Consider that 2018 was Rail Company's first year of operations. Rail reported $665,000 of total revenue...

Consider that 2018 was Rail Company's first year of operations. Rail reported $665,000 of total revenue for the twelve months ended 12/31/2018, and reported the following normal account balances as of 12/31/2018:

1 Accounts Payable $4,000 10 Note Payable $68,950

2 Accounts Receivable 50,000 11 Office Supplies 2,300

3 Accumulated Depreciation 84,070 12 Prepaid Advertising Expense 5,000

4 Cash 23,950 13 Prepaid Insurance Expense 3,300

5 Common Stock 172,500 14 Rent Payable 3,200

6 Dividends 50,000 15 Salaries Payable 5,200

7 Dividends Payable 5,500 16 Shop Supplies 5,800

8 Equipment 267,200 17 Utilities Payable 1,630

9 Land 35,000

Consider the above information and determine the amount of total expense incurred by Rail Company for the year ended 12/31/2018.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Lui Company's 2010 income statement reported total sales revenue of $350,000.

Lui Company's 2010 income statement reported total sales revenue of $350,000. The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000. The 2010 "cash receipts from customers" would be: (2 points) a. $270,000 b. $250,000 c. $330,000 d. $40,000

Razorback Financial Corp., in its first year of operations in 2018, reported pretax financial income of...

Razorback Financial Corp., in its first year of operations in 2018, reported pretax financial income of $100,000. An investigation of that income revealed the following items:Fines from FDIC for improper practices of $20,000.Installment sales of $30,000 are recognized in financial income. These sales are accounted for by the installment sales method for income tax purposes. Only $10,000 was reported on the tax return.Warranty expenses of $15,000 were accrued for financial reporting purposes, but are not expected to result in a...

During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss of...

During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss of $405,000 for financial reporting and tax purposes. The enacted tax rate is 40%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward. 2. Show the lower portion of the 2018 income statement that...

Forecasting A) Dexter Company reported the following 2018 income statement Total revenue $13,256,500 Cost of revenue...

Forecasting A) Dexter Company reported the following 2018 income statement Total revenue $13,256,500 Cost of revenue 7,066,300 Gross profit 6,190,200 Selling and administrative expenses 3,758,200 Operating income 2,432,000 Interest expense 572,800 Income before income taxes 1,859,200 Income tax expense 687,905 Net income $ 1,171,295 Forecast Dexter’s income statement assuming a 5% increase in sales, a 17% effective tax rate, and a continuation of the 2018 percentage relation to net sales for expenses except for interest where the company...

Question 3 (20 MARKS) During 2018, Vancare Company first year of operations, the company reported pretax...

Question 3 During 2018, Vancare Company first year of operations, the company reported pretax financial income of $580,000. Vancare’s enacted tax rate is 35% for 2018 and 40% for all later years. Vancare expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2018, are summarized below. FUTURE YEARS 2019 2020 2021 2022 2023 Total Future taxable (deductible) amounts Instalment sales $80,000 $80,000 $80,000 $240,000...

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and...

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $204,000 and Total Liabilities of $78,500. During the year, the company reported total revenues of $237,000 and expenses of $183,500. Also, owner withdrawals during the year totaled $50,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $176,000. $129,000. $201,500. $123,000. $126,000.

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets...

At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $165,000; Total Liabilities = $24,300; Total Paid-in capital of $56,700; and Retained earnings = $84,000. During the year, the company reported revenues of $49,600 and expenses of $32,400. In addition, dividends for the year totaled $21,600. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and...

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $294,000 and Total Liabilities of $113,500. During the year, the company reported total revenues of $347,000 and expenses of $268,500. Also, owner withdrawals during the year totaled $70,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice $189,000. $256,000. $186,000. $296,500. $183,000.

In 2018, X Company's revenue was $198,000, its total variable costs were $122,760, and its fixed...

In 2018, X Company's revenue was $198,000, its total variable costs were $122,760, and its fixed costs were $92,400. In 2019, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $14,784. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $41,600 after taxes in 2019?

As of the end of the first year of operations, the projected total current assets is?

A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years. Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals....

Subjects