Q1. Company ABC has the following income: 2014 $10,000 2015 $15,000 2016 $(1,000) 2017 $(30,000) 2018...

Q1. Company ABC has the following income: 2014 $10,000 2015 $15,000 2016 $(1,000) 2017 $(30,000) 2018 $5,000 Please JEs to record loss carryback and forward for 2016, 2017 and 2018 Q2. Company ABC bought an equipment for $20,000 in 2015, with useful life of 5 years $5,000 residual value amortized using straight-line method. Prepare a table to illustrate the differences accounting income vs taxable income caused by this equipment. Assume, this equipment was sold at the end of2017 for $11,000. Please prepare JEs for 2015, 2016 and 2017 Q3. Company ABC has accounting income $500 for year 2016, 2017 and 2018, with following balance 2015 2016 2017 2018 Accounts Payable 100 110 120 90 Unearned Revenue 100 50 30 0 Prepaid Expense 100 80 40 0 Accounts Receivable 100 110 80 100 What are the taxable income for 2016, 2017 and 2018? Prepare all related JEs for these three years.

Expert Solution

Year	2014	2015	2016	2017	2018
Income	10000	15000	-1000	-30000	5000
CF Balance In Balance sheet	10000	25000	24000	-6000	-1000

2014	Dr	Cr
Profit And loss	10000
Capital Ac		10000
2015
Profit And loss	15000
Capital Ac		15000
2016
Capital Ac	1000
Profit And loss		1000
2017
Capital Ac	30000
Profit And loss		30000
2018
Profit And loss	5000
Capital Ac		5000

Transaction in 2015
Asset Buy Value	20000
Residual Value	5000
Depricable value in 5 year	15000
deprication per year	3000
Asset value at year end 2015	12000
Deprication for 2015	3000
Asset value at year end 2016	9000
Deprication for 2016	3000
Asset value at year end 2017	6000
Deprication for 2017	3000
Sale value Received	11000
Gain on transaction	5000

2015	Dr	Cr
Assets A/c	20000
cash Ac		20000
Profit And loss	3000
Deprication		3000
2016
Profit And loss	3000
Deprication		3000
2017
Profit And loss	3000
Deprication		3000
cash Ac	11000
Assets A/c		11000
gain on Sale of Assets	5000
Profit And loss		5000

Year	2015	2016	2017	2018
Unearned income	0	100	50	30
Income	0	500	500	500
Unearned income	100	50	30	0
rent	0	100	80	40
Taxable income	-100	450	440	490
AP	100	110	120	90
AR	100	110	80	100
Prepaid Rent	100	80	40	0
Unearned income	100	50	30	0

Je	2015		2016		2017		2018
1	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
income	0		500		500		500
To profit and loss		0		500		500		500
2
profit and loss A/c	100		50		30		0
To unearned income		100		50		30		0
3
unearned income	0		100		50		30
To profit and loss		0		100		50		30
4
profit and loss A/c	0		100		80		40
rent		0		100		80		40
5
prepaid rent	100		80		40		0
profit and loss A/c		100		80		40		0

ekkarill92 answered 2 years ago

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