Oriole Corporation recorded warranty accruals as at December 31, 2023, in the amount of $154,000. This reversing d cause deductible amounts of $50,300 in 2024. $38,200 in 2025, and $65,500 in 2026. No other reversing difference e accounting income is $166,000 in each of 2024 and 2025 and the tax rate is 25% for all years. The ditu
Q: Calculate the number of units that must be sold in order to realize an operating income of $153,000…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Q. 6. Compute the complement rate and the net price using the complement method. List Trade…
A: The complement rate is the value that remains after deducting the trade discount. Other than this…
Q: A citizen group raised funds to establish an endowment for the Eastville City Library. Under the…
A: The report on performance is an essential instrument for evaluating the sustainability and financial…
Q: The following information is for the inventory of mini-kettles at Bramble Company Limited for the…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: please solve for these questions: b-1. What is the labor efficiency variance? b-2. What is the…
A: Variance analysis is a method of measuring the difference between the standard numbers expected by…
Q: rements 2A through 4 agai
A: Budget is the estimation of revenue and expenses prior to starting the operation. To manage the…
Q: Marcus purchased Vinnie and Marie’s personal residence for $225,000 cash and the assumption of their…
A: The objective of the question is to calculate the amount of gain that Vinnie and Marie should…
Q: Dok int ences E-Tech Initiatives Limited plans to issue $640,000, 10-year, 6.50 percent bonds.…
A: Issuing bonds at a premium occurs when a company sells its bonds to investors at a price exceeding…
Q: A company reports the following amounts at the end of the year (before adjustment): (If no entry is…
A: The Receivables as a Percentage method, often called the balance sheet approach, calculates the…
Q: Required information Gable Company uses three activity pools. Each pool has a cost driver…
A: The activity-based costing is used to distribute the overhead. This method is used to allocate the…
Q: During 2020, Jesse Jericho Enterprises Corporation recorded credit sales of $786,000. At the…
A: The receivable turnover ratio is computed by dividing the net credit sales during a period by the…
Q: 24. Which of the following, if any, correctly describes the earned income credit? a. Would be…
A: EIC is the facility available for certain taxpayers having low or moderate income. For availing EIC,…
Q: Concord Limited, a public company that follows IFRS and has a calendar year end, made the following…
A: Trading securities are financial assets that are held by a company for the purpose of generating…
Q: Maggy has a $6,000 outstanding HBP balance against which she must make minimum payments of $1,000…
A: If you repay any HBP installment more than what is required (i.e., minimum installment) then you…
Q: If FG Inventory had no ending balance but Cost of Goods Sold was $681,000, what was the beginning…
A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…
Q: Futura Company purchases 75,000 starters from a supplier at $11.10 per unit that it installs in farm…
A: The "make or buy" concept in cost management involves deciding whether to produce a product or…
Q: In 1998, Novak Company completed the construction of a building at a cost of $2,500,000 and first…
A: Depreciation is the method of reducing the hysterical cost of the fixed asset with respect to the…
Q: Establish a six-month sales curve for a department given the following sales
A: Sales percent, sometimes referred to as sales percentage, is a measurement that indicates the share…
Q: A company establishes a depreciation account for an asset that is classified as Sec.1245property.…
A: Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…
Q: Distinct features between management accounting and financial accounting
A: The objective of this question is to distinguish between management accounting and financial…
Q: Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the…
A: A financial statement that summarizes the changes in a company's equity during a given time period…
Q: The following information pertains to the physical inventory of Electronics Unlimited taken at…
A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be value at lower of cost or…
Q: urrent ratio and accounts re
A: A company's liquidity and ability to satisfy its short-term financial obligations can be determined…
Q: When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset…
A: Common stock, also known as common shares or equity, represents power in a pot. When an individual…
Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…
A: The flexible budget is prepared for actual level of production. The planning budget is prepared for…
Q: Required information [The following information applies to the questions displayed below.] Brianna's…
A: The Inventory valuation methods are as fallowsA) The first in first out method states that units…
Q: Define measurement as per the conceptual framework. List and briefly explain the measurement methods…
A: The conceptual framework does not prescribe a specific measurement base that must be used…
Q: Larkspur Golf Inc. was formed on July 1, 2024, when Matt Magilke purchased the Old Master Golf…
A: Intangible assets are typically intellectual assets. Because of how intangible assets are…
Q: Ivanhoe Corporation reported the following information for the year ended December 31: Balance sheet…
A: It is a section of the Statement of cash flow that explains the sources and uses of cash from the…
Q: The transactions relating to the formation of Blue Company Stores Incorporated, and its first month…
A: The financial statement is the statement prepared by the business entity that reflects the financial…
Q: Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for…
A: The flexible budget is prepared for actual level of production. The standard costs data is used to…
Q: Selected financial statement information for 2018, 2019, and 2023 for EndRun Corporation is…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: The following transactions pertain to Smith Training Company for Year 1: January 30 Established the…
A: Every company maintains its records under which it prepares the financial statements which include…
Q: Alankar Ltd. commenced business on 1st January 2018, when they purchased plant and equipment for…
A: Depreciation is the method of reducing purchase cost of the asset at the end of each year. It…
Q: Journalize the corporations transactions for 2024 and use the image attached stating the short…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: [The following information applies to the questions displayed below] A local theater company sells…
A: Liabilities is the amount of money owed by the entity to the creditors and suppliers. These are…
Q: Calculate the property tax rate required to meet the budgetary demands of the community. Note: When…
A: The property tax is the tax levied on the value of property. The formula for computing property tax…
Q: On June 1 , Michelob signed up and paid $1,200 to Master Brewer Inc. for a 6 month brewing course…
A: As per IFRS 115 Revenue from contract with customers. Revenue is to recognized only after…
Q: Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Jan. 1 Prepare a…
A: The accounting equation is a fundamental principle in accounting that represents the relationship…
Q: On December 1, 2022, Coronado Company had the account balances shown below. Cash Accounts Receivable…
A: The Last in, First Out (LIFO) technique of inventory costing operates under the assumption that…
Q: Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…
A: Cash Payment Budget :— This budget is prepared to estimate the cash payment for accrued expenses…
Q: Q.2, Compute the total commission for the following commission payment plan. Graduated Commission…
A: The sales revenue indicates the income generated by selling the product in the competitive market.…
Q: These account balances at December 31 relate to Sportaid Inc.: Accounts Payable... Accounts…
A: According to the question given, we need to compute the return on the shareholders' equity.Financial…
Q: Green Company sells its single product for $75 per unit. Variable costs are $54 per unit and the…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Direct materials: 6 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $7.30 per…
A: Variance analysis is the difference between the standard performance and the actual performance,…
Q: Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. its standard…
A: The variance is the difference between the standard and actual cost production data. The variance…
Q: O No lain your answer. serves appear on the Click to select) side and securi met and so the changes…
A: The primary authority in charge of overseeing the money supply, managing the country's currency, and…
Q: Kuhn Shoes purchased a lacing machine on January 2, 2012 for $255,000. The machine was being…
A: The question is based on the concept of Depreciation Accounting.Depreciation is the decrease in the…
Q: Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: 5. During the year, changes in the market resulted in a significant decrease products, which are now…
A: a) Unqualified opinion:An unqualified opinion is issued when the auditor concludes that the…
Step by step
Solved in 3 steps
- Q. Hunt Co began operations in 2025. Estimated warranty expense of $800,000 will be deductible in 2026, $300,000 in 2027, and $100,000 in 2028. The use of the depreciable assets will result in taxable amounts of $650,000 in each of the next three years. Pretax financial income was $950,000. Instructions (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming an income tax rate of 20% for all years.Book Sherrod, Incorporated, reported pretax accounting income of $82 million for 2024. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2024 had a balance of $8 million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. b. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2024. The fine is to be paid in equal amounts in 2024 and 2025. c. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of $84 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight- line depreciation the…Swifty Corporation recorded warranty accruals as at December 31, 2020 in the amount of $151,800. This reversing difference will cause deductible amounts of $50,300 in 2021, $36,000 in 2022, and $65,500 in 2023. No other reversing difference exists. Swifty’s accounting income for 2020 is $144,000 and $175,000 in each of 2021 and 2022 and the tax rate is 25%. There are no deferred tax accounts at the beginning of 2020. Swifty Corporation was informed on December 31, 2021 that the enacted rate for 2022 and subsequent years is 28%. Calculate the deferred tax balances at December 31, 2021, and 2022. 2021 2022 Deferred tax asset $ $ eTextbook and Media List of Accounts Calculate taxable income and income tax payable for 2021 and 2022. 2021 2022 Taxable income $ $ Income tax payable $ $
- J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $45,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2018. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warrantypayments are expected to be in equal amounts over the next three years. Recent tax legislation will change thetax rate from the current 40% to 30% in 2020. Determine the amounts necessary to record J-Matt’s income taxesfor 2018 and prepare the appropriate journal entry.Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $80 million. At December 31, 2020, Lance reported a deferred tax asset of $461,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year. Required:Prepare the appropriate journal entry to record Lance’s income tax provision for 2021.
- Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $75 million. At December 31, 2020, Lance reported a deferred tax asset of $471,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the appropriate journal entry to record Lance's income tax provision for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet > Record 2021 income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journalSherrod, Incorporated, reported pretax accounting income of $96 million for 2024. The following information relates to differences between pretax accounting income and taxable income: a. Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2024 had a balance of $8 million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. b. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for violation of a federal law in 2024. The fine is to be paid in equal amounts in 2024 and 2025. c. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of $112 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the…Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 690,000 Estimated warranty expenses deductible for taxes when paid 1,140,000 (1,632,000) $ 198,000 Extra depreciation Taxable income Estimated warranty expense of $830,000 will be deductible in 2022, $240,000 in 2023, and $70,000 in 2024. The use of the depreciable assets will result in taxable amounts of $544,000 in each of the next three years. Prepare a table of future taxable and deductible amounts. 2022 Future taxable(deductible) amounts Warranties Excess Depreciation Date 2023 Account Titles 2024 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021. Assuming an income tax rate of 30% for all years. TOTAL Debit Credit
- Pronghorn Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2020. In that year, Pronghorn sold products for $2.14 million and spent $68,900 servicing warranty claims. At year end, Pronghorn estimates that an additional $520,800 will be spent in the future to service warranty claims related to the 2020 sales. Prepare entries for the warranty that recognize the sale as a multiple deliverable with the warranty as a separate service that Pronghorn bundled with the selling price of the product. Ignore any cost of goods sold entry. Sales in 2020 occurred evenly throughout the year. Warranty agreements similar to this are available separately, are estimated to have a stand-alone value of $619,900, and are earned over the warranty period as follows: 2020-25%, 2021-50%, and 2022-25%. Also prepare the entries to record the $68,900 expenditure for servicing the warranty during 2020, and the adjusting entry required at year end, if any, under…Sherrod, Incorporated, reported pretax accounting income of $86 million for 2024. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by $5 million. The installment receivable account at year-end 2024 had a balance of $6 million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for violation of a federal law in 2024. The fine is to be paid in equal amounts in 2024 and 2025. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of $92 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two…Sherrod, Incorporated, reported pretax accounting income of $86 million for 2024. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2024 exceeded that reported for tax purposes by $5 million. The installment receivable account at year-end 2024 had a balance of $6 million (representing portions of 2023 and 2024 installment sales), expected to be collected equally in 2025 and 2026. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for violation of a federal law in 2024. The fine is to be paid in equal amounts in 2024 and 2025. Sherrod rents its operating facilities but owns one asset acquired in 2023 at a cost of $92 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two…