Company reported the following information relating to income before the 30% tax for accounting purposes: 2021 P 2,000,000 2022 3,000,000 2023 4,000,000 2024 5,000,000 In 2021, Complex Company recognized doubtful accounts of P100,000. Such accounts were considered worthless or uncollectible in 2022, P40,000 and 2023, P60,000. Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2021 that has been recognized as taxable income in 2021 when the cash was received. Also, on December 31, 2021, estimated warranty cost of P300,000 had been recognized as expense on the books in 2021 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2021 is realized and the actual warranty payments were made as follows: Rent income per books Actual warrant payments 2022 P 40,000 P…arrow_forwardProblem 16-6 (IAA) Complex Company reported the following information relating to income before tax for accounting purposes: 2021 2022 2023 2024 Income tax rate In 2021, the entity recognized doubtful accounts of P100,000. The doubtful accounts were considered worthless or uncollectible in 2022. 2,000,000 3,000,000 4,000,000 5,000,000 25% Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2021 that had been recognized as taxable income in 2021 when the cash was received. Also on December 31, 2021, estimated warranty cost of P300,000 had been recognized as expense on the books in 2021 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2021 was realized and the actual warranty payments were made in the following years: Rent income per book Actual warranty payments 40,000 40,000 40,000 2022' 2023 2024 20,000 80,000 200,000 Required: 1. Prepare journal entries for 2021,…arrow_forward
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