In 2020, Pina Ltd., which follows IFRS, reported accounting
income of $1,178,000 and the 2020 tax rate was 20%. Pina had two
timing differences for tax purposes:
CCA on the company’s tax return was $476,500. Depreciation expense
on the financial statements was $283,000. These amounts relate to
assets that were acquired on January 1, 2020, for $1,906,000.
Accrued warranty expense for financial statement purposes was
$138,100 (accrued expenses are not deductible for tax purposes).
This is the first year Pina offers warranties.
Both of these timing differences will fully reverse over the next
four years, as follows:
Year | Depreciation Difference |
Warranty Expense |
Rate | |||
2021 | $67,500 | $19,100 | 20% | |||
2022 | 51,500 | 28,600 | 20% | |||
2023 | 40,500 | 40,000 | 18% | |||
2024 | 34,000 | 50,400 | 18% | |||
$193,500 | $138,100 |
Prepare the journal entries to record income taxes for 2020
In 2021 the government announced a further tax rate reduction will be effective for the 2024 taxation year. The new rate will be 15%. Prepare the journal entry to adjust deferred taxes for the reduced rate.
In: Accounting
RECORD IN JOURNAL ENTRY FORM
1. Record the journal entry for paying off a supplier invoice of $10,000 for raw materials on September 28th:
2. Record the journal entry for receive cash from a new shareholder who gave your company $300,000 in exchange for 3,000 shares of common stock, where the current market price is $100 per share.
3. Your company wants to expand your company to Seattle and lease office space downtown. You find an office building where you want your office to be for new employees, the landlord makes you pay 1 year of rent in advance for discount pricing at total cost of $225,000 for the year. Record the journal entry on day 1 when you sign the lease on 1st of October and pay in cash for the new office in Seattle:
In: Accounting
Your Professional Experience assignment is to develop a promotional message. This can be an email, letter, info graphic, image, or any other relevant material that answers why should students take a Professional Communications course.
In: Accounting
*Answer all of the questions, they are all necessary.
Prepare Adjusting Entries
3. Create a Financial Planner. The adjusted trial balance of Ryan Financial Planners appears below.
Using the information from the adjusted trial balance, you are to prepare for the month ending December 31, 2020:
1. an income statement.
2. a retained earnings statement.
3. a balance sheet.
Debit Credit
Cash ............................. $ 4,900
Accounts Receivable.......................................................................... 2,200
Supplies............................................................................................. 1,800
Equipment ......................................................................................... 20,000
Accumulated Depreciation—Equipment.......................................... $ 5,000
Accounts Payable.............................................................................. 3,800
Unearned Service Revenue............................................................... 5,000
Common Stock.................................................................................. 11,000
Retained Earnings.............................................................................. 4,400
Dividends........................................................................................... 2,000
Service Revenue................................................................................ 8,700
Supplies Expense............................................................................... 600
Depreciation Expense........................................................................ 3,500
Rent Expense..................................................................................... 2,900 ______
$37,900 $37,900
1. RYAN FINANCIAL PLANNERS
Income Statement
For the Month Ended December 31, 2020
2. RYAN FINANCIAL PLANNERS
Retained Earnings Statement
For the Month Ended December 31, 2020
3. RYAN FINANCIAL PLANNERS
Balance Sheet
December 31, 2020
Assets
Liabilities and Stockholders’ Equity
In: Accounting
You just won the $55 million Ultimate Lotto jackpot. Your winnings will be paid as $2,200,000 per year for the next 25 years. If the appropriate interest rate is 5.5 percent, what is the value of your windfall?
$30,494,340.24
$31,133,737.70
$29,510,651.84
$28,933,737.70
$28,035,119.25
In: Accounting
[The following information applies to the questions displayed below.]
Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp.
Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during the remainder of 2022:
November | 5 | Issue an additional 128,000 shares of common stock for $10 per share. | |
November | 16 | Purchase 12,800 shares of its own common stock (i.e., treasury stock) for $29 per share. | |
November | 24 | Resell 6,800 shares of treasury stock at $30 per share. | |
December | 1 | Declare a cash dividend on its common stock of $14,760 ($0.10 per share) to all stockholders of record on December 15. | |
December | 20 | Pay the cash dividend declared on December 1. | |
December | 31 | Pay $870,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. |
2. Great Adventures has net income of $40,604 in 2022. Retained earnings at the beginning of 2022 was $34,850. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2022. (Amounts to be deducted should be indicated with a minus sign.)
|
In: Accounting
2012 Corporate Tax Rate Schedule (partial) |
|||
Taxable Income Greater Than |
But Less Than Or Equal To |
Tax Is |
Of the amount exceeding |
$0 |
$50,000 |
15% |
$0 |
$50,000 |
$75,000 |
$7,500 + 25% |
$50,000 |
$75,000 |
$100,000 |
$13,750 + 34% |
$75,000 |
$100,000 |
$335,000 |
$22,250 + 39% |
$100,000 |
JKEB Corporation has the following revenues and expenses for the current tax year:
Sales revenue, net of returns . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Dividend Income (less than 20% owned investees) . . . . . . . . . . 25,000
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Normal business expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
1. What is JKEB Corporation’s dividends-received deduction for the current tax year?
2. Assuming that JKEB Corporation’s normal business expenses were $82,000 instead of $40,000, compute its dividends-received deduction for the current tax year.
JKEB Corporation incurred the following capital gains and losses in tax year 2012:
Short Term Capital Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000
Short Term Capital Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,000)
Long Term Capital Gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Long Term Capital Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,000)
JKEB’s prior corporate tax returns reflect the following net capital gain/ (loss):
2008 - $6,000 gain
2009—$8,000 gain
2010—($3,000) loss
2011—$1,000 gain
3. Calculate the net capital gain (loss) for 2012. How is this reported on the 2012 Form 1120?
4. Calculate the amount of capital loss carryback (if any) to tax years 2008 through 2011 inclusive.
5. Calculate the amount of capital loss carryforward (if any) to 2013. How will this loss be treated in 2013 (i.e., as a short-term or long-term capital loss)?
JKEB Corporation had the following items during its 2012 tax year:
Net income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Dividends received (from less than 20% owned investees). . . . . . . . . . . 10,000
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Net operating loss carryover from 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Long-term capital gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Long-term capital losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Short-term capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Capital loss carryover from 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000
Tax Credit………………………………………………………………… 4,500
6. Compute JKEB Corporation’s 2012 taxable income and income tax liability before tax credits.
7. What are the nature and amount of any carryovers to 2013?
8. What is the taxable amount due after using the tax credit?
In: Accounting
Analyzing Accounts Using Adjusted Data Selected T-account balances for Fields Company are shown below as of January 31, 2014; adjusting entries have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments. Supplies (A) Jan.31 Bal 3,200 Supplies Expense (E) Jan.31 Bal 3,840 Prepaid Insurance (A) Jan.31 Bal 2,296 Insurance Expense (E) Jan.31 Bal 328 Wages Payable (L) Jan.31 Bal 2,000 Wages Expense (E) Jan.31 Bal 12,800 Truck (A) Jan.31 Bal 34,800 Accumulated Depreciation-Truck (XA) Jan.31 Bal 9,860 (a) If the amount in Supplies Expense represents the January 31 adjustment for the supplies used in January, and $2,480 worth of supplies were purchased during January, what was the January 1 beginning balance of Supplies? $Answer 4,560 (b) The amount in the Insurance Expense account represents the adjustment made at January 31 for January insurance expense. If the original insurance premium was for one year, what was the amount of the premium and on what date did the insurance policy start? $Answer 3,936 May 1, 2013 June 1, 2013 July 1, 2013 August 1, 2013 September 1, 2013 October 1, 2013 November 1, 2013 (c) If we assume that no beginning balance existed in Wages Payable or Wages Expense on January 1, how much cash was paid as wages during January? $Answer 10,800 (d) If the truck has a useful life of five years, what is the monthly amount of depreciation expense? $Answer 580 How many months has Fields owned the truck? Answer 17 months
In: Accounting
Visit your favorite restaurant. Observe its business operations. 1. Describe all the business activities from the time a customer arrives to the time that customer departs. 2. List all the costs you can identify with the separate activities described in part 1. 3. Classify each cost from part 2 as fixed or variable and explain your classification. 4. Classify each cost from part 2 as direct or indirect and explain your classification. 5. Classify each cost from part 2 as product or period and explain your classification. If you classify a cost as product, indicate whether it is direct material, direct labor, or overhead cost.
In: Accounting
Nova Company’s total overhead cost at various levels of activity are presented below:
Month | Machine- Hours |
Total Overhead Cost |
|||
April | 50,000 | $ | 190,900 | ||
May | 40,000 | $ | 164,400 | ||
June | 60,000 | $ | 217,400 | ||
July | 70,000 | $ | 243,900 | ||
Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is:
Utilities (variable) | $ | 60,000 |
Supervisory salaries (fixed) | 41,000 | |
Maintenance (mixed) | 63,400 | |
Total overhead cost | $ | 164,400 |
Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements.
Required:
1. Estimate how much of the $243,900 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $243,900 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.)
2. Using the high-low method, estimate a cost formula for maintenance in the form Y = a + bX.
3. Express the company’s total overhead cost in the form Y = a + bX.
4. What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours?
In: Accounting
detailed swot analysis for marriott
international
(strengths
weaknesses
opportunities
threats)
In: Accounting
On October 1, 2017, Vaughn, Inc., leased a machine from Fell Leasing Company for five years. The lease requires five annual payments of $10,000 beginning September 30, 2018. Vaughn’s incremental borrowing rate is 11%, and it uses a calendar year for reporting purposes. The machine has a 12-year economic life with zero salvage value. Vaughn correctly classifies the lease as an operating lease under ASU 2016-02. Using (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: At what amount should Vaughn record the leased equipment on October 1, 2017? (Round your answer to the nearest whole dollar.) What is the amount of rent expense that Vaughn should record for the year ended December 31, 2017, and for the year ended December 31, 2018? How much of the lease liability should be classified as current on December 31, 2017, and December 31, 2018? (Round your intermediate calculations and final answers to 2 decimal places.)
In: Accounting
The IRS may not waive an invalid S corporation election if the failure is caused by: A. a failure to obtain required consents. B. a reasonable cause for a late election. C. a shareholder refusing to sign the consent during the IRS-approved extension period. D. an inadvertent failure to qualify as a small business corporation based on extenuating circumstances.
In: Accounting
a). The below calculation indicated on the both parameter of short run and life time profit ,option 3 is one of the most suitable for advertisement of the company, calculated below.
Costs |
Opt. 1 Mon. Online Magazine |
Opt.2 Affiliated Retail Store |
Opt. 3 Search Engine |
Variable |
$0 |
$0.25/click |
$0.005/click |
Total variable cost |
1445 |
420 |
|
Fixed |
$500 |
$50 |
Auction |
Total Cost |
$500 |
$1,495 |
$420 |
Outcomes |
|||
Expected Clicks |
1,550 |
5,780 |
84000 |
Average Pg. views |
20 |
5 |
1.5 |
% of Clicks Converted |
7% |
3% |
0.14% |
Profit |
|||
Short term($3.5/client) |
$379.75 |
$606.90 |
$411.60 |
Long Term ($25/client) |
$2,712.50 |
$4,335.00 |
$2,940.00 |
Profit / Total cost |
|||
Short term |
0.7595 |
0.405953177 |
0.98 |
Long term |
5.425 |
2.899665552 |
7 |
b). To determine the benefits of an advertising campaign, should Hula Island use the profit on the first sale or the expected lifetime profits? Why?
c). To choose between advertising campaigns, should Hula Island use the total expected profits or the ratio of total expected profits to advertising costs? Why?
2. Using your answer from Question 1 (either short-run or lifetime, total expected profits, or the ratio of total expected profits to advertising costs), determine the winner of the comparison between Options 1 and 2. Advertising Option 3 is different from the other two options in that the auction determines the fixed advertising cost. Assume Hula wins the search engine auction with a bid of $105. Which advertising option (1, 2, or 3) would you recommend to management?
In: Accounting
At the beginning of 2019, Hardin Company had 230,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:
March | 1 | Issued 46,000 shares of stock at $25 per share. |
June | 1 | Issued a 20% stock dividend. |
July | 1 | Issued 9,000 shares of stock at $30 per share. |
Aug. | 31 | Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. |
Oct. | 31 | Reacquired 97,000 shares as treasury stock at a cost of $33 per share. |
Nov. | 30 |
Reissued 49,000 treasury shares at a price of $36 per share. |
1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number.
Determine the number of common shares outstanding at December 31, 2019.
In: Accounting