In: Accounting
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.
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 |